EXTENSION OF TEMPORARY EMPHYTEUSIS IN A CONTRACT FOR A COMMERCIAL PREMISES TRANSFERRED FROM THE GOVERNMENT, THE

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE LANDS

AUTHORITY OR ECCLESIASTICAL ENTITIES BY TITLE

OF EMPHYTEUSIS

SUBSIDIARY LEGISLATION 573.08

EXTENSION OF TEMPORARY EMPHYTEUSIS IN A

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE

LANDS AUTHORITY OR ECCLESIASTICAL

ENTITIES BY TITLE OF EMPHYTEUSIS

REGULATIONS

15th September, 2020

LEGAL NOTICE 369 of 2020.

The title of these regulations is Extension of Temporary

Emphyteusis in a Contract for a Commercial Premises Transferred from

the Government, the Lands Authority or Ecclesiastical Entities by Title

of Emphyteusis Regulations.

In these regulations, unless the context otherwise

requires

"Authority" means the Lands Authority established in

accordance with article 5 of the Lands Authority Act or any

person or any other entity that has been entrusted by contract or

by law to administer Government land;

"Board of Governors" means the Board of Governors of

the Lands Authority established under article 10 of the Lands

Authority Act;

"commercial premises" means the same as the meaning

assigned to it in the Civil Code;

"Minister" means the Minister or Parliamentary

Secretary under whose portfolio the Lands Authority is

included.

(1)

Any natural or legal person who hold a title of

temporary emphyteusis on a property transferred to the applicant from

the Government, the Authority or an Ecclesiastical entity (which

subsequently passed on the title to the Government) for commercial

purposes and that the term will expire after the 31st August 2025, may,

subject to any other provisions in these regulations, request the

Authority to rescind the contract and to grant a new contract holding a

title of temporary emphyteusis, which term starts to run from the date

of the new contract and this until the term of the concession is in force

Provided that the term of the new concession shall be

equivalent to that in force

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE LANDS

AUTHORITY OR ECCLESIASTICAL ENTITIES BY TITLE

OF EMPHYTEUSIS

Provided further that where the term of the concession in

force is greater than sixty-five (65) years, the term of the new

concession shall be equivalent to sixty-five (65) years.

(2)

The applicant shall prove that he needs the land for a

commercial project thereby satisfying the Authority of the benefit of

the project for the national economy and that it will generate adequate

employment.

(3)

The Authority shall request the applicant to provide it

with a detailed business plan to substantiate his request, which

business plan shall include the following

(a)

a brief description of the project and the product

and services that shall be offered;

(b)

a summary of the objectives;

(c)

a solid description of the market;

(d)

a high level justification of the project’s viability;

(e)

a snapshot of its growth potential;

(f)

an overview of the funding requirements.

The applicant shall

(a)

be recognized by the Authority as the emphyteuta

of the land or a building, as the case may be;

(b)

the concession in force shall not have as its

subject the execution of works, the supply of goods or the

supply of services, which before the concession, were in the

hands of the State before it was granted to the applicant;

(c)

in case of emphyteusis, give proof that there are

no arrears on ground rent payments due to the Authority on the

property which is the subject of the application under these

regulations.

(1)

The value in the new contract shall be determined

by an architect or architects appointed by the Authority which

evaluation shall be in conformity with the provisions of article 79 of

the Government Lands Act. In each case, the evaluation carried out

shall also have regard to

(a)

the value of the original concession;

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE LANDS

AUTHORITY OR ECCLESIASTICAL ENTITIES BY TITLE

OF EMPHYTEUSIS

(b)

the period remaining for the original concession to

expire;

(c)

the potential for development that may take place

on the site in question, according to the planning laws in force

on the date of the evaluation;

(d)

the market value of a similar property;

(e)

market indicators which may influence the price;

(f)

the condition of the property.

(2)

The applicant shall pay the Authority the entire value

indicated in the evaluation undertaken by the architects appointed by

the said Authority on the date of the contract once this has been

accepted by the Authority.

