BELGIUM Law and Practice Contributed by: Pieter Puelinckx, Yves Moreau, Melissa Verplancke and Gauthier Callens, Linklaters
6.22 Termination by a Third Party There is no such thing as a termination of a lease by a third party in Belgium, except in case of expropriation (by a public entity), which may lead to a claim for indemnity by the tenant. 6.23 Remedies/Damages for Breach Remedies for lease breaches often involve financial compensation, enforcing lease obli - gations, retention of rental guarantee, or lease termination. In case of termination, leases (and court decisions confirming the termination) usu - ally define principles on property reinstatement, occupation indemnity, and other potential finan - cial compensations. 7. Construction 7.1 Common Structures Used to Price Construction Projects Architects and main contractors usually enter into agreements with a fixed price model, based on specific assumptions such as the projected surface area of the project. To account for unex - pected changes and ensure costs reflect actual expenses, adjustments to the fixed price are usually contractually defined to protect involved parties (such as the contractor or the architect), covering hypothesis such as additional research or project alterations due to permit requirements, including termination rights. Alternatively, parties sometimes agree on a price model with set mini - mum and maximum limits. Payment schedules are usually milestone-based, aligning with significant project stages such as design approval or delivery phases, or can be structured around regular monthly or quarterly invoicing that reflects actual costs incurred.
• by landlords (provided that such right is stipulated in the lease), with at least one-year notice, and under condition that the landlord or close family members will operate (poten - tially through a company) a business in the property; and • by tenants upon expiry of each three-year period, subject to a six-months’ notice. In case of early termination of a retail lease by the landlord, the landlord will not have to indem- nify the tenant, unless they conduct the same business in the premises. If so, the landlord must pay two years’ rent as compensation (and three years’ rent in the absence of disclosure of this information). 6.20 Registration Requirements In retail or common law leases, lease registration may be the landlord’s or tenant’s responsibility, but the registration duties (ie, 0.2% of total rent and charges to be paid for the duration of the lease) are usually borne by the tenant. Leases over nine years or with a discharge of three years of rent require a notarial deed and mortgage reg - istration. Failure to comply with these formalities may cause the lease to be unenforceable against third parties who, in good faith, claim an owner - ship interest in the leased premises. 6.21 Forced Eviction landlords seeking to evict their tenant on the basis of a contractual breach must initiate a claim before the justice of the peace. The pro - cess may last several months, especially if ten - ants claims the landlord’s request is unjustified, for instance, if they remedied the breach before the hearing, potentially leading to debates.
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