General tenancy law under Book 7 of the Belgian Civil Code: what you need to know

With the introduction of Book 7 “Specific Contracts” into the Belgian Civil Code, the legislator is about to take the next step in the far-reaching reform of Belgian contract law. Where Book 5 already modernised the general law of obligations, Book 7 seeks to bring clarity to the fragmented and at times outdated rules governing specific types of contract (sale and barter, hire and loan, service contracts, certain contracts of chance, sequestration and settlement).

The provisions of Book 7 generally apply as supplementary law unless the law itself stipulates that no deviation is permitted. Book 7 will apply to contracts concluded on or after 1 September 2027.

In this article, we discuss some key considerations regarding general tenancy law and its potential impact on businesses.

Why general tenancy law remains relevant

Over time, tenancy law has undergone several significant changes. These changes were primarily intended to protect tenants under specific circumstances, including residential and commercial tenancies, leaseholds, student and social housing tenancies.

However, general tenancy law remains very relevant, as it sets out the rules for situations not covered by these specific regimes. These include a.o. (i) the letting of movable property, office space, storage facilities and garages, and (ii) aspects which would normally fall within these specific regimes, but where no specific rules exist.

The main changes

General tenancy law is being modernized, simplified and updated primarily in the new Book 7 of the Belgian Civil Code. While there are not many substantive changes, the legislator has used this reform to address certain gaps in general tenancy law.

Compensation scheme for alterations

Previously, there were no provisions addressing whether tenants were permitted to carry out alterations and, if so, what compensation they would be entitled to at the end of the tenancy. Consider a company that has fitted out rented office space to meet its specific needs, at its own expense and without the landlord’s consent. This could include removable partition walls to create separate workstations, additional data cabling for the IT infrastructure or a reception desk for receiving clients.

From now on, the general tenancy regime includes an obligation for the landlord to pay compensation for such works under certain circumstances. The contractual agreements between the parties remain the starting point. If the contract does not specify anything in this regard, Book 7 of the Belgian Civil Code provides a differentiated system depending on whether the alterations can be removed, i.e.:

• removable works that the landlord wishes to retain: the landlord must pay compensation amounting to the added value of the works, up to the amount paid by the tenant;
• removable works that the landlord does not wish to retain: these must be removed at the tenant’s expense;
• non-removable improvements carried out without the landlord’s consent or in breach of the tenancy agreement: the landlord is not liable to pay compensation;
• non-removable improvements carried out with the landlord’s consent: the tenant is entitled to compensation (see removable works that the landlord wishes to retain).

Legal framework for precarious occupancy

In addition to aforementioned compensation scheme, Book 7 of the Belgian Civil Code provides a solution for those requiring a flexible, temporary real estate arrangement. Consider, for example, a property that is about to undergo extensive renovation. While awaiting planning permission and the start of the works, the owner may wish to avoid the property standing vacant. This could be useful for your business if you need extra storage space in the short term. The vacant property could serve as a perfect temporary storage facility in this situation, creating a win-win for both parties.

Until recently, this so-called ‘precariousoccupancy’ (“bezetting ter bede”) existed in a legal vacuum. However, with the introduction of Book 7 of the Belgian Civil Code, this legal concept has been explicitly enshrined in law, making it clear that precariousoccupancy does not constitute a legal tenancy agreement (and the consequences thereof). However, a legitimate reason is required and the legislation cannot be circumvented. In this regard, the legislator is referring in particular to agreements that regulate a special temporary situation, such as a waiting period, given that precariousoccupancy can be terminated at any time.

Exclusion of extrajudicial termination by the landlord

Finally, according to Book 7 of the Belgian Civil Code, termination of the tenancy by the landlord without judicial intervention is not permitted in the case of the letting of immovable property (an express termination clause is not applicable).

This rule is mandatory and serves exclusively to protect the tenant. In practice, this means that the landlord can never use a termination clause to end the tenancy agreement outside of court, while the tenant can use such a clause if it is included in the agreement.

Conclusion

The changes to general tenancy law require careful consideration when drafting and negotiating tenancy agreements. This is particularly important for businesses that rent offices or warehouses, and for property companies that are active in office lettings.

How can we help you?

As a law firm specialising in commercial law, we assist companies with a seamless transition to Book 7 of the Civil Code. You can turn to us for, amongst other things:

• practical advice on new tenancy projects or negotiations (e.g. standard tenancies, office and storage space, commercial tenancies), with a particular focus on clear agreements and risk allocation;  and
• assistance with tenancy disputes.

Please feel free to reach out for an initial meeting. As commercial lawyers, we always consider the legal and commercial impact for your business.

Pieter-Jan Aerts and Marthe Pattyn
De Langhe Attorneys

*This article forms part of our series on the reform of Belgian contract law under Book 7 of the Civil Code.

Part 1: Service contracts under Book 7 of the civil code: what you need to know
Part 2: The reform of sales law: what do you need to know as a buyer or seller?
Part 3: Settle a dispute what to bear in mind when entering into a settlement agreement under Book 7 of the Belgian Civil Code
Part 4: General tenancy law under Book 7 of the Belgian Civil Code: what you need to know