On Feb. 20, 2025, the bill for the new Book 7 "Special Contracts" was introduced. This reform changes the rules applicable to purchase or construction contracts. It includes changes for the time limits within which contractors and sellers can be held liable by builders and buyers, respectively.
What are the new liability terms?
To clarify the new liability terms, we provide a example from the contracting industry:
A builder is having a new home built. A few years after completion, moisture spots suddenly appear in the living room after several days of heavy rainfall. The client wishes to sue the contractor responsible for defective execution of the works, and must meet the following deadlines:
| Term | What does it entail? | Duration | Example |
|---|---|---|---|
| Compliance Period | Time period in which a buyer or builder can hold the seller or contractor liable. | At purchase: 10 years after delivery For contracting: 10 years after completion of the works |
The contractor is liable to the building principal for 10 years. If the water seepage occurred within this period, the building principal can still sue the contractor for it. |
| Notice period | Time period in which a buyer or builder must notify the seller or contractor of the defect. | No fixed duration, but 'reasonable time' after discovery of defect | Within a reasonable time after discovery of the damage, the builder must inform the contractor that he is suffering or has suffered damage. This "reasonable time" is always assessed specifically, case by case. |
| Statute of limitations | Time period in which a buyer or builder must file a lawsuit against the seller or contractor. | 2 years after notification | If, after this timely notice, the contractor does not remedy the defect (in full), the building owner has 2 years to bring an action against the contractor. This period begins to run from the time of notification. |
These deadlines should cumulatively respected become: if, although the builder has delivered a timely notice to the contractor within the compliance period, it allows the statute of limitations to expire, in principle it can no longer bring an action against the contractor.
To be clear, this is separate from the ten-year liability from a contractor and an architect for defects that the stability endanger the building. The bill does not change that. For that, the contractor and architect remain liable for 10 years after completion, and applies no notice period and also no statute of limitations of 2 years for the builder.
When will the new rules take effect?
The new rules are likely to take effect one year after publication in the Belgian Official Gazette. This publication is scheduled for today not yet scheduled.
Important: the new rules will only apply to legal acts and legal facts that take place after entry into force of the new legislation. Thus, a contracting agreement entered into today will be subject to the current law, even when delivery of the building does not take place until after the new legislation comes into force.
What can you do today already?
- Anticipate: Contracting parties may choose to include many provisions of the new legislation in their purchase or construction agreement.
- Deviation is possible: Most provisions are of supplementary law, allowing you to deviate from them contractually.
- Invest in good contracts: Make clear agreements so there is less discussion afterwards.
The new legislation still changes a lot of other things for, among other things purchase and construction contracts. These other changes will be clarified in subsequent articles.
Do you have a question about these legislative changes and their impact on your business?
Feel free to contact our pro experts at pro-experts@titeca.be. We are happy to help you!
