How to conduct proper due diligence for your property in Belgium

Last updated on December 18, 2023

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

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Everything you need to know is included in our Belgium Property Pack

When it comes to making a significant and potentially life-changing decision, buying a property in Belgium stands out.

Whether you're in search of a new home, an investment opportunity, or a tranquil getaway, exploring the world of Belgian real estate can be truly exciting.

However, exercising caution and careful consideration throughout this process is of utmost importance. Conducting thorough due diligence is an essential step in your property acquisition journey that should never be underestimated.

This article delves into the significance of due diligence when it comes to purchasing a property in Belgium. We will shed light on the vital factors and considerations that every prospective buyer should be well-versed in. From understanding legal regulations to conducting meticulous property inspections, we aim to equip you with invaluable insights to ensure that your real estate investment in Belgium is not just exciting but also secure.

Finally, please know that the full due diligence cheklist is included in our property pack for Belgium.

What is a due diligence when you buy a property in Belgium?

In Belgium, the due diligence process for a residential real estate transaction is an essential part of buying a property, especially from your perspective as the buyer.

It's about thoroughly investigating the property before you finalize the purchase.

The idea is to uncover any potential issues with the property that could affect its value or your ability to use it as you intend.

The reason people do due diligence is to protect themselves.

It's about making sure there are no hidden problems with the property, like legal issues, structural damages, or financial encumbrances. For example, you want to be sure that the person selling the house actually has the legal right to do so, and that there are no unpaid taxes or liens on the property.

While due diligence is not strictly mandatory under Belgian law, it's highly recommended. If you skip this step, you could end up with unpleasant surprises.

For instance, you might discover after the purchase that the property has serious structural problems or that there are legal issues which could cost you a lot of money and trouble.

Usually, a notary handles much of the due diligence process in Belgium. They're responsible for checking the legal status of the property, such as its title and any outstanding debts.

You, as the buyer, can also engage other professionals like real estate agents or surveyors to check the physical condition of the property.

The due diligence should start as soon as you're seriously considering buying a property. It's a pre-purchase process and should be completed before you sign any binding contracts or agreements.

The time it takes to complete due diligence can vary. It depends on several factors, like the property's age, location, and complexity of the legal checks. Usually, it can take anywhere from a few weeks to a couple of months.

And ... yes, due diligence does cost money.

The notary's fees are part of the overall transaction costs of buying a property in Belgium. If you hire other professionals, like surveyors, their fees would be additional costs.

However, considering the amount of money and commitment involved in buying a property, these costs are often seen as a wise investment to avoid potential future problems.

Get the full checklist for your due diligence in Belgium

Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.

What to check during a due diligence in Belgium?

We'll give here a very brief overview of the elements you have to check when you conduct a due diligence in Belgium ; if you want a full checklist, please check the "Due Diligence" document in our property pack for Belgium.

When you're buying a property in Belgium, understanding the due diligence process is crucial.

Let's break it down into key aspects, keeping it simple and specific to Belgium.

First, for verifying property titles, a notary plays a vital role. They delve into the property's history, checking the Mortgage Register to ensure no outstanding claims or liens exist.

This step is crucial because it confirms the seller's legal right to sell the property and reveals any mortgages or charges against it.

Now, about local regulations, they can vary across Belgium.

It's wise to check with the local municipality for zoning laws and building codes. These regulations impact what you can and cannot do with your property. For instance, if you plan to renovate or build, you need to know these rules to avoid legal issues.

Financial due diligence is another important aspect. This process includes assessing the property's market value, ensuring the asking price is fair, and checking for outstanding taxes or utility bills.

It's about making sure you're not walking into unexpected financial burdens once you own the property.

Environmental assessments are not always mandatory in Belgium but are highly recommended, especially for older properties. These assessments can reveal issues like soil contamination, which can be costly to remediate and affect your health and safety.

Building inspections, while not legally required, are a smart move. A professional inspector can uncover structural problems, electrical issues, or plumbing defects that might not be visible to the untrained eye. Identifying these issues early can save you from future costly repairs.

For utilities, verify access and condition. This means ensuring the property has reliable connections to water, electricity, gas, and sewage systems. You can check this through utility companies or the local municipality.

Researching the neighborhood is about understanding the community vibe, local amenities, and general safety.

You might want to explore the area, talk to locals, and observe the day-to-day activities. This gives you a feel for what living there would be like.

Understanding easements or rights of way is crucial. These are legal rights allowing others to use a part of your property, like a path or driveway.

The notary can help identify these in the property deeds. It's important to know about them, as they can affect your property's privacy and use.

For future development plans in the area, check with the local municipality. They can provide information on any upcoming projects that might affect the property’s value or your enjoyment of it, like new constructions or infrastructure changes.

