The various notarized real estate sales contracts in Switzerland
Sec. 1. The standard sales contract: The standard sales contract is the basic agreement for the sale of real estate in Switzerland. It details the terms and conditions of the transaction, such as the purchase price, payment terms, date of transfer of ownership, obligations of the seller and buyer, as well as other legal provisions. This contract is notarized to ensure its legality.2. The life annuity sale
contract: The life annuity sale contract allows the seller to retain the usufruct of the property until the end of its life, while the buyer pays a life annuity. This option can be attractive to older sellers who want to stay in their homes while still enjoying additional income.
Sec. 3. The sales contract with suspensive clause: This contract includes suspensive clauses that condition the sale on the completion of specific events, such as obtaining a mortgage loan or carrying out renovation work. Suspensive clauses ensure that certain conditions precedent are met before the transaction is completed.
Sec. 4. The contract of sale in bare ownership: The contract of sale in bare ownership divides the property rights into two distinct parts: the bare ownership (the right to dispose of the property) and the usufruct (the right to use the property). It is commonly used in estate planning.
Sec. 5. Forward Sale Contract with Right of Purchase: The Forward Sale Contract with Right of Purchase is a special form of sales contract. In this situation, the buyer acquires the property, but the seller reserves a right of emption, allowing them to buy back the property at a later date. This contract can be used for a variety of reasons, including estate planning or protecting the seller's interests.
Sec. 6. The contract of sale in the event of a forced sale (forced execution): When a property is sold at auction due to a foreclosure procedure or forced execution, a specific sales contract is used to formalize the transaction. This type of contract is usually supervised by the judicial authorities.
Sec. 7. The contract of sale in case of donation: When a property is given as a gift, a gift contract is used to formalize the transaction. It details the conditions of the donation, the rights and obligations of the donor and the recipient.
Sec. 8. Retention of title sales contract: This contract is used when the buyer cannot pay the purchase price immediately. It allows the seller to retain the property until payment is made in full.
Sec. 9. The Sale Agreement with Option to Purchase: When a buyer wishes to reserve the right to purchase a property at a later date, a Sale Agreement with Option to Purchase is used. It defines the terms of the call option, including the agreed price and the period for which the option is open.
These various notarized real estate sales contracts in Switzerland offer buyers and sellers the flexibility to meet their specific needs. Choosing the right contract will depend on the circumstances of the transaction, the seller's goal, and potential estate planning. To ensure a legal and fair transaction, it is strongly recommended to consult a notary or a lawyer specialized in real estate law for the drafting and formalization of the chosen contract.