Government measures in key jurisdictions 4th edition - Flipbook - Page 12
Belgium
Property
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No other specific legal regulations were taken to reinforce contracts. The parties will have to
analyse the applicable contractual provisions in order to establish whether the current
governmental measures can be invoked to suspend performance under the contract or to lift
liability for non or late performance. Contracts in Belgium often include clauses relating to
force majeure or hardship.
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If parties did not include such provisions, Belgian law and jurisprudence of the highest court
provide for several mechanisms to protect contracting parties against adverse events.
Principles of good faith and obligations to renegotiate contracts can be invoked under strict
conditions. Application of these principles are casuistic and must be assessed in detail.
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For more details on this topic, please refer to section Contract at our Corona Desk website.
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In respect of payment of rent, the current pandemic does not constitute force majeure for
tenants. They have to pay rent and may not suspend payment of rent. However, there are
measures to mitigate the impacts of this pandemic. For instance, in the Flemish Region:
Have any changes
been made to
the laws around
property, rent and
enforcement?
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– it is possible to extend the lease agreement by e-mail if the agreement is about to expire during
the confinement period,
– a social tenant who has lost his or her income due to temporary unemployment as a result of
force majeure will be able to ask the social landlord for a temporary adjustment of the rent, and
– social landlords will be able to provide temporary shelter, directly or through an intermediary
institution, to individual or families in an emergency situation as a result of the Covid-19 virus
measures.
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In addition, due to social distancing requirements, some procedures or meetings with physical
attendance requirements that have to be organized during the period between 10 March 2020 and
30 June 2020 have been either postponed or allowed for alternative attendance means, this is the
case for the participation in the general meeting of association of co-owners.
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The Flemish government has set up a system of commercial lease loans to support companies
and is valid from April 2020.
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Tenants who due to liquidity problems have difficulties to pay the commercial rent can apply for
a commercial lease loan. The tenant submits an application via the website of the Agency for
Innovation and Entrepreneurship before 1 October 2020. An application may relate to several
properties of the same landlord, for which the tenant applies for a single commercial lease.
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The following conditions must be met in order to be eligible for a commercial lease loan:
- The company must have a registered commercial lease,
- The property must be located in the Flemish Region,
- The company has been obliged to close all or part of its physical location, and
- The company had no arrears in the rent for this property on 15 March 2020.
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The regulation consists of the Flemish government advancing a maximum of two months 'rent,
on condition that the landlord remits one or two months' rent.
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The tenant and landlord must sign a model agreement for this, which is made available by the
Innovation and Entrepreneurship agency here.
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As of 12.06.2020, the Flemish Government will also open the commercial lease loan to
companies in the events sector (this was not the case before).
Government measures in key jurisdictions