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14 March 2025
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Reservation Agreements In Swiss Real Estate – Risks And Pitfalls

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Bär & Karrer

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Bär & Karrer is a leading Swiss law firm with more than 200 lawyers in Zurich, Geneva, Lugano, Zug, Basel and St. Moritz. Our core business is advising our clients on innovative and complex transactions and representing them in litigation, arbitration and regulatory proceedings. Our clients range from multinational corporations to private individuals in Switzerland and around the world. Most of our work has an international component. We have broad experience handling cross-border proceedings and transactions. Our extensive network consists of correspondent law firms which are all market leaders in their jurisdictions. Bär & Karrer was repeatedly awarded Switzerland Law Firm of the Year by the most important international legal ranking agencies in recent years.
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.
Switzerland Real Estate and Construction
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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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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