The LOI Commercial (Real Estate) agreement is essential for any commercial property lease transaction in Belgium. This document is required when establishing a commercial tenancy relationship and must comply with the stringent requirements of Belgian law, particularly the Commercial Lease Act of 1951. It is used when a property will be primarily used for commercial, retail, or professional activities, providing security of tenure through a mandatory minimum nine-year term. The agreement covers comprehensive aspects of the landlord-tenant relationship, including financial terms, maintenance obligations, use restrictions, and termination rights. It must be drafted with consideration of both federal Belgian legislation and regional regulations (Brussels, Flanders, or Wallonia), and requires mandatory registration with tax authorities. The document serves as the primary reference point for managing the ongoing commercial property relationship and resolving any disputes that may arise.
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1. Parties: Identification of the landlord and tenant, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased premises, including cadastral details and precise measurements
5. Term and Commencement: Duration of the lease (minimum 9 years under Belgian law) and commencement date
6. Rent and Payment Terms: Rent amount, payment schedule, indexation provisions, and payment methods
7. Common Charges and Taxes: Distribution of charges, utilities, and taxes between parties
8. Use of Premises: Permitted commercial use and any restrictions
9. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements
10. Insurance: Required insurance coverage for both parties
11. Assignment and Subletting: Conditions for transfer of lease or subletting
12. Termination Rights: Conditions and procedures for early termination
13. Return of Premises: Conditions for returning the property at lease end
14. Governing Law and Jurisdiction: Confirmation of Belgian law application and competent courts
15. Execution: Signature blocks and execution requirements
1. Break Options: Additional termination rights beyond statutory provisions, used when parties agree to specific break clauses
2. Fit-out Works: Provisions regarding initial tenant improvements, used when premises require modification
3. Environmental Provisions: Specific environmental obligations, used for properties with environmental concerns or specific certifications
4. Parking: Parking rights and obligations, used when parking facilities are included
5. Signage Rights: Provisions for external and internal signage, used for retail or visible commercial locations
6. Security Deposit: Details of any security deposit or bank guarantee, used when additional security is required
7. Service Charge Provisions: Detailed service charge calculations and allocations, used in multi-tenant buildings
8. Green Lease Provisions: Sustainability and energy efficiency obligations, used for environmentally conscious agreements
1. Property Plan: Detailed plans and measurements of the leased premises
2. Inventory of Fixtures: Detailed description of the property condition at commencement
3. Technical Specifications: Technical details of building systems and equipment
4. Energy Performance Certificate: Mandatory energy performance documentation
5. Environmental Certificates: Including soil certificates and environmental permits
6. House Rules: Building regulations for multi-tenant properties
7. Service Charge Budget: Estimated annual service charges and calculation method
8. Insurance Requirements: Detailed insurance specifications
9. Form of Bank Guarantee: Template for bank guarantee if required
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Hospitality
Industrial
Logistics
Healthcare
Professional Services
Food and Beverage
Technology
Banking and Financial Services
Manufacturing
Entertainment and Leisure
Relevant Teams
Legal
Real Estate
Facilities Management
Finance
Operations
Risk and Compliance
Corporate Services
Business Development
Property Management
Asset Management
Relevant Roles
Real Estate Manager
Property Manager
Legal Counsel
Commercial Director
Facilities Manager
Business Development Manager
Chief Financial Officer
Operations Manager
Asset Manager
Compliance Officer
Risk Manager
Real Estate Director
General Counsel
Corporate Services Manager
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