L.S. 573.18 Regolamenti dwar l-Iskema ta’ Fidi ta’ Dirett Dominju Temporanju u Sjieda Sħiħa Sussegwenti ta’ Proprjetajiet Residenzjali tal-Gvern

(1)The title of these regulations is the Redemption of Temporary Directum Dominium Scheme and Subsequent Full Ownership of Residential Government Property Regulations. Citation and scope.

(2)The scope of these regulations is to create a scheme and establish the criteria on the basis of which a temporary emphyteutical concession may be redeemed by eligible applicants. 2. requires: In these regulations, unless the context otherwise "Act" means the Government Lands Act; Interpretation.   Cap. 573. "additional payments" means any other subsequent redemption amount that the Authority may impose in relation to the transfer of property in accordance with these regulations; "applicant" means any natural or legal person currently recognised as an emphyteuta, or in the process of being recognised as an emphyteuta by the Authority in accordance with these regulations; "Authority" means the Lands Authority established by article 5 of the Lands Authority Act; "Minister" means the Minister responsible for the Authority; "residential properties" means those properties: (

1. a)originally granted a temporary emphyteutical concession for residential purposes and are currently still in use as residences; (
2. b)originally granted a temporary emphyteutical concession for the development of one or more residences; or  Cap. 563. 2 [ S.L. 573.18     S.L. 573.17. REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY (
3. c)originally granted a temporary emphyteutical concession for non-residential use but have been developed, or may be developed, for residential use subject to the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations; "Type A redemption" means a redemption of groundrent of properties used as the sole and ordinary residence of the applicant and garages or parking spaces used for residential purposes which shall be either interconnected with the residence or fall within the same emphteutical concession; "Type B redemption" means a redemption of groundrent of properties that are not considered as the sole and ordinary residence of the applicant, or garages or parking spaces not eligible under the terms of Type A redemption of these regulations; "Type C redemption" means a redemption of groundrent of undeveloped land. Applicability. 3.

(1)The scheme shall be applicable for the redemption of temporary ground rents that are paid by the applicant for properties that are classified by the Authority as residential properties, as defined in these regulations.

(2)These regulations shall be applicable to Type A, B and C redemptions. Eligibility to submit applications. 4. The applications shall be submitted by an applicant who shall be a person or legal entity who: (

1. a)is recognised or is in the process of being recognised by the Government as the emphyteuta or the current emphyteuta of the property; and (
2. b)shall have no outstanding ground rent payments in respect of the property: Provided that in cases where the applicant is a legal entity, applications shall only be considered in terms of regulations under Types B and C redemptions. Eligible subemphyteuta. 5. An applicant who holds the property on sub-emphyteusis shall only qualify if the requisites provided in regulation 4 are satisfied and: REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY [ S.L. 573.18 3 (
3. a)the applicant is recognised or is in the process of being recognised as the emphyteuta by the Government and currently pays the relative ground rent to Government; (
4. b)in the case where the sub-ground rent has been redeemed, the applicant shall prove that the sub-ground rent has been redeemed by the sub-emphyteuta; and (
5. c)the applicant is applying for the sole and ordinary residence under Type A redemption: Provided that the emphyteutical term arising from the original concession and that of the sub-emphyteusis shall expire on the same day. 6. All application fees are listed in Schedule IV. Any expenses relating to the sale or redemption, including the notary, perit or legal fees shall be borne by the applicant. Fees. 7. properties: Exclusions. These regulations shall not be applicable to the following (
6. a)properties that have been granted by temporary emphyteusis for residential purposes where the redemption mechanism is specified in the terms of the deed of emphyteusis; (
7. b)properties burdened by a temporary emphyteusis being used for any commercial purpose; (
8. c)properties which were or shall be re-developed either in part or in whole as a commercial development. The emphyteuta should assign a portion of the ground rent to the commercial development and assume the responsibility of payment thereof until the expire of the emphyteutical term; (
9. d)properties that have been granted by temporary emphyteutical concession for agricultural purposes. 8.

(1)If the applicant is a natural person who proves to the satisfaction of the Authority that the property in question shall be used as a sole and ordinary residence, the redemption shall be effected according to the provisions of Schedule I.

