The New Private Residential Leases Act of 2019
Scope
Act
number XXVIII of 2019, the Private Residential Leases Act of 2019 (“the Act”),
has been enacted primarily to ensure fairness, clarity and predictability in
contractual relations between lessors and lessees and to safeguard and protect
the right to adequate accommodation.
Applicability
This
Act applies to private residential leases that are entered into or renewed
after the entry into force of the Act, subject to the following:
- Leases
which were granted after 1 June 1995, and which are still applicable on the day
of the entry into force of this Act should continue to be regulated exclusively
by the provisions of the Civil Code, except in the cases specified under
article 5 of the Civil Code.
- The
Act should not apply to tenements belonging to the Government of Malta,
tenements let to any tourist exclusively for tourism purposes, tenements which
are not let for a primary residential purpose and tenements let before 1 June
1995.
- The
Act does not apply to the letting of urban tenements where contracts of
emphyteusis or sub-emphyteusis have been or are about to be converted into
leases by virtue of law.
Registration
The
Act sets the obligation to register private residential lease agreements,
including their renewal, whether expressed or tacit. If the lease agreement is
not registered, it is considered to be null and void. The registration has to be effected within
ten days of the commencement of the lease.
In cases of default, an administrative fee will be charged.
Private
residential leases which were entered into after the 1 June 1995, but before
the coming into force of the Act, and which would still be in force on the 1
January 2021, whether in their original or renewed term, should be registered,
provided that the obligation to register should also apply to any lease that is
renewed beyond 1 January 2021. The
registration requires the declaration of any amount deposited by the lessee by
way of security and the presentation of an inventory.
The
Housing Authority is empowered to introduce and enforce minimum standards of
habitability for tenements which are offered for letting.
Requisites of a lease
agreement
The
Act also includes the requisites that need to be included in the lease agreement,
including the use of the tenement, the duration and whether the lease may be
extended. In the absence of any one of
the essential requisites, the lease agreement will be deemed null and
void.
Interestingly,
the Act also outlines the forbidden clauses, which include clauses that
stipulate the payment of a fixed amount separate from the rent, for the
consumption of water, electricity or other utility services if such amount does
not reflect the actual consumption of such utility services by the lessee
calculated at the rate reflecting the primary residential use of the tenement
and the total number of occupants residing therein.
Private residential
lease
A
long private residential lease cannot be less than 1 year in duration, provided
that this does not apply to short private residential leases or the letting of
shared residential space. A private
residential lease should cease to have effect upon the expiration of its term,
provided that the lessor gives notice to the lessee at least 3 months
beforehand by registered letter. This is not applicable to short private
residential leases, or letting of shared residential space.
A
short private residential lease should cease to have effect by operation of
article 1566 of the Civil Code.
Rent
The
rent should be freely stipulated between the parties and the rent increases may
only take place once every year. In the absence of any expressed agreement, the
rent cannot be revised during the term of the lease, given that yearly
increases may not exceed the annual variations recorded in the Property Price
Index published by the National Statistics Office.
Shared residential space
The
Act also provides for the letting of shared residential space, whereby any
agreement entered into for the lease of a shared residential space should be of
a 6 month-duration.
Monitoring and
enforcement
Part
III of the Act refers to monitoring and enforcement. Housing Authority officers, and with the
assistance of the Police Force (if required), should have the right to enter
the private tenement, to verify whether the tenement is being occupied by any
person, or to take any photographs after entering or request any legitimate
information from any occupier of such tenement, provided that such access should
enquire the prior issue of a warrant signed by a Magistrate.
Adjudicating Panel for
private residential leases
The
Act establishes an Adjudicating Panel for private residential leases with
exclusive jurisdiction to decide disputes relating to private residential
leases to which the Act applies, in so far as the claim does not exceed the
value of Eur5,000 on matters identified in article 23(2) of the Act. The Adjudicating Panel should only hear
claims relative to registered contracts.
Every
claim filed before the Adjudicating Panel should be made in writing. The defendant will have ten days to file his
reply. The Adjudicating Panel should
deliver judgement within the shortest time possible but not later than 5
working days from the date of the last submission by the parties, the witnesses
or the experts, as the case may be.
Appeal
Any
aggrieved party by a decision of the Adjudicating Panel may appeal within
twenty days from the date of the decision of the Adjudicating Panel on a point
of law to the Court of Appeal.
GMX Law Firm
GAUCI-MAISTRE
XYNOU Legal can assist you with further legal and judicial advice on matters
pertaining to lease agreements, including the drafting of lease agreements.
