Geneva's Left Bank
Geneva property glossary
552 definitions from law, taxation, financing and property practice in Geneva and French-speaking Switzerland. Written to be understood, not to impress — because the right term can win a sale.
Most consulted
IBGI
Casatax
PPE
Mortgage note
LDTR
Imputed rental value
Right of pre-emption
Off-market
A33 terms
Accident prevention office Planning & construction
The BPA (Accident prevention office) is an independent body in Switzerland, created in 1983 and based in Berne. Its mission is to prevent accidents in various areas such as road traffic, housing, leisure and sport. Funded by non-occupational accident insurance premiums, the Road Safety Fund and its own income, it carries out research, analyses data on serious or frequent accidents, and proposes effective prevention measures. The BPA is also mandated by the State Secretariat for Economic Affairs to monitor products related to non-occupational activities.
Account settled on supporting documents Market & practice
An account settled on supporting documents is a document used to determine the final price of a structure. It includes all the charges invoiced by the general contractor for the completion of the project, based on precise supporting documents.
Accredited property valuer Planning & construction
An accredited property valuer in Switzerland is a certified professional specialising in assessing the value of properties. He or she undergoes specific training and sits an examination in order to obtain this accreditation, which guarantees high ethical and professional standards. This type of expert is essential for property transactions, disputes and tax planning, as they provide an objective, reliable valuation in line with market realities. They mainly use three valuation methods: the market approach (comparison with similar properties), the cost approach (estimate of the replacement cost), and the income approach (for income-generating properties). Several factors influence the value of a property, such as location, the property's condition, market trends and legal aspects. When choosing an accredited property valuer, it is important to consider their experience, professional qualifications, references and knowledge of the local market. Online platforms, professional associations or word of mouth can help in finding the right expert. Services such as LAMAP offer a free initial estimate to help owners assess their property.
Accrued charge Financing
An accrued charge refers to a provision set aside by the owner, generally a portion of the rent, to cover future investments or renovations. It may also serve to offset the absence of income in the event of vacancy, thereby ensuring the owner's financial stability.
Acquisition costs Financing
Acquisition costs cover the charges linked to the purchase of a property. In German-speaking Switzerland, these costs are borne by the buyer, while in Geneva, they are also borne by the buyer. They include the fees for registration with the land registry, registration duties, and the notary's fees.
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Acquisition of own funds Financing
Acquisition of own funds refers to the financial share the buyer must provide themselves to acquire or build a property, generally around 20% of the total price. These funds are used in particular to cover ancillary costs and interim interest. If these amounts cannot be gathered, legislation on encouraging home ownership allows, under certain conditions, the withdrawal of occupational and private pension savings.
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Additional guarantees Financing
Additional guarantees are means used to obtain a mortgage loan when the 20% of own funds usually required in Switzerland cannot be provided. A common example is the use of savings from the 2nd and 3rd pillars. These guarantees may make it possible to borrow a sum exceeding 80%. Sometimes the bank also requires them if the property needs extensive renovation. By offering additional guarantees, it is generally possible to obtain better loan terms.
Adjoining house Market & practice
House sharing one or more side walls with neighbouring houses; two main façades (front/rear). Corner houses share only one. Advantages: cost/energy. Disadvantages: privacy/natural light.
Adjudication Market & practice
Adjudication is the process by which a contract is awarded to the company or provider submitting the best offer following a competitive tender. In other words, various providers submit their proposals and the awarding body (the organisation responsible for the selection) chooses the most advantageous offer according to predefined criteria (price, quality, deadlines, etc.).
Administration costs Financing
Administration costs, also known as operating costs or owner's costs, are regular costs linked to the day-to-day upkeep of a property. They include items such as building insurance, water and energy supply. These costs fall into two categories: some can be charged to the tenant (for example, heating, caretaking, upkeep), while others, such as administrative costs, repairs or insurance premiums, remain the responsibility of the owner.
Administrative practices Planning & construction
Document produced by the Canton of Geneva providing information on land prices, construction costs, housing prices, etc. Its purpose is to clarify the legal and regulatory provisions relating to these subjects in the property field.
Advance amount Financing
Part of the value financed by the mortgage (borrowed capital), determined by the loan-to-value ratio. In Switzerland, max. loan-to-value ratio 80%.
Advance limit Financing
Maximum rate lent under a mortgage in Switzerland, capped at 80% of the purchase price: 65% in first rank and 15% in second rank.
AEAI — Association of Cantonal Fire Insurance Establishments Legal
The AEAI — Association of Cantonal Fire Insurance Establishments is an organisation bringing together 19 Swiss cantonal establishments specialising in covering movable and immovable property against fire and damage caused by the forces of nature. It ensures the coordination of insurance policies, encourages prevention and protection against losses, and supports collaboration between its members to ensure effective risk management at cantonal level.
Affordability calculator Financing
An affordability calculator makes it possible to determine, before taking out a loan, whether you meet the financial criteria required to purchase a property. It is accessible free of charge online and quickly provides an estimate of your Repayment capacity.
Agent Legal
Person (natural or legal) to whom the principal entrusts the power to act on their behalf with third parties, via a contract.
Agreement in principle Financing
An agreement in principle is a purely moral commitment between the parties, with no binding legal value. In the context of a property purchase, it mainly takes two forms: 1. Bank agreement in principle: the bank assesses the buyer's borrowing capacity and confirms its intention to finance the transaction. Even if it issues a document, this is not a firm loan offer. 2. Agreement in principle between seller and buyer: it is formed as soon as both parties agree on the terms of the sale, particularly the price, before the official signing before the notary. Although not compulsory, this agreement is strongly recommended. It clarifies the buyer's budget, reassures the seller as to the purchaser's solvency, and thus facilitates negotiations. To obtain a bank agreement in principle, various supporting documents must be provided (income, domicile, credit history, etc.).
Alienation Legal
Alienation refers to the transfer of ownership of a property to another person. It generally takes place upon sale, but may also occur through a bequest or a gift. These transactions always involve a change of owner in favour of a third party.
Amortisation (of a property) Financing
Amortisation of a property may refer to two different realities in the real estate field: 1. Amortisation linked to the value of the property (property valuation): Over time (around 1% of the value per year in Switzerland) and in the absence of renovations or alterations, a property depreciates. It is considered that after 100 years without major maintenance, it may lose all of its original value. Renovation works, however, make it possible to limit or offset this loss. 2. Amortisation linked to financing (mortgage repayment): In the context of a mortgage, "amortising" means gradually repaying one's debt. In Switzerland, only the portion corresponding to the second-rank mortgage must compulsorily be repaid (amortised), whereas the first-rank mortgage may often remain in place.
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Ancillary construction costs (CFC 5) Planning & construction
Ancillary construction costs (CFC 5) comprise additional costs linked to construction, over and above the basic costs. These costs include gardening and drainage works, architect's fees, interest payable during construction, insurance premiums and various general costs and commissions. These items represent additional costs to be taken into account in the total value of the investment.
Annuity Financing
An annuity is the annual amount paid to repay a debt, comprising both the capital portion (amortisation) and the related interest. When repayment takes place each month, it is referred to instead as a monthly instalment.
Annuity bond (lettre de rente) Financing
Annuity bond (lettre de rente): a title based on a property lien granting security to the creditor without personal liability on the part of the debtor. Little used in Switzerland, in favour of stronger forms of security.
Annuity loan Financing
The annuity loan is a form of credit in which the total monthly instalment remains constant over a given period (e.g. 10 to 15 years) thanks to a fixed interest rate. The interest portion decreases over time while the capital portion increases, which makes budget planning easier for the debtor.
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Application by accelerated procedure Legal
An APA (Application by accelerated procedure) is a building permit application processed more quickly, generally for works with a low impact. This includes: fitting-out or renovation works inside an existing building; minor alterations to the exterior of a building (such as re-rendering a façade); temporary or small-scale construction. It may also be used in an emergency, for example for repairs following a disaster.
Architect Planning & construction
The architect is a versatile professional, both technician and artist, responsible for the design and follow-up of construction or renovation projects. He or she draws up the plans, carries out the administrative procedures, requests quotes from providers, oversees the progress of the site and manages invoicing. This role ensures that each building meets both technical and aesthetic requirements.
