Commercial lease termination: complete legal guide

Table of contents

1. Introduction: terminate commercial lease in Belgium
2. Termination of commercial lease by tenant
3. Termination of commercial lease by landlord
4. Special situations on termination
5. Practical tips and tools
6. Compensation for early termination
7. Conclusion
8. Frequently asked questions (FAQ)

Introduction: terminate commercial lease in Belgium

Commercial lease constitutes a specific category within Belgian rental law and concerns the rental of immovable property that the tenant uses primarily for a trade or craft activity involving direct contact with the public. The Commercial Lease Law provides a balanced framework that protects the interests of both the tenant and the landlord.

Properly terminating a commercial lease is critical for both tenants and landlords. Incorrect termination can have far-reaching legal and financial consequences, including paying damages or inadvertently continuing the lease. At worst, incorrect termination can lead to lengthy and costly legal proceedings.

The regulations governing commercial leases have undergone a number of changes in recent years. Among other things, the regionalization of rental law has meant that certain aspects now fall within the competence of the regions (such as the Pop-up decree in Flanders), while most aspects remain federal matter (the Commercial lease law incorporated into the old Civil Code). The introduction of the new Civil Code also has implications for commercial leases; there were A bill to insert Book 7 "Special Contracts in the Civil Code" tabled in the federal parliament on Feb. 20, 2025.

Chapter 1: termination of commercial lease by tenant

1.1 When may a tenant cancel?

A trade tenant has several statutory options for terminating the trade lease:

At the end of the 3-6-9 year period

The Commercial Lease Act provides for a minimum lease term of nine years to protect the merchant. This term is often referred to as the "3-6-9" regulation, referring to the three three-year periods that make up this minimum term.

The tenant may terminate the current lease at the expiration of any three-year period. This is a peremptory right vested in the tenant under Section 3(3) of the Commercial Lease Act. The tenant is not required to give any reasons or justification for doing so. This right is imperative in nature and enacted for the protection of the tenant.

Even if the lease would contain a clause waiving this right, the tenant remains entitled to terminate the commercial lease at the expiration of a three-year period. Such clauses are considered relatively null and void.

Interim cancellation options

Outside the legally provided three-year periods, the tenant cannot in principle unilaterally terminate the commercial lease. This is only possible in the following cases:

1. By mutual agreement with the landlord
2. Under specific contractual provisions that allow
3. In the event of bankruptcy or force majeure (under certain conditions)

A valid mutual agreement to terminate the lease does require an authentic deed or a declaration before the justice of the peace (Article 3, fourth paragraph of the Commercial Lease Law).

Special situations

In the event of the tenant's bankruptcy, the commercial lease is not automatically terminated. The bankruptcy trustee must decide whether or not to continue the lease when he takes office. If the trustee decides to terminate the lease or fails to make a decision within fifteen days of being served with notice, the agreement is considered terminated. The claim resulting from such termination shall be included as a debt in the estate.

Separate rules also apply to rentals under the scope of the Flemish decree on short-term rentals for trade and crafts (pop-up decree). In this case, the tenant may terminate the current lease at any time subject to one month's notice.

1.2 Notice periods for the tenant

Standard installments at the end of each three-year period

The tenant who wishes to exercise his legal right to terminate the commercial lease at the expiration of a three-year period must give six months' notice. This termination must be made by bailiff's writ or by registered letter.

According to the settled case law of the Supreme Court, the notice of termination is only effective when it has reached the landlord. However, this does not mean that the landlord must have actual knowledge of its contents. It is sufficient that the landlord could reasonably have taken cognizance of the notice. In practice, this is satisfied as soon as the registered letter is presented at the landlord's last known address or registered office.

Thus, for assessing the timeliness of the notice, it is not the mailing per se that is decisive, but rather the presentation of the letter at the landlord's address (Cass. March 8, 2018 and Sept. 29, 2023).

