MALTA Law and Practice Contributed by: Damien Degiorgio and Ramona Galea, Fenech Farrugia Fiott Legal
2. Sale and Purchase 2.1 Categories of Property Rights
pose of making use of such other property, or of restraining the owner from the free use thereof. There are different types of ease - ments such as that arising from the position of the property whereby the lower situated property is subject to receiving water which may pass from the higher property, and it shall not be lawful for the owner of the lower property to do anything that may prevent such waterflow. This is typically common in agricultural property. Similarly, the right of servitude occurs where a person holds cer - tain rights over the property of another, such as the right of passage. 2.2 Laws Applicable to Transfer of Title The main laws that apply to a transfer of title of real estate are as follows: • Civil Code, Chapter 16 of the Laws of Malta regulating the transfer of property inter vivos and causa mortis (ie, through inheritance) including the sale by licitation of the property; • Reletting of Urban Property (Regulation) Ordinance, Chapter 69 of the Laws of Malta (regulating pre-1995 commercial leases); • Immovable Property (Acquisition by Non-resi - dents) Act, Chapter 246 of the Laws of Malta; • Private Residential Leases Act, Chapter 604 of the Laws of Malta; • Housing (Decontrol) Ordinance, Chapter 158 of the Laws of Malta; • Agricultural Leases (Reletting) Act, Chapter 199 of the Laws of Malta (regulating agricul - tural leases); and • Notarial Profession and Notarial Archives Act, Chapter 55 of the Laws of Malta. 2.3 Effecting Lawful and Proper Transfer of Title Any agreement that purports to promise the transfer or acquisition of the ownership of
There are various titles by which property may be conveyed, and institutes by virtue of which rights may be secured, the following being the principal rights. • Ownership is the right of enjoying and dis - posing of immovable property in the most absolute manner and is acquired by the lawful owners following the transfer by title of full ownership to the purchaser. • Lease is acquired whenever the lessor enters into a lease agreement with the lessee, grant - ing the latter the right of possession of the property. • Emphyteusis refers to when one of the contracting parties transfers to the other, by means of a contract, in perpetuity or for a specified period of time, a property subject to the payment of an annual ground rent. In perpetual emphyteusis, the emphyteuta can choose to redeem the ground rent and convert the right of emphyteusis into a title of ownership. • Usufruct is a legal right to use and derive benefits from the property belonging to another person, subject to the condition that the manner and form of the property is preserved. This right can be constituted for a specified period of time or otherwise until the fulfilment of a particular condition. • Hypothec is typically granted by the owner of immovable property as a way of offering security in lieu of a loan. Hence, ownership will only be lost in the event that property owner defaults on the loan. • A property may also be the subject of an easement or a servitude . The right of ease - ment is that created by law in favour of a property over another property for the pur -
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