Explained: different types of property rights (part 1)

Welcome to the new series 'explained'. In this series we examine real estate concepts and explain them to you. This week we provide more information about the different types of business rights. This week we discuss the first part about the different business rights.

What is a right in rem?

In Belgium, the term "rights in rem" refers to legal rights relating to the use and enjoyment of real estate. These rights give individuals or entities the right to perform certain actions in relation to a piece of land or a building, without necessarily owning it. Some examples of rights in rem in Belgium are:

• The right of ownership
• Ground lease
• Right of superficies
• Usufruct
• Easements

The Belgian Civil Code regulates these rights in rem and establishes the conditions under which they can be established and terminated. It is important to note that these rights can be complex and legal advice is advisable when establishing or transferring them.

Now let's take a closer look at the types of business rights. Today we will discuss ownership rights and leasehold, in a next blog post we will discuss building rights, usufruct and easements in more detail.

The right of ownership

Property law in Belgium, as in many other countries, refers to the legal right of a person or entity to exercise full control over a particular piece of real estate. This right includes the right to use, rent, sell, donate, inherit or otherwise manage the property, within the limits of the law. Here are some important aspects of property law in Belgium:

• Right of Use : The owner has the right to use the property in any lawful manner he or she wishes, as long as it does not conflict with local laws and regulations.

 

• Right of disposal : The owner can transfer ownership to others through sale, donation, inheritance, exchange, and so on.

 

• Right to Enjoy : The owner has the right to enjoy the property, which means he or she can live in it, rent it out, or otherwise use it for personal or business purposes.

 

• Right of exclusion : The owner has the right to exclude others from the property. This means that others cannot enter or use the property without permission.

 

• Right to divide : The owner has the right to divide the property into parts, for example by renting it to multiple tenants or by dividing it into apartments.

 

The right to property is protected by the Belgian Constitution and other laws governing property rights and contracts. However, the right of ownership is not absolute and can be limited by the government under certain circumstances, for example for the public interest, such as expropriation for the construction of public infrastructure. In such cases the owner is entitled to appropriate compensation. It is important to seek legal advice if there are any questions about specific property issues in Belgium.

So in short: The owner of a property has full ownership rights and can use, enjoy, dispose of and exclude the property from others.

Ground lease

Leasehold in Belgium is a right in rem that gives a person (the leaseholder) the right to have the full enjoyment and use of real estate owned by someone else (the leaseholder) for a certain period. The leaseholder pays an annual fee to the leaseholder for the use of the property. Leasehold is regulated in the Civil Code of Belgium, in articles 1.85 to 1.109.

Important aspects of leasehold in Belgium include:

• Duration of Leasehold : The duration of leasehold can be specified in the leasehold contract, and it can vary from a few years to decades, or even indefinitely.

 

• Compensation (ground rent): The leaseholder pays an annual fee to the leaseholder, which is known as the "ground rent". The amount of the ground rent is usually recorded in the leasehold contract.

 

• Usage rights : The leaseholder has the right to use and enjoy the property, including the right to rent it, unless the leasehold contract provides otherwise.

 

• Maintenance and improvements : In some cases, the lease may contain provisions regarding who is responsible for maintaining the property and who may make any improvements.

 

• Transferability : The leasehold may in some cases be transferable to other persons, unless the leasehold contract prohibits this.

 

• End of Leasehold : Leasehold ends when the agreed period expires, unless the contract is extended. Leasehold can also end upon the death of the leaseholder or upon violation of the terms of the leasehold contract.

 

Leasehold offers the leaseholder a degree of stability and control over the property for the term of the contract, while the leaseholder generates income from the property without losing ownership of it. It is important to seek legal advice when drafting or entering into a leasehold contract, as the specific terms and conditions of the contract are of great importance to both parties.

In short: The leaseholder has the right to use and enjoy someone else's real estate for a specified period, often long-term, upon payment of an annual fee to the owner.

Curious about what the other business rights entail? Keep an eye on our blog page!