An important practical point: if the last day on which the notice must be sent falls on a Saturday, Sunday or legal holiday, this deadline is extended to the next working day. As a precaution, it is advisable to send the notice well before the deadline to avoid disputes.

Termination after 9 years

Upon expiration of the initial nine-year lease term, the commercial lease terminates by operation of law without notice being required from the landlord unless the tenant has applied for a lease renewal.

The tenant may request up to three renewals of the lease, each for a period of nine years. After the expiration of the third lease renewal, the commercial lease ends, and the tenant is no longer entitled to an additional lease renewal. However, if the tenant remains in possession of the commercial property after the expiration of the third lease renewal, a lease of indefinite duration arises, which can be terminated by either party according to the rules of common lease law.

Opportunities for shorter notice periods

The law does not allow for shorter notice periods than six months for the tenant, except in the case of short-term rentals under the Flemish pop-up decree, where a one-month notice period applies.

The parties can agree by mutual consent to terminate the lease early, but this agreement must be recorded in an authentic deed or through a declaration before the justice of the peace.

1.3 Formal requirements for valid termination

Registered letter (content and timing)

Termination of a commercial lease by the tenant can be done through a registered letter to the landlord. This letter should clearly reflect the intention to terminate the commercial lease.

According to article 2, 9° of the act of Jan. 26, 2018 on postal servicesn, "registered shipment" means "a service that safeguards against the risks of loss, theft or damage on a flat-rate basis, with the sender receiving proof of the date of delivery or delivery to the addressee." The royal decree of march 14, 2022 further regulates that registered mail must be delivered within a deadline of D+1 (one business day after issuance).

In disputes over the timeliness of a notice, it is important to note that the notice is deemed to have reached the lessor from the time bpost presented the shipment to the lessor's address, regardless of whether it was actually received. In the event of a fruitless presentation, a notice is left, after which the addressee has fifteen days to collect the shipment.

The registered letter must be sent so that it reaches the landlord no later than six months before the expiration of the three-year period. Therefore, build in a margin of safety and send the termination letter at least a few days before this deadline, taking into account business days (Saturdays, Sundays and holidays do not count).

Bailiff writ

In addition to the registered letter, termination can also be done by bailiff's writ. This is an official document prepared by a bailiff and served on the landlord.

The advantage of a bailiff's writ is that there can be no doubt about the date of notification, since the bailiff delivers the notice directly to the landlord or leaves it at his address. In case of doubt or uncertainty whether the registered letter will still have reached the landlord in time, it is advisable to terminate the commercial lease by bailiff's writ.

Burden of proof and documentation

The burden of proof of timely and proper termination lies with the tenant. It is therefore important to keep supporting documents, such as:

• Proof of sending the registered letter
• The receipt of the registered letter
• A copy of the termination letter sent
• The bailiff's writ

If there is a dispute about the validity or timeliness of the notice, the court will evaluate this evidence. It is therefore advisable to keep thorough records of all correspondence relating to the termination.

1.4 Early termination and damages

Calculation of compensation due

Beyond the termination options provided by law at the expiration of each three-year period, the tenant cannot in principle unilaterally terminate the commercial lease without being liable for damages.

If the tenant does decide to unilaterally terminate the lease early, the landlord is entitled to damages. This compensation is usually calculated based on the remaining lease term until the next opportunity to terminate and takes into account the time needed to find a new tenant.

In practice, this re-letting fee usually amounts to one to six months' rent. For properties that are difficult to rent out, the court may be inclined to award a higher compensation.

Negotiating reduction

A landlord and tenant can always agree by mutual consent to lower damages than what would be awarded by law. The reasons for this may include:

• The quick finding of a new tenant
• The state of the property
• The economic situation
• Other mutual interests

It is appropriate to put such agreements in writing to avoid later disputes.

