On November 1, 2023, the Flemish Tenancy Decree came into effect. It replaced the old federal Tenancy Act for all real estate in the Flemish Region. The new decree applies to both existing and new leases.
Although the Tenancy Decree has been in effect for some time, we are happy to recap the most important changes.
1. Written lease enforceable
Although a written lease is not required, both the lessee and lessor can now enforce through the courts. The procedure starts with a registered notice of default. If no agreement is reached, the court can:
- In the case of a claim by the lessee: a new lease term of 9 years grant (lease renewal);
- in the event of a claim by the lessor: the (oral) lease decompose, if this was mentioned in the notice of default.
In addition, a written contract must now contain certain mandatory disclosures, including a location description.
2. Payment of rent only in cash anymore
In the past, the rent could also be paid "in kind," which sometimes led to unintended applications of the Leases Act. That is a thing of the past: from now on each cash rent be paid.
3. New scheme for small landowners
Are you a private owner of up to 1.5 acres of land? Then you can take out a lease for a fixed term of 9 years, without the need for notice. Upon completion, you will again have complete freedom over your land.
This scheme is mainly intended for non-farmers who wish to lease their property without being bound by traditional lease protection.
4. Notice for sale of land
Do you want your sell land (lease notice for alienation)? If so, you can after 18 years of leasehold (two 9-year terms) with notice, provided that this right is provided for in a written lease. Note:
- The scheme applies only to soils, not for buildings.
- The notice must be done between four and two years before the end of the current lease term.
- The deed of sale (authentic instrument of alienation) must have been passed before the lease ends.
- Was the deed not executed within this period? And had the tenant not yet left the property? Then the notice without consequence.
- Had the lessee already left the property though? Then he is entitled to return with compensation (or just compensation, if desired).
5. Specific arrangement in the case of retired tenant farmers
From the statutory retirement age, the lessor may ask the lessee if he or she is a retirement or survivor's pension receives. Can the tenant not demonstrate this, or does not designate a privileged successor on, then the tenant is considered retired and the lease may be terminated.
- If the lessee does designate a successor, but the operation within one year of the lessee's response is not effectively continued, the lessor may still terminate the lease.
- Retired tenant farmers additionally enjoy no longer a right of first refusal.
6. Introduction of 'safe buyer' status.
If a leased land is sold, the tenant retains his rights if the buyer declares the lease agreement respect at least two new terms (18 years). In that case, the lessee cannot transfer his pre-emption right to a third party.
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