The new contract shall be done by public deed.

Following the submission of the application in

accordance with these regulations, there shall be no change in the

applicant unless it results from a causa mortis declaration that the

rights over that property which is the subject of the application, have

passed to the person who is requesting such change.

The following documents shall be filed in conjunction

with every application filed pursuant to these regulations

(a)

a copy of the original contract;

(b)

a copy of the last ground rent receipt of payment;

(c)

in the case of a contract of emphyteusis where the

applicant has not been recognized by the Authority as the

emphyteuta of the building or site, a copy of all the contracts

concluded since the time when the last emphyteuta was

recognized by the Authority;

(d)

a detailed plan on a scale of one for every one-

hundred (1:100), using only the template provided by the

Authority and whose guidelines for the use of this template,

shall be strictly adhered to. This plan shall indicate the interior

of the property at every level and the distance from the nearest

street corner. In addition, a scanned plan duly certified by an

architect shall be submitted;

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE LANDS

AUTHORITY OR ECCLESIASTICAL ENTITIES BY TITLE

OF EMPHYTEUSIS

(e)

a copy of the property or site plan issued by the

Lands Registry, duly certified by an architect;

(f)

a copy of the applicant’s or applicants’ identity

card;

(g)

photos, that shall show the date and time,

indicating the actual state of the property or site.

The applicant shall pay all arrears due by him in

accordance with paragraph (b) of regulation 4 before any application

can start to be processed according to these regulations.

Every applicant submitting an application pursuant to

these regulations shall submit all requested information together with

his sworn declaration of the veracity of the entire contents of the

application and that no information or other relevant facts have been

omitted by him, which, had they been known to the Authority, would

have resulted in the application being refused and denied. No applicant

may justify such an omission on the basis that the Authority was

already informed of this information or fact.

Every contract done pursuant to these regulations shall

be subject to the approval of the House after a special resolution of the

House in accordance with article 31(c) of the Government Lands Act.

With each application made by virtue of these

regulations, a payment in the amount of one-thousand euro (€1,000) or

any other sum shall be made, which the Authority, by notice published

in the Gazette not later than two (2) months before the entry of an

application in terms of these regulations, may declare that they are due

to it by each applicant under these regulations.

The Authority shall ensure that all expenses incidental to

this request are collected from the applicant and that before these

expenses are collected in full no contract pursuant to an application

may be undertaken.

(1)

The Authority shall have the right in its sole

absolute discretion, to refuse and reject any application undertaken

pursuant to these regulations. Such rejection or refusal shall be in

writing and shall include the detailed reasons for its decision.

(2)

The Authority shall have the right to terminate the

application process undertaken pursuant to these regulations, at any

stage or else to refuse to accept any application undertaken pursuant to

these regulations if it is of the view that such property is situated in a

place of national importance. In such case, the applicant is only

CONTRACT FOR A COMMERCIAL PREMISES

TRANSFERRED FROM THE GOVERNMENT, THE LANDS

AUTHORITY OR ECCLESIASTICAL ENTITIES BY TITLE

OF EMPHYTEUSIS

entitled to receive the expenses he incurred in processing his

application according to these regulations. The Authority shall be

exempt from any damages or request for payment of any type of

compensation that the applicant may claim in this regard.

The Authority shall have the right to file a case in the

First Hall of the Civil Court against any person involved, where it

considers that there has been a breach of any of the provisions of these

regulations, even after the relative contract has been signed, and

request the court to provide an appropriate remedy. No person against

whom the Authority proceeds has the right to request or be granted any

kind of damages whatsoever or any kind of compensation for any

improvements which he has made or could have made to such

building.

Any request for extension of a temporary rent in a

contract on commercial premises transferred from Government, the

Authority or Ecclesiastical entities by means of emphytheusis, before

the entry into force of these regulations shall be examined and decided

in accordance with these regulations.