Exceptions where no fee is due

There are some situations in which the tenant does not owe compensation for early termination:

1. When the termination occurs by mutual agreement, recorded in an authentic instrument or by declaration before the justice of the peace
2. Upon termination during the times provided by law (after each three-year period)
3. In case of force majeure that makes the further performance of the rental agreement impossible
4. In bankruptcy of the tenant, where the trustee decides to terminate the lease (although the claim will then be included in the estate)

Importantly, contractual clauses that oblige the tenant to pay compensation upon termination at the end of a three-year period are void. The Supreme Court ruled in a Sept. 9, 2019, ruling that such clauses constitute a prohibited deviation from Article 3, paragraph 3 of the Commercial Lease Law.

Chapter 2: termination of commercial lease by landlord

2.1 Legal grounds for termination

Unlike the tenant, who has a right of termination at the expiration of each three-year period without having to give any reason, the landlord can terminate the commercial lease only in limited cases.

Personal use by landlord or family

The landlord may terminate the commercial lease to take personal use of the premises, or to allow the premises to be used by:

• His spouse.
• His descendants or adopted children
• His blood relatives in the ascending line
• A partnership in which the aforementioned persons will act as working partners or partners holding at least three-fourths of the capital

This must be a personal occupation for commercial purposes. A personal occupancy for private use of the rental property is not a valid reason for early termination of the current lease by a termination thereof by the landlord.

Conversions or renovations

The landlord cannot terminate the current commercial lease early because of remodeling or renovation of the premises. This is only possible at the expiration of the normal lease term or when applying for a lease renewal.

Default by tenant

Gross default by the tenant does not constitute grounds for premature termination of the commercial lease by the landlord. However, in case of serious default of the tenant, the landlord can seek judicial termination of the lease, but this falls under a different procedure than termination.

Without motive (with increased compensation)

The landlord may not terminate the commercial lease without cause, even with the payment of increased compensation, except upon the refusal of a lease renewal after the expiration of the original or renewed lease term.

2.2 Notice periods for the landlord

Terms at end of 3-6-9 year period

A landlord who wishes to exercise his contractually stipulated right of termination at the expiration of a three-year period is subject to a notice period of at least one year. Notice of termination must be served on the tenant by bailiff's writ or registered letter.

It is important that the one-year notice period fully expires before the end of the three-year period. Thus, the landlord must give notice at the latest one year before the expiration of the three-year period.

Special deadlines for specific grounds for termination

Specific rules apply to termination by the transferee of the leased property. If the commercial lease has fixed date and contains an eviction clause, the transferee can evict the tenant only in the cases mentioned in Article 16, 1°, 2°, 3° and 4° of the Commercial Lease Law, with one year's notice.

The seller must serve notice of termination on the tenant within three months of the execution of the authentic deed of sale.

Calculation and start of the term

The notice period begins to run from the first day of the month following the month in which the notice was served. For example: if the notice is served on March 15, the notice period begins to run from April 1.

In the case of a registered letter, the notice of termination is deemed to have reached the tenant when the tenant becomes aware of it or could reasonably have become aware of it.

2.3 Formal requirements for valid termination

Content of termination letter (justification).

The landlord's notice of termination must clearly state the reason for the termination. The landlord must state that he intends to carry on business in the rental property himself or by one of the persons specified in the law or a partnership.

The landlord is not required to state in the notice the period within which such trade is to be commenced, nor how long such trade will be carried on, nor to give a precise description of the proposed trade, nor the identification of the person or company that will carry on such trade.

However, the absence of a reason for the termination makes it relatively null and void.

Registered mail and acknowledgement of receipt

As with notice given by the tenant, the landlord may serve notice by registered letter or bailiff's writ. The same rules of notice and proof apply.

It is important that the notice effectively reaches the tenant. If in doubt, it is advisable to use a bailiff's writ to avoid problems of proof.

