Acquisition costs |
Real
estate sales commissions are typically paid by the Seller and range
3-5% on residential sales and about 3% on commercial acquisitions. In
addition, there is a 12.5% registration fee imposed on all real estate
transactions. Notaries are typically employed to finalize and record
transactions. Notaries are attorneys who are exclusively authorized to
register titles in Belgium. Just over half of all real estate
transactions involve agents. |
Property and ownership information |
Property deeds and ownership information can be accessed through property and mortgage registries. |
Transaction information |
Open listings for agents are: Available.
Exclusive listings for agents are: Available. |
Real estate trade association |
Confédération des Immobiliers de Belgique (CIB)
Derbystraat, 241
Gent
B-9051
Belgium
Phone : +32 9 22 20 622
Fax : +32 9 22 22 895
e-mail : hilde.lippens@vivo.be
Web : www.cib.be
The Belgian Real Estate Confederation CIB has around 1600 members.
It is a professional body whose mission is to bring together real
estate professionals from the following real estate sectors :
brokerage, management and valuation. It offers services such as further
education seminars and courses, real estate publications and
consultancy and also organizes study groups to address particular
issues. |
License requirements |
Real
estate practitioners are required by the government to hold a license
in order to conduct real estate transactions. A coursework is required
to obtain a real estate license, and continuing education is necessary
in order to maintain it. |
Land description meters and bounds survey system |
Surveyors
help to identify exact property lines and dimensions while also
attesting to the value and stability of a particular structure. |
Rights and interests in land |
Real property can be held in fee simple in Belgium or can be leased. However, there is strict control over the
use of private property through zoning. In absence of matrimonial
agreement to contrary, community property comes into being upon
marriage. Under legal community rules, each spouse retains ownership of
property
owned at time of marriage or acquired during marriage by inheritance or gift. |
Forms of ownership |
Foreign investors are free to own real property through any business entity recognized under Belgian law.
Corporations (société anonymes), limited liability companies (société privées à responsabilité limitée, general
partnerships (société en nom collectif), and joint ventures can be used to acquire hold and convey real
property in Belgium.
Trusts cannot be established under Belgian law because the law is based on the Civil Code concept, which
does not define that term. Foreign trusts, however are recognized. |
Transfer of title |
Real property is transferred by deed in Belgium. Deeds must be registered. |
Recordation and transfer of title |
Land
titles and encumbrances on land, including mortgages must be recorded
in the mortgage registry. Security of title is achieved by tracing the
register for 30 years of undisputed ownership |
Contracts |
Written
contracts are usually made privately, but must be attested by a notary
to become public deeds. A private written contract must be made in as
many copies as there are parties to the agreement having separate
interests, and number of copies must be mentioned at the foot of the
contract. Witnesses to signatures are not required for private
contracts.
Legal contracts can be registered for a small fee, and such registration provides constructive notice of the
agreement. Registration duty is payable on contracts for real property.
If the sale price of real estate represents less then five-twelfths of true value, the seller may, under certain
circumstances, within two years rescind sale.
Land titles and encumbrances on land are recorded in a Mortgage Registry.
Security of title is achieved by tracing the registry 30 years for undisputed possession by present owner and
predecessors. |
Mortgages |
Real
property can be mortgaged in Belgium. Mortgages are of three types:
legal, by will, or by agreement, and the denominating principle is that
of publicity. Mortgages may only be granted on real property. Mortgages
must be created by a notarial instrument and they must be recorded at
office of the registrar in the municipality where the real property is
situated. |
Financing and lending practices |
Loans can be provided by banker, insurance company, credit broker, or social security loans.
In the past, banks and insurance companies proposed a completely
different way of financing a property purchase: a bank loan to be
repaid on a monthly basis or credit by reconstitution of capital via
long-term savings.
The recent concept of "bank insurance" means that your banker will offer one or the other option.
