The Breyne Law: what is it?

On 9 July 1971, the Breyne Law was enacted. It protects purchasers of properties bought off-plan or under construction, intended for residential use (as a main residence, second home or rental property) and located in Belgium.
The Breyne Law also applies to renovation or extension work on a property, provided that ownership is also transferred. In this case, the total cost of the work must amount to at least 80% of the property’s sale price and must exceed 18 600€.
The law provides various protections:

The completion guarantee

If the developer is unable to ensure that construction is completed, they must provide the funds required to complete the work.

Transfer of ownership and payment arrangements

This means that, on the day the preliminary sale agreement is signed, the purchaser becomes the owner of the share of the land corresponding to their property. Before then, the law prohibits any payment, except for a deposit of no more than 5% of the total price if required by the seller.
The purchaser then becomes the owner of the structures as materials are incorporated into the building work. This means that the purchaser acquires ownership progressively as their home is built. The balance is therefore paid in instalments

Provisional and final acceptance

The Breyne Law requires two acceptance stages: provisional acceptance and final acceptance. The first constitutes the purchaser’s approval of the property: they acknowledge that the work has been completed but retain the right to raise certain comments. One year must elapse before final acceptance of the home.

The ten-year guarantee

Following provisional acceptance, the purchaser has a further ten years in which to bring a claim against the seller if there are latent defects, such as issues affecting the building’s structure.

The completion period

If this deadline is not met (it will have been specified beforehand in the agreement), the company must pay the purchaser damages corresponding to the anticipated rent had the new or renovated property been let.

Please note, however, that the law does not apply in two cases:
– Where the purchaser does not have the work carried out by the same person from whom they purchased the property.
– Where someone has work carried out on a property they already own.

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