Common termination with multiple landlords

If the commercial property belongs in undivided ownership to several lessors, notice of termination must be given by all lessors. Notice of termination by only one of the co-owners is not valid unless it acts as agent or fiduciary for all the landlords.

The transfer of the rent and charges to an account belonging to one of the landlords, or the usual follow-up of inquiries or correspondence regarding the lease by one landlord, does not allow the tenant to assume that such landlord is acting as agent for the other landlords.

2.4 Notice by landlord

Standard fees per situation

In case of termination by the lessor for personal use or use by family or a partnership, an eviction fee is payable to the lessee. The amount of this compensation depends, among other things, on the sincerity, correctness, actual facts and (manner of) realization of the intended activity by the contractually stipulated persons or companies.

Calculation of compensation

The standard eviction fee is one year's rent, unless the parties have agreed on a higher amount. In special circumstances, the court may award a higher compensation, taking into account the benefit the landlord derives from the eviction and the damages suffered by the tenant.

Exceptions where no fee is due

There are situations where the landlord does not owe an eviction fee:

1. When the tenant has committed a serious breach of contract that justifies the judicial termination of the rental agreement
2. When the lease expires at the end of the lease term without the tenant requesting a lease renewal

Timing of payment

The eviction fee must be paid within three months of the notice, unless within that period the landlord questions his intention to use the property personally or to allow it to be used by family or a partnership through a subpoena. In that case, the court will rule on whether the eviction fee is due and the amount.

Chapter 3: special situations of termination

3.1 Termination after 9 years

Special rules and opportunities

Upon expiration of the initial nine-year lease term, the commercial lease terminates by operation of law without notice being required from the landlord unless the tenant has applied for a lease renewal.

Tenants wishing to exercise their right to rent renewal must do so by bailiff's writ or by registered letter between the eighteenth and fifteenth months before the expiration of the current lease. This is a requirement under penalty of forfeiture.

A late or premature application for lease renewal is void, which means that the commercial lease will terminate on the contractually scheduled termination date. This nullity is relative, meaning the landlord may choose not to invoke it.

Obligations of both parties

After the expiration of the nine years, the tenant has the right to request a renewal of the lease for a new nine-year period. The tenant can request a maximum of three renewals.

The landlord may refuse renewal for various reasons established by law, including personal use, remodeling or reconstruction, or without cause upon payment of an eviction fee.

If the landlord refuses the renewal, he must accurately state the reasons for his refusal in his reply. An unreasoned refusal shall be treated as an assent to the renewal.

3.2 Termination upon sale of the property

Rights of the new owner

When selling the leased property, a distinction must be made between situations in which the commercial lease has or does not have a fixed date with respect to the transferee.

If the lease has fixed date (by registration, inclusion in an authentic deed, or death of one of the parties), it is enforceable against the transferee.

If the lease contains an eviction clause, the transferee may evict the tenant only in the cases mentioned in Article 16, 1°, 2°, 3° and 4° of the Commercial Lease Law, subject to one year's notice and statement of reasons.

Protection of the incumbent tenant

If the commercial lease has no fixed date, it is in principle not opposable to the transferee, unless the tenant can prove that he has occupied the commercial property for at least six months.

In the case of a registered commercial lease that is renewed by the exchange of an application and acceptance, but whose renewal has no fixed date, it is opposable to the transferee under Section 12(2) of the Commercial Lease Law.

Termination fee on sale

The evicted tenant is entitled to eviction compensation if the transferee-landlord does not realize its stated intentions. The legal action to pay this compensation must be brought within the year.

The expiration of this one-year expiration period results in the extinction of both the legal claim and the subjective right to compensation.

3.3 Termination by mutual agreement

Benefits of amicable termination

Amicable termination of the commercial lease offers several advantages:

1. Avoiding legal proceedings
2. Flexibility in determining termination date
3. Opportunity to negotiate any fees
4. Maintaining good relations between tenant and landlord

Drafting a termination agreement

Termination of a commercial lease by mutual agreement requires that the agreement be established by an authentic instrument or by a declaration before the justice of the peace (Article 3, fourth paragraph Commercial Lease Law).

