Commercial lease
As a commercial lease lawyer, our firm assists both tenants and landlords.
After all, it is of the utmost importance to seek the advice of a specialized attorney both when drafting a commercial lease and in the event of any disputes.
If you own your own business and rent a building to house your commercial activities, then the contract will fall under the Commercial Lease Law.
In fact, in that case, the specific rules for commercial leasing will apply.
With commercial lease laws being highly technical and having far-reaching implications, it is advisable without fail to seek the assistance of a commercial lease lawyer.
This applies to both owner and tenant.
Specifically, what is considered trade rent?
- any business normally considered a store or where artisans are in direct contact with the public
- banks, foreign exchange agents, insurance brokers, travel agents, real estate brokers, transporters … (even though these can be considered rather as service companies).
- on-trade (unless subject to a concession agreement or brewery agreement)
Do not fall under the rules for commercial rental:
- all liberal professions, unless they combine their function with a commercial enterprise, in which case they should be considered traders (for example, a surveyor if they also act as a real estate agent)
- persons legally authorized to practice medicine or veterinary medicine (general practitioners, specialists, ophthalmologists, psychiatrists, … and veterinarians) who purchase pharmaceutical products with a view to selling them to private individuals, provided that they do not perform other acts of commerce and are therefore not traders (unless the contract expressly provides that the law does apply).
- child care (under certain conditions).
What is the duration of a commercial lease?
The commercial lease gives the tenant much better protection than an ordinary lease.
The contract will be for a minimum of 9 years;
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- the tenant may terminate the contract every 3 years by registered letter (or served by bailiff’s writ), which must be sent to the landlord at least 6 months before the 3-year expiration date
- the landlord can also terminate the contract every 3 years, but he must respect a period of 1 year before the 3-year expiration date.
If the landlord terminates the contract, however, three additional conditions must be met.- It must be a written lease.
- He must occupy the premises for trade himself or have the trade conducted by one of the persons specified in the law.
- The possibility must be expressly provided for in the current commercial lease.
- the tenant is entitled to three lease renewals of the commercial lease.
- after 9 years, the tenant has the privilege over all other persons to renew the lease and continue your trade.
You must request that renewal at the earliest 18 months and at the latest 15 months before the end of the current 9-year lease.
Thus, in total, the lease provides protection for 36 years (!!!).The landlord can, however, refuse the lease renewal under certain conditions.
Agreement and registration: as a commercial lease lawyer, we are happy to assist you in drafting the agreement
- It is best to put the commercial lease agreement in writing.
- The lease must be registered with the local Legal Security office of the FPS Finance within 4 months of entering into the lease.
Both the tenant and the landlord can be fined for not complying with this obligation. - The lease must be notarized if a lease of more than 9 years is agreed upon.
Indexation of rent
Unlike the private lease, rent under a commercial lease can only be indexed if that possibility is provided for in the agreement.
Indexing must be done in accordance with the law, in accordance with the health index.
Review of rent through an attorney commercial lease
Triennially, the tenant or the landlord can apply to the Justice of the Peace for a review of the rent.
In this case, it must be shown that due to new circumstances, the rental value of the building is 15% higher or lower than the rent mentioned in the agreement or determined at the last review.
The appeal for review is subject to certain conditions and can only be filed during the last 3 months of the current 3-year period.
Assistance from a lawyer commercial lease
As you can see, commercial lease laws are not only technical but far-reaching.
In this sense, a poorly drafted contract can have consequences for 36 years!
Peterfreund & Associates, your Antwerp law firm.