On 1 March 2011, a Bill was submitted to the Belgian Parliament modifying Article 1584 of the Civil Code and introducing the obligation to include a condition precedent in all contracts concerning the sale of real estate (Wetsvoorstel tot wijziging van artikel 1584 van het Burgerlijk Wetboek en houdende een verplichting om in de koopovereenkomst van een onroerend goed een opschortende voorwaarde op te nemen/Proposition de loi modifiant l'article 1584 du Code civil et prévoyant une condition suspensive obligatoire lors d'une convention de vente d'un bien immobilier - the "Bill").
According to the Bill, several real estate sales contracts are currently being dissolved shortly after having been concluded because the purchaser is unable to obtain the required mortgage. Such a dissolution is usually costly since the purchaser loses his advance payment and remains obligated to pay the registration rights.
The Bill therefore introduces a new Article 1584/1 in the Civil Code, the section of the Civil Code dealing with the sale of goods in general, stating that every contract regarding the sale of real estate should contain a condition precedent whereby the sale will only become effective if the purchaser is able to obtain a mortgage within a period of two months. The Bill does not address the situation where a purchaser of real estate does not require a mortgage.
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