Explained: the Breyne Act, protection for buyers in real estate transactions

In the complex world of real estate transactions, it is essential that buyers and sellers are protected by clear rules and regulations. One of the most important laws in this regard in Belgium is the Breyne Act. This law plays a crucial role in safeguarding the rights and interests of buyers, and providing transparency in real estate transactions. In this blog post we will delve deeper into the Breyne Act and understand why it is so important for all parties involved.

What is the Breyne Act?

The Breyne Act, officially known as the Act of 9 July 1971 regulating the information and protection of home buyers, was created to protect real estate buyers against fraudulent practices and to provide them with sound information during the purchasing process. purchasing process. The law is named after the then Minister of Economic Affairs, Henri Breyne, who took the initiative to protect the interests of buyers.

Main Objectives of the Breyne Act

• Transparency : The seller is obliged to fully and accurately inform the buyer about the property, including all relevant information about the property.

 

• Deadline control : The law sets specific deadlines within which certain steps in the purchasing process must be completed, such as providing construction plans and completing construction.

 

• Down payment The seller may only require a limited down payment before certain milestones in the construction process are reached, which protects the buyer from financial loss if the project is not completed.

 

• Delivery guarantee : The seller is obliged to take out a bank guarantee or insurance that protects the buyer if the building is not delivered on time or if defects are discovered after delivery.

Why is the Breyne Act Important?

• Buyer Protection

The law provides buyers with a legal framework within which they can make their investments with confidence, knowing that they are protected against fraudulent practices and incomplete information.

 

• Incentive for Quality

By requiring builders and developers to provide transparent information and guarantee the quality of their work, the Breyne Act encourages the real estate sector to deliver high-quality projects.

 

• Promotion of Fair Competition

The law helps maintain fair competition in the real estate market by ensuring that all players follow the same rules, making the market healthier and fairer for both buyers and sellers.

To whom does the Breyne Act apply?

The Breyne Act applies to persons who purchase a house, apartment or other real estate that has yet to be built or is under construction. This law is specifically designed to protect private buyers who invest in real estate with a professional seller, such as a building promoter or a project developer.

In other words, the Breyne Act applies for:

• Private Buyers : Individuals who want to purchase a house or apartment for their own use. These can be both new and existing homes, but the law mainly applies to new construction projects.

 

• Professional Sellers: This includes property developers, property developers and contractors who develop and sell real estate as part of their business activities.

 

The law provides protection to private buyers by providing them with detailed information about the property to be purchased, by imposing transparent conditions on the sales contract and by regulating payments to the construction promoter based on the progress of construction works. The purpose of the Breyne Act is to prevent abuse and fraud and ensure that buyers are treated fairly during the real estate purchasing process.

Conclusion

The Breyne Act is an essential pillar of Belgian real estate law, which protects the interests of buyers and encourages the entire sector to adopt fair and transparent practices. For anyone involved in real estate transactions, it is vital to understand the provisions of this law and apply them to ensure a fair and worry-free purchasing experience. In this way, the Breyne Act contributes to a healthy, stable real estate market in which all parties can flourish.