CASE

Mr Joyce, a real estate investor, decides to sell one of his buildings. Prior to the sale, Joyce had concluded a rental contract for a period of two years with Adams Corp. In addition, Joyce had entered into an insurance contract with an insurance company, in relation to the property. Furthermore, the building has recently been undergoing renovation, for which Joyce entered into a contract for works with Schwarzmann. Although the contract price has been paid, the renovation is not yet finished. Schwarzmann has promised to finish the renovation in a couple of months. In the meantime, Joyce sells and transfers ownership of the building to Mr Watts.

Question

Do any of the rights and obligations under the contracts between Joyce and third parties transfer to Watts? If so, on what basis do they transfer?

DISCUSSIONS

BELGIUM

Siel Demeyere and Vincent Sagaert

I. Operative Rules

The rights and obligations under the lease may transfer to Watts. The rights and obligations under the insurance contract do transfer (for a three-month period). The rights under the construction contract may transfer. No obligations under that contract (if there are any) will transfer.

II. Descriptive Formants

Tenants are protected against a sale of the let premises, under condition that the lease contract has a vaste datum/date certaine (fixed date),1 obtained, for instance, through registration at the tax office.2 This entails that the new owner must respect and further perform the lease contract. In the case of a commercial lease, the tenant is also protected against termination of the lease by the new owner where the lease does not have a fixed date, if the tenant has used the premises for at least six months before the sale.