Advice

Due diligence in Geneva: the 5 laws that can block everything

5 min read

Agricultural land, Lex Koller, Lex Weber, State pre-emption, LDTR: five regimes can stop or pre-empt your transaction. Check before you sign.

Due diligence de la parcelle : restriction de droit public

Property due diligence — the examination of the property and its legal framework before you commit — has one simple objective: no rule should catch you by surprise after signing. In Geneva, however, five public-law regimes can block, condition or even pre-empt a transaction — and not all of them can be read in a public register. Here is the map of all five, with the verification step for each.

1. Agricultural land: the LDFR locks it down

Rural land law (LDFR) makes the acquisition of agricultural properties subject to authorisation, under strict conditions: the buyer must, in principle, be a farmer operating the land in person, at a price that is not inflated, within the catchment area of their farm. In practical terms: the agricultural plot bordering your future villa can neither be bought to extend your garden, nor be a land investment awaiting reclassification — the zone decides everything, and the LDFR keeps the agricultural zone as it is. Verification: check the plot’s status on the SITG, before you even start dreaming.

2. Foreign buyers: the Lex Koller filters

The LFAIE restricts the acquisition of residential property by persons abroad — whether it applies is checked across three cumulative criteria: who is buying, what is being bought, and the nature of the right acquired, including indirect acquisitions such as the transfer of shares in a property company. Without authorisation where it is required, there is no registration in the land register — the transaction is legally impossible. The details of the various statuses — B permits, C permits, cross-border workers, companies — are set out in our full guide to the LFAIE; the reflex: clarify the buyer’s status before the first viewing.

3. Second homes: the Lex Weber caps them

Since 2016, the federal law on second homes has, in principle, prohibited any new second home in municipalities where they already account for more than 20% of dwellings — with the usage restriction recorded in the land register. Geneva itself is barely affected, but any Geneva resident buying a chalet or a holiday pied-à-terre is directly concerned: our dedicated article on the Lex Weber details the quotas, the exceptions and the pitfalls of tourist accommodation.

4. State pre-emption: the veto nobody expects

This is the least well-known restriction among buyers — and the most dramatic. In a development zone, the general housing law (LGL) grants the State and the municipalities a right of pre-emption: when the deed is executed, the owner must notify the Council of State and the municipality, who have 60 days to waive their right… or to acquire the property in place of the buyer — at the price stated in the deed, or even at a lower price if they consider it inflated, with expropriation as a last resort. And practice has become stricter: the exercise of this right in the service of densification is no longer rare. The practical consequence: on a plot in a development zone, the timetable and structure of the transaction — including the preliminary contract — must factor in this deadline and this risk; our guide to new-build properties in development zones completes the picture on the controlled-price side.

5. The rented flat: the LDTR sets conditions

The disposal of a residential flat previously offered for rent — in whatever form, including PPE (condominium) units or shares — requires authorisation whenever it falls within a category affected by housing shortage. The department notably authorises a flat in PPE from the time of its construction, never rented, already authorised once — or purchase by the tenant in place for three years, if 60% of the tenants in the building agree and the others are guaranteed that they will not have to buy or leave. Sale of a whole building follows its own rules. Our guide to selling a rented home covers the full process — including the September 2026 vote.

The sixth check: the register of contaminated sites

The five regimes above determine whether the transaction is possible. This one determines what it will cost you afterwards, and it is the easiest of the six to check — which makes overlooking it all the more regrettable.

The federal ordinance on the remediation of contaminated sites requires the canton to maintain a register of contaminated sites. In Geneva, it is public: it can be freely consulted on the geoportal of the geology, soils and waste department, under the “Sites pollués” tab of the SITG. It lists plots where pollution is known or suspected — former industrial or craft activities, storage sites, landfill.

Two things are worth knowing. First, the extract per plot can be downloaded free of charge, and the State is explicit about its scope: extracts generated online are official, with the PDF’s reference number at the bottom of the page replacing the department’s stamp and signature. A postal copy, by contrast, costs 20 francs. Second, an entry in the register is not a verdict: it flags a contaminated site, which does not necessarily call for remediation. But it does change the conversation — on price, on planned works, and on who will bear the cost if groundworks disturb the soil.

The check takes one minute: the plot number, the downloaded extract, and the answer before the offer rather than after the deed.

Due diligence in practice: who checks what

The method comes down to three circles. What can be read: the land register extract — easements, liens, annotations, listed restrictions — and the SITG for the zone, protections and status of the plot. What must be asked: the applicable authorisations — LDTR, LFAIE, pre-emption — from the relevant departments, since not all restrictions appear in a public register. What must be organised: the transaction structure adapted to the answers — conditions precedent, timetable, form of commitment. The notary checks the legal aspect, the specialist lawyer steps in for complex cases, and the broker orchestrates the whole — this is the framework of our transaction guide, and the sale file brings together the relevant documents. Technical terms are covered in the glossary.

This article is based on a legal contribution by Me David Bensimon, partner, FSA specialist in construction and real estate law, and Me Mélissa Palin (Rhône Avocat-e-s), published in December 2023. Editorial formatting: Rousseau 5. This article does not constitute legal advice.

Frequently asked questions

What is real estate due diligence?

The complete examination of a property and its legal framework before you commit: identifying the property, the applicable public- and private-law regulations, and the risks surrounding the transaction. Its purpose: to ensure no rule comes as a surprise after signing — and to adapt the structure of the sale to what it reveals. In Geneva, it covers five key regimes: LDFR, LFAIE, Lex Weber, LGL pre-emption and LDTR.

Can the State really pre-empt my property purchase in Geneva?

Yes, in a development zone: the LGL gives the State and the municipality a right of pre-emption. When the deed is executed, the seller must notify them, and they have 60 days to waive their right — or to acquire the property in place of the buyer, at the price stated in the deed or even at a lower price if they consider it inflated. Practice has become stricter in the service of densification: on these plots, the transaction timetable must factor in this deadline.

Can you buy agricultural land in Geneva?

Only with the authorisation provided for under rural land law, which is in principle reserved for a farmer operating the land in person, at a price that is not inflated and within the catchment area of their farm. Agricultural land is neither a garden extension nor an investment awaiting reclassification — the LDFR precisely locks down these uses.

What conditions apply to selling a rented flat in Geneva?

LDTR authorisation, whenever the flat falls within a category affected by shortage: it is notably granted for a flat in PPE from the time of its construction, never rented, already authorised — or for purchase by the tenant in place for three years, if 60% of the tenants in the building agree, with guarantees for the others. The sale escapes these rules if the property has never been offered for rent.

Who carries out due diligence: the notary, the lawyer or the broker?

All three, each with their own role: the notary checks the legal aspect of the deed — land register, capacity, required authorisations; the specialist lawyer steps in for complex structures and cases; the broker orchestrates the whole process and adapts the transaction strategy to the answers. The buyer, meanwhile, brings the decisive question: "what could block this?"

Sources

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