FAQs – Modification to, or Removal of, a Condition Imposed in a Contract of Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities through a Sale or Emphyteusis Regulations In Terms of Chapter 573 of the Laws of Malta.

Legal Notice 196 of 2024 – 23^rd August 2024

 

Who may qualify to benefit from this scheme?

Any person who has a title of purchase by virtue of a public deed, or emphyteusis on property that would have been passed to the applicant by the Government or the Authority, or by an ecclesiastical entity, which subsequently passed the title to the Government, whether registered in the name of the Government or shall be registered in the name of the Government, may, save as provided in the other provisions of these regulations, ask the Authority to modify or remove a condition imposed in the original contract:

Provided that any modification and, or rescission of the condition may only be done after the written acceptance of such change by the Authority;

Provided further that no modification to or removal of a condition shall be allowed to the core conditions of any contract;

Provided further that the party who acquired government land by virtue of a contract resulting from a Parliamentary resolution, or a tender, or a tender procedure, or an auction shall not be eligible to apply in accordance with these regulations.

Who is eligible to apply for this Scheme?

The applicant shall be recognised by the Authority as an owner or emphyteuta of the land or building; provided that in the case of an emphyteusis, the applicant shall prove that there are no arrears for the payment of ground rent due to the Authority on the property in respect of which the application is being submitted in accordance with these regulations.

What are the fees for sites not exceeding the 1,500m2?

Fees in relation to sites having a footprint area not exceeding one thousand and five hundred square metres (1,500m2) are depicted in the table below:

Site Area (Footprint)	1m² – 300m²	301m² – 600m²	601m² – 900m²	901m² – 1200m²	1201m² – 1500m²
Modification or removal of a minor condition*	€2,500	€5,000	€7,500	€10,000	€12,500
Modification or removal of a medium condition*	€5,000	€10,000	€15,000	€20,000	€25,000
Modification or removal of a major condition*	€10,000	€20,000	€30,000	€40,000	€50,000

What are the fees for sites exceeding the 1,500m2?

The value for the removal of a condition in relation to sites having a footprint area exceeding one thousand and five hundred square metres (1,500m2) shall be established by a Perit appointed by the Authority, which estimate shall be carried out in accordance with article 79 of the Act reflecting the freehold value of the land on the date of the application whereas the valuation-related costs shall be calculated in accordance with article 79(5) of the Act and shall be borne by the applicant.

The amount payable by the applicant for the removal of a condition of minor importance as determined by the Authority shall be equivalent to two point five percent (2.5%) of the value determined by the Perit, provided that it may never be less than twelve thousand and five hundred euro (€12,500):

The amount payable by the applicant for the removal of a condition of medium level of importance as determined by the Authority shall be equivalent to five percent (5%) of the value determined by the Perit, provided that it may never be less than twenty five thousand euro (€25,000):

The amount payable by the applicant for the removal of a condition of a major level of importance as determined by the Authority shall be equivalent to ten percent (10%) of the value determined by the Perit, provided that it may never be less than fifty thousand euro (€50,000).

What if the breach of condition/s has already occurred?

In such case that during the verification of the application, the relevant condition is found to be already being breached, the applicant must incur an administrative penalty that must be equivalent to twenty-five percent (25%) of the value determined in accordance with the schedule and terms described above.

If property being considered forms part of a multi-owned site, must the applicant pay the calculated fee in full?

When an application for the removal of a condition is lodged by an owner and/or a recognised emphyteuta of a unit, forming part of an existing multi-storey development that was built over a site that is encumbered by a specific contractual condition, the Authority shall claim payment from the applicant in an amount equivalent to the total payable sum as divided by the number of units built thereon on the date of the application.

Any fees payable to the Lands Authority upon submission of application?

A payment of five hundred euros (€500) must accompany every application when submitting the online application.