Issue link: https://maltatoday.uberflip.com/i/1547002
8 maltatoday | SUNDAY • 4 OCTOBER 2026 OPINION & LAW PAUL RADMILLI Mifsud & Mifsud Advocates Objecting to the use of the penthouse roof. Check your contract first! IN a recent case decided by Judge Aaron Bugeja, the Civil Court had to determine the right of use of a penthouse roof to in- stall a water tank, a water pump, airconditioning compressor and solar panels. These matters are normally spelled out in the deed of ac- quisition but notwithstanding the penthouse owner insisted no use could be made of the roof of his penthouse to install a water tank and pump, an AC compressor and photovoltaic panels. There was no dispute as to ownership of the penthouse roof. It belonged to the owner of the penthouse. What was at issue was whether the plaintiff had exclusive use of the said roof and so absolute control over what takes place on it, or whether the deed of acquisition placed any limitation on the use of the roof by the owner in the form of servitudes in favour of the underlying apartments. In its judgment the court ob- served that the plaintiff's deed of acquisition explained clear- ly the division of real rights, which the original vendors— the developers of the block— had drawn up. Once such deed outlines the burdens and re- strictions of use. By signing such a deed, the plaintiff was expressly consenting to a re- striction of use on his roof. Furthermore, the deed of ac- quisition was supplemented with a plan, which outlined the manner in which the roof was divided for this use. Therefore, when the original vendor sold the remaining units, he was not creating any new rights but rather allocating to the bene- ficiary the right of use already specified in the deed of acqui- sition of the plaintiff. The court pointed out that the plaintiff had given a very partial reading of the deed of acquisition of his penthouse. The deed expressly stated that the deed incorporates the con- tract as well as all documents annexed to it. On this basis, the court gave weight to the plan of the roof attached to the deed. The plan outlined which apartment had exclu- sive use of which area on the roof. The court concluded that acceptance of the plan by the penthouse owner signalled his acceptance that he did not have absolute use of the roof. The judgment states that there is a difference between the right to property and the right of use of the roof of the same property. The latter in legal jargon is known as the jus utendi, and in this case it was not absolute to the own- er of the penthouse. The right of use of the penthouse owner in this case was limited to one area while other areas were al- located to other apartments including to the owner of the penthouse. The fact that the penthouse or apartment was not yet in a complete state does not mean that the parties could not cre- ate, reserve or regulate real rights, easements or restric- tions on the basis of plans and conditions integrated into the contracts. Contract law does not prohibit a future proper- ty, airspace or shell form from being transferred with clear conditions as to its future use. The court referred to the legal principle pacta sunt servan- da, found in Article 992 of the Maltese Civil Code. It means that a contract legally entered into shall have the force of law for the contracting parties, and the parties may only depart from the obligations entered into if there is a revocation by mutual consent, or on grounds allowed by law. The court rejected the claims by the plaintiff that there were no servitudes burdening the use of the penthouse roof and allowed the defendant—the owner of the underlying apart- ment—to place a water tank, a water pump, an aircondition- ing compressor and PV panels on the roof. The judgment was appealed. Lawyers Paul Radmilli and Cedric Mifsud appeared for the defendant. Kevin Mizzi Budget 2027 must reset and lead Head of policy, The Malta Chamber of Commerce, Enterprise and Industry FOR years, Malta's business com- munity has displayed remarkable resilience, navigating global sup- ply chain shocks, international turbulence, and intense domestic growth pressures. But resilience alone is no longer a strategy for success. As the European eco- nomic outlook softens and inter- national competition tightens, we face an uncomfortable truth—our traditional economic model has run its course. During legislative cycles, with some exceptions during electoral campaigns, political leaders rou- tinely call for responsibility. As The Malta Chamber of Com- merce, Enterprise and Industry clearly stated in its Budget 2027 recommendations, this budget cannot be another exercise in in- cremental tweaks or topping up existing formulas. It must mark a decisive departure from volume driven expansion towards imme- diate execution on longstanding pain points and substantive legis- lative reforms. As the chamber LEAD pre-elec- toral document stated, between 2015 and 2025, Malta's Gross Value Added expanded by an impressive 81.9%. However, an astounding 68.9% of that expan- sion was driven purely by adding headcount. Sectoral shifts con- tributed 9.9%, while actual labour productivity gains accounted for a mere 3.1%. This reaffirmed the generic sentiment out there that adding population, vehicles, and workforce faster than generating intrinsic value, inevitably strains public infrastructure, degrades mobility, and diminishes our overall quality of life. To address this, the chamber ex- pects our political leaders to sober up from the pre-electoral sales- spree and tackle the structural issues that are too often left unad- dressed or allowed to accumulate their negative impact on national productivity, from the very first year of the electoral term. Red tape and administrative fric- tion continue to drag down pri- vate sector output, while private enterprises are forced to compete with state-induced market dis- tortions and public entities that crowd out private initiative. Public authorities must refrain from poaching skilled, highly trained talent from private busi- nesses, which severely exacerbates an already tight labour market and undermines local enterprise. Compounding this challenge, a starkly declining native birth rate makes a radical, STEAM-orient- ed curricular overhaul an urgent economic necessity to ensure our future workforce develops the skills which high value industries demand. At the same time, while ac- knowledging that the govern- ment's labour migration policy addressed immediate workforce needs, it now requires a review to eliminate bureaucratic friction and sharpen Malta's global attrac- tiveness to entice and retain top- tier international talent. In recent years, local enterprises have absorbed an unprecedented wave of EU-related compliance and regulatory demands. From emissions trading mandates to compliance reporting directives, these requirements have added significant operational overhead to Maltese businesses without de- livering a corresponding compet- itive advantage. These structural requirements require robust lob- bying in EU corridors. Unfortunately, Malta has failed to fully leverage the flexibilities offered by European frameworks. While accepting cost-increasing regulations, we have not aggres- sively utilised available state aid mechanisms and island-state ex- emptions to shield our economy from geographic vulnerabilities. The chamber has submitted a comprehensive list of state aid examples, by way of concrete rec- ommendations, for government consideration to ensure our busi- nesses can compete fairly across the European Single Market while driving the necessary environ- mental and digital transforma- tions. Put simply, we need to bridge immediate economic necessities with long-term strategic vision, The chamber's Reset And Lead document sets out a clear, du- al-track framework. Section A demands immediate year-one execution during Budget 2027 through rapid, operational interventions designed to stream- line regulatory processes, elimi- nate state-induced market distor- tions, enforce planning laws, and deliver efficiency gains without delay. Section B paves the way for sub- stantive legislative reforms across the remainder of the legislature, targeting energy grid modernisa- tion, spatial planning, public pro- curement, digital transformation, and institutional governance. I urge readers and policy mak- ers to read the document because Malta cannot afford to let anoth- er budget cycle drift by on short- term compromises. The path forward requires the political courage to reset where our current trajectory is failing us, and the determination to lead by translating policy into rapid, un- yielding execution. Budget 2027 must serve as the decisive catalyst that resets na- tional productivity and secures a sustainable economic future for Malta's citizens and businesses alike. Budget 2027 must serve as the decisive catalyst that resets national productivity and secures a sustainable economic future for Malta's citizens and businesses alike