Chapter 199 – Agricultural Leases (Reletting) Act
What is this act about?
This law regulates the reletting of agricultural land, establishing rules for changing lease conditions and for lessors to regain possession of their land. It aims to balance the rights of landowners and tenants of agricultural properties.
Who it applies to: Lessors (landowners) of agricultural land; Tenants of agricultural land, including sub-tenants and family members who are assignees or legatees of the lease.
At a glance
- Country
- Malta
- Area of law
- Environment and agriculture
- Articles
- 27
- Source
- legislation.mt
- Text retrieved
- Explanation updated
What does this act regulate?
- Changes to the conditions of agricultural leases upon their expiration.
- The process for a lessor to resume possession of agricultural land.
- The establishment and functions of the Rural Leases Control Board.
- Compensation payable to tenants for improvements or lost produce when a lessor resumes possession.
Who does this act apply to?
- Lessors (landowners) of agricultural land.
- Tenants of agricultural land, including sub-tenants and family members who are assignees or legatees of the lease.
What are the key points?
- If a lessor wants to change lease conditions or not renew a lease, they must apply to the Rural Leases Control Board at least three months before the lease expires.
- The Board will not approve new conditions based on improvements made by the tenant without obligation or with government funds that don't require repayment.
- When increasing rent, the Board considers the land's value for agricultural use, the tenant's means, and the land's condition; the revised rent cannot exceed 1.5% per annum of the land's value.
- If a farmhouse is included and used as the tenant's sole residence, its rent cannot exceed 2% per annum of its market value, and the tenant has the option to discontinue its lease.
- A revised rent applies for eight years, after which it remains the same unless agreed otherwise or the lessor requests another increase.
- A lessor can only resume possession for specific reasons, such as personal agricultural use for at least four consecutive years, building construction (if not irrigable land), or tenant breaches like unauthorized subletting, leaving land fallow for at least twelve months, or repeated failure to pay rent.
- If a lessor resumes possession, they must pay fair compensation to the tenant for agricultural improvements made within the last eight years. If for construction, additional compensation for lost produce from the last four years is also due.
Environment and agriculture
Legal text
Legal text
A G R I C U L T U R A L L E A S E S ( RE L E T T I N G )
CHAPTER 199
AGRICULTURAL LEASES (RELETTING) ACT To regulate the reletting of agricultural land and to provide for matters connected therewith and ancillary thereto.
20th June, 1967 ACT XVI of 1967 as amended by Acts: XXVIII of 1969, IX of 1972, V of 1973, LVIII of 1974, V of 1975; Legal Notice 148 of 1975; Acts: XIX of 1979, XIII of 1983, VIII of 1990, XIX of 1993, XXIV of 1995, VI of 2001 and XXXI of 2002; Legal Notice 410 of 2007; and Acts XXI of 2009, XVII of 2017 and IV and XXII of 2022 and Legal Notice 212 of 2023.
Art. 1
The short title of this Act is the Agricultural Leases (Reletting) Act.
Art. 2
In this Act, unless the context otherwise requires - "agricultural land" means any land which is mainly let for the growing of crops, flowers, fruit-trees or vines and for cognate agricultural purposes, including the erection of glasshouses, cloches or cold frames, but does not include grazing grounds; "assignee of the lease" includes a sub-tenant and, where there is neither a person to whom the lease has been assigned nor a subtenant, the person who is in the actual enjoyment of the lease by the tenant’s express or tacit consent, and "assignment" shall be construed accordingly; "Board" means the Rural Leases Control Board established under article 5; "conditions" includes the rent payable in respect of a lease; "date of termination" means the last day on which the period of the lease whose conditions the lessor proposes to change or which the lessor does not intend to renew expires; "lease" means a lease for an agreed total period not exceeding sixteen years for a rent in money or other consideration payable yearly in one or more instalments and includes a lease tacitly renewed from year to year or renewed by a decision of the Board under this Act, but does not include either an emphyteusis or an agreeme n t of l e ase i n virtue of whic h the produce is t o be apportioned between the lessor and the tenant; it also includes "sub-lease" in relation to sub-lessor and sub-tenant; "lessor" includes a sub-lessor in relation to a sub-tenant; "Malta" means the Island of Malta and the Islands of Gozo and Comino; "member of the family" means a lineal ascendant, a lineal descendant, a widow or a widower, a son-in-law, and a widowed daughter-in-law while not remarried, of the tenant; "tenant" includes any member of the family who is an assignee of the lease and, after the tenant’s death, where there is no such Short title.
Interpretation.
A G R I C U L T U R AL L E A S E S ( RE L E T T I N G ) member, it includes in order of preference any member of the family who is a legatee of the lease or who, during the last year immediately preceding the tenant’s death, was living with the tenant or has been working the agricultural land with him or for him or is the tenant’s heir; it includes also, in relation to a sublessor, a sub-tenant, which expression shall be deemed in such relation to have the same meaning as tenant in its full extent.
