BELGIUM Law and Practice Contributed by: Pieter Puelinckx, Yves Moreau, Melissa Verplancke and Gauthier Callens, Linklaters
hibited, whereas such restriction does not apply in the case of bankruptcy proceedings (subject to limitations, as express resolutive clauses are forbidden in lease agreements). Usually, tenant’s bankruptcy does not cause the lease to end automatically and landlords have to file a statement of their claims. In the absence of specific contractual provisions, the receiver usually decides on lease termination, but may also decide to continue its performance (eg, if he seeks a buyer for the tenant’s business). In case of judicial reorganisation proceedings ini - tiated by the tenant, the latter may request a moratorium, during which it is no longer possible for creditors to use means of execution. In such context, matured debts (including outstanding rents prior to the reorganisation proceedings) are frozen during the moratorium. New debts, including rents accrued following the opening of the judicial reorganisation proceedings are in principle not affected by the moratorium. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations It is a common practice for landlords to obtain a rental guarantee from tenants, as mentioned in 6.4 Typical Terms of a Lease . Furthermore, landlords are given a statutory privilege against other creditors over the ten - ant’s movable assets located within the leased premises, providing the landlord with additional security in the event of a default by the tenant. 6.17 Right to Occupy After Termination or Expiry of a Lease When a common law lease expires, it is auto - matically terminated, and the tenant is not enti - tled to remain in the premises, unless otherwise agreed.
For retail leases, if a tenant without renewal rights remain in occupancy of the leased prem - ises at the lease expiry, a new lease tacitly enters into force for an indefinite duration, which may be terminated by the landlord with at least 18-months’ notice, without affecting the tenant’s right to request renewal. 6.18 Right to Assign a Leasehold Interest In common law and retail leases, tenants can sublease or assign their rights under their lease to third parties, unless restricted by agreement. To prevent adverse effects for the landlord, leas - es often state that the landlord’s prior consent to the sublease or assignment is required. In retail leases, clauses restricting the transfer of the lease are unenforceable if the assignment or sublease occurs in conjunction with a business transfer, unless the landlord or their immediate family members reside in (a part of) the building. Formal procedures must be followed for such transfers. 6.19 Right to Terminate a Lease Leases may be terminated prior to their natural expiry either by the landlord or the tenant under conditions agreed between parties (subject to exceptions provided in the law) or by mutual consent. Common law leases often allow early termina- tion in case of a change of control of a party, transfer of the property/leased premises and force majeure events. Partial destruction of the premises usually lead to rent reduction or lease termination. Retail leases can be early-terminated at the end of each triennial period:
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