• Bank loan: the bank will lend you a certain amount, which will
need to be repaid on a monthly basis. This is made up of capital and
interest. As the repayment progresses, the "capital" part increases
whilst the "interest" part decreases. This concept is important in the
event of early repayment of the outstanding balance. This type of loan
is generally accompanied by insurance of the outstanding balance in the
event of death (previously essential to benefit from the tax
advantages);
• Credit by reconstitution of capital : your obligation to
constitute capital is matched by the advance of the total sum by the
company, which serves to finance your home. This saving is accompanied
by interest on the advance made. This method does not, of course,
require any insurance of the remaining balance as the life insurance on
which it is based is used to repay the credit in the event of death.
Getting back to the bank loans, we must remember that it is also
possible to agree a periodical repayment of capital with interest
calculated on the outstanding balance. Whilst interesting towards the
end, this process is however very costly at the outset when most of the
capital still needs to be repaid.
It is not, however, essential to turn to a bank or an insurance
company to finance the purchase of your house: according to certain
criteria, you will have the possibility of obtaining a loan at a
reduced rate from organisations such as the "Fonds du logement" (see
address book). You must, nevertheless, bear in mind certain
restrictions linked to this type of loan: it is forbidden to rent your
property, you will require the organisation's authorisation for a
future sale, etc. (http://www.immoweb.be) |
Property taxes |
Ad
valorem: Owners of real estate located in Belgium pay real estate taxes
on the value of their property. The rate depends on the location and
use of the property. National rates vary from 1.25% to 2.5%, and
municipal and provincial surcharges also apply. Value is determined as
the standard rental value and properties are reassessed only every 15
years.
Capital Gains Tax: Capital gains from the sale of real property are taxed at the rate of 34% if the sale takes
place within five years of acquisition. If the sale takes place more than five, but less than eight, years, capital
gains are taxed at a 17% rate.
There are no capital gains taxes levied on real property held for more than eight years. |
Closing and escrows |
Closing will involve buyer, seller, legal representation for both parties, lending institutions, surveyors, and solicitor. |
Appraisal |
Chartered
surveyors assist with identifying and verifying value of given
properties while assessing their current condition. These processes are
necessary in order to create a buffer against future problems and
resulting litigations. (http://www.immoweb.be) |
Insurance |
Home
insurance (known as "fire") is obligatory when obtaining a mortgage,
renting out a property or renting a property. Surpassing its initial
objective, it not only covers damage caused by fire, but also damage
caused by water, storms, theft, civil responsibility, etc. Thus, in
addition to the building, it can cover furniture, securities, objects
of art, electrical appliances, clothes, etc. Clearly, each company
offers a number of alternatives. A very important point is the
proportional rule. In order to avoid serious disappointment, take care
to insure your home according to its value and to have it re-evaluated
after any work or after a certain period of time. Some up-to-the-minute
information: given the number of floodings in this country, the
slowness of the intervention of the disaster fund, and the human
catastrophies which follow, the legislator has made cover of these
disasters obligatory for home insurance as of the beginning of 2000.
This measure, which is applicable in the near future, applies to
everybody (even if you live at the top of a hill!), thus putting into
play the principal of solidarity. But this will have an effect on the
premiums;
Insurance of the outstanding balance is required by most
financial bodies. In the event of death of the borrower, it ensures
repayment of the balance to the bank and thus protects the spouse or
the heirs. Certain contracts can also be taken out in the event of
serious illness of the insured person, although he remains alive.
Insurance against loss can be taken out as a supplement to
insurance of the outstanding balance, if the latter does not cover
incapacity. Numerous alternatives exist. In Wallonia and Brussels, the
Region can even subscribe and pay for this insurance on your behalf
under certain conditions!
Life insurance, which is a complex and infinitely flexible
system, can at the same time replace insurance of the outstanding
balance, loss of income, finance of the purchase, personal savings and
even supplementary pension! Your insurer alone can provide you with the
explanations and the options applicable to your personal situation.
Other types of insurance :
Comprehensive building insurance can be taken out during
construction in the event of damage, theft, accident, trouble with the
neighbours, etc.
Family insurance (civil responsibility) can be taken out in the
event of damage caused to others by your building (for example, a tile
falling on a parked car).
Insurance of people in the home covers your cleaning lady or your
gardener, both in your property and on their way to work.
(http://www.immoweb.be) |
Land use control |
Strict
land use planning and control over private property keeps demand high
and supply low in the central business district of Brussels. |
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