(2)A property shall be considered to be the sole and ordinary residence of the applicant principally if the applicant declares under oath that he has been residing in the property referred to in the application, for not less than three

(3)years prior to the date on which the application for redemption is submitted and that no other property has been redeemed under a Type A redemption during the preceding five

(5)years. The Authority may request any additional documents Type A redemption -Conditions applicable to applications of sole and ordinary residence of the applicant. 4 [ S.L. 573.18 REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY and information in relation to this requirement.

(3)If the redeemed property is transferred by sale or any other real title, within the period of fifteen

(15)years from the date of validation of the application for redemption, an additional payment of three per cent (3%) of the selling price shall be due to the Authority: Provided that the additional payment of three per cent (3%) shall be paid with the transfer of each individual unit if the redeemed property has been redeveloped into separate units.

(4)The date of validation of the application shall be the date on which the application was validated and ready to be processed by the Authority and such date shall be indicated in the deed of redemption.

(5)Additional payments shall be due only once on the occurrence of the first transfer following redemption.      S.L. 573.17.

(6)The property shall be redeemed subject to the condition that it shall be used for a residential purpose in accordance with these regulations and any change in use shall be subject to the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations.           S.L. 573.17.

(7)Garages and, or parking spaces that form an integral part of the property that is being redeemed, or fall within the same emphyteutical concession and are not used for commercial purposes, shall be redeemed and the rate of a three per cent (3%) additional payment of the selling price shall also be applicable. If the use of the garage and, or parking space be changed to a commercial nature, the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations shall apply: Provided that there shall be no distinction based on the date of the granting of the original concession or on the date of termination of emphyteusis:         S.L. 573.15.  S.L. 573.15. Provided further that residential properties with an expired emphyteutical concession and that qualify under the terms of a Type A redemption, shall be eligible to apply under the same terms of a Type A redemption, once the emphyteutical concession has been renewed under the provisions of the Expired or Expiring Emphyteutical Concessions Regulations.

(8)The minimum amount payable by the applicant REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY [ S.L. 573.18 5 following an application submitted in accordance with the Expired or Expiring Emphyteutical Concessions Regulations shall be of one

(1)year ground rent and shall be paid prior to the submission of the application in terms of these regulations: Provided that any additional payments shall be charged to the seller on transfers subsequent to the deed of redemption and shall be collected by the notary publishing the deed of transfer of property. 9.

(1)Any property not eligible under a Type A redemption may nevertheless be redeemed according to the provisions of Schedule II.

(2)In the case that the redeemed property is sold or transferred by a real right during the period of fifteen

(15)years from the date of validation of the application for redemption, an additional payment of three per cent (3%) of the selling price shall be due to the Authority: Type B redemption – Conditions for redemption of Residential Properties that are not considered as the sole and ordinary residence of the applicant. Provided that the additional payment of three per cent (3%) shall be paid with the transfer of each individual unit if the redeemed property has been redeveloped into separate units.

(3)The date of validation of the application shall be the date on which the application was validated and ready to be processed by the Authority, which date shall be indicated in the deed of redemption.

(4)These additional payments shall be due only once on the occurrence of the first transfer following redemption.

(5)The property shall be redeemed subject to the condition that it shall be used for a residential purpose in accordance with these regulations and any change in use shall be subject to the regulations established by the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations.      S.L. 573.17.

(6)Garages and, or parking spaces that do not qualify under a Type A redemption and are not used for commercial purposes, may be redeemed in accordance with Schedule II and the rate of three per cent (3%) of the selling price shall also be applicable. Should the use of the garage and, or parking space be changed to a commercial nature, the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations shall apply:         S.L. 573.

1. Provided that there shall be no distinction based on the 6 [ S.L. 573.18 REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY date of the granting of the original concession or on the expiry date of the emphyteusis:       S.L. 573.
2. Provided further that properties with an expired emphyteutical concession and that qualify under the terms of a Type B redemption, shall be eligible to apply under the same terms of a Type B redemption once the emphyteutical concession has been renewed under the provisions of the Expired or Expiring Emphyteutical Concessions Regulations.  S.L. 573.15.

