The Breyne law was initiated by Minister Breyne, who aimed to more effectively protect prospective builders and buyers against the bankruptcy of certain real estate developers and contractors.
To achieve greater reach, the Breyne law is endowed with mandatory force, meaning it applies to all concerned parties and its provisions are obligatory for everyone. This law revolves around several key points.
A two-phase reception
The Breyne law requires that the acceptance of the work occurs in two phases, which are provisional acceptance and final acceptance. This concretely means that the buyer accepts all the work that has been completed. A minimum period of one year must separate these two phases.
A clear definition of responsibilities
According to the Breyne law, hidden defects are the responsibility of the seller. The seller is also liable for serious defects for a period of ten years, even if they were already noticed during the final acceptance.
The payment method of the transaction
The total construction price as well as the fees of the service providers must be communicated in advance to the prospective builder or buyer. It is imperative that these amounts are included in the contract. Payment is made in installments, and each payment cannot exceed the value of the work already completed.
If the developer requires a deposit at the time of signing the agreement, it cannot exceed 5% of the total contract price.
What about the completion guarantee?
The completion guarantee is a clause in the contract that protects the buyer from the bankruptcy or insolvency of the contractor or real estate developer. The latter is obliged to request a bank guarantee that can amount to up to 100% of the contract amount to cover these eventualities.
What about separate contracts for the construction of the house?
It happens that the involvement of several trades is necessary for the construction of a single dwelling. The future owner can, in this case, sign a contract for each contractor. It is up to the architect to coordinate the projects of these craftsmen and contractors. The Breyne law does not apply in the case of multiple contracts supervised by an architect.