MALTA Law and Practice Contributed by: Damien Degiorgio and Ramona Galea, Fenech Farrugia Fiott Legal
6.18 Right to Assign a Leasehold Interest
does, however, have the option to register the lease contract themself, and this at the lessor’s expense. Other forms of lease agreements do not need to be registered in any manner. 6.21 Forced Eviction If a tenant remains in default of paying rent, the landlord may evict them from the property. The landlord may proceed judicially against the ten - ant by sending them a judicial letter requesting payment and filing an application to the Rent Regulation Board, demanding that the court orders the tenant’s eviction. This process can take months or even longer, especially if there is an ongoing court dispute. 6.22 Termination by a Third Party Unless the termination rights of a third party are regulated by the lease agreement, the only situation where such a lease agreement may be terminated by a third party would be if the latter is the government of Malta. This may occur if the government determines that the property in question is necessary for a public purpose, sub - ject to certain conditions stipulated under the Government Lands Act, Chapter 573 of the Laws of Malta. The government has the obligation to provide compensation to the property owner; however, it is not similarly obliged to do so in respect of tenants. This process may, however, take several months to finalise. 6.23 Remedies/Damages for Breach There are currently no limitations on the dam - ages that may be incurred by a tenant acting in breach of or terminating their lease, and this is normally determined by the parties within the lease contract. With respect to security deposits, the parties may agree that the tenant deposit a sum of money at the beginning of the lease, which can be withheld if the tenant fails to per - form any of their obligations or acts in breach of
The tenant’s right to assign its leasehold interest is to be agreed to and regulated by the parties within the lease agreement. Such assignment may include either the entire property or a part of it. The law does not restrict the tenant’s right to do so unless this is something prohibited by the landlord within the lease agreement. 6.19 Right to Terminate a Lease A number of events may lead to the dissolution of a lease: • expiration of the term of the lease agreed to; • the occurrence of a resolutive condition expressly included within the lease agree - ment; • if either of the parties fails to perform their obligations – in any such case, the party who is aggrieved by the non-performance of such obligations shall have the right to demand the other party perform its obligations if this is possible, or to demand dissolution of the contract and payment of damages for non- performance of such obligations; or • if, during the lease period, the property is totally destroyed due to a fortuitous event, which will lead to the lease being terminated ipso jure. 6.20 Registration Requirements The Private Residential Leases Act, Chapter 604 of the Laws of Malta requires the lessor to a residential lease to register the lease agreement within ten days from the commencement of the lease. If such registration is made at a later date, the registration shall be subject to an additional administration fee, which, as provided by the Housing Authority, is EUR120. The law stipu - lates that, where the contract is not registered, the agreement shall be null and void. The lessee
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