Speakers Corner Head of Legal Hanne on the Breyne Act

Fifty years’ service

The Breyne Act is a sound, simple, and readable law that has been amended only once since 1971. Unlike many complicated laws voted in today, this act has been doing an excellent job for almost fifty years.

Bought a house that still needs to be built?

Head of Legal Hanne Dekeukeleire explains how the Breyne Act can protect you.

Anyone wishing to invest in real estate today has to be quick. Most of the new construction projects have already been sold out before the foundation stone is laid. At ION, this is no different. But do buyers run a risk if they invest in a property that hasn’t been built yet? No, because they are protected by the Breyne Act. Hanne Dekeukeleire, Head of Legal at ION, explains how it works.

— Why was this law drawn up? “The Breyne Act is a relatively old law that dates back to 1971. At that time, there was a massive increase in the number of new houses on the real estate market. Without a legal framework, some real estate developers made the buyer pay the full price before construction started, with all the risks involved.

In the event of the construction company’s bankruptcy, the buyer would have paid for a house they could never live in.”

'The Breyne Act protects the buyers of a house that has yet to be built or is under construction.

— What is the gist of the Breyne Act? “In short, the purpose of the act was to protect the buyer of a house that is under construction or yet to be built.

Buyers are protected on three levels: — Firstly, there's financial protection. As a real estate developer, we have to provide a completion bond. This means that we ask the bank to provide security to guarantee the completion of the house. If the real estate developer cannot perform the contract, the buyer may invoke the guarantee. That money can be used for another contractor to finish the house. — There are also some risks and liability on the seller’s part. The real estate developer will be liable for ten years if there are serious defects related to the building’s stability. This means that you will be obliged to carry out the repair works. — Thirdly, there is a significant duty of disclosure on the seller’s part. The sales agreement must include a whole list of mandatory documents, such as plans and specifications. This information should be very detailed so that the buyer knows exactly what they are buying.”

Legal geniuses in the house

All phases of development projects have their legal aspects. ION has an internal legal team to deal with this, which is an exception in the sector. Four lawyers and an assistant are each responsible for their own projects. This way of working has many advantages, says Hanne. — Does it cover every purchase of a new construction? “Buyers will have to meet three conditions to be able to make use of the Breyne Act, which are outlined below. Of course, the house should still have to be built or be in the construction phase.

Secondly, the building must be used as a dwelling. Office buildings or commercial properties are not covered by this act. Finally, the buyer must have made one or more payments during the construction process.”

— Does ION often work this way? “Nearly always. It would be rare for us to be selling a building that has already been fully constructed. We have also noticed that for most people today, it no longer matters whether the apartment has already been built or not. Moreover, ION is doing everything to keep its buyers well-informed. With every payment, we produce certificates of the works performed and image material from the construction site. For those who want to, we can also organize construction site visits. In this way, we involve our customers in the construction process as much as possible.”