The Building Lease Agreement is a crucial legal instrument in Belgian property development and real estate transactions. It enables property development while maintaining separate ownership of land and buildings, commonly used when landowners wish to retain ownership while allowing others to develop their property. This agreement type is particularly relevant for commercial developments, renewable energy projects, and long-term property investments. The Building Lease Agreement must comply with the Belgian Act on Building Rights, which limits the term to 50 years and requires formal registration. It's especially useful in scenarios where outright property purchase is not desired or possible, providing a flexible alternative for property development while protecting the interests of both landowners and developers.
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1. Parties: Identification of the landowner (grantor) and the building lease holder (grantee) with full legal details
2. Background: Context of the agreement and brief description of the property and intended construction
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the land, including cadastral details and exact measurements
5. Grant of Building Lease Right: Explicit grant of the building lease right and its scope
6. Duration: Term of the building lease (maximum 50 years under Belgian law)
7. Building Obligations: Requirements and specifications for construction, renovation, or maintenance of buildings
8. Payment Terms: Building lease fee (if any) and payment schedule
9. Rights and Obligations of the Grantor: Landowner's rights and responsibilities during the lease term
10. Rights and Obligations of the Grantee: Building lease holder's rights and responsibilities
11. Insurance and Liability: Required insurance coverage and allocation of risks
12. Termination: Conditions and procedures for early termination
13. End of Term Provisions: Arrangements for the end of the building lease, including compensation for buildings
14. Registration: Obligations regarding official registration of the agreement
15. Governing Law and Jurisdiction: Confirmation of Belgian law application and competent courts
1. Mortgage and Assignment Rights: Include when the grantee is permitted to mortgage the building lease right or assign it to third parties
2. Environmental Provisions: Include when there are specific environmental concerns or requirements
3. Pre-existing Buildings: Include when there are existing structures on the property
4. Commercial Use Provisions: Include when the building will be used for commercial purposes
5. Development Phases: Include when construction will occur in multiple phases
6. Subsidies and Grants: Include when construction involves public funding or subsidies
7. Co-ownership Arrangements: Include when multiple parties share the building lease right
8. Right of First Refusal: Include when the grantee is given priority to purchase the land
1. Property Plan: Cadastral extract and detailed plans of the property
2. Construction Plans: Architectural plans and technical specifications for proposed buildings
3. Building Permits: Copies of obtained or required building permits
4. Environmental Certificates: Relevant environmental permits and certificates
5. Payment Schedule: Detailed schedule of building lease fees and payment terms
6. Insurance Requirements: Specific insurance requirements and minimum coverage amounts
7. Soil Certificates: Mandatory soil certificates as required by regional regulations
8. Urban Planning Certificates: Certificates regarding zoning and urban planning restrictions
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