These formalities are designed to avoid pressuring the tenant to sign a termination agreement when entering into the original lease. They also aim to attach a fixed date to the termination agreement.

A simultaneous conclusion of a commercial lease and a termination agreement is not possible. Only a "current lease" can be terminated by mutual agreement, which necessarily requires or assumes the performance of the commitments of both parties.

Points of interest in negotiation

When negotiating an amicable termination of the commercial lease, the parties should consider, among other things:

1. The exact date of termination
2. The method of returning the commercial property
3. The settlement of rental arrears and charges
4. Handling the rental deposit
5. Any mutual waiver of further claims

The attorney appearing for a tenant or landlord in the context of recording the early termination agreement must have a special mandate (article 440 Ger.W.).

3.4 Termination without a contract or by oral contract

Legal status and proof of commercial lease

An oral commercial lease also falls within the scope of the Commercial Lease Law and may be terminated by the tenant at the expiration of each three-year period, subject to six months' notice.

Proof of an oral commercial lease can be provided by any means of law, including witnesses and presumptions. In practice, for example, the payment of rent, the occupancy of the premises for commercial purposes and the duration of such occupancy will be important elements of evidence.

Procedure for missing documents

With missing documents, it is important that the parties gather as much evidence as possible to prove the terms of the commercial lease, such as:

1. Rental payment receipts
2. Correspondence between tenant and landlord
3. Witness statements
4. Photos or other evidence of the occupancy of the property

In cases of dispute over the existence or terms of an oral commercial lease, the court will evaluate the available evidence to reach a judgment.

3.5 Termination for default or other breach of contract

Procedure and requirements

In case of non-payment or other serious breach of contract by the tenant, termination by the landlord is not possible. In such cases, the landlord must seek judicial termination of the lease. This is a different procedure than termination.

In doing so, the landlord must prove that the tenant has committed a serious default that justifies dissolution of the lease. The court assesses the seriousness of the default and decides on dissolution.

Judicial decision vs. termination

A judicial dissolution differs from a termination in several ways:

1. Termination terminates the contract for the future, while a rescission can also have retroactive effect
2. Termination does not require a default by the other party, while a rescission must be based on a serious default
3. Termination can be done out of court, while a dissolution is usually reviewed by the court

It is important to emphasize that a clause in a commercial lease that provides for automatic termination in case of default or other breach of contract is prohibited. Article 1762bis of the old Civil Code expressly prohibits resolutive clauses in leases to the detriment of the tenant.

Implications for warranty and indemnity

In the event of a court dissolution of the commercial lease for non-payment or other serious breach of contract by the tenant, the landlord is entitled to compensation for damages suffered. These may include:

1. Overdue rents and charges
2. Cost of repairing any damage to the property
3. Loss of rent for the period needed to find a new tenant

The rental deposit may be used by the landlord to cover these damages after obtaining a court order or with the consent of the tenant.

Chapter 4: practical tips and tools

4.1 Checklist for termination of commercial lease

Timeline and important deadlines

For the tenant:

• Check trade lease effective date
• Calculate the three-year periods (3-6-9)
• Note cancellation deadline (6 months before the end of a three-year period)
• Send the termination letter in a timely manner, preferably a few days before the deadline
• Keep proof of shipment and receipt

For the landlord:

• Check that the right of termination is expressly included in the lease agreement
• Calculate the three-year periods (3-6-9)
• Note cancellation deadline (1 year before the end of a three-year period)
• Send the reasoned termination letter in a timely manner
• Prepare payment of any eviction fee

Documentation and supporting documents

Important documents to be kept:

• The original commercial lease with any attachments
• Proof of lease registration
• Any amendment agreements
• The termination letter
• Proof of sending the registered letter
• The receipt of the registered letter
• The bailiff's writ
• Correspondence relating to termination
• Proof of payment of eviction fees

4.2 Sample termination letters

For tenants (different situations)

Sample tenant termination letter at end of three-year term:

[Name and address of tenant]
[Date]

To: [Name and address of landlord].

