Commercial & Lending Deeds in Malta
Credit is extended on the strength of security, and security over immovable property in Malta is constituted by notarial deed. We act for borrowers and for lenders, and for companies whose business brings them into the acquisition, financing and disposal of premises.
Loan and Hypothec Deeds
A loan secured on immovable property is published by public deed, the security taking the form of a general hypothec over the debtor’s property, a special hypothec over a nominated property, or a special privilege. The distinctions matter: they govern what the creditor may pursue and in what order he ranks against others. We draft to the lender’s requirements while satisfying ourselves that the borrower understands the burden he assumes.
Where the facility is taken in conjunction with a purchase, the deed of sale and the deed of loan are published on the same occasion, and the two are co-ordinated so that neither waits on the other.
Constitutions of Debt and Suretyships
A debt already incurred may be acknowledged and secured by a constitution of debt, and a third party may bind himself for another by suretyship. Both are frequently required where a facility is restructured or where security is given for the obligations of a related company. We advise the surety as to what is undertaken, which in our experience is not always as clearly understood at the outset as it might be.
Company Transfers and Leases
Companies acquire and dispose of immovable property by the same public deed as individuals, with the additional requirement that the authority of those signing be established — the memorandum and articles examined, the resolutions verified, and the representation confirmed. We attend to that as a matter of course.
Commercial leases and emphyteutical grants, where the parties wish them reduced to public deed and registered, are likewise within the practice, as are the deeds by which established businesses are transferred together with the premises from which they trade.
Releases and Cancellations
When a debt is discharged, the security that secured it should not be left standing. We publish the deeds of release and attend to the cancellation of hypothecs and privileges at the Public Registry, so that the property is shown free of a burden that no longer exists — a step commonly overlooked until it obstructs a later sale.
Other practice areas
A facility to secure, or premises to acquire? Let us know the position.
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