Article 1494 of the Maltese Civil Code (Chapter 16 of the Laws of Malta), Leasehold defined as follows:

"Leasehold is a contract whereby one of the two contracting parties grants to the other, for all eternity, or for a time, a residence for a certain annual rent or ground rent, which they obliged to pay to the former, either in money or in kind, as a confirmation of the official time. "

Leasehold is typical for Continental Law (European) and not English law. It is very different from lease or rental of a dwelling house or a piece of land. This is because as opposed to leasing, Leasehold is a right in rem, which attaches to the country to forgive and not to the client of this law. On the other hand, lease, a personal right, not add to the land or the dwelling house granted, but only to the person seeking the lease. The legal consequences of these differences are considerable, particularly with regard to the rights and obligations of the parties.

The Treaty of Leasehold must, by public deed before a notary. It would be void if a private writing. Leasing, on the other hand, the private writing and the force of law. The Treaty of Leasehold can not be changed throughout the emphyteutical period. As soon as the ground rent is that it can not be changed.

Article 1494 provides for three main rates, which must be clarified:

i. or for an unlimited time

There are two types of grants empytheutical: Perpetual Leasehold and Leasehold temporarily. The former is a payment, which are adjusted annually with the legal possibility of redemption. Salvation is the free space. Temporary Leasehold, on the other hand, is a contract for a number of years. (In general, in Malta's most popular number of years for 17 years, 21 years, 99 years and 150 years.)

ii. stated annual rent or ground rent

The "canon" or ground rent are included in the contract, under penalty of nullity, and is to be paid annually to the dominus, the owner of the house.

iii.

The utilista recognizes the fact that it is legally able to enjoy that property and must recognize the dominus than the actual owners of such property.

The contract of building lease is a contract sui generis, in which the dominus, who the real owner of the property is temporarily divested of all his property rights. These rights and obligations for the "utilista," the person, as, during this period. After the expiry of the contract, which, with all the improvements that are being returned to the dominus, and there is no claim for an extension of the leasehold.

In the old days, Leasehold used to the granting of land to farmers who tend the land. Sometimes the agreement would be that recognition, and not as money, the farmer would dominus part of the production, harvesting or fruit has been made that land.

Ownership rights and obligations, while the operation of the leasehold, while utilista, but not the actual owner. Article 1507 states that the utilista is obliged by law obligationimposed all about the owners of buildings or land. This shows the responsibility of the utilista has in relation to the maintenance of the property. He is committed to such property as if it his own. If, however, there are substantial costs in carrying out such an obligation, which may utilista before the civil court of first hall to demand that the dominus be forced to part of the cost. In such a case the court take into account, particularly the Treaty of Leasehold by the parties, the remaining time of the grant, the amount of ground rent and other circumstances to address the demand.

The utilista has a very broad right of disposing of property under leasehold, it may on the emphyteutical Wohnhaus by a public act, either an act inter vivos, ie, the lifetime or death, ie after his death, In this case, through a will. The utilista allowed to sell the leasehold to a third party for a certain amount of money. Of course, he is selling the rest of the emphyteutical time. In addition, it may make the property back under leasehold, also known as Sub-Leasehold, in this case, he is a ground rent itself.

This alienation of the property does not require the approval or consent of the dominus, in each case. Moreover, the rights and obligations of utilista after transfer, will be moved to the new utilista or sub-emphytheuta. The latter is only the new utilista after dominus has recognized him. Unless the new utilista known is not in a position to carrying out his contractual obligations, the dominus can not refuse to acknowledge him. In cases where the dominus refuses to acknowledge the new utilista, it is still personally involved in the former for the payment of ground rent.

During the period of operation of the leasehold, the utilista has the right "on the surface of the house, if he does not lead to a deterioration" (Article 1506 (2)). Thus, if the utilista would like to continue to build or to move further to the already existing structures on the land, he can do. In addition, he is entitled to a "treasure" that he may on such property. The dominus was not entitled to a share.

At the expiration of the leasehold, the utilista is bound by law to the land or house with all the improvements made over the years in which the Leasehold.

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