ADDRESSED

Subject: Termination of commercial lease agreement [commercial property address].

Dear Sir/Madam [landlord name],

With this letter I inform you that I terminate the commercial lease agreement concerning the premises located at [full address of commercial premises], which was concluded between us on [date of commencement of lease], by [end date three-year period].

This termination is in accordance with Article 3, third paragraph of the Commercial Lease Law, which allows the tenant to terminate the current lease at the expiration of each three-year period subject to six months' notice.

I undertake to vacate the premises on the termination date in good condition and to hand over the keys to you.

Please acknowledge receipt of this notice.

Kind regards,

[Signature]
[Tenant's name]

For landlords (different grounds)

Sample landlord termination letter for personal use:

[Landlord's name and address]
[Date]

To: [Name and address of tenant].

ADDRESSED

Subject: Termination of commercial lease agreement [commercial property address].

Dear Mr/Ms [name of tenant],

I hereby inform you that I am terminating the commercial lease agreement concerning the premises located at [full address of commercial premises], which was concluded between us on [date of commencement of lease], by [end date of three-year period].

This termination is done in accordance with Article 3, fifth paragraph of the Commercial Lease Law and the contractual provisions in the lease, which provide for the landlord to terminate the agreement at the expiration of each three-year period subject to one year's notice.

The reason for this termination is that I intend to personally occupy the premises for the purpose of carrying on a commercial activity, namely [description of intended commercial activity].

I am willing to pay the legally provided eviction fee.

Yours sincerely,

[Signature]
[Landlord's name]

4.3 Common mistakes and how to avoid them

Timing and term errors

Common mistakes regarding timing and deadlines:

1. Late sending of termination letter
2. Incorrect calculation of three-year periods
3. Confusion over start of notice period
4. Misinterpretation of required term (6 months for tenant, 1 year for landlord)

To avoid these mistakes:

• Mark the important dates in a calendar or scheduling system
• Calculate terms from the effective date of the lease, not from the date of signing
• Please allow time for sending and receiving the termination letter
• When in doubt, consult an attorney specializing in rental law

Content errors

Common content errors:

1. Lack of a clear termination notice
2. For landlords: no or insufficient reasons for termination
3. For landlords: termination without contractual provision
4. Reference to incorrect articles of law or contractual provisions

To avoid these mistakes:

• Use clear and unambiguous language in the termination letter
• State explicitly that this is a notice of termination
• Carefully check the lease agreement for specific provisions
• Have the termination letter checked by a lawyer

Procedural lapses

Common procedural mistakes:

1. Use of regular mail instead of registered letter or bailiff's writ
2. Shipping to wrong address
3. With multiple landlords: notice to only one of them
4. For landlords: miscalculation or non-timely payment of eviction fee

To avoid these mistakes:

• Always use the legally prescribed means of communication
• Verify the other party's current address information
• Make sure all parties involved receive the notice
• Consult an attorney for complex situations

4.4 What to do if notice of termination is contested

Amicable solution

When disputing the validity or legal effect of a termination, it is appropriate to first try to reach an amicable solution. This can be done by:

1. A mediation conversation between tenant and landlord
2. Engaging a lawyer to negotiate
3. Proposing a compromise, for example, a longer deportation period or adjusted compensation
4. Formal mediation by a licensed mediator

An amicable solution has the advantage of being faster and cheaper than court proceedings, and the parties retain control over the outcome.