Change of conditions of lease.
Amended by:
IX. 1972.2.
XXII.2022.2.
Art. 3
Provided that the Board shall grant the tenant the option to discontinue the lease of the farmhouse and to continue only the lease of the agricultural land at such rent as revised by the Board in accordance with this sub-article. (g) the revised rent shall apply for a period of eight (8) years; (h) the rent shall remain the same after the expiration of eight (8) years, unless otherwise agreed between the tenant and the lessor, or unless the lessor requests again the increase in rent according to this article.
Provided that in no case shall such conditions be less favourable to the lessor than those of the last preceding lease.
Art. 4
Provided that, where any such lease does not terminate on the 15th day of August of any year, no decision approving such resumption of possession shall be carried into effect before the 15th day of August following the date of the termination of the lease then current.
Amended by:
XXVIII. 1969.2;
IX. 1972.3.
XXII.2022.3.
A G R I C U L T U R AL L E A S E S ( RE L E T T I N G ) transferred without the consent of the lessor to any person other than a co-tenant thereof or a member of the family; or (d) during the two years immediately preceding the date of termination, the field was allowed to lie fallow for at least twelve consecutive calendar months; or (e) during the two years immediately preceding the date of termination, the tenant has failed, in respect of two or more terms, to pay the rent, on each occasion, within fifteen days from the day on which the lessor has called upon him in writing for payment; or (f) during the two years immediately preceding the date of termination, the tenant, being bound to repair and maintain the walls of the agricultural land, failed to fulfil such obligation or habitually disregarded any other conditions of the lease or deliberately or through negligence caused or allowed to be caused damage, other than damage of small importance, to any fruittrees in the agricultural land:
Provided that the circumstance mentioned under paragraph (a) shall not be a sufficient reason to allow the lessor’s application, if the tenant proves that the agricultural land in question is an important source of his and his family’s livelihood and if the Board is satisfied that the tenant would suffer a greater hardship than the lessor were the application to be allowed:
Provided further that where the agricultural land includes a farmhouse which is used by the tenant as his and his family's sole place of residence, the circumstance mentioned under paragraph (b) shall not be a sufficient reason to allow the lessor’s application unless the tenant is allowed to keep the farmhouse at a rent established by the Board not exceeding two per cent (2%) per annum of the market value of the farmhouse free and unencumbered, and under new conditions, including conditions regarding gradual increases, which may be established by the Board with respect to the rent:
Provided further that the Board shall grant the tenant the option to discontinue the lease of the farmhouse, and to continue only the lease of that land which remains exclusively intended for agricultural use under new conditions which the Board may establish in respect of the rent in accordance with article 3:
Provided further that any person who has the right to be recognised as the tenant according to the definition "tenant" in article 2 shall only acquire the right to occupy the farmhouse as a residence by a title of lease for a period of eight (8) years. The rent shall remain the same after the expiration of eight (8) years, unless otherwise agreed between the tenant and the lessor, or unless the lessor again requests the increase in rent in accordance with this Act.
Provided that there shall not be deducted as part of such expenses the cost of the tenant’s own labour or of the labour of any member of the family in the agricultural land or part thereof.
Art. 5
Constitution of the Board and appointment of two Panels.
Amended by:
IX. 1972.4;
V. 1973.2;
LVIII. 1974.68.
Substituted by:
XIX. 1993.2.
Amended by:
IV.2022.5;
L.N. 212 of 2023.
A G R I C U L T U R AL L E A S E S ( RE L E T T I N G )
Provided that where the valuation of any agricultural land or any other technical opinion in respect of any case is required before the board and where: (i) it results that the valuation or other technical opinion in respect of the same agricultural land was given before a court by an Architect or Civil Engineer or by another technical expert appointed by such court with the agreement of the lessor and the tenant who were parties to the said case before the court and who are also parties to the case before the board; and (ii) the said valuation or other technical opinion was confirmed in a final judgment of a court, the chairman may, after hearing the parties, decide to rely on A G R I C U L T U R A L L E A S E S ( RE L E T T I N G ) the said valuation or technical opinion to such extent as he deems fit instead of assigning two (2) members of the panel to examine the agricultural land in accordance with this article:
Provided further that the chairman may also decide to rely on any valuation or other technical opinion instead of assigning two (2) members of the panel as aforesaid where all the parties to the case agree.
Art. 6
Power of the Board.
Amended by:
L.N. 148 of 1975.
Art. 7
Registry of the Board and place where sittings are to be held.
Amended by:
VIII. 1990.3.
Art. 8
The parties may appear before the Board in person or through an advocate or legal procurator and may be assisted by an advocate or legal procurator.
Appearance before Board.
Art. 9
court.
Decisions of the Board.
Amended by:
XIX. 1993.2.
Art. 10
Right of appeal.
