In Belgium
“Provisions” is the common synonym for “charges provision”. Both designate the same reality: a monthly advance paid by the tenant to cover service charges, reconciled annually via a charges statement.
Provisions differ from the flat rate through annual reconciliation: the landlord compares provisions paid to actual expenses and adjusts (supplement or refund). The flat rate is final with no reconciliation.
The amount is set in the lease based on an estimate of annual charges.
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Good to know
If the lease does not specify whether charges are paid as provisions or flat rate, case law generally considers them as provisions. The landlord is then obliged to provide an annual statement.
Practical example
A lease provides for 100 EUR/month provisions (1,200 EUR/year). The annual statement reveals actual charges of 1,400 EUR. The tenant pays a 200 EUR supplement. Provisions are adjusted to 120 EUR/month for the next year.