Asbestos Planning & construction
Asbestos is a naturally occurring fibrous silicate (containing calcium, magnesium and iron) that was formerly widely used for its insulating and fire-resistant properties in building materials. However, it has been banned (since 1989) owing to its high toxicity and serious health risks (notably lung cancers). If it is detected in a building, it is essential to call on a professional to assess the danger and determine the best solution: complete removal or encapsulation (covering) so as to avoid any risk of inhaling the fibres.
Asking price Legal
Amount at which a property is offered on the market, also known as the indicative price. It may be negotiated upwards or downwards depending on supply and demand.
Attic apartment (attique) Planning & construction
In Switzerland, an attic flat, synonymous with a penthouse, is a dwelling located on the top floor of a building. It generally benefits from private lift access, a spacious terrace and high-end fittings. These flats offer panoramic views and stand out for their luxurious finishes. Advantages: Privacy and Exclusivity: Being alone on the top floor, the attic flat guarantees great privacy. Outdoor Space: A generous terrace, often surrounding the flat. Exceptional View: An elevated position offering incomparable panoramas. Luxury Fittings: Large floor area, open-plan kitchens, swimming pools, jacuzzis, large glass windows, private lifts. Urban Location: Combines the advantages of a detached house with a city-centre living environment. Disadvantages: High Cost: Higher purchase and rental prices, higher co-ownership charges. Energy Consumption: Heat loss in winter and overheating in summer increasing energy costs. Maintenance: Large terraces requiring regular upkeep. External Noise: Exposure to noise from traffic or works. Acoustic Standards: Noise from the roof or technical installations. Legal Aspects in Switzerland: Attic flats are subject to specific regulations, such as a floor area limited to 60% of a full storey and a mandatory interior setback. They do not count as additional storeys and require a building permit for any modification. Origins and Terminology: The term "attique" comes from the Greek "attikos" and, in Switzerland, exclusively designates a penthouse, unlike in other cultures where it may mean an attic or loft space. Differences from Other Types of Flat: Attic flat (mansardé): Located under a sloping roof with dormer windows. Duplex: Spread over two internal storeys, without necessarily being on the top floor.
Attic flat Planning & construction
An attic flat is located under the roof of a house or building. It is distinguished by its sloping ceilings and angled walls, which create a warm and intimate atmosphere. Thanks to its height and its openings in the roof, it benefits from abundant natural light, reinforcing its unique charm.
Auction Market & practice
An auction is a bid made during a sale to the highest bidder, the amount of which exceeds the reserve price or previous bids. In Switzerland, the Debt Enforcement and Bankruptcy Office is responsible for property sales by auction.
Auditor's report Legal
The auditor's report is drawn up by the account auditors in the context of buildings under Co-ownership by Floors (PPE). Appointed by the general meeting, these auditors examine the co-ownership's annual accounts: accounting documents, balance sheet balances, transitional entries and financial movements. At the conclusion of their mission, they draw up a report detailing their findings and put forward proposals for the general meeting.
Authentication Legal
Authentication refers to the official formalisation of a legal deed, ensuring its validity and compliance with legal requirements. Under art. 216 of the Swiss Code of Obligations (CO), sale contracts or any other contract relating to real property must be executed as a notarial deed / authentic deed to be legally valid. This procedure involves the signing of the contract by all parties in the presence of a notary, who guarantees the transparency and security of the deed. Each party receives a copy of the contract, and a copy is lodged with the land registry, thereby ensuring the traceability and protection of rights linked to the property.
AVS Financing
The Old-Age and Survivors' Insurance (AVS) is a compulsory pay-as-you-go pension scheme in Switzerland. As part of the first pillar of the social security system, it guarantees a basic income to retirees and provides benefits to survivors in the event of the death of a family member. Summary: AVS is financed by contributions from working individuals and their employers, according to the principle of solidarity between generations. The amount of the old-age pension depends mainly on the contribution period (from 20 years up to the legal retirement age) and average annual income. Survivors' benefits (spouse, children, etc.) are not automatic and must be applied for from the competent compensation fund. The retirement age is currently changing in Switzerland and will gradually reach 65 for women and men by 2024. To supplement AVS income in retirement, it is common to contribute to pension funds (second pillar) and to use individual savings solutions (third pillar).
B26 terms
Bare owner Legal
Holder of the legal title to a property, the use and income of which accrue to the usufructuary. Cannot occupy or let the property while the usufruct subsists.
Bare ownership Legal
Division of ownership whereby the bare owner holds legal title to the property without having its use (usufruct reserved to a third party). Common in estate planning: early transfer to heirs while retaining the usufruct.
Base plot Legal
The base plot is the specific piece of land on which a PPE (co-ownership by floors) is built. It represents the legal and physical foundation of the PPE, bringing together all the units that comprise it. It includes all the immovable property belonging to that co-ownership.
Basic renovation Market & practice
A basic renovation refers to a complete refurbishment of a property, aiming to restore it to a near-new condition. Unlike a superficial renovation, it also concerns the internal elements of the building such as the roof, windows, heating, plumbing installations and pipework. This work is often longer and sometimes requires temporary accommodation for the occupants.
Bearer mortgage note (cédule hypothécaire au porteur) Financing
A bearer mortgage note (cédule hypothécaire au porteur) is a document drawn up when a loan, generally a mortgage loan, is taken out, recording the amount owed. Issued by a notary, it is secured by a property lien (gage immobilier), meaning that the debtor is liable for the debt on their property as well as on their private assets. Unlike a standard mortgage note, the bearer note is not assigned to a specific person, but to the owners of a property. When purchasing an existing property, it is crucial to check whether such a note exists and to know its details.
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Blocked account Financing
A blocked account is an account whose funds are accessible only after a certain period. If the balance generates interest, this is treated as taxable income, even before the end of the blocking period. This type of account is often used to deposit sums when purchasing a property, thereby guaranteeing the seller that the deposit has been paid, without however giving the seller any right to the funds until the purchase has been legally completed.
Borrowed capital Financing
Borrowed capital refers to the sum of money that an owner (debtor) borrows and must repay to a creditor, generally within the framework of a mortgage loan or any other type of loan.
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Bourgeois house Planning & construction
Large residence, often in the countryside, close to a manor house (maison de maître) in its rectangular form and noble materials, but without adjoining farm buildings. Often surrounded by a garden or park.
Brokerage Market & practice
Brokerage is an intermediation activity in which a broker brings together supply and demand on a market, whether in property, insurance, etc. It is the broker's responsibility to inform both the seller and the buyer, so that they can form an informed view and consent with full knowledge of the facts. In addition to its commercial role, brokerage also provides advice and support.
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Brokerage agreement Market & practice
The brokerage agreement is the contract by which an owner entrusts a broker with the task of finding a buyer. It sets out the duration, the extent of the powers granted, the resources committed and the remuneration. The exclusive mandate reserves the marketing to a single intermediary: it is this arrangement that allows genuine resources to be committed — photo shoots, floor plans, buyer targeting, discretion — because the broker knows they will see it through. The simple mandate, entrusted to several agencies, disperses effort and weakens the property, which appears everywhere under sometimes conflicting conditions. The commission is only due if a sale is actually concluded; its rate is negotiated according to the property and the mandate, and is set out in writing within it.
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Brokerage commission Market & practice
The brokerage commission is the remuneration of the estate agent for their role in the sale of a property. Calculated as a percentage of the sale price, it covers the whole assignment: valuation of the property, sale file, advertising, management of viewings, negotiation and completion of the transaction. Its rate is not fixed by law: it is agreed between the seller and the broker, according to the property, the mandate and the level of support expected, and is set out in writing in the brokerage agreement. The commission is due only upon successful sale, generally at the time of the notarial deed. Beyond the commission, the seller must take into account notary fees, the tax on real estate profits and gains (IBGI) and any marketing costs.
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Building Planning & construction
A building refers to any structure erected above ground, such as a house visible on the surface. By contrast, underground elements such as cellars, foundations and other underground premises fall within the scope of civil engineering. Building construction tends to be more creative in order to meet aesthetic requirements, whereas civil engineering focuses primarily on efficiency and performance.
Building and zoning regulations Planning & construction
The building and zoning regulations set out the local rules governing how construction and development may be carried out on a plot of land. Generally the responsibility of the communes, they establish criteria for new construction, alterations and renovation works, in line with local laws. Owners must comply with them and obtain the necessary permits, except in exceptional cases subject to federal or cantonal law rules.
