REALWorld Law

Commercial leases

Types of lease

What types of arrangement does the law recognize which allow occupation and use of real property for a limited period of time?

Belgium

Belgium

Under Belgian law, a distinction can be made between arrangements governed by the Belgian civil law on leases, including the rules, as the case may be, enacted by the three regions following the Sixth State Reform, and contracts with a similar purpose that are governed by Belgian contract law.

There are different types of lease agreement:

1. Common law lease agreements. Lease agreements subject to the general provisions of the Belgian Civil Code (ie office leases, warehouses).

2. Residential lease agreements. Agreements relating to the tenants’ principal place of residence. Following the Sixth State Reform each of the three Regions in Belgium has adopted its own residential lease legislation, namely:

  • The Flemish Residential Housing Code of 9 November 2018 (Decreet houdende bepalingen betreffende de huur van voor bewoning bestemde goederen of delen ervan/Décret contenant des dispositions relatives à la location de biens destinés à l'habitation ou de parties de ceux-ci), which entered into force on 1 January 2019. It applies to residential leases concluded after 1 January 2019. The Federal Residential Lease Act continues to apply in full to residential leases concluded before 1 January 2019;
  • The Walloon Residential Housing Code of 15 March 2018 (het Decreet betreffende de woninghuurovereenkomst/Décret relatif au bail d'habitation) which entered into force on 1 September 2018. It applies immediately to both existing residential leases as to residential leases which are concluded after its entry into force date on 1 September 2018. This to the exception of provisions regulating the following subjects: the minimum content of the written agreement, the fire insurance scheme, the possibility of cancelling short-term rentals and the rules on co-tenancy and student accommodation. For these issues the Federal Residential Lease Act continues to apply in full to residential leases concluded before 1 September 2018;
  • The Brussels Residential Housing Code of 27 July 2017 (de Ordonnantie houdende de regionalisering van woninghuurovereenkomst/Ordonnance visant la régionalisation du bail d'habitation) entered into force on 1 January 2018. It has been integrated into the existing Brussels Housing Code. Most of its provisions are only applicable on residential lease contracts which are concluded after the entry into force date, however, some of its provisions are already applicable on ongoing residential lease contracts.

3. Commercial lease agreements. Agreements protecting retailers or artisan activities: for standard commercial lease agreements, the Federal Commercial Lease Act of 30 April 1951 still applies. However, the 3 Regions have adopted their own legislation relating to short term leases, namely:

  • Flemish Decree of 17 June 2016 on the short-term lease of premises for commercial and artisanal purposes, governing short-term ("pop-up") commercial lease agreements entered into force on 1 September 2016;
  • Walloon Decree of 15 March 2018 on the short-term lease of premises for commercial and artisanal purposes, governing short-term ("pop-up") commercial lease agreements entered into force on 1 May 2018;
  • Brussels Ordinance of 25 April 2019 on the short-term lease of premises for commercial and artisanal purposes, governing short-term ("pop-up") commercial lease agreements entered into force on 19 May 2019.

4. Farming Leases. Lease agreements relating to real estate leased to farmers for agricultural purposes.

Contracts that are similar to lease agreements, such as the operational/financial leasing (and financing) of commercial real estate (offices and industrial buildings – location-financement/onroerende leasing), facility provision agreements (mise à disposition/terbeschikkingstelling) for warehouses, parking spaces, hotel management contracts, etc. Finally, lease contracts for office spaces and retail stores in shopping malls are sometimes combined with service agreements relating to reception facilities, telecommunication services, meeting rooms etc and may or may not be contained in a single written contract.

The Commercial Leases Act, the Regional rules governing pop-up commercial leases, and the Regional rules on residential housing contain certain mandatory provisions which the parties cannot contract out of, generally for the protection of the tenant, as well as certain optional provisions which parties can adopt if they wish.

Only general leases (offices, warehouses, industrial buildings) and commercial leases are discussed here. Residential leases and farm leases are not covered.