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ARRHES

Contrary to a down payment, the payment of a deposit at the time of a promise to sell does not definitively commit the parties.

Rarely used.

AUTHENTIC ACT

To be qualified as authentic, a contract or preliminary contract (compromise, preliminary reservation contract, promise to sell) must be signed before a notary.

ASSESSED VALUE

Value of the property / development as per the public tax assessor.

This is the bare minimum figure used for tax purposes related to sale and purchase of land.

ABSORPTION

Rate at which available property is leased or sold in a particular market. e.g. office complexes in cbd Brussels will have higher absorption than other parts of Belgium

BUILDING COMPLETION

A building is said to be completed as soon as it is habitable, even if some finishing or secondary fitting-out work remains to be done.

BUILT-TO-CORE

Development of a core property is termed as built-to-core.

Characteristics being a optimal location with minimal maintenance.

Often Built-to-core property developments yield higher returns than a similar core property investment.

BOOK OF SPECIAL ADMINISTRATIVE CLAUSES

Contractual document issued for the purpose of setting out the administrative arrangements for each contract.

It is carried out by the buyer.

BUILT-TO-SUIT

A development style wherein the developer builds the property for a specific purpose i.e. student housing or as per specifications of the end user.

BROWNFIELD

Expansion, redevelopment, repurposing, renovation or any other modification to an existing property

CALL FOR FUNDS

Sums payable by the syndic to the co-owners to pay charges, works or any other expenditure relating to the maintenance of a building or a group of houses.

These terms also refer to sums called by the developer to purchasers as work progresses in the context of a sale in the future state of completion.

CORE PROPERTY

A term common for investors, Core property is a property which requires low recurring expenses and gives stable yields resulting in a bond like returns. E.g. office property in a central business district.

CAPITALIZATION RATE

Rate of return expected on a property.

This is usually derived basis the property characteristics and current supply demand for similar properties nearby.

DAMAGE INSURANCE FOR WORKS

Covering a building against ten-year or two-year construction risks, the building damage insurance must be taken out by the builder before the start of construction work.

It guarantees the repair of damage before any search for responsibility.

DEMARCATION

Carried out by an expert surveyor, boundary marking consists of delimiting properties or land by placing markers.

DEPOSIT

Sum generally equal to 10% of the total price Of the property, paid by the buyer when signing the promise to sell.

Except in the case of a suspensive condition, the deposit is binding on the buyer.

This sum also known as the “deposit” is reduced to 5% of the agreed price for the reservation of housing acquired in the context of a sale in the future state of completion (VEFA).

It is paid into a bank escrow account or to a notary.

ESCROW

Account setup with a banking institution in which a property purchasers funds are received.

Escrow allows for the funds in the account to be disbursed to the builder / seller or refunded to the buyer basis predetermined instructions.

FORWARD FUNDING

A form of development finance where the buyer of the property advances funds for completion of construction to the developer or seller.

GREENFIELD

Developing a property from scratch i.e. purchasing land, developing a building plan and constructing as per the plan.

GROSS DEVELOPMENT VALUE

Estimated value of an under development property if it was completely constructed and sold in current market conditions.

LAND REGISTER

A public document reporting the surface area and value of property in each city.

It can be consulted at the town hall and serves as the basis for calculating property taxes.

LOW-CONSUMPTION BUILDING

The term low-consumption building (LCB), implying “energy-efficient”, refers to a building for which the energy consumption required to heat and cool it is significantly lower than that of standard houses.

OCCUPANCY CERTIFICATE / CERTIFICATE OF HABITABILITY

Certificate provided by regulatory authority, acknowledging that development is fit for habitation and conforms to development regulations

PERSONAL CONTRIBUTION

Amount contributed by the acquirer from own sources of funds to finance part of acquisition. The higher the contribution, the better the terms of the loan.

REAL ESTATE PROPERTY

Building, house, business building, goodwill, land and more generally any property that cannot be moved.

RIDER / ADDENDU

Any act supplementing an initial contract, which supplements or modifies the initial contract.

SALE ACT

It is the final contract, concluded before a notary, which makes the buyer the owner of a property.