Building control authority (police des constructions) Planning & construction
The building control authority (police des constructions) is a department that ensures compliance with legal and regulatory building requirements. It checks that projects conform to land-use planning schemes and to federal, cantonal and communal laws, guaranteeing safety, environmental protection and planning standards.
Building cost code (CFC) Planning & construction
The Building cost code (CFC) is a regulated pricing system in Switzerland which defines the costs and fees relating to construction works, according to specific categories. It is used to estimate and control the costs of property projects, ensuring rigorous management of expenditure, from the planning phase through to completion of the site. This code, structured hierarchically into main groups, groups, sub-groups and categories, allows costs to be classified systematically in order to anticipate, compare and supervise expenditure. It is used to draw up estimates, tenders and purchase orders, and helps with cost management by architects, contractors, public authorities and financial institutions. The CFC is essential for transparent and efficient management of construction projects, both for the client (maître d'ouvrage) and for other stakeholders.
Building footprint Planning & construction
The building footprint corresponds to the measurement of the building's external dimensions, taken at ground level. Experts assess this area based on finished surfaces, such as woodwork or external rendering, to determine the actual extent of the structure's footprint on the ground.
Building insurance Financing
Building insurance mainly covers the structure and the "fixed" elements of a property (house, garage, etc.) in the event of losses such as hail, storm, water or fire. It thus guarantees major repairs, or even the reconstruction of the building. On the other hand, anything not fixed to the structure (furniture, valuables, etc.) falls under household insurance, not building insurance.
Building insurance certificate Financing
The building insurance certificate is a document issued by the insurer upon taking out property insurance. It specifies the sum insured for each property and is often required by lending institutions for financing contracts.
Building permit Planning & construction
The building permit is an administrative document issued by a competent authority authorising the alteration of an existing building or the construction of a new building. It is granted following the submission of an application comprising a form and supporting documents, and its grant is subject to federal, cantonal and communal rules. It ensures that the project complies with legal requirements and the applicable zoning.
Building permit, City of Geneva (permission de chantier) Legal
The Building permit, City of Geneva (permission de chantier) is the compulsory municipal authorisation required for any temporary occupation of public space linked to construction, renovation or demolition works. This authorisation covers the erection of hoardings, the placing of site signage, the occupation of parking spaces, the use of cranes on public space and any temporary modification of traffic flow. The City of Geneva manages these requests in order to ensure the safety of users, minimise nuisances and coordinate the various building sites on its territory. This procedure is complementary to the cantonal building permit and must be obtained before works begin. → Apply for a Building permit, City of Geneva (permission de chantier)
Building Permits Office (OAC) Legal
The Building Permits Office (OAC) is the Geneva cantonal body responsible for examining and issuing building permits. This office reviews the compliance of projects with planning regulations, coordinates opinions from cantonal and communal departments, and ensures compliance with safety and prevention standards on building sites. The OAC plays a central role in Geneva's land-use planning by ensuring that every project meets legal, environmental and safety requirements. It is the main point of contact for building professionals and individuals for all matters relating to building permits. → Contact the Building Permits Office
Building right (droit de superficie) Legal
A real right which allows the construction and maintenance of structures on or under another person's land. Widely used in Geneva for social housing and housing cooperatives.
Building right ground rent (rente du droit de superficie) Market & practice
The building right ground rent (rente du droit de superficie) refers to the financial compensation that the owner of the land receives in exchange for making his land available. The amount of this ground rent is negotiated directly between the parties and is not subject to precise legal rules. The payment terms, whether one-off, annual or monthly, are freely determined by the two parties concerned.
Built-up area (SB) Planning & construction
The built-up area (SB) corresponds to the area of land covered by a construction, including buildings, outbuildings, ancillary structures, as well as underground parts that project above the level of the natural terrain. It is the ground projection of the external limits of a building, not including projecting parts (such as balconies). This data is recorded on the cadastral plan.
Burn a listing (griller un bien) Market & practice
To burn a listing (griller un bien) means to leave a property on the market for too long, generally more than 6 months, without finding a buyer. This can give the impression to buyers that it has a defect. This situation often arises because of a price that is too high, insufficient marketing, or a poor sales strategy, which makes it less attractive to potential buyers.
Business transfer mandate Market & practice
Mandate given to an agent for the sale of a business; obligation of means, remuneration and reimbursement of costs as per contract.
C62 terms
Cadastral number Market & practice
Unique identifier of a plot of land in the land registry. It provides access to official information (cadastral plan, plot boundaries, RDPPF data) and ensures the transparency of land rights.
Cadastral plan Planning & construction
A cadastral plan is a detailed cartographic representation of the plots of land in a commune, whether built, agricultural or fallow. This document shows the precise boundaries of each plot together with their identification numbers. The cadastral plan fulfils two main roles: an informative role, by providing data on the size, location and use of the plots; and a locational role, by making it possible to precisely situate each plot on a map.
CAMAC — Central Office for Building Authorisations Legal
CAMAC — Central Office for Building Authorisations is a one-stop shop in Switzerland, responsible for receiving and overseeing building permit applications submitted by the communes. It handles the administrative management of files, checks their compliance with cantonal requirements, and coordinates the necessary opinions and authorisations. It also monitors the progress of applications and manages any delays. Around 5’000 building permit applications are processed each year by CAMAC, which provides information to stakeholders and supports those involved in the process. Since July 2022, the procedure for transmitting applications has been digitised in order to facilitate the filing and processing of files, with applications and opinions sent exclusively by electronic means. The time required to obtain a building permit may vary depending on the enquiries and objections relating to the project.
Cancellation fee (dédit) Financing
A cancellation fee (dédit) is a sum of money paid by the debtor to the creditor upon the conclusion of a contract. If the contract is broken, the creditor keeps this amount as a guarantee. If the debtor wishes to withdraw from the contract, they must reimburse double the sum to the creditor. This practice strengthens trust between the parties and offers a possibility of withdrawal for both. If the contract is performed, the cancellation fee is added to the sum due and deducted from it.
Cantonal energy performance certificate for buildings Planning & construction
The CECB (Cantonal energy performance certificate for buildings) is a report assessing a building's energy efficiency, issued by a certified expert. It is mandatory when selling a property. If the report recommends works to improve energy efficiency, it does not oblige either the seller or the buyer to carry them out. The CECB thus mainly has an informative function.
Cantonal Master Plan (PDCn) Planning & construction
The Cantonal Master Plan (PDCn) is a key tool for land-use planning at cantonal level. It makes it possible to define the spatial development of the canton and to ensure the coordination of all activities having an impact on the territory. Its main objective is to guarantee harmonious and sustainable long-term development. The PDCn sets land-use planning objectives for a period of 20 to 25 years, in order to guide development and urbanisation choices.
Cantonal Office for Housing and Land Planning (OCLPF) Financing
The Cantonal Office for Housing and Land Planning (OCLPF) is the body responsible for implementing social housing policy in Switzerland, in particular in the canton of Geneva. Its main objective is to promote the construction of rent-controlled housing and to facilitate the delivery of public-utility housing. In addition to its planning duties, the OCLPF coordinates policies and programmes relating to housing and land-use planning, while providing support to those involved in the social housing sector. The OCLPF is organised into several departments, each with specific responsibilities: 1. The Planning and Land Operations Directorate: Responsible for planning, coordinating and controlling land-related actions linked to the implementation of public policies, such as the acquisition and exchange of properties. 2. The Property Directorate: This department oversees the application of cantonal legislation concerning new and existing housing, in particular with regard to bricks-and-mortar assistance (construction aid) and public-utility housing. 3. The Tenants Directorate: It manages the allocation of personal assistance (state-owned housing, i.e. around 20% of the rental stock), checks tenants' entry conditions, validates files for owner-quota housing (80%), and processes applications for housing allowances for HBM/HLM and non-subsidised housing. 4. The Administrative and Legal Directorate: It oversees budget monitoring, statistics, accounting and litigation, and deals with legal matters relating to property transactions. The OCLPF is thus the central body for the management of social housing in Geneva, responsible for the allocation of housing allowances and for supporting individuals and organisations working towards housing accessible to all.
