Belgium is known for having a good standard of living, and buying property there is somewhat less expensive than in many neighbouring cities and capitals. But the costs of buying and selling property can quickly reduce any benefits you get in the short term. For this reason, people should understand the Belgian housing market’s unusual rules and regulations before making a purchase.
The property market and the prices of properties in Belgium
The prices in the Belgian housing market have gone up by 3.93% in the third quarter of 2019. Prices have stayed the same or gone up since mid-2014. ING predicts that the housing market will see a 2% rise in prices by the end of 2020.
How much does it cost to buy a home in Belgium
In Belgium, the property purchase costs are split between the buyer and the seller. Most of the costs will be paid by the buyer, who should budget for 11–15% of the total price of the home. The seller pays around 3–5%. Buying a new property often costs the buyer more, with fees rising to 22% since tax rates are different for new builds.
Steps involved in buying a house in Belgium
It includes the following:
Making an offer
If you want to buy a place in Belgium, you are usually required to write down your offer. Like in various other nations, it is usual in Belgium to haggle over the price. It lets you put in a proposal for the house that is lower than the asking price (usually, this is somewhere between 5-15% lower than the asking price). The buyer will then find out whether the seller is willing to accept or dismiss the offer. If you are using an agent to purchase property, they might assist you by offering a template or drafting up an offer for you.
If your offer is accepted, you might be required to sign a contract saying you will buy the property. koopintenties, French: offre d’achat). The buyer is now bound by law, but the seller is still allowed to cancel the deal at this point.
Hiring a notary
You will be required to have a notary to help you through the process of buying your home. It is the responsibility of notaries to create the notarized deeds. A transfer of legal ownership of the property takes place through notarized deeds (notariële akte, French: acte notarié).
If you need legal help, Belgian notaries are available, though you can also decide to hire a solicitor in Belgium. Notaries ought to be members of the National Chamber of Notaries (Dutch: In France, people refer to the Conseil national des notaires. Either the Flemish Bar Association (Orde van Vlaamse balies) or the French and German-speaking Bar Association (Ordre des barreaux francophones et germanophone) regulates the work of solicitors. You can look for a Belgian notary through the Notaire website.
Arranging a survey
A lender issuing a Belgian mortgage may ask for a valuation survey. Even if this doesn’t apply, it makes sense to have the property surveyed because it will find any problems and ensure the correct value is assigned. If the valuation reveals that certain defects cut down the property’s value, you have the right to lower your original price. The price of a valuation survey starts at around €200 plus VAT. You could ask your mortgage provider or estate agent for a suggestion of a surveyor. You can also get in touch with English-speaking surveyors in Belgium by searching the Royal Institute of Chartered Surveyors (RICS).
Exchanging contracts
In Belgium, all contracts for the purchase of a property usually need to be signed in Dutch (verkoopcompromis) or French (compromis de vente). Under the law, the signer must understand the contract before signing it. As a result, you can bring a translator and ask for each clause to be explained in your own language. If you want to have your documents translated into English or German, you can find an agent or notary who can speak your language well. In some cases, you will need to hire a translator to work on the documents and pay for their services. As soon as the contract is signed, both parties are committed to the sale. Even if someone gives a better offer, the seller is still obligated to proceed.
Paying the deposit
You will also be required to pay the deposit when you sign the contracts. Usually, it is 10% of the price the seller has set and is kept in a client or escrow account. If you go for a Belgian mortgage, the lender will generally set up the process for you. If you decide not to buy after a late stage, you will lose the money you placed as a deposit.
Final arrangements
You will receive the keys to your Belgian home after you sign the contracts and give the necessary deposit. The property now belongs to you, and you are responsible for all the bills and taxes. Don’t miss to take the notarized deeds to your local registry office to be registered, with the fee for registration paid. The work should be done within four months after the contracts are signed.
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