Lands Minister Stefan Zrinzo Azzopardi launched the National Strategy for the reform of the country’s land registration system for public consultation, with the aim being for Malta to become a compulsory registration area by 2035.
Zrinzo Azzopardi spoke at a press conference on Monday, during which he said that there is the need for a “re-learning” exercise on how land registration can be done more efficiently.
The public consultation document includes 18 government recommendations to reform, update and strengthen the Land registry, to provide more certainty, clarity and efficiency, including in the transfer of properties.
“This change is more than overdue,” Zrinzo Azzopardi said, adding that during the initial consultation with stakeholders when devising the public consultation document, professionals in the sector have said that there is the need for a change on how properties are registered, and how they are defined.
Zrinzo Azzopardi said that the wide public consultation, which is open as from today, till 28 February 2025, aims to arrive to the destination that 10 years from now, in 2035, obligatory registration of the entire country is achieved.
The land registration law, which was first introduced in the 80s, needs updating given the increases in transactions, number of owners and properties, as compared to the past, Zrinzo Azzopardi said.
“We need a more efficient and effective system, so that even in property transfers and the way a property is identified today is more representative of today’s realities,” he said.
He said that government has already started the process of digitalising the land registration system, and the year 2035 was chosen to give enough time so that there are no “shocks” to the system, have a digitalised land registry, and address legislative issues.
Zrinzo Azzopardi also announced a “groundbreaking” mechanism which will be introduced in the law after the consultation period process.
This would be a new arbitration mechanism to bring parties together in case of a dispute on properties, with the aim of reducing court proceedings.
“This is fundamental as the volume of registration will be larger and better, and so the risk for these disputes can increase. We must ensure efficiency where there is disagreement,” he said.
Zrinzo Azzopardi said that more information must be given to the general public, as well as all stakeholders involved in the consultation process, on how the system will change, so that everyone understands the process.
Government will be collaborating with all those involved as there is the need for a “wide consensus,” for this reform to move forward, he said.
He said that this process must lead to the point where the Land Registration Agency will be issuing a property “logbook,” just as is done for cars, certifying the property, and benefiting the owner and the system, leading to a more efficient process on how property is administered in the country.
“This reform must be done with thought, and terms which have been agreed to beforehand, to let the system update itself and understand everything about this change, for the benefit of all the families whose property is their largest investment,” Zrinzo Azzopardi said.
Executive Head of the Land Registration Agency Michelle Piccinino briefly explained the 18 recommendations, saying that the new system would give titles to properties offering certainty, and reducing incidents of fraud.
“The property market activity is totally different today than when the law was introduced. This must be updated by addressing trends in the property market, continuing to safeguard property titles and rights, and facilitate transactions and property transfers,” Piccinino said.
She said that many have complained to the agency about how difficult it has become to transfer properties, and the new system will support efficiency with regards to this.
Piccinino said that notaties, architects, banks, the buyers, sellers and developers, as well as the agency, will enjoy more accessibility and transparency with a new digitalised land registration system.
The first recommendation of government’s strategy is to update the Land Registration Act, changing title categories, addressing overriding interests, mediation, arbitration, title integrity, governance and leadership.
Government’s vision targets 100% compulsory land registration, aiming for 95% registration of properties by 2035, with annual evaluations and major reviews in 2028 and 2032.
The land registration agency will implement “registration triggers,” such as public campaigns on the benefits of title certification, educational outreach, mandatory registration for properties transferred by government agencies, full registration for condominium blocks, registration incentives and renewal of both the Agency and the legal system.
Government’s third recommendation is a new four-tier ownership title categorisation system for private land and property, which is proposed to improve the Agency’s ability to manage land and property types with different rights, interests and complexity.
A possessory title is issued when documentation is incomplete or only some of the conditions for a Qualified Title are met. This title may see possible challenges by others with stronger ownership claims.
Registrants can upgrade to a Qualified Title by submitting the minimum required documentation after registration. Upon initial registration of a property, a Qualified Title is issued.
If full documentation and other conditions established by the updated Act for a Guaranteed Title are unavailable, the land or property remains under Qualified Title status even after 10 years.
To obtain a Guaranteed Title, a minimum of 10 years must have passed since the Qualified Title was registered. All conditions, documents and criteria must have been met.
The ultimate title is the Absolute Title, which gives complete ownership rights, free of collateral, mortgages or third-party claims, providing full legal certainty, allowing owners to use or develop their property without concerns about future claims. This, however, requires a thorough review of the property’s ownership history, making it highly secure.
The Agency issues absolute titles as a paid service, with costs based on the research and surveying needed for certification.
Government will also address the imbalance in ownership protection, and recommended that third-party challenges to government property registrations be allowed within two years.
This adjustment would permit challenges on grounds such as fraud, overriding interests, registration errors without imposing excessive burdens through the Court of Appeal, as well as to expedite conflict resolution through mediation and arbitration.
It is also recommending that overriding interests are to be registered by new title registrants (when submitting their application) and existing registrants will be provided 12 months to register unrecorded overriding interests during an Agency established registration window.
After a 15-year deadline, unregistered overriding interests cannot be claimed, nor will challenges be permitted to land or properties with Guaranteed Title status through mediation and arbitration.
The Agency will also be conducting a comprehensive internal audit of title change processes to improve accountability, and address identified high and medium-risks issued to strengthen title security.
The wide list of recommendation includes the obligatory transferring of registration from purchaser to seller concerning land or property for redevelopment, and addressing delays in the Land Registration Process through digitalisation.
The strategy proposes extending the 15-day period for notaries to register applications in Compulsory Registration Areas to 30 days until the new e-Land Registration Information System is fully implemented, easing compliance during transition.
Architects and notaries can then login to the system to access contracts and fill out application forms once the digitalised system is finalised with their e-ID. The public will also be able to access the e-Land Register based on property unique numbers, with no personal information shown.
The strategy also recommends the establishment of an oversight governance mechanism, with an Internal Auditor, and independent Risk and Audit Committee, and an Advisory Committee to establish checks and balances.
The updated Act also recommends defining the Agency’s function to improve its legal position, operational efficiency and accountability, also recommending a structure with clearly defined roles, responsibilities and decision-making points to ensure accountability.
The Agency will also publish regular property data reports and research papers, addressing transparency gaps and improving decision-making for policymakers and stakeholders.
The strategy proposes consolidating all property matters into a single register to streamline processes, enhance efficiency and reduce costs. The agency would manage property titles and related processes while civil matters remain under the Public Registry.
Government is urging all to participate in the public consultation process, and the document is available on consultation.gov.mt.