Cap Financing
The "cap" refers to an interest rate ceiling agreed between the buyer and the bank, often combined with a variable-rate LIBOR-rate mortgage. This interest rate hedge is relatively expensive and is therefore mainly advantageous for large-scale financing or major projects.
Capital gain Tax
Increase in the value of a property relative to its purchase price, without any material alteration. In real estate, it corresponds to the gain made on the sale or transfer of the property. Formula: Capital gain = Sale price - Purchase price.
Carport Planning & construction
A carport is a covered parking space with at least one open side. Often attached to or integrated into a house, it provides protection against bad weather (hail, snow, etc.) and generally costs less than an enclosed garage or an underground parking space.
Casatax Tax
Casatax is a measure launched in 2002 by the Geneva Chamber of Real Estate to facilitate access to home ownership in the canton of Geneva. It allows a 50% reduction in transfer duty when purchasing a main residence, thereby offering significant tax relief to first-time buyers. This reduction applies to a property whose price does not exceed an annual ceiling, set in 2023 at CHF 1’335’749, with a maximum reduction of registration duties of CHF 20’036. The conditions for benefiting from it include the property being located in Geneva and used as a main residence. Casatax also applies to off-plan purchases (achat en état futur d'achèvement) and to co-ownership, with specific rules for each situation.
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Cash flow Financing
Cash flow is a key indicator for assessing the profitability of a property investment. It measures the difference between income and expenditure. Positive cash flow indicates that income exceeds expenditure, while negative cash flow means that expenditure exceeds income.
Catalogue of standardised items (CAN) Planning & construction
The Catalogue of standardised items (CAN) is a collection of descriptive items published by the Centre for Construction Rationalisation Studies (CRB), comprising approximately 1.3 million items. These items detail the services to be carried out on a construction site and are used to draw up precise estimates or to guide the execution of works. Organised into 200 chapters, this collection is available in German, French and Italian, in paper and digital versions. Access to the digital version requires CRB-certified software and a user licence.
Certified business agent (agent d'affaires breveté) Legal
A certified business agent (agent d'affaires breveté) is a professional authorised to represent and assist a person before official bodies, such as the courts, the justice of the peace or the debt collection offices. Specialised in tenancy law as well as debt collection and bankruptcy proceedings, they sit between collection agencies and lawyers. Their role consists in particular of defending their clients' interests regarding unpaid rent, collection proceedings, or legal matters relating to leases.
CFE — Elemental Cost Code Planning & construction
The CFE (Elemental Cost Code) is a standard that lists the costs of the various elements of a construction, such as the land, foundations and preparatory works. These costs are expressed in square metres (m²). This standard is mainly used to estimate the cost of construction at the preliminary design stage. If the costs or dimensions of the elements change, it is easy to recalculate the new costs.
Chairperson of a PPE Legal
The chairperson of a PPE (Co-ownership by Floors) ensures the smooth running of the co-owners' general meeting. Elected or appointed by them, they may also be the administrator. Their main responsibilities include conducting proceedings, validating the agenda, ensuring compliance with operating rules, signing the minutes, coordinating with the administrator and representing the co-ownership in its official dealings.
Change of use Legal
A change of use in real estate in Switzerland refers to the modification of a property's use, such as converting a residential unit into commercial or office premises. This process requires authorisation from the local authorities before any modification, as it involves a fundamental change in the property's use. Procedures include submitting an application detailing the project and its impact on the environment, the neighbourhood and local infrastructure. Regulations vary by canton, but all aim to ensure sustainable land use. In some cases, a building permit is also required. A change of use can increase the value of a property by optimising space, meeting market needs, or renovating the property. Examples include converting commercial buildings into housing or farms into tourist accommodation.
Civil engineer Planning & construction
A civil engineer in the property sector in Switzerland designs, supervises and maintains structures such as buildings, bridges, tunnels and hydraulic networks. He works in the residential, commercial, road, rail, hydraulic and energy fields. This profession requires a university degree in civil engineering and offers numerous career opportunities.
Claim Financing
A claim is a right that a person (the creditor) holds to demand something from another person (the debtor). It generally arises from a contract, such as a bank loan. For example, when purchasing a house financed by a loan, the bank becomes the creditor, and the client, the debtor. The bank advances the funds necessary for the acquisition, while the client undertakes to repay this sum, with interest, in instalments. If the client fails to repay, the bank can enforce its claim, notably by seizing and selling the property used as security, evidenced in Switzerland by a mortgage note (cédule hypothécaire). Once the debt has been fully repaid, the claim is extinguished.
Client (maître d'ouvrage) Market & practice
Person/entity that initiates, finances and steers a project (private/public). Responsible for: budget, scheduling, permits, insurance, handover.
Code of Obligations (CO) Legal
The Code of Obligations (CO), the foundation of Swiss law of obligations, defines the rules governing legal undertakings and debt relationships. Adopted in 1911, it constitutes the fifth part of the Swiss Civil Code (CC) and is divided into two sections: General Part: provisions applicable to all obligations. Special Part: rules specific to contractual relationships, such as sale, lease or loan. The CO and property: In the field of property, the CO establishes important rules: Sales of immovable property require a notarial deed / authentic deed (art. 216). Rights of pre-emption or of option are limited in time and may be noted on the land registry (art. 216a). The risks and benefits relating to a property pass to the buyer on the date agreed for taking possession (art. 220). Key points: The CO governs all contractual obligations. The property-related rules include precise requirements for sale and for warranties relating to the property.
Collateral (sûretés) Financing
Guarantees offered by the tenant to the landlord to secure their obligations under a lease agreement. They may be personal (guarantee by a third party, bank guarantee) or real (pledge, charge over an asset). They aim to protect the landlord in the event of non-payment or default by the tenant.
Collective building Planning & construction
A collective building is a building designed to accommodate at least three families, unlike a single-family house. It brings together several flats spread over several floors, which may be let or sold. Some collective buildings also include commercial premises.
Colour plan (plan couleur) Legal
The colour plan (plan couleur) is a type of plan used for managing PPE schemes. It shows the distribution of units within a building and distinguishes between private areas, rights of enjoyment and common areas. Each floor is illustrated with different colours in order to better understand the layout of the spaces and to visualise the rights and uses of each co-owner or tenant.
Combined mortgage Financing
A combined mortgage is a hybrid, flexible mortgage loan that combines a fixed-rate loan and a variable-rate loan. Part of the capital is repaid at a fixed rate, while the other part has an interest rate indexed to LIBOR.
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Commercial building Planning & construction
Commercial property investment offers a lucrative and diversified opportunity for investors. This type of property brings together properties used for professional, commercial or industrial purposes, such as offices, shops, warehouses, hotels or medical centres. Advantages: stable income thanks to commercial leases that are often long-term, potential for capital gain through appreciation of the property, portfolio diversification and flexibility in negotiating rents. Challenges: high initial investment, more complex management than for a residential property, risks linked to the market and to prolonged vacancy. Key points: analyse the local market, assess yields, prepare solid documentation, estimate value, take care over presentation, promote effectively and negotiate rigorously.
Commitment capacity Financing
Commitment capacity represents the maximum amount that an individual can borrow under a mortgage loan. It is calculated on the basis of the individual's own funds and net income, which increase the Repayment capacity, as well as various expenses, which reduce it. This amount determines the sum that the individual can repay, whether periodically or at maturity.
Common areas Market & practice
Common areas designate all the spaces and facilities of a building that are accessible to and usable by all co-owners. These generally consist of shared areas, such as entrance halls, staircases, lifts, corridors, as well as communal gardens and car parks.
Communal zoning plan Planning & construction
A communal zoning plan is a strategic document that governs land use within a commune in Switzerland. It defines the various zones of the territory, such as building zones, agricultural zones or protected zones, and also establishes noise sensitivity levels. This zoning plan is drawn up in accordance with the commune's urban planning and development objectives for a period of 15 years. Pursuant to article 47 of the Ordinance on Land-use Planning, the communal zoning plan comprises three essential elements: 1. A zoning plan. 2. Regulations specifying the rules of use and restrictions for each zone. 3. An explanatory report setting out the reasons for the land allocation and the urban planning choices made.
