The Retail Lease Agreement is a specialized commercial contract used for leasing retail premises in Belgium, essential for businesses seeking to establish or expand their retail presence in the Belgian market. This document is specifically governed by the Belgian Commercial Lease Act of 1951 (Handelshuurwet/LOI sur les baux commerciaux) and must comply with mandatory provisions including a minimum nine-year term and specific tenant protections. It is used when a property owner wishes to lease space to a retail business, requiring careful consideration of commercial terms, property regulations, and regional requirements. The agreement typically includes detailed provisions on property use, maintenance, rent calculations, service charges, and termination rights, while also addressing modern retail considerations such as sustainability requirements and marketing contributions for shopping center locations.
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1. Parties: Identification of the landlord and tenant, including full legal names, addresses, and registration numbers for companies
2. Background: Context of the lease agreement and brief description of the property and its intended use
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased premises, including exact location, size, and included facilities
5. Permitted Use: Specific retail activities permitted in the premises and any restrictions
6. Term and Renewal: Duration of the lease (minimum 9 years under Belgian law) and conditions for renewal
7. Rent and Payments: Base rent, payment terms, indexation, and other financial obligations
8. Service Charges and Utilities: Details of additional charges, including common area maintenance and utilities
9. Security Deposit: Amount and form of security deposit or bank guarantee
10. Insurance and Liability: Required insurance coverage and allocation of risks
11. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements
12. Alterations and Improvements: Rules regarding modifications to the premises
13. Assignment and Subletting: Conditions under which the tenant may transfer rights or sublet
14. Termination Rights: Circumstances under which either party may terminate the lease
15. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction
16. Signatures: Execution blocks for all parties
1. Green Lease Provisions: Environmental and sustainability requirements, used when parties want to ensure sustainable operation of the premises
2. Trading Hours: Specific requirements regarding opening hours, used for shopping center locations
3. Turnover Rent: Additional rent based on tenant's turnover, used in retail centers or high-value locations
4. Break Options: Early termination rights, used when flexibility is required beyond statutory provisions
5. Fit-out Period: Rent-free period and conditions for initial store fitting, used for new or substantially modified premises
6. Competition Restrictions: Restrictions on competing businesses, used in shopping centers or specialized retail locations
7. Marketing Contributions: Requirements for contribution to shared marketing efforts, used in shopping centers
8. Force Majeure: Extended provisions for unforeseen circumstances, used when additional flexibility is needed
1. Floor Plan: Detailed plan showing the premises and common areas
2. Inventory of Fixtures: List of landlord's fixtures and fittings included in the lease
3. Technical Specifications: Details of building systems, access, and technical requirements
4. Service Charge Budget: Breakdown of estimated service charges and calculation method
5. Building Rules and Regulations: Operational rules for the building or shopping center
6. Form of Bank Guarantee: Template for required bank guarantee
7. Environmental Performance Certificate: Energy performance and environmental certificates
8. Handover Protocol: Template for documenting the condition at the start of the lease
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