GRTU to take its rent reform objections to court

The GRTU is to file a judicial protest over the rent reform recently approved by Parliament and is inviting its members to sign up.

The chamber said that none of its well thought recommendations had been included in the new law.

It said that as a result of the new legislation, in the case of pre-1995 commercial contracts, rent will from next year increase by a fixed rate of 15%. The 15% shall increase on the 1st of June of each year up till 31st December 2013 unless there is a different written agreement.

On 1st Jan 2014 rent must be agreed upon between the parties. If no agreement is reached any party may apply to the Rent Board to fix the fair rent, established according to the Property Market Value Index

If an agreement existed where rent had periodic increases, such agreement would continue to apply without any increase.

A commercial contract made before 1st June 1995 shall in any case terminate within 20 years from 1st June 2008 unless another contract or lease has been made laying down a specific period.

A commercial contract made before 1st June 1995 for a specific period not yet lapsed on 1st January 2010 and on the original date "di fermo" or "di rispetto" is still running and where it has not automatically been extended by law, then the original period of lease shall continue to apply.

The GRTU said it felt various points of this law went against the basic rights of business owners as stipulated by law.