Community of property Legal
The community of property is a contractual matrimonial property regime in Switzerland, different from the ordinary statutory regime of participation in acquired property. It is based on an authentic marriage contract and changes the status of certain assets of the spouses so as to make them common property. The marriage contract specifies the allocation of assets into three categories: the husband's own property; the wife's own property; common property (under limited or universal community). This regime is governed by articles 221 to 246 of the Swiss Civil Code (CC).
Company law Legal
Company law governs relations between the members of a corporation, particularly with regard to the management of real estate. Where a building belongs to a company, members generally have priority when new leases are created. Flats held by a company often offer excellent value for money, making them attractive. This law also allows members to benefit financially, notably through a profit on the sale of properties.
Conciliation authority Legal
A conciliation authority is an official body intended to resolve disputes in areas such as letting or leasing, before court proceedings are initiated. Its role is to facilitate an agreement between the parties in conflict, thereby saving time, avoiding stress and reducing costs. Each commune has its own conciliation authority, accessible to residents for these purposes.
Condominium Legal
A condominium, also known as PPE (co-ownership by floors), is a form of property ownership dividing a building into several individual units (flats or premises), each belonging to an owner, while the common areas (hallway, lift, roof, etc.) are held collectively. Key points: 1. Comparison with other forms of ownership: unlike individual ownership (a single owner for the whole building) or collective ownership (ownership by a group), the condominium combines private and collective ownership. 2. Regulation: In Switzerland, the PPE — Co-ownership by floors Act governs the creation and management of condominiums. It defines in particular the rights and obligations of the co-owners, including the use of common areas and the allocation of costs. 3. Management: management may be carried out by a professional or by the co-owners themselves. The manager deals with maintenance, the collection of charges and any disputes. 4. Obligations of co-owners: comply with the condominium regulations (règlement de copropriété). Contribute to maintenance and management costs according to their share (quote-part). 5. Purchase of a condominium: involves considering maintenance costs and charges, and carefully reading the condominium regulations. Checking the financial health of the co-ownership and the condition of the common areas, ideally with an expert. Conclusion: PPE offers a balanced solution between individual ownership and collective management. However, it requires a thorough understanding of its legal, financial and practical aspects before any purchase.
Condominium owners' association (syndicat de copropriété) Legal
Collective body of the co-owners of a building responsible for administering the common areas, day-to-day management (budget, maintenance, insurance) and implementing decisions taken at the general meeting.
Condominium regulations (règlement de copropriété) Legal
The condominium regulations (règlement de copropriété) is a document that sets out the rules of conduct, rights and obligations of the co-owners within a building. It governs the use of the common areas and private areas, and clearly defines each person's responsibilities in order to ensure harmonious management and avoid disputes.
Consortium Legal
A consortium is a temporary association of legal entities, called consortium members, aimed at carrying out a joint project, such as a construction project. Cooperation between the members is governed by a contract that sets out the management of the consortium vis-à-vis third parties. In an open consortium, all members may communicate directly with the client and with one another. In a silent consortium, only one member handles communication with the client, and decisions are taken internally.
Constitutive general meeting Legal
The constitutive general meeting is the first official meeting of a structure (association, company, etc.) after its constitutive deed has been drafted and validated by a notary. It notably allows the operating budget to be approved, the required appointments to be made (officers, directors) and the broad outlines of the organisation to come to be defined.
Construction cost Planning & construction
Total cost required to build a building. It may be calculated on the basis of actual expenditure or on the current cost per built cubic metre, adjusted for wear and tear.
Construction cost code (eCCC) Planning & construction
The eCCC (Construction cost code (eCCC)) is a Swiss standard used to divide the costs of a construction project into different categories, according to the type of work or the parts of the structure. This structuring allows the costs to be better determined, controlled and managed, from the study phase to the completion of the project. The eCCC is made up of three standardised levels: 1. Main groups: 14 categories covering specific aspects of the building (e.g. A for Land). 2. Element groups: several sub-categories for each main group (e.g. A01 for Land, building right (droit de superficie)). 3. Elements: precise details for each element group (e.g. A01, 01 for land acquisition). This method allows clear and efficient management of construction costs.
Construction loan Financing
A construction loan is financing granted by a bank to a property developer to cover the costs of constructing a building. The funds are released progressively, in phases, according to the progress of the works. Each phase must be fully completed before moving on to the next. Once the building is completed, the construction loan is converted into a mortgage loan.
Construction specification Planning & construction
A construction specification is a document detailing the works required to construct or renovate a building. It describes the various stages and technical elements, such as groundworks, the composition of walls, equipment, and the electrical system. This document may be drawn up by the contractor, the project manager (maître d'œuvre) or the architect of the project. It is essential for steps such as bank financing, a property sale, or the valuation of an older property. It may also be structured according to the building cost code.
Construction works insurance Financing
Construction works insurance is a specific cover (also known as "casco") that protects a building site during its construction phase. It compensates for damage linked to a construction accident, whether affecting materials, equipment or persons working on site. In addition, it generally includes cover for theft and vandalism of construction materials that cannot be quickly stored in a safe place.
Controlled rent Legal
Capped rent set/approved by the authorities, particularly in development zones or where public assistance applies. Aims to ensure accessibility, limits abuse and stabilises the market; challenges possible through legal channels.
Conversion penalty Financing
The conversion penalty is a contractual sanction provided for under article 160, paragraph 3, of the Code of Obligations (CO). It corresponds to a single sum that the debtor must pay in order to be released from a contract, an ongoing mortgage or another periodic financial obligation. Although it allows an undertaking to be terminated, it often results in a higher cost than an ordinary repayment.
Coordination Planning & construction
Coordination, according to the Swiss Society of Engineers and Architects (SIA), consists of organising and overseeing the interactions between the various technical units and the project as a whole. It aims to ensure good harmony and effective monitoring throughout the process.
Co-ownership Legal
Co-ownership refers to a property whose ownership is shared between several persons, with shares entered in the land registry. Each co-owner freely disposes of their share, although a right of pre-emption in favour of the other co-owners applies. There are two types of co-ownership: joint ownership and ordinary co-ownership. Joint ownership: the co-owners hold the property in its entirety, without division into shares, and all decisions must be taken unanimously. For example, in the context of an inheritance, Leslie and Johnny must agree before carrying out any works. Ordinary co-ownership: the property is divided into shares (for example ½ or ¼), and each co-owner has their share independently of the others. Co-owners may sell their shares freely, subject to offering a buyback to their co-owners via the right of pre-emption. In this case, Leslie and Johnny could have decided on the allocation of the flats, and Johnny could have carried out works in his flat without consulting Leslie. In short, co-ownership may be collective or divided, and the management rules vary according to the legal form chosen.
Co-ownership by floors (PPE) Legal
Co-ownership by floors (PPE) is a form of co-ownership applied to a building or a plot of land, whereby each co-owner has the exclusive right to use part of the property (often a flat). Recorded in the land registry, it divides the property into private areas, belonging to a specific owner, and common areas, shared by all. The private areas include the flat, the fireplace, the plumbing, the inside of balconies, the front door and non-load-bearing walls, with the possibility of fitting-out subject to not causing harm to other co-owners. The common areas include in particular the green spaces, the building, the staircases, the façades, the parking, the central heating, the hot water installations, the roofs, etc. In Switzerland, the general meeting of co-owners constitutes the main decision-making body, appointing an administrator and approving works or important decisions unanimously. Charges are apportioned according to the share (quote-part) (thousandths) and cover maintenance, common services and the renovation fund. Advantages: access to larger properties, freedom to fit out private areas, community living, simplified administration, tax advantages and optimisation of land use. Disadvantages: constraining collective management, high costs, risk of conflicts, obligation to attend general meetings and the need for common agreement for certain decisions.
Co-ownership charges Financing
Co-ownership charges correspond to the expenses that each co-owner must pay to maintain and manage the common areas of a shared property, such as administration, insurance, cleaning and subscription costs. They may be charged on a flat-rate basis but must reflect the actual costs borne by the landlord, which tenants sometimes pay in advance or after the period over which the charges are calculated.
Co-ownership share Legal
A co-ownership share represents the percentage of ownership that a person holds in a property held in co-ownership. Each co-owner owns a fraction of the common property, but cannot make major decisions without consulting the other co-owners. However, each co-owner is free to dispose of their shares as they see fit: they may be resold, given away or passed on through inheritance.
