1. Buying and Selling
in Belgium:
avoid the pitfalls!
W. Vermeeren
domoXim Real Estate & Property Management
NATO, April 4th, 2011

2. Agenda
1. Introduction
2. Belgian Real Estate Market
3. Pitfalls?
4. Conclusion
NATO, April 4th, 2011

3. Introduction
domoXim Real Estate
• Speciliased in property for internationally mobile staff in
Belgium
• Dedicated team of professional consultants
• Proud Sponsor of NATO Charity Bazaar
NATO, April 4th, 2011

4. Belgian Real Estate Market
1. Regional approach by law
2. IPI BIV controlled, > 8000 brokers certifoed
3. Seller pays broker, buyer pays taxes and notary
(landlord pays broker, no fee for tenant)
NATO, April 4th, 2011

5. Pitfalls ?
1. Paperwork can wait
2. Permits are for nerds
3. Common areas are just common
4. Cash advances garantee success
5. Black is beautiful
6. Is a dollar green?
7. Escape clauses are easy to use
8. Notaries and banks can solve all problems
9. Free service from real estate agent!
10. All real estate agents are your friend
NATO, April 4th, 2011

6. 1. Paperwork can wait
• Long list of documents needed BEFORE selling a property
(many legally mandatory at the very start!)
• Differences by geografical region
• Time consuming to get it all
Risks
• You don’t know who the real owner is
• You don’t know what you buy
• Your sale might be cancelled
NATO, April 4th, 2011

7. 2. Permits are for nerds
• Know what you sell, know what you buy
• Building permit?
• Permit for habitation, shop, offices?
• Permit for garage?
• “As built”-permit
• Larger geographical permits
Risks
• Cancelled sale, penalties, court
NATO, April 4th, 2011

8. 3. Common areas are just common
• Mainly for apartments
• You will need at the start a.o.
• Financial accounts
• Bank data of community
• Last reports of AGM
• List of any major investments or repairs planned
Risks
Financial risks linked to common parties of the building
NATO, April 4th, 2011

9. 4. Cash advances garantee success
• 10 % at ‘compromis’ time
• To whom to be paid?
• Can I get it back? Totally?
Risks
Unclear paperwork or terms bring your advance at risk
Trustworthyness of seller or agent
NATO, April 4th, 2011

10. 5. Black is beautiful
• Unofficial downpayment?
Risks
• Criminal and tax offense
• What if the deal goes wrong?
• Access to lower amounts at the bank
• Tax-up on real value is possible (risk for seller and buyer)
NATO, April 4th, 2011

11. 6. Is a dollar green?
• Energy certificates
• Electrical check and certificate
• Maintenance certificates on heating system
• Oil tank
Risks
• Additional costs for buyer and/or seller
• Cancelled or delayed deal if not complete
NATO, April 4th, 2011

12. 7. Escape clauses are easy to use
• Common approach in Belgium
• Mainly to cover approval of mortgage
• Can be used for other purposes
• Clear description of clauses is needed
Risks
• Unclear description implies discussions!
• Strict adherence to clause is needed (mainly on process and
timing)
NATO, April 4th, 2011

13. 8. Notaries & banks solve all problems
• Banks do say NO to funding requests
• Notaries do need ALL paperwork to finalise a deal
• Banks and notaries need time
Risks
• Cancelled compromis
• More expensive deal
• Late closing of the deal
NATO, April 4th, 2011

14. 9. Free service from real estate agent!
• You don’t pay as a buyer
• Or you pay peanuts as a seller
Risks
For the buyer: agent is paid by the seller!
For the seller: agent doesn’t deliver!
No free lunch in this world!
Is DIY an alternative? Not really ...
NATO, April 4th, 2011

15. 10. All real estate agents are your friend
• Agent should coordinate all documents
• Agent should deliver detailed estimate
• Agent should dare to say NO to you
• Agent has to be BIV IPI accredited
• Agent has to communicate regularly
• Agent has to use correct mission document
• Agent has to apply all legal clauses
• Agent will focus on exclusivity for a period
• Agent will negotiate for you
Such an agent can be your friend!
NATO, April 4th, 2011

16. Conclusion
1. It is still a good time to invest in real estate in
Belgium.
2. Work with reliable partners.
NATO, April 4th, 2011

17. Thank you
domoXim Real Estate & Property Management
Walter Vermeeren,Managing Director
walter.vermeeren@domoxim.com
www.domoxim.com
+32 2 255 31 30
NATO, April 4th, 2011