The following contribution was penned by Notary Dr Marisa Grech, the Chief Officer responsible for Expropriations and Contracts at the Lands Authority.

The compulsory acquisition of land for a public purpose is an important legal mechanism that enables the Government to carry out projects that benefit the community. In Malta, this process is regulated by the Government Lands Act (Chapter 573 of the Laws of Malta), which establishes the procedures governing the acquisition of land, the payment of compensation, and the protection of the rights of affected landowners. This article provides an overview of the principal stages of the expropriation process and the safeguards available under the law.

Modes of acquisition

In terms of the Government Lands Act, land may be acquired either by absolute purchase (Government becomes owner) or by possession and use (when land is required only for a specified period)

Contents of the declaration and publication

The process is initiated through a declaration signed by the Chairperson of the Lands Authority and published in the Government Gazette. It is also published in two daily or Sunday local newspapers. A copy of the declaration and the site plan is also affixed upon or near the land being expropriated and also on the notice board of the Local Council and of the Police Station. If the land is occupied by any person, a copy of the declaration and the plan is served to the occupier by means of a judicial act presented in the Land Arbitration Board.

The declaration shall include a description of the land, a site plan, and an indication of the public purpose for which it is being required. The Declaration shall also state the amount of compensation which the authority is willing to pay together with a valuation of the property. If the land is being acquired for possession and use, the declaration shall indicate the number of years for which the land shall be kept by the authority, and this period shall not exceed ten years.

Challenging the public purpose and compensation

Following the publication of the declaration, any person who has an interest in the land may contest the public purpose and demand its cancellation. This shall be done within fifty days from the publication of the declaration by means of an application before the Land Arbitration Board. If there is a contestation of the public purpose, the title to the land is not transferred to the Government.

If following the lapse of the statutory fifty-day period after the publication, there is no such contestation, the amount of compensation offered in the declaration shall be deposited in an interest-bearing bank account within fifteen days. Following the deposit, the property is registered in the Public Registry and in the Land Registry and the title to the land vests in the Government by operation of the law without any other formalities and free from any charges, hypothecs, and privileges.

Persons having an interest in the land are entitled to withdraw the compensation deposited by the Government upon establishing good title to the property. Such entitlement, commonly referred to as “compensation rights”, may be transferred by means of a public deed, whereby the owner transfers such rights in favour of the Government in consideration of the compensation payable. Prior to any payment being effected, the Directorate undertakes a thorough examination of the root of title and carries out the necessary legal verifications to establish entitlement to compensation. This process ensures that compensation is disbursed only to those lawfully entitled thereto.

Land owners are not obliged to accept the amount of compensation offered by Government. In terms of the provisions of the Government Lands Act, owners retain the right to challenge the compensation before the Land Arbitration Board.

The Land Arbitration Board (LAB) is a specialised tribunal forming part of the Courts of Justice of Malta. Its principal function is to determine disputes arising from the compulsory acquisition (expropriation) of property by the Government. The board exercises the jurisdiction conferred upon it by the Government Lands Act and, amongst other matters, adjudicates claims relating to the adequacy of compensation, challenges to the public purpose underlying an acquisition, and requests concerning land acquired under previous expropriation regimes. The board is composed of a Chairperson, who is a Judge or Magistrate, and two Architects selected from a panel appointed by the President of Malta. The Architects assist the board on matters relating to property valuation and other technical issues arising during proceedings.

Landowners may withdraw the compensation deposited by the Government without having to await the determination of proceedings before the Land Arbitration Board and may do so without prejudice to their right to continue such proceedings. In such cases, payment may be accepted subject to an express reservation that the owner is contesting the adequacy of the compensation offered. This compensation mechanism is designed to ensure that owners are not deprived of access to the compensation offered while legal proceedings are pending.

The compulsory acquisition of land for a public purpose is one of the most significant powers vested in the state, as it directly affects the constitutional right to property. The Government Lands Act establishes a legal framework that seeks to balance the state's power to acquire land for a public purpose with the protection of private property rights.

Through the payment of compensation and access to judicial review before the Land Arbitration Board, the Act provides important safeguards for affected landowners. The cardinal principle underpinning the law of expropriation is that compulsory acquisition must be exercised in the public interest, in accordance with the rule of law, and subject to fair compensation, thereby ensuring an appropriate balance between public needs and individual rights.