Co-ownership statement of account Financing
A co-ownership statement of account (décompte de copropriété) is a document that summarises the charges and income of a building held in co-ownership. It also indicates how these charges and income are apportioned among the co-owners, according to coefficients fixed in advance.
Cost of capital Financing
The cost of capital corresponds to the additional charges that borrowers must pay when taking out a loan, namely interest and other fees. These payments are calculated based on amortisation and interest. In the case of rented properties, the income generated by the letting must cover these costs.
Cost of letting Financing
The cost of letting is determined based on the landlord's actual expenses. The objective is to guarantee a reasonable rent, where the landlord suffers no loss while avoiding excessive gains. The main criteria for setting the rent include: net income, the increase in costs, additional services and gross yield.
Cost price of a dwelling Market & practice
Sum of all expenditure incurred to build or renovate a property (purchase of the land or dwelling, construction or works, fitting-out, fees, taxes, banking and insurance costs, surveys, etc.). Used to assess profitability, justify an asking price and plan financing.
Cost-covering gross yield Market & practice
A ratio expressed as a percentage between the income generated by the letting of a property and the associated investment costs (acquisition price and construction costs). In Switzerland, the law requires that this yield must not exceed the applicable reference interest rate by more than 2%.
CRB — Swiss Centre for Construction Rationalisation Studies Planning & construction
The CRB — Swiss Centre for Construction Rationalisation Studies is the body responsible for standardisation and normalisation in the construction sector in Switzerland. Founded in 1959 and based in Zurich, it provides professionals with detailed standards concerning the design, execution and management of structures. In collaboration with professional associations, the CRB develops tools covering the entire life cycle of a project, incorporating not only services but also cost management.
Credit Financing
A credit, often in the form of a mortgage, makes it possible to finance a house when your own funds are insufficient. Granted by a bank under certain conditions, it is repaid in several monthly instalments over several years, with interest applied to the amount borrowed.
Creditor Financing
A creditor is a natural or legal person to whom another owes money or another form of repayment. For example, a bank becomes a creditor when it grants a credit or mortgage loan, the beneficiary then being required to repay it.
CRF — Rural and Land Code Legal
The CRF — Rural and Land Code is a code governing land ownership, defining its boundaries and associated transactions, as well as neighbourhood relations and rural policing. It applies in areas not covered by other federal legislation or regulations, such as the transfer of agricultural properties and the management of disputes between operators of rural agricultural land.
Cross-sectional plan Planning & construction
A cross-sectional plan is a graphic representation showing the vertical structure of the interior spaces of a building. It makes it possible to visualise the interior and elements hidden behind the walls, by means of lines indicating the location and direction of the section. It is particularly useful to owners and architects in understanding the internal layout.
Cubic volume Planning & construction
Cubic volume is the calculation of the volume of a building, essential for assessing the value of a property. In architecture, it also refers to the shape of the building, independently of the materials used. The cubic volume of the house and that of the roof are calculated separately.
Curator ad hoc Legal
A curator ad hoc is a person appointed by the judge to protect the interests of a vulnerable person, such as a minor or a person unable to represent themselves. This function is often linked to situations where a conflict of interest could arise, such as in property inheritances. For example, if a child inherits a property, a curator ad hoc may be appointed to ensure that his or her rights are protected, especially if the legal guardian (for example, a parent) makes decisions contrary to his or her interests. The appointment of a curator ad hoc often follows an application before the court, which assesses the need for such protection. Once appointed, the curator must account for his or her actions to the court to ensure transparency. The criteria for access to this role vary from canton to canton in Switzerland. For example, in Fribourg, curators are trained, while in Vaud, any person with a clean criminal record can be appointed. The role of the curator ad hoc is essential to ensure that the financial, property and personal rights of vulnerable persons are respected, particularly in complex family contexts or inheritance disputes.
CVSE (Heating, Ventilation, Plumbing, Electricity) Planning & construction
CVSE (Heating, Ventilation, Plumbing, Electricity) refers to a field of expertise in the construction and building sector. It refers to engineering firms specialising in studies, sizing and project management in these specific technical sectors.
D22 terms
De facto expropriation Legal
De facto expropriation restricts the right of ownership by limiting the use of a property. This procedure is generally carried out by the commune and may occur when the land is needed for agriculture or essential infrastructure. Although the owner retains the property, its value is reduced. As compensation, the owner may receive financial compensation, in accordance with article 26 paragraph 2 BV.
Debt Financing
A debt is a sum of money that one person (the debtor) owes to another (the creditor), whether individuals or entities. It generally results from a contract whereby the creditor grants a benefit to the debtor, who then undertakes to repay this sum. For example, when a customer borrows money from a bank, they become a debtor to the bank, which is the creditor.
Decontamination Planning & construction
Decontamination refers to processes aimed at treating the air, water or soil of an environment in order to eliminate, partially or completely, dangerous chemical substances arising from industrial activities or accidents. The aim is to make the area suitable again for human activities (agriculture, industry, housing) or for a healthy ecosystem.
Deed of purchase Legal
A deed of purchase (more commonly called the "authentic deed of sale") is the official document that formalises the property transaction in favour of the purchaser. Drawn up and authenticated by a notary, it certifies the change of ownership of a property and sets out all the details of the sale (identity of the parties, description of the property, price, conditions, etc.). It is through this deed that the buyer legally becomes the new owner.
Deed of sale Legal
The deed of sale, or authentic deed, is the official document that finalises the property transaction. Signed before a notary, it legally transfers ownership of a property from a seller to a buyer. Unlike the promise to sell (or preliminary sale agreement), which sets out suspensive conditions (such as obtaining a loan), the deed of sale definitively confirms the agreement and the change of owner. Drawn up exclusively by a notary, the deed of sale contains in particular the identity of the parties, the precise description of the property, the sale price, the payment terms, the date of transfer of ownership, and the penalties in the event of non-compliance with the contract. There are various forms of deeds (promise, direct sale, forward contract) depending on whether the parties wish to allow for a delay, specific conditions, or to finalise the transaction immediately. In all cases, legal certainty and the validity of the sale are guaranteed by notarial authenticity.
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Delegate Legal
A delegate in a PPE (co-ownership by floors) serves as a link between the owners and the administration. They have no decision-making power, but play an executive and neutral role. Their function is often consultative, providing support to the administration on organisational matters. The delegate has equal obligations towards all owners.
Deposit Financing
A property deposit is a first payment made when signing a preliminary sale agreement for the purchase of a property (house, flat, etc.). Generally set at 10% of the property price (with no formal legal obligation), it serves as a guarantee of mutual commitment between the buyer and the seller. Key points to remember: 1. Nature of the deposit: It secures the transaction for both parties and confirms the intention to buy or sell. 2. Amount: Often around 10% of the property price, but negotiable and recorded in the preliminary sale agreement. 3. Possible refund: - If the buyer withdraws within the legal 10-day period. Or if a suspensive condition (e.g. failure to obtain a loan) occurs. 4. Difference between earnest money and deposit: Deposit: More binding, legally obliges buyer and seller to complete the sale, failing which damages may be claimed. Earnest money (arrhes): Allows withdrawal from the transaction, but the buyer then loses the sum paid and the seller, if withdrawing, must repay double.
Design plan Planning & construction
A design plan, also known as a development plan, is a key document in connection with the construction or conversion of a property having an impact on public space. It concerns projects such as the development of parks, public squares, recreational areas, the rehabilitation of historic buildings or properties including common areas. This plan specifies the intended use of the site, with details of the function, development, architecture and equipment envisaged. More precise than a zoning plan, the design plan must be submitted to the commune for approval by the municipal council. Once approved, it is binding on the owner and cannot be amended without a new approval procedure.
Detached house Market & practice
Detached house intended for a single household, on private land, with no common areas (often with a garden and its own entrance).
Development zone Planning & construction
Sector defined in the Geneva cantonal master plan where urbanisation is encouraged and densification is planned.
Direct amortisation Financing
Direct amortisation consists of immediately repaying part of the debt, thereby reducing the loan amount and the interest payable. In return, this reduced interest leads to an increase in tax, as it is less deductible. Despite this, it remains attractive for owners wishing above all to reduce the high cost of their interest.
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Discount Financing
A discount is an index reflecting the decrease in value of a property over time, due to its use or its ageing. For a well-maintained building, the annual discount is 1%, meaning its value decreases by 1% each year.