Amended by:
IX. 1972.5;
L.N. 148 of 1975;
XIX. 1993.2;
XXXI. 2002.259.
A G R I C U L T U R AL L E A S E S ( RE L E T T I N G )
Service of judicial letter and proceedings before the Board.
Amended by:
IX. 1972.6.
Art. 11
Provided that the applicant may, within ten days of such decision, apply to the Board for a re-hearing of his application and the Board shall grant such application if he justifies his default to the satisfaction of the Board.
Costs of proceedings before the Board.
Art. 12
New trial.
Amended by:
L.N. 148 of 1975;
XIII. 1983.5;
L.N. 410 of 2007.
Art. 13
A G R I C U L T U R A L L E A S E S ( RE L E T T I N G ) Provided that where the lessor, by disposing of the agricultural land or otherwise, has placed himself in a position which makes him unable to conform with the Board’s decision in the new trial, the said penalty shall not be less than four hundred and sixty-five euro and eighty-seven cents (465.87).
Art. 14
Clause or condition depriving the tenant of any benefit conferred by this Act.
Substituted by:
XXII.2022.4.
Art. 15
Provisions as to language.
Art. 16
Benefit of legal aid.
Substituted by:
IX. 1972.7.
Amended by:
XXIV. 1995.360.
Art. 17
Fees due to the members of the panels.
Added by:
V. 1975.2.
Amended by:
XIX. 1979.2;
XIII. 1983.5.
Substituted by:
XIX. 1993.2.
Amended by:
VI. 2001.11.
Art. 18
Expenditure in connection with the administration of the Board.
Substituted by:
XIX. 1993.2.
Art. 19
Amended by:
VI. 2001.11;
XXII.2022.5. (a) prescribing the contents of an application to the Board A G RI C U L T U RA L L E AS E S ( RE L E T T I N G ) and the procedure for the service thereof on the party having an interest to oppose the application; (b) prescribing the procedure for the fixing by the Board of the date of hearing of an application and for the giving notice of such date to the parties concerned; (c) prescribing the payments, including the payment of a registry fee to be fixed by the said Minister, which are to be made with the filing of an application to the Board; (d) prescribing what part of the registry fee is to be refunded if an application is abandoned and the procedure of refund; (e) prescribing the fee payable to an advocate or legal procurator for an application to the Board and enabling the Board to fix, within limits established by the said Minister, the fee payable to an advocate or legal procurator in respect of proceedings before the Board; (f) prescribing any other matter that may be necessary for the better carrying out of the functions of the Board:
Provided that until fees are prescribed in terms of paragraphs (c), (d) or (e), the fees established in Schedule A to the Code of Organization and Civil Procedure shall apply. (1A) The Minister responsible for justice, with the concurrence of the Minister responsible for agriculture, may make regulations regarding the procedure, the method and the criteria that should be followed or to serve as guidelines in the carrying out of estimates of the value of agricultural land, rents for agricultural purpose or residential purpose or agricultural produce made in accordance with any one (1) of the provisions of this Act. In making regulations under this sub-article due account shall be taken of the rights of the tenant and of the lessor, as well as of the national interest in supporting local agriculture.
Provided that there shall not be included in the computation of the said twenty days any period of four or more consecutive days intervening between any two consecutive sittings of the House of Representatives.
A G R I C U L T U R A L L E A S E S ( RE L E T T I N G )
Art. 20
Repealed by XVII.2017.84.
Non-renewal of lease of agricultural land belonging to or administered by the Government.
Added by:
XXVIII. 1969.4.
Amended by:
LVIII. 1974.68.
Repealed by:
XVII.2017.84.
Art. 21
Declaration by President of Malta.
Added by:
XXVIII. 1969.4.
Amended by:
LVIII. 1974.68;
XXI. 2009.11.
Repealed by:
XVII.2017.84.
Art. 22
Manner in which the Commissioner of Land may prevent renewal of a lease.
Added by:
XXVIII. 1969.4.
Amended by:
LVIII. 1974.68;
L.N. 148 of 1975.
Repealed by:
XVII.2017.84.
Art. 23
Taking possession of the land.
Added by:
XXVIII. 1969.4.
Repealed by:
XVII.2017.84.
Art. 24
Repealed by XVII.2017.84.
Compensation for non-renewal of lease.
Added by:
XXVIII. 1969.4.
Repealed by:
XVII.2017.84.
Art. 25
Repealed by XVII.2017.84.
Determination of compensation.
Added by:
XXVIII. 1969.4.
Amended by:
IX. 1972.8.
Repealed by:
XVII.2017.84.
Art. 26
Where declaration is made in respect of only a part of agricultural land leased.
Added by:
XXVIII. 1969.4.
Repealed by:
XVII.2017.84.
Non-applicability of article 1591 of the Civil Code.
Amended by:
XXVIII. 1969.3.
A G RI C U L T U RA L L E AS E S ( RE L E T T I N G )