IT-label and real estate law: why lawyers need to anticipate now

Real estate law is evolving. While lawyers and notaries worked for decades with a fixed repertoire of structural defects, energy requirements and planning regulations, a new dimension is now emerging: the digital infrastructure of buildings.

For tenants and buyers, stable, fast internet is no longer a luxury but a basic requirement. For businesses, a reliable network connection is literally a production requirement. And for property owners, a new liability risk is emerging: what if the digital infrastructure of a property does not meet the tenant's reasonable expectations?

The IT-label addresses this development by providing an objective, standardised measure of the digital infrastructure quality of real estate. This article explores the legal implications.

From physical to digital defects

Traditional real estate law revolves around physical characteristics: structural defects, state of maintenance, the functioning of installations, energy performance. Damp in the walls, a broken lift, a heating system that fails - these are the classic defects that parties litigate over.

But the reality of modern real estate use adds a new category: digital defects. These include:

• Insufficient or unstable internet connectivity
• Absence of redundant network connections
• Defective or outdated internal cabling
• Insufficient wifi coverage in rented spaces
• Missing or inadequate IT security
• Absence of emergency power supplies for critical systems

The legal question is: when does a digital defect constitute a shortcoming within the meaning of rental law? And who bears responsibility for it - landlord or tenant?

Rental law implications

Under Dutch rental law, the landlord must make a rented property available that meets the tenant's reasonable expectations. This is the right of enjoyment: the tenant must be able to use the rented property properly for the agreed purpose.

When a business premises is rented as an office, the tenant can reasonably expect to be able to conduct their business operations. In today's economy, that means: reliable internet connection, functional internal network, and adequate security of digital systems.

When the IT infrastructure of a property is so deficient that business operations are seriously hampered, this can be qualified as a defect within the meaning of rental law. The tenant can then: demand repair, request rent reduction, claim damages for demonstrable business loss, or in serious cases dissolve the rental agreement.

The question is then: should the landlord have known that the IT infrastructure was insufficient? And should they have disclosed this? This is where the IT-label becomes legally relevant: an objective, documented assessment of the state of the digital infrastructure.

In legal practice, the rule applies: what has not been measured has not been proven. The IT-label makes digital infrastructure quality measurable and therefore legally usable.

The IT-label as an objective standard in disputes

The strength of the IT-label for legal purposes lies in its objectivity. The label is based on a standardised methodology that measures and weighs various aspects of the IT infrastructure. This makes it suitable as:

• Reference framework in rental disputes: A property with a low IT-label score - for example IT1 HIGH PERFORMANCE or lower - provides objective grounds for the claim that the digital infrastructure does not meet modern standards.
• Substantiation in liability: If a cyberattack causes damage because the building's IT security was inadequate, the IT-label can show to what extent the building owner has breached their duty of care.
• Benchmark in real estate valuation: When buying and selling real estate, the state of the IT infrastructure plays an increasing role in valuation. Read more on our page about the value of your property.

Contract formation: clauses for the digital future

Forward-thinking real estate lawyers are already including clauses in rental and purchase contracts that address digital infrastructure. Key topics include the description of the digital infrastructure, division of responsibilities between landlord and tenant, and cybersecurity liability when smart building systems are shared by multiple tenants. Read more about cybersecurity in real estate and network redundancy.

Liability and smart systems

As buildings become smarter, liability also shifts. A building that uses AI systems for climate management, security and access control creates new liability questions. The IT-label provides an anchor point here too: it documents the state of the systems at the time of measurement. This can be crucial evidence in liability proceedings. See also why an IT-label matters for property owners.

Smart buildings are legally more complex buildings. Those who now establish the right contractual frameworks will avoid costly litigation tomorrow.

Future regulation

The European Union is moving towards more regulation in the field of digital infrastructure in real estate. The Smart Readiness Indicator (SRI) is a European initiative that measures the smartness of buildings - a concept closely aligned with the IT-label. It is likely that European regulation will eventually set minimum requirements for the digital infrastructure of office buildings, similar to current energy performance requirements.

Real estate lawyers who are already becoming familiar with concepts such as the IT-label, digital defects and cybersecurity liability are ahead of a regulatory development that is inevitable. See also our page on future-proof construction and the frequently asked questions about the IT-label.

Conclusion: the IT-label introduces a new dimension

The IT-label is more than a technical classification. It introduces a new legal dimension in real estate law: that of digital infrastructure quality as an objectively measurable and legally relevant property of real estate.

Want to know more about how the IT-label works? See how the IT-label works or contact our specialists for a discussion about the legal aspects of digital infrastructure in your portfolio.