Reservation Agreements in Swiss Real Estate – Risks and Pitfalls

Ticino Management (Ausgabe März 2025) Newspaper

In Switzerland, property transfer requires a notarized public deed for legal security and transparency. The notary ensures the legal compliance of the contract and informs the parties of the fiscal and civil implications. The registration in the land registry, authenticated by the notary, is essential for the binding transfer of ownership. The notarial system varies by canton: public notaries, independent notaries, and mixed systems. It is common for brokers to facilitate written reservation agreements between buyers and sellers, often involving a deposit. However, these agreements lack binding legal form and pose risks. Sellers can sell to third parties, and buyers might struggle to recover deposits. Additionally, penalty clauses can be enforced by sellers if buyers default. To avoid risks, it is advisable to have agreements reviewed by an expert or proceed directly to notarized deeds with deposits held by the notary.