Lastly, checking for historical listings or disputes is about ensuring the property doesn't have a complex legal history that could impact your ownership. The notary and public records can be sources for this information.

Everything you need to know is included in our Belgium Property Pack

What's the process and who are the professionals involved in a property due diligence in Belgium?

In Belgium, during the due diligence process for a residential real estate transaction, several professionals are typically involved to ensure everything is in order.

As a buyer, you'd mostly interact with notaries, real estate agents, surveyors, and possibly lawyers.

Notaries in Belgium play a key role. They are legally required to be involved in real estate transactions. They handle the legal aspects, ensuring the property's title is clear and conducting the necessary checks in the Mortgage Register.

Notaries also prepare the deed of sale and handle its registration. In Belgium, notaries are highly regulated professionals, ensuring a high standard of practice.

Real estate agents, while not mandatory, are often involved. They help in finding the property, negotiating the price, and sometimes assisting with the paperwork. In Belgium, real estate agents must be licensed and are regulated to ensure ethical practices.

Surveyors, though not always used, can be valuable, especially for checking the property's physical condition. They assess the building's structure, identify any defects or necessary repairs, and sometimes provide an estimate of the property’s value. Surveyors in Belgium are typically certified professionals.

If you're a foreigner, language and communication barriers can be a challenge.

In Belgium, documents and proceedings are often in Dutch, French, or German, depending on the region. Hiring a professional who speaks your language or getting documents translated can be essential for understanding the process and ensuring everything is in order.

Regarding contract amendments, once a purchase agreement is signed, it's legally binding. However, both the buyer and seller can mutually agree to make amendments. Any changes should be documented in writing and preferably handled by the notary to ensure legal validity.

The timeframe for completing all necessary paperwork and approvals after signing the purchase agreement can vary.

Typically, it takes several weeks to a few months. This period allows for the notary to conduct due diligence, prepare the deed of sale, and for the registration of the deed. It's a time when various checks and balances are done to ensure everything is in order before the final transfer of ownership.

A mistake in your due diligence could cost you thousands of dollars

Make sure you don't overlook critical checks when assessing the condition of your prospective property purchase. Avoid legal complications. Stay prepared, get our comprehensive guide.

What are the common pitfalls happening during a property due diligence in Belgium?

After our research and the feedback collected from our local real estate partners, we have written an article about the risks and pitfalls when buying a property in Belgium.

Understanding the risks and pitfalls associated with the due diligence process in residential real estate transactions in Belgium, especially from a buyer's perspective, involves considering some unique aspects specific to the country.

One unique pitfall in Belgium is related to the complexity of its legal and administrative systems, which can be challenging even for locals.

Belgium has three official languages (Dutch, French, and German), and the region where the property is located determines the language used in legal documents. For foreigners, this language barrier can be a significant hurdle, potentially leading to misunderstandings or oversights in understanding legal documents.

Foreign buyers often face risks related to their unfamiliarity with local real estate laws and practices. For instance, in Belgium, there are specific regulations about property sales, which can include rules about construction permits, energy performance certificates, and soil contamination reports.

A lack of awareness about these requirements can lead to issues post-purchase.

Real-life examples include foreigners unknowingly buying properties in Belgium without the proper environmental clearances or without understanding local zoning laws, only to find out later that they cannot renovate or use the property as intended.

Cultural and historical considerations also play a role.

In some parts of Belgium, especially in historic cities, there are properties that come with preservation orders or are part of heritage zones. Buying such a property means adhering to strict rules about maintenance, renovations, and restorations.

The law in Belgium requires notary involvement in real estate transactions, which is not always the case in other countries. The notary ensures that all legal aspects are covered, but this also means that the process can be slower and more expensive compared to other countries.

A common pitfall related to contracts is not fully understanding the terms, especially clauses related to property defects or responsibilities after the sale.

Buyers should thoroughly review all contract terms and, if necessary, get them translated to ensure full comprehension.

To mitigate these risks, buyers should engage local experts such as real estate agents, lawyers, and translators who are familiar with Belgian real estate law and practices.

Also, conducting thorough due diligence with professional help is crucial.

Regarding property insurance, while not legally required, it's highly recommended in Belgium. Insurance can cover a range of issues from property damage to third-party liability. Home insurance and title insurance are common and can offer protection against various unforeseen problems.

In case of a dispute, legal avenues are available.

The first step is usually negotiation or mediation. If that fails, the issue can be taken to a Belgian court. The "Vredegerecht" or "Justice de Paix" (Justice of the Peace) often handles disputes related to property and housing.

-Belgium: how to buy real estate as a foreigner

-How to understand the property purchase agreement in Belgium