What is the Breyne Act?
The Breyne Law, passed in Belgium in 1971, applies to any property purchased off-plan or under construction for residential use in Belgium.
The main aim of this law was to protect future homeowners and buyers by regulating construction and sales contracts. It imposes strict obligations on sellers and developers to ensure the transparency and security of real estate transactions.
It avoids abuses following developer bankruptcies, often leaving buyers with no recourse.
Here are the essential elements of this law:
The main advantages of the Breyne Act
- Buyer protection
One of the main aims of the Loi Breyne is to protect buyers against abusive practices. It ensures that buyers receive all necessary information about the property before signing the contract. This includes detailed plans, planning permission, total price and payment terms.
This transparency is essential to enable the buyer to make an informed decision.
- Financial guarantees
The law requires the developer to provide solid financial guarantees to protect the buyer's funds. This includes a completion guarantee, which ensures that the project will be completed even if the developer goes bankrupt.
This guarantee is essential to avoid situations where buyers end up with an unfinished project.
- Provisional and final acceptance
The Breyne Act lays down clear procedures for the provisional and final acceptance of a property. Provisional acceptance allows the buyer to check that the property conforms to the agreed plans and specifications.
Final acceptance, usually a year later, is used to check that any defects have been corrected.
- Time limits and penalty payments
To avoid any delays in the execution of the work, it is important that the agreement includes a precise start date for the work, as well as a clear deadline for completion.
If the company is responsible for a delay in execution, it will have to pay damages to the client.
These indemnities are calculated on the basis of the normal rent that the project owner would have received if the new or renovated building had been let on time.
- Method of payment
The compromis and the deed of sale will set the final price. No payment is authorized before the signing of the compromis. If a deposit is requested by the seller, it may not exceed 5% of the total amount.
When signing the notarial deed, the developer can only claim the amount corresponding to the land and work already completed. The remainder of the price will then be paid in instalments, as the work progresses. Each stage of this progression must be validated by an architect to ensure the conformity of the work carried out.
- Transfer of ownership
The purchaser becomes the owner of the property as the work progresses.
As soon as the compromis is signed, the buyer immediately obtains ownership of the part of the plot corresponding to his apartment, or the entire plot in the case of a house.
Constructions are then transferred gradually, as materials are integrated on site.
- Insurance and decennial warranty
The developer must take out specific insurance to cover construction-related risks.
This includes civil liability insurance and decennial insurance, which covers the stability and watertightness of your building for ten years after provisional acceptance.
Conclusion
The Breyne Law is an essential piece of legislation to protect buyers of new properties or properties under construction in Belgium.
It offers greater security and transparency, while imposing strict obligations on developers and vendors.
As a buyer, it's crucial to know your rights and to ensure that all the conditions of the Breyne Act are respected when purchasing your property.