(7)The minimum amount payable by the applicant following the submission of the application in accordance with the Expired or Expiring Emphyteutical Concessions Regulations shall be of one

(1)year ground rent and shall be paid prior to the submission of the application in accordance with these regulations: Provided that additional payments shall be charged to the seller on transfers subsequent to the deed of redemption and shall be collected by the notary publishing the deed of transfer of property. Type C redemption - Conditions for redemption of groundrent of undeveloped land. 10.

(1)Undeveloped land to be developed into a unit or more and garages and, or parking spaces for residential purposes shall be eligible for redemption as prescribed by these regulations. The applicant shall submit the plans of the proposed or approved development, and such plans shall form an integral part of the deed of redemption. Following the submission and successful processing of an application, the Authority shall provide a Certificate of Redemption to the applicant indicating the properties that were subject to redemption.

(2)The applicable redemption prices are listed in Schedule III.

(3)When a unit within the development is sold or transferred by a real right within the period of fifteen

(15)years from the date of validation of the application for redemption, an additional payment of three per cent (3%) of the selling price shall be due to the Authority.       S.L. 573.17.

(4)The properties shall continue to be used for a residential purpose as prescribed in these regulations with the exception and exclusion of any part intended for commercial purposes as prescribed in the definition "residential properties". Any change in use shall be subject to the provisions of the Amendment or Revocation of a Condition Imposed in a Contract of a Property Transferred by the Government, the Lands Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations regulating the request for change in conditions of an emphyteutical concession: Provided that there shall be no distinction based on the date of the granting of the original concession, or on the date of termination of emphyteusis: REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY [ S.L. 573.18 Provided further that residential properties with an expired emphyteutical concession and that qualify under the terms of a Type C redemption, shall be eligible to apply under the same terms of a Type C redemption once the emphyteutical concession has been renewed in accordance with the provisions of Expired or Expiring Emphyteutical Concessions Regulations.         S.L. 573.15.

(5)The minimum amount payable by the applicant following the submission of an application in terms of the Expired or Expiring Emphyteutical Concessions Regulations shall be of one

(1)year’s ground rent and shall be paid prior to the submission of the application in terms of these regulations:  S.L. 573.15. 7 Provided that any additional payments shall be due by the vendor only once on the first transfer following redemption and shall be collected by the notary publishing the deed of transfer of property.

(6)Further to the issuing of a certificate of redemption as provided in sub-regulation

(1), should additional development be proposed, an additional payment of three per cent (3%), apart from the redemption prices as indicated in sub-regulation

(2)corresponding to the addition of units, garages or parking spaces shall be due to the Authority: Provided that the imposition of the additional payment shall remain in effect for a period of fifteen

(15)years from the date of the validation of the original application for redemption, which date shall be clearly stated in the deed of redemption. A revised Certificate of Redemption based on the additional plans submitted by the applicant shall be provided with each Deed of Redemption. Amended Certificates of Redemption shall be issued subject to an additional payment of one thousand euro (€1,000) per certificate of redemption: Provided further that should the number of the proposed residential units, garages or parking spaces be reduced, the applicant shall not be eligible to claim any refund of the previously paid amount to the Authority. 11. The following transfers shall be exempt from subsequent redemption additional payments: (

1. a)transfers in favour of ascendants, descendants or siblings, provided that the property remains as an ordinary residence; (
2. b)transfers in favour of persons with disability duly registered with the competent entity; Exemptions from post-redemption additional payments. 8 [ S.L. 573.18     S.L. 364.12. REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY (
3. c)transfers in favour of those applicants who satisfy the criteria for exemption from duty in relation to their first immovable property as established in the Exemption of Duty in terms of the Order; (
4. d)subsequent redemption transfers of Type A redemptions only effected by persons over sixty-five

(65)years of age. Conditions common to all categories. 12.

(1)Prior to any transfer of property, the vendor shall inform the Authority about the transfer and obtain prior consent. Such information and attainment of consent are required on pain of nullity and the amount due shall be paid on the transfer of property.

(2)When the ground rent is revisable, it is to be revised up to the date of the validation of the application prior to redemption.

(3)The terms indicated in regulation 8 in relation to the additional payments following the redemption of the property shall commence from the date of the validation of the application and the said date shall be clearly indicated in the contract of redemption.

