The LOI (Real Estate) document serves as a crucial legal instrument for conducting property transactions in Switzerland's sophisticated real estate market. It is specifically designed to comply with Switzerland's unique legal framework, which combines federal regulations with cantonal requirements. This document type is essential for any property transfer in Switzerland, whether residential, commercial, or industrial, and must be executed in accordance with strict formal requirements, including mandatory notarization. The document incorporates provisions from various Swiss legal sources, including the Civil Code (ZGB) and Code of Obligations (OR), while also addressing cantonal specificities. It's particularly important for ensuring compliance with special regulations such as the Lex Koller for foreign buyers or the BGBB for agricultural properties.
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1. Parties: Identification of all parties involved in the transaction, including full legal names, addresses, and registration details for legal entities
2. Background: Context of the transaction and relevant property history
3. Definitions: Key terms used throughout the document, including property-specific terminology
4. Property Description: Detailed description of the real estate, including land registry details, parcel numbers, and exact measurements
5. Purchase Price: Specific amount, payment terms, and payment schedule
6. Transfer of Ownership: Conditions and process for transferring property title
7. Warranties and Representations: Seller's warranties regarding property condition, encumbrances, and legal status
8. Due Diligence: Buyer's inspection rights and related procedures
9. Costs and Taxes: Allocation of transaction costs, transfer taxes, and notary fees
10. Notarization Requirements: Specifications for official authentication as required by Swiss law
11. Governing Law and Jurisdiction: Confirmation of Swiss law application and competent courts
12. Execution: Signature requirements and execution formalities
1. Mortgage Provisions: Include when the purchase involves mortgage financing or existing mortgages
2. Lex Koller Compliance: Required when buyer is a foreign person or entity subject to Lex Koller restrictions
3. Tenant Rights: Include when property is subject to existing lease agreements
4. Environmental Provisions: Required when property has known environmental issues or contamination
5. Construction/Renovation Terms: Include for properties under construction or requiring specific renovations
6. Agricultural Land Provisions: Required when property includes agricultural land subject to BGBB
7. Condominium Rules: Include for condominium properties subject to specific ownership rules
8. Easements and Restrictions: Required when property is subject to specific easements or usage restrictions
1. Property Plans: Official land registry plans and property measurements
2. Land Registry Extract: Current extract from the land registry (Grundbuch/Registre foncier)
3. Property Photos: Current photographs of the property and relevant features
4. Building Permits: Copies of existing building permits and related documentation
5. Technical Reports: Building inspection reports, environmental assessments, etc.
6. Existing Contracts: Copies of relevant existing contracts (leases, service agreements, etc.)
7. Payment Schedule: Detailed schedule of payment installments if applicable
8. Insurance Certificates: Property insurance documentation and certificates
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