Malta Commercial Required Disclosures

While commercial leases are primarily governed by the principle of freedom of contract, certain disclosures are mandatory under the Civil Code (Cap. 16, effective 1 January 2010 for modern lease amendments) and specific building regulations.

Energy Performance Certificate (EPC)

Under the Energy Performance of Buildings Regulations (S.L. 623.01), commercial units in Malta must have a valid EPC for the property to be legally rented. The certificate must be shown to prospective tenants and handed over upon signing the lease. For commercial buildings, the EPC assessment is more complex, focusing on HVAC systems, lighting, and insulation. It is valid for 10 years. Failure to provide a valid EPC is an offense subject to administrative or criminal fines ranging from €500 to €5,000.

Planning Use Class (PA)

The landlord must disclose the current Planning Authority (PA) Use Class as defined by the Development Planning (Use Classes) Order (S.L. 552.15). Commercial uses fall under Category D, which includes Class 4A (Offices), Class 4B (Retail), Class 4C (Food and Drink - no cooking), and Class 4D (Food and Drink - cooking allowed). If a property is zoned for retail (Class 4B) and the tenant wants to open a restaurant (Class 4D), a change of use permit is required. Operating without the correct class can lead to enforcement notices and heavy fines.

Site Plans and Boundaries

Clear site plans must be provided to ensure the tenant knows exactly what is included (e.g., parking spaces, outdoor areas, or basement storage). This is crucial for defining the "demised premises" under the Civil Code.

Liability for Non-Disclosure

Under Art. 1531A of the Civil Code (Cap. 16), all commercial leases entered into after 1 January 2010 must be in writing and specify the property, the agreed use, the duration, and the rent. While failure to provide an EPC results in administrative fines, the lack of a correct PA Use Class permit can lead to the dissolution of the contract. Under Art. 1539, the landlord warrants the property against faults or defects that prevent its intended use. If the property is unfit for the agreed use due to incorrect zoning or missing permits, the tenant may demand the dissolution of the lease and damages under Art. 1541. Disputes are typically adjudicated by the Rent Regulation Board, which has exclusive jurisdiction over commercial lease contracts.

How Landager Helps

Landager tracks your Planning Authority permits and EPC expiry dates, ensuring your commercial portfolio remains compliant with building and usage laws.