The Ground Lease Agreement is a crucial document in Swiss real estate law, used when a party wishes to develop and use land without purchasing it outright. This arrangement is particularly valuable in Switzerland due to limited land availability and high property values. The agreement, governed by Articles 779-779l of the Swiss Civil Code, creates a distinct real right that can be registered in the land register. It specifies the grant of construction rights, duration (typically 30-100 years), ground rent, permitted uses, construction requirements, maintenance obligations, and return conditions. This type of agreement is commonly used for commercial developments, public infrastructure projects, and institutional developments where long-term land rights are needed without full property acquisition. The document must carefully balance the interests of both the landowner and the developer while ensuring compliance with federal and cantonal regulations.
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1. Parties: Identification of the landowner (grantor) and the ground lease holder (grantee) with full legal details
2. Background: Context of the agreement, description of the property, and parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Grant of Ground Lease: Formal grant of the ground lease right, including precise description of the land area and registration requirements
5. Duration: Term of the ground lease, including start date and end date (typically 30-100 years under Swiss law)
6. Ground Rent: Amount, payment terms, review mechanisms, and indexation of the ground rent
7. Construction Rights and Obligations: Scope of permitted construction, approval requirements, and construction timeline
8. Use Restrictions: Permitted uses of the land and buildings, including any restrictions or requirements
9. Maintenance and Repair: Obligations regarding maintenance of land and buildings
10. Insurance: Required insurance coverage for both land and buildings
11. Assignment and Transfer: Conditions for transferring or assigning the ground lease rights
12. Termination: Grounds for termination, process, and consequences
13. Return of Property: Conditions for return of property at lease end, including compensation for buildings
14. Notices: Process and requirements for formal communications between parties
15. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction
1. Environmental Provisions: Specific environmental obligations and protections, used when environmental risks are present
2. Development Phases: Detailed phasing of construction works, used for complex development projects
3. Mortgage Rights: Provisions regarding the creation of mortgage rights, used when financing is required
4. Pre-emption Rights: Rights of first refusal for either party, used when parties want mutual protection on transfers
5. Public Law Requirements: Specific obligations regarding public law permits, used for properties in specially regulated zones
6. Easements: Provisions regarding existing or required easements, used when access or utilities cross other properties
7. Special Use Provisions: Specific requirements for special use cases (e.g., commercial, industrial), used based on intended property use
8. Force Majeure: Provisions for extraordinary circumstances, used in long-term agreements for added security
1. Land Plan: Detailed plan showing the exact area of land subject to the ground lease
2. Building Specifications: Technical specifications for permitted construction
3. Rent Calculation: Detailed methodology for calculating and adjusting ground rent
4. Land Register Extract: Current extract from the land register showing ownership and encumbrances
5. Construction Timeline: Detailed timeline for construction phases and milestones
6. Existing Easements: List and details of existing easements affecting the property
7. Insurance Requirements: Detailed specifications of required insurance coverage
8. Return Conditions: Detailed specifications for property condition upon return
9. Environmental Report: Current environmental status and any known contamination
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property Development
Industrial Development
Agriculture
Education
Healthcare
Retail
Hospitality
Manufacturing
Logistics
Public Infrastructure
Religious Institutions
Sports and Recreation
Relevant Teams
Real Estate
Legal
Finance
Operations
Facilities Management
Project Development
Risk Management
Compliance
Property Management
Construction
Commercial
Asset Management
Relevant Roles
Real Estate Director
Property Development Manager
Legal Counsel
Land Acquisition Manager
Chief Financial Officer
Facilities Manager
Construction Project Manager
Asset Manager
Property Manager
Real Estate Investment Manager
Urban Planning Director
Sustainability Manager
Risk Manager
Commercial Director
Operations Director
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