Judicial proceedings

If an amicable solution cannot be reached, the dispute can be submitted to court. The procedure is as follows:

1. Submission of a petition or summons to the justice of the peace of the canton where the commercial property is located
2. Summoning the parties to the introductory hearing
3. Exchange of conclusions and papers
4. Treatment of the case at a plea hearing
5. Utterance by justice of the peace

The justice of the peace will assess the validity and legal effects of the termination based on the legal provisions, the contractual agreements and the concrete circumstances of the case.

Chapter 5: compensation for early termination

5.1 Legal framework for severance payments

Legal basis

The Commercial Lease Act contains several provisions that provide the basis for severance payments:

• Article 16, IV: regulates eviction fee for refusal of lease renewal
• Article 25 to 28: determines the eviction fee in case of non-realization of the stated termination motive

These provisions are mandatory and primarily protect the tenant, who has often made significant investments in the commercial property.

Recent case law

Recent case law has made some important clarifications:

1. The Supreme Court ruled in a Sept. 9, 2019, ruling that contractual terms requiring the tenant to repay certain benefits or pay fees upon termination at the end of a three-year period are void.
2. In a May 28, 2020 ruling, the Constitutional Court clarified that the one-year time limit for bringing an eviction action applies both in the case of refusal of lease renewal and termination by the acquiring landlord.

This case law underscores the protective function of the Commercial Lease Act with respect to the tenant and the strict interpretation of the statutory provisions on severance payments.

5.2 Calculation of damages by tenant

Standard formulas and calculations

When the tenant terminates the commercial lease outside the possibilities provided by law, he owes compensation to the landlord. For the calculation of this there are no formulas laid down by law, but in practice the following elements are usually considered:

1. The remaining lease term until the next opportunity to terminate
2. The time reasonably required to find a new tenant
3. Market conditions for commercial property rentals in the region

In practice, the re-letting fee is usually one to six months' rent. For properties that are difficult to lease, compensation of up to six months or more may be granted.

Special situations and exceptions

There are situations where the standard method of calculation is modified:

1. In case of force majeure that prevents the tenant from continuing to perform the commercial rental agreement
2. In case of bankruptcy of the tenant, where the trustee decides to terminate the agreement
3. In case of mutual agreements between tenant and landlord on a different fee

In these cases, the specific situation will be assessed to arrive at a reasonable compensation, or a specific legal regulation applies (such as bankruptcy).

5.3 Landlord's calculation of termination fee

Different fees per reason for termination

The termination fee owed by the landlord to the tenant varies depending on the ground for termination:

1. Upon termination for personal or family use: a fee equal to one year's rent
2. If rent renewal is refused without cause: compensation equal to three years' rent
3. On termination for rebuilding or reconstruction: compensation ranging between one and three years of rent, depending on the nature and extent of the works

These fees are minimum fees. The parties can always agree on a higher fee, and the court can award a higher fee in special circumstances.

Evidence of effective implementation (in case of own use/renovation)

If the landlord gives notice for personal or family use, he must effectively carry out this intention. He must occupy the premises within six months of the tenant's eviction and continue such occupancy for at least two years.

If the landlord fails to do so, the tenant is entitled to an increased eviction fee equal to three years' rent, less the fee already received.

The burden of proving the non-realization of the stated termination motive is on the tenant. He must prove that the landlord did not carry out his intention as announced in the notice of termination.

5.4 Negotiating compensation

Strategies for tenants and landlords

For tenants:

• Collect evidence of investments made in the commercial property
• Document the accumulated customer base and goodwill
• Calculate the cost of moving and redecorating a new building
• Estimate lost sales due to the forced move

For landlords:

• Gather evidence of market value of comparable commercial properties
• Document efforts to find a new tenant
• Calculate the cost of any modifications to make the property rentable again
• Estimate reasonable time to find a new tenant

What is reasonable and customary?

