How the Korfine rental guarantee works
The Korfine rental guarantee is a solution used in Belgium to set up a rental guarantee with capital locked into a capitalization contract taken out with an approved Belgian insurance company.
Here’s a step-by-step guide to the Korfine rental guarantee.
General principle of the Korfine rental guarantee
Korfine is an FSMA-approved insurance broker. It acts as an intermediary between the lessee, the lessor and a partner insurance company (Patronale Life, Fédérale Assurance, Credimo, Securex, etc.).
The principle is simple:
- The tenant pays the rental guarantee,
- This money is invested in a guaranteed-capital capitalization contract (branch 26),
- The capital is legally blocked in favor of the lessor for the entire term of the lease.
Complete our form to obtain an online rental guarantee from Garantie.be in just a few hours. You don’t have to block the guarantee funds, as we commit our financial guarantee.
How a rental guarantee works with Korfine.
Payment of the guarantee amount
To set up the Korfine rental guarantee, the tenant makes a one-off payment by bank transfer to the account designated by Korfine. This payment does not constitute a bank deposit: it is used to fund a capitalization insurance product.
Investment of funds paid into a capitalization contract
Once the payment has been made, Korfine invests the amount paid in a branch 26 capitalization contract with an approved Belgian insurer, which is detailed as follows:
- Biometric risk-free life insurance product (no death insurance)
- Capital guaranteed by the insurer
- Guaranteed interest rate fixed at inception
- Product subject to Belgian law
The contract is not covered by the bank deposit guarantee scheme, as it is not a blocked bank account.
Legal blocking of capital in favor of the lessor
- The lessor is designated as the beneficiary of the guarantee,
- The capital cannot be released by the lessee alone, nor by the lessor alone,
- Each release requires a specific procedure. Check our page on releasing the Korfine rental guarantee.
This mechanism offers the lessor security equivalent to a traditional rental guarantee.
Warranty management during the lease
For the duration of the rental lease:
- The capital remains frozen,
- Interest may be earned at the guaranteed rate specified in the contract,
- Interest is subject to withholding tax,
- No partial withdrawal is possible without the agreement of the lessor.
- The tenant cannot use or move the sum while the lease is in force.
Release of the Korfine rental guarantee
The Korfine rental guarantee can be released:
- With the agreement of the lessor and the lessee : Both parties sign the Korfine rental guarantee release document, which specifies: The amount to be returned to the lessee and, if applicable, the amount retained by the lessor.
- On the basis of a court ruling: In the event of a dispute, the guarantee can be released on presentation of a court ruling.
