Under Swiss law, purchase and sale contracts of real estate or properties need to be made in writing by a competent notary.
All preliminary contracts, letters of intent or agreements according pre-emptive rights or purchase options must be drawn alike. Documents, which do not meet these requirements, are null and void, though unenforceable.
Notaries will establish purchase and sale contracts adapted to each individual transaction, on the basis of particular needs brought to his knowledge by the parties. Concretely, the notary will read the deed to the parties, who will then sign it personally or by proxy, in the presence of the notary. Afterwards, the notary will file the deed with the competent Land Register, which will proceed to the transfer. Ownership of the real estate is legally transferred only when the deed is registered.
If needed, the buyer can obtain a mortgage from a bank or from a financial institution to help him out for the acquisition of the real estate. Usually, up to 80% of the purchase price of the real estate may be mortgaged. In certain circumstances and subject to the pledge of additional securities (cash, pension funds, etc.), mortgages up to 100% may be obtained from such banks or financial institutions.
Do not hesitate to contact us should you need further information concerning this matter as our lawyers can easily help to connect you to local notaries, banks or financial institutes.