A common law lease is a rental contract used for properties that are not intended to be a primary residence, such as secondary residences, garages, or offices. Unlike a primary residence lease, the tenant cannot designate the property as their main residence.
Differences between common law lease and primary residence lease
The primary residence lease is strictly regulated by legislation, with specific rules regarding the lease duration, termination conditions, and rent indexing. These leases are governed by the Brussels Housing Code in Brussels, or by the Residential Lease Decree in Wallonia. Parties cannot freely alter these rules.
In contrast, the common law lease offers much more flexibility as it is not subject to the same legal constraints. Parties can freely decide on the contract's content, lease duration, termination conditions, and rent indexing. This allows the lease to be tailored to the specific needs of both parties.
Contractual freedom with common law lease
In a common law lease, parties can include various clauses, such as:
A progressive rent that changes over time,
The option to terminate the lease at any time with just one month's notice,
All charges and maintenance responsibilities placed on the tenant.
However, it is important not to abuse this flexibility. Respecting contractual commitments remains essential.
Key points to include in a common law lease
When drafting a common law lease, certain essential aspects should be clearly defined:
The duration of the contract,
Termination conditions (notice period, conditions),
Security deposit provisions (account in the tenant's or landlord's name),
Rent indexation methods,
Lease registration, which must be completed within two months of signing,
The purpose of the property (intended use),
Tenant insurance,
A detailed inventory,
Allocation of repairs and charges.
Conclusion
The common law lease in Belgium provides great freedom for parties to negotiate and define the terms of the contract. However, this flexibility comes with increased responsibility for each party, as the law does not provide the same protective framework as it does for primary residence leases. Therefore, it is essential to carefully draft the contract, considering all important aspects to avoid future disputes.
Precision and clarity in the terms are crucial, as once signed, the contract binds both parties without the protective laws applicable to primary residence leases.
