Building Loan Contract Template for Belgium

The Building Loan Contract is a specialized financing agreement used in Belgium when funding is required for new construction projects or major renovations. This document type is essential in the Belgian real estate and construction financing landscape, combining elements of traditional mortgage lending with specific construction-related provisions. It is designed to protect both lender and borrower interests while ensuring compliance with Belgian financial regulations, construction laws, and EU directives. The contract typically includes staged disbursement provisions linked to construction progress, architect certifications, and specific consumer protection measures required by Belgian law. It's particularly relevant in scenarios where property development requires structured financing with clear milestones and quality assurance measures.

1. Parties: Identification of the lender (credit institution) and borrower(s), including full legal names, addresses, and registration details

2. Background: Context of the loan, including purpose of construction, property details, and brief overview of the construction project

3. Definitions: Definitions of key terms used throughout the agreement, including technical construction terms and financial terminology

4. Loan Amount and Purpose: Specification of the total loan amount, construction purpose, and breakdown of intended use

5. Interest Rate and Calculations: Details of interest rate (fixed or variable), calculation method, and APR as required by Belgian law

6. Drawdown Conditions: Conditions and procedure for drawing down the loan, linked to construction milestones and architect certificates

7. Repayment Terms: Repayment schedule, payment amounts, and terms including provisions for early repayment

8. Security and Mortgage: Details of mortgage registration, ranking, and other security requirements

9. Construction Requirements: Specifications for construction standards, timelines, and compliance with Belgian building regulations

10. Insurance Requirements: Mandatory insurance coverage for both construction and property

11. Representations and Warranties: Standard and construction-specific representations and warranties from the borrower

12. Events of Default: Circumstances constituting default, including construction-specific defaults

13. Lender's Rights and Remedies: Actions the lender may take in case of default or breach

14. Costs and Fees: Breakdown of all costs, fees, and charges associated with the loan and construction

15. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction