The federal government is working on new legislation the aim of which is to protect those that are renovating their homes from fraud and malpractice on the part of building contractors. There is already a law that protects those that buy a new-build home. The federal government hopes that soon new legislation will offer similar protection to those renovating a home too.
Federal government working on law to better protect those renovating their homes that have issues with building contactors
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Those purchasing a house or flat that is still to be built or is only partially built at the time when the purchase agreement is signed are protected by the measures contained in the Home Construction Act also known as the ‘Breyne Act’ (Wet Breyne). The West Flemish socialist politician Georges Breyne was the man behind the bill that became law in 1971.
Under the conditions of the Home Construction Act the deposit payable when a contract for the construction of a house or flat is signed can be no more than 5% of the total amount agreed. The deposit has to be put aside to be used as a guarantee if the building contractor is unable to fulfill their obligations, for example due to bankruptcy.
The “Breyne Act” also contains other rules the aim of which is to protect the consumer. For example, contractors working on the construction of new-builds have to bill their customers in installments and never for more than the value of the work that has been carried out.
However, the conditions of the “Breyne Act” are only applicable if all the work is carried by or at the behest of a single contractor. Those using several contractors do not enjoy the same protection. Furthermore, as things currently stand the “Breyne Act” does not cover work to renovate existing properties, unless the property is being renovated from top to bottom and the work is equal to or greater than 18,600 euro or 80% of the purchase price of the property concerned.
Greater protection for those renovating properties
Now the federal government wishes to offer improved consumer protection to those renovating properties they own. The Federal Consumer Protection Minister Rob Beenders (Flemish socialist) told VRT News that "If something goes wrong, currently you are not sufficiently protected when you carry out renovation work. This government plans to draft a new bill that once it becomes law will offer people that are renovating a property the protection they deserve. We intend to adopt elements from the Breyne Act, such as 5% cent deposit and payment in instalments”.
Mr Beenders said that plans for the new bill are already quite advanced. "It is not a something that will be ready tomorrow though and will take some time, but we do want to it to be ready it by the end of this legislature (2029). The plan is in the coalition agreement and in the policy statements made by myself and the of Justice Minister Annelies Verlinden (Flemish Christian democrat)."
"We also want to establish a Federal Ombuds Service for the Construction Industry, to provide an alternative for people that do not want go to court because they feel that doing so would be too expensive and cumbersome. The Ombuds Service would attempt mediation and look for solutions."
Mr Beenders went on to say that “Many contractors also welcome this as their good name is often undermined by cowboys in the industry. It is these cowboys that need to be rooted out."