When negotiating damages, it is helpful to consider what is considered reasonable and customary in practice:

1. For re-letting fees by the tenant: one to six months' rent, depending on the rentability of the property
2. For eviction fees by the landlord: the minimum fees stipulated by law, with possible increases according to specific circumstances
3. For amicable termination: negotiated compensation that takes into account the interests of both parties

It is recommended that the result of the negotiations be recorded in writing in a settlement or termination agreement, and be validated through an authentic deed or a declaration before the justice of the peace.

Conclusion

Summary of key points

Termination of a commercial lease is a complex matter that requires thorough legal understanding. The main areas of concern are:

1. The Commercial Lease Act provides for a minimum lease term of nine years, with specific options for termination at the expiration of each three-year period.
2. The tenant can terminate the lease at the expiration of any three-year period, with six months' notice, without having to give a reason.
3. The landlord may terminate the lease only if provided for by contract, with one year's notice, and only for personal or immediate family use.
4. Termination must be by registered letter or bailiff's writ, and must be served in a timely manner.
5. Premature termination outside the legal options usually requires compensation.
6. Special situations, such as sale of the property, bankruptcy or mutual termination, are subject to specific rules and formalities.

Importance of professional legal advice

Given the complexity of the regulations and the potential financial consequences of incorrect termination, it is strongly recommended that professional legal advice be sought before terminating or terminating a commercial lease.

A lawyer specializing in rental law can:

• Correctly analyze the legal situation
• Advise on the most appropriate procedure
• Assist in the preparation of necessary documents
• Assist in any negotiations or proceedings
• Identify and manage potential risks

FAQ section

How should I terminate a trade lease?

As a tenant, you can terminate the commercial lease at the expiration of each three-year period. To do so, you must send a registered letter or bailiff's writ to the landlord at least six months before the end of the three-year period. You do not have to give a reason for the termination.

As a landlord, you can terminate the commercial lease only if this is provided for by contract. To do so, you must send a registered letter or bailiff's writ to the tenant at least one year before the end of the three-year period. You must state in the notice that you intend to use the premises personally or by family for commercial purposes.

Can you terminate trade leases without compensation?

As a tenant, you can terminate the commercial lease without owing damages in the following cases:

1. At the expiration of each three-year period, provided you respect a six-month notice period
2. By mutual agreement with the landlord, recorded in an authentic deed or by declaration before the justice of the peace
3. In case of force majeure that makes the further performance of the rental agreement impossible

Outside of these cases, unilateral early termination by the tenant usually requires compensation.

What is the notice period for trade lease by tenant?

The tenant is subject to six months' notice. The notice must be served at least six months before the expiration of a three-year period of the current lease.

The notice period begins to run from the first day of the month following the month in which the notice was served. The notice of termination only takes effect if it has reached the landlord, which occurs as soon as the landlord learned of the termination or could reasonably have learned of it.

May a landlord terminate commercial lease for his own use?

Yes, a landlord may terminate a commercial lease for his own use, but only if the following conditions are met:

1. This termination option must be expressly included in the lease agreement
2. Notice of termination must be given at the expiration of a three-year period
3. Notice of termination must be served at least one year in advance
4. The notice must state that the landlord intends to use the premises personally or by family for commercial purposes
5. The landlord must effectively implement this intention within six months of the eviction and continue for at least two years

When terminating for personal use, the landlord basically owes an eviction fee equal to one year's rent to the tenant.

When is a commercial lease termination letter valid?

A trade lease termination letter is valid when:

1. This is sent by registered mail or served via bailiff's writ
2. Notice period is respected (six months for the tenant, one year for the landlord)
3. The notice clearly reflects the intent to terminate the commercial lease
4. For the landlord: the notice contains a clear statement of reasons
5. The notice is addressed to all landlords (if the property belongs to more than one person) or all tenants (if there are multiple tenants)

The burden of proof of timely and proper notice lies with the party giving notice. It is therefore important to keep supporting documents, such as proof of mailing and receipt of the registered letter.

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Want to know more?

👉 Read our full overview on trade rentals in Belgium

👉 Read all about trade rent indexing