(4)The plans of the property to be redeemed shall be annexed to the contract of redemption in order that a clear delineation of the property to be redeemed shall be clearly identified.

(5)The application fees are listed in Schedule IV.

(6)The Authority may consider a property as being of high net value and, or of historical and, or national importance, in which case these regulations shall not be applicable. In such a case, the application shall not be considered and any fees paid to the Authority shall be reimbursed. Appeal.    Cap. 563. 13. An applicant shall have a right of appeal from a decision of the Authority taken pursuant to these regulations in accordance with article 57 of the Lands Authority Act. Saving. 14.

(1)The Authority shall have the right to reject in its sole discretion any application submitted to it in accordance with these Regulations.

(2)The decision by which the Authority denies an application submitted to it pursuant to these regulations shall be in writing, even if by electronic means, and shall include the reason which led to the refusal of the application.

(3)The Authority shall have the right to bring any action before the Civil Court, First Hall, requesting the rescission of the emphyteutical concession, issued on the basis of a false declaration, REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY [ S.L. 573.18 incorrect information, or resulting from an error, in cases where it deems that the Authority should have not acceded to the redemption request in the absence of such false declaration, incorrect information or error.

(4)The Authority shall not be liable to any form of damage or compensation in the exercise of its functions in accordance with these regulations. 15.

(1)Applicants having pending applications for redemption which were submitted under previous schemes upon the coming into force of these regulations may opt to transfer their application in order that they may be regulated in terms of these regulations at any stage prior to the signing of the deed. Furthermore, any Type A redemption application shall be subject to a reduction on the redemption price equivalent to the difference between the two

(2)application fees.

(2)Applicants who have already concluded a contract of redemption in accordance with previous schemes shall have the right to carry out subsequent transfers in accordance with the provisions of these regulations.

(3)Cancellation of hypothecs arising from previous schemes shall be contingent to the payment of the deposit of the additional payments resulting from these regulations equivalent to three per cent (3%) of the selling price.

(4)The notary publishing the deed of the subsequent transfer shall collect these additional payments.

(5)Any concluded processes under previous schemes, including the cancellation of the hypothec shall be excluded from these regulations. Schedule I (regulation 8) Groundrent Payable and the Corresponding Redemption Prices for Applications Submitted with regard to Type A redemptions Euro 0 5.01 10.01 20.01 to to to to Euro 5 10 20 30 Price of Redemption 1500 2500 3500 4500 Transitory provisions. 9 10 [ S.L. 573.18 REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY 30.01 40.01 50.01 60.01 70.01 80.01 90.01 100.01 110.0 120.01+ to to to to to to to to to 40 50 60 70 80 90 100 110 120 5500 7000 8000 9000 10000 11000 12000 14000 15000 16000 €1,000 per garage or parking space Note: the garage or parking space must either be interconnected with the residence or fall within the same emphyteutical concession. Schedule II (regulation 9) Annual groundrent payable and the corresponding redemption prices for applications submitted with regard to Type B redemptions which inter alia include: properties used as other residences, vacant properties, and properties which were granted on a temporary emphyteutical concession as a single residential unit and that have already been developed into multiple units. Euro 0 5.01 10.01 20.01 30.01 40.01 50.01 60.01 70.01 80.01 90.01 100.01 110.0 120.01+ to to to to to to to to to to to to to Euro 5 10 20 30 40 50 60 70 80 90 100 110 120 €2,000 per garage or parking space Price of Redemption 4500 5500 6500 7500 8500 1000 11000 12000 13000 14000 15000 17000 18000 19000 REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT PROPERTY [ S.L. 573.18 11 Schedule III (regulation 10) Redemption Prices for Applications Submitted with regard to Type C redemptions Redemption price per unit or apartment Redemption price per garage or parking space Original Certificate of Redemption provided by the Authority upon signing of the deed Amended Certificate of Redemption Schedule IV (regulation 6) Application Fees Categories Application fees - € per unit or garage or parking space Type A redemption residential unit garage or parking spaces 500 150 Type B redemption residential unit garage or parking spaces 1,000 250 Type C redemption The first five

(5)residential units additional units garage parking spaces 1,000 250 250 €7,000 €2,000 €1,000