Discounted Cash Flow (DCF) Financing
Discounted Cash Flow (DCF) is a complex valuation method used to estimate the profitability of an investment, particularly in real estate. It consists of discounting future cash flows, taking into account the time value of money. The aim is to calculate the net present value of the cash flows generated by a property, by subtracting future costs from rental income. If the result is positive, the investment is profitable; otherwise it is not. This method is particularly useful for planning investments and forecasting the profitability of rental properties over a given period, taking into account future income, maintenance costs, growth rates, and changes in land value. DCF comprises three key stages: assessing the current situation (rental income and maintenance costs), forecasting the change in cash flows (based on estimated growth rates), and analysing changes in land value. However, this method has certain weaknesses, notably the absence of universal rules for valuation and its dependence on forecasts and the choices made by the analyst.
Distance between buildings Planning & construction
Distance between buildings refers to the minimum distance imposed by law between two fixed constructions, without regard to the property boundary. The buildings concerned include houses, barns, hard-built garden sheds, industrial buildings, etc. However, swimming pools and roads are not considered buildings. This distance must always be observed, and no exemption is permitted.
Distance to boundary Planning & construction
Distance to boundary in Swiss real estate refers to the minimum space required between a construction or a planting (such as a hedge or a tree) and the boundary of the neighbouring property. This principle, regulated by cantonal and communal standards, aims to preserve privacy, avoid neighbourhood disputes, and promote the harmonious use of land. Distances vary according to the canton and the type of construction or planting. Failure to comply with these rules can lead to disputes between neighbours, sometimes requiring legal action or structural modifications. It is essential for owners and builders to fully understand these standards before undertaking any property project.
Distinct and permanent right (DDP) Legal
The DDP (distinct and permanent right (DDP)) is a specific type of building right (droit de superficie) in Switzerland, which allows the holder of the right (superficiary) to own the buildings that they construct or use on land belonging to another party (the grantor). The land remains the property of the grantor, but the superficiary may sell, let or mortgage the buildings. This right is recorded in the land registry (cadastre) and must last between 30 and 100 years. It differs from land easements and from long-term leasehold in its independence and in the ownership of the constructions. The DDP has financial advantages for both parties, notably reduced acquisition costs for the superficiary and regular income for the grantor, but also disadvantages, such as limited valuation of the buildings and potential resale difficulties. It is used in municipal projects and in co-ownership by floors (PPE) schemes.
District plan (plan de quartier) Planning & construction
A district plan (plan de quartier) is an urban planning instrument aimed at developing and rendering buildable plots or areas intended for construction. It includes the development of the necessary infrastructure, such as roads, electrical networks, green spaces and, where necessary, noise protection measures. This plan may be initiated at the request of a landowner or on the order of a public authority. The procedure begins with obtaining authorisation from the building department, followed by registration with the land registry. Responsibility for the implementation and supervision of the district plan lies with the civil engineering office of the commune concerned.
Diversification Financing
Diversification in real estate consists of spreading one's capital across several properties in order to reduce overall risk. This helps limit potential losses in the event of unforeseen problems, such as costly renovations, and to maintain diversified sources of income. In this way, the owner benefits from a varied portfolio that protects their investment.
Dominant position Market & practice
A dominant position refers to a property situated at a height in relation to surrounding buildings, thereby offering better visibility and an open outlook. This positioning can provide an aesthetic advantage and add value to the property.
Downside (revers) Market & practice
The term "downside (revers)" refers to a permission granted subject to revocation, often used in the context of building permits. This means that a permit may be granted, but it may be cancelled or revoked at any time, depending on certain circumstances or specific criteria.
Draft deed Market & practice
The draft deed is a document prepared by the notary before the signing of the final deed that seals a property transaction. It constitutes a preliminary version of the contract, still open to amendment, allowing the parties to check and adjust the terms before finalisation.
Duplex Planning & construction
A duplex is a property spread over two levels, connected by an internal staircase. This type of accommodation, often located in collective buildings, may also apply to houses. Highly sought after, particularly in Switzerland where supply is limited, the duplex combines space and comfort, with the living rooms generally on the first floor and the bedrooms on the upper level. It offers fine views, a large floor area and generous ceiling height. However, it also has drawbacks, such as inaccessibility for people with reduced mobility, insulation problems (particularly on the top floors), and risks for children if the staircase is not secured.
E26 terms
Early departure Legal
An early departure corresponds to the termination of a lease agreement before the scheduled date or the usual notice period. The tenant must submit a written request to the landlord and, generally, propose a replacement tenant who is accepted.
Early repayment penalty Financing
The early repayment penalty is a sum or indemnity owed by a borrower who repays a mortgage loan before its due date. It compensates the bank for potential financial losses. Its amount depends on several factors: 1) the remaining term of the loan (which may correspond to the interest due until maturity), 2) the difference between three rates (the rate of the original loan, the refinancing rate, the reinvestment rate of the funds), and 3) the specific clauses of the contract. There is no penalty if an extraordinary amortisation clause is provided for and complied with.
Earnest money (arrhes) Financing
Earnest money (arrhes) is a sum of money paid at the time a contract is concluded to guarantee the commitment of both parties. Unlike a deposit, it is not refundable if the buyer abandons the transaction, and must be returned twofold by the seller if he withdraws. In Switzerland, although governed by the Code of Obligations (CO), its use remains less common than penalty clauses, particularly in property transactions. It nevertheless offers a certain financial security to both parties and encourages compliance with the contractual terms.
Easement Legal
A charge imposed on a property (servient tenement) for the benefit of another property (dominant tenement). It may take the form of a right of way, a right of view, a right of drainage, etc.
Econometrics Planning & construction
Econometrics is a branch of economic science that analyses economic data in order to study causal relationships and correlations, while also producing forecasts. Using rigorous methods, it makes it possible, for example, to predict the sale price of properties in Bern for the following year based on past data such as the prices of comparable properties, mortgage interest rates and rental yields.
Economy of scale Financing
An economy of scale refers to the reduction in unit production cost linked to an increase in overall output. The more that is produced, the lower the cost per unit. For example, producing 1’000 breeze blocks requires less work per breeze block than producing only 500. In real estate, this can be seen when the cost of overhauling a heating system is spread over a larger number of flats, making the cost per dwelling lower for a large building compared with a smaller one.
Employer's third-party liability insurance Financing
Employer's third-party liability insurance protects anyone who has a building constructed or renovated against the financial and legal consequences of damage (bodily or material) caused by the building site. This is so-called "causal" liability: even in the absence of fault, the client (maître d'ouvrage) may be held liable for harm suffered by third parties. This insurance covers the compensation of victims and can also provide support in the event of legal disputes. It therefore proves essential to guard against the often unavoidable unforeseen events that occur during construction or renovation works.
Encumber Financing
Energy renovation loan Financing
The energy renovation loan is a key tool for modernising buildings while complying with Swiss environmental standards. It allows owners to finance works such as insulation, the installation of eco-friendly heating systems or photovoltaic panels, thereby reducing their energy consumption and carbon footprint. Financial advantages: tax deductions, energy savings, and often a rapid return on investment. Property benefits: increase in the value of the property thanks to environmentally-friendly renovations. Eligibility conditions: amount that can be borrowed from CHF 10'000 to CHF 100'000, property in Switzerland and completion of an energy audit (CECB®), compliance with the energy standards in force. Additional financing options: advantageous mortgages or cantonal and communal subsidies, such as those offered by the Building Programme or Pronovo. Key steps: energy audit to assess current performance, then planning of the works with a budget and support from experts.
Enforceable building permit Planning & construction
A building permit becomes enforceable when it can no longer be challenged. To this end, it must comply with federal, cantonal and communal standards and must not infringe the rights of private individuals. After publication in the official gazette, a period of 30 days (or 10 days under the simplified procedure) is allowed for lodging an objection. If no objection is lodged by the expiry of this period, the permit becomes final and may be implemented.
Enquiry request Legal
An enquiry request is made by a property developer when they wish to obtain the opinion of the Building Permits Office (OAC) on their project. This step is taken particularly if the project does not comply with the zone limits (MZ) or the Localised District Plan (PLQ) defined in the land use plan.
