Breyne Law completion guarantee: your bankruptcy protection
The completion guarantee is the major protection against a developer’s bankruptcy during the site. Often confused with the security deposit, it acts at a very different moment.
1. What it is for
If your developer goes bankrupt before delivery (unfinished site, incomplete shell, impossible finishing), the completion guarantee allows finishing the site without spending a euro more.
A bank or insurance company contractually undertakes to finance the finishing of the works by a new contractor — or to compensate the buyer.
2. The mechanism
Article 12 imposes the financial guarantee on the developer. Most common form: bank guarantee issued by a Belgian bank.
The certificate must:
- Name the guarantor (bank or insurance company).
- Specify the guaranteed amount (generally the balance still due).
- Mention the activation conditions.
- Be delivered before the authentic deed.
Without certificate: the contract is void, as for the security deposit.
3. Security deposit vs completion guarantee
| Security deposit | Completion guarantee | |
|---|---|---|
| When | After reception (1 year) | During site |
| What | Lift reservations | Finish the site |
| Amount | 5% excl. VAT | Balance due |
4. Activate in case of bankruptcy
Bankruptcy published in the Belgian Official Gazette → declaration to the guarantor within 1 to 3 months → activation and organisation of the takeover site.
Our Breyne Law advisory pilots the whole process — avoid costly procedural errors.