Equipment construction cost plan Planning & construction
The equipment construction cost plan refers to all the additional movable equipment required to make a building functional and attractive. It includes items such as furniture, seating, light fittings, textiles, various appliances, small equipment, consumables, decoration, and sometimes even means of transport. These items are essential for fitting out and personalising a living space according to the needs and preferences of the occupants.
Equipped kitchen Planning & construction
An equipped kitchen is a fully fitted-out kitchen, including all the electrical appliances necessary for its operation. This generally includes an oven, hobs, a cooker hood, a refrigerator, a freezer and sometimes a dishwasher.
Estate agent Market & practice
An estate agent is the intermediary between the seller and the buyer in a transaction. They advise the seller, estimate the value of the property, market it, organise viewings and conduct the negotiation. They check the solvency of buyers and may guide them in their financing. In Switzerland, no accreditation is required to practise; a good estate agent is recognised by their knowledge of the local market, their negotiating skills and their network. They are remunerated by a brokerage commission, payable only on the successful completion of the sale, the rate of which is negotiated in the mandate. Their services may also cover letting. The profession is governed by the Code of Obligations, articles 412 to 418.
Estimate Market & practice
An estimate in real estate is an essential document in the context of construction or renovation projects in Switzerland. It is used to establish a detailed estimate of the costs relating to the works, including materials, labour, and ancillary costs. It is drawn up after a thorough assessment of the client's needs and the feasibility of the project. The estimate includes a description of the tasks, a list of materials, an estimate of the working hours, as well as a provisional schedule. It is crucial to ensure transparency and mutual understanding between the client and the professionals. For the client, it allows offers to be compared and a budget to be set, while for the builders, it reflects their expertise and their organisation. Once signed, the estimate may serve as a contract binding both parties, with amendments documented and agreed in writing to avoid misunderstandings. In short, an estimate in real estate is a key tool for financial and time planning, while offering legal security to the parties involved.
Excavation Planning & construction
Excavation in real estate consists in digging the ground in order to build or extend a building. This operation is often carried out by an earthworks contractor with the help of a mechanical digger, following a prior soil survey. In Switzerland, the term "excavated house" refers to a house with a basement or cellar.
Exclusive mandate Market & practice
Contract granting exclusivity for the sale/letting to an agency/broker for a given period.
Exclusive ownership Legal
Exclusive ownership confers on a single person all rights over an asset, as sole owner and usufructuary. That person alone may dispose of it, use it and enjoy it fully.
Execution plan (plan d'exécution) Planning & construction
Execution plans (plan d'exécution) set out the instructions and specifications for the construction of a building. They exist in two versions: 1) provisional, prepared for the tender process to give preliminary indications of the works; 2) final, drawn up after the service provider has been selected and used as the final reference for exact execution. These documents are essential to ensure compliance and precision on the building site.
Existing property Market & practice
An existing property refers to a property that has already been built and occupied, as opposed to a new-build property. This type of property often requires renovation or repair work, which implies the need for a certain amount of capital to finance these improvements. Before proceeding with the purchase, it is advisable to consult an expert to assess the costs of future renovations. As rental property, existing properties are particularly sought after in urban areas, where demand for housing is high and land available for new construction is limited.
Exit Market & practice
Early termination of a mortgage contract or sale of an investment, generally in order to realise a gain or limit a loss. An exit may be prompted by a change in personal circumstances (divorce, inheritance, job relocation) or by a financial strategy aimed at reallocating funds.
Exit option Legal
The exit option is a clause inserted into a lease agreement that allows the tenant to terminate the contract before its scheduled expiry date. This clause specifies the terms under which the tenant may terminate the lease as well as the conditions for returning the leased premises, such as reinstatement works or the procedure to follow for the handover of keys.
Expropriation Legal
Expropriation consists in taking a property away from its owner for reasons of public interest, in exchange for compensation. In Switzerland, property is protected by the Constitution, and expropriation may not be arbitrary. There are two types of expropriation: formal and de facto. Formal expropriation occurs when the State needs land for infrastructure, resulting in the total loss of the owner's rights. De facto expropriation, on the other hand, restricts the owner's rights of use, for example when a building becomes a listed historic monument.
External audits Market & practice
An external audit is an assessment carried out by an independent entity or a specialised body. Its purpose is to examine various aspects of a property in detail in order to identify opportunities for optimisation. In Switzerland, external audits are compulsory for companies every two years and are strongly recommended in the field of property management. This periodic review helps ensure compliance, improve efficiency and strengthen the management of property assets.
External landscaping Planning & construction
External landscaping refers to all the installations and elements created around a building in order to enhance its value, secure it, and facilitate access to or use of it. This includes, for example, the swimming pool, the gate, the paths, the garden fireplace, shrubs, hedges, the garden shed, or parking spaces. All these features, added to the value of the bare land, affect the overall valuation of a property.
Extraordinary general meeting Legal
An extraordinary general meeting (EGM) is a meeting convened outside the annual general meeting when an important decision must be taken quickly or during the course of the year. It may be requested by the administrator or by one-fifth of the co-owners. For the EGM to be able to deliberate and vote, the quorum must be reached, that is to say at least half of the co-owners must be present or represented (by power of attorney).
F27 terms
Facility management Planning & construction
Building management encompasses all the technical, administrative and management aspects of a property. It is crucial during renovations, extensions or changes of use, as well as for the day-to-day monitoring of the building. Its main objective is to preserve and maintain the value of the property over the long term. It is divided into three main areas: technical building management (TBM), building infrastructure management (BIM) and commercial building management (CBM).
Family mortgage Financing
A family mortgage is a mortgage loan offered by certain financial institutions on advantageous terms, notably with reduced interest rates over a period of 2 to 5 years. This type of loan, often limited to the first mortgage, is intended for families with minor children living in the household. The property concerned must be used as a main residence.
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Federal certificate of proficiency as a real estate broker Market & practice
A federal certificate of proficiency as a real estate broker is an official title awarded by the State Secretariat for Education, Research and Innovation (SEFRI) to real estate professionals who have passed a federal examination. This in-depth training covers various fields such as financial, legal, tax and technical brokerage. This certificate attests to the ability to carry out property sales, valuations and marketing, guaranteeing quality and reliability in the profession.
Federal Statistical Office (OFS) Financing
The Federal Statistical Office (OFS) is a national body placed under the authority of the Federal Department of Home Affairs. Its task is to produce and disseminate statistical data essential for the development and implementation of public policy, as well as for Switzerland's economic development. These statistics cover various fields, including the economy, real estate, the environment and society. In the real estate sector, the OFS plays a key role by calculating the Swiss residential property price index (IMPI), which tracks, on a quarterly basis, the evolution of prices for owner-occupied housing across the country.
Fees Market & practice
Fees are the remuneration charged by professionals in the liberal professions (such as engineers, architects, lawyers, notaries, etc.) in exchange for the services they provide to clients.
Felling permit Legal
A felling permit is a permission issued by the DALE (Département de l'Aménagement du Logement et de l'Environnement) to fell one or more trees. Generally, this permit is subject to an obligation to replant equivalent trees as ecological compensation to limit the environmental impact of the felling.
Final application Legal
A final application is a document sent to the Building Permits Office (OAC), together with a compliant file, in order to obtain a building permit for a new building under the normal procedures.
Financial capacity Financing
Financial capacity refers to an individual's ability to finance the purchase of a property without compromising their financial stability, taking into account initial and recurring costs. It is calculated based on the household's gross income and the charges linked to the loan, such as mortgage repayment, interest and maintenance costs. In Switzerland, it is recommended that mortgage charges do not exceed one third of net annual income. Banks assess this capacity to determine the borrower's creditworthiness, influencing the loan conditions (amount, interest rate, term). A high personal contribution reduces the amount to be borrowed, improves the debt ratio and lowers the risk for the bank. A controlled debt ratio is essential for loan approval and for access to favourable conditions. In summary, financial capacity plays a key role in obtaining a mortgage loan and in determining the financial conditions linked to a property purchase.
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Financial plan Financing
A financial plan (or financing plan) sets out in detail the expenses linked to a property project and the resources available to finance it. It is used to determine the exact amount of loan required and specifies, in particular: the personal contribution, any financial assistance available, the bank credit envisaged and ancillary costs (notary, taxes, etc.).
Financing confirmation Financing
A financing confirmation (or financing agreement) is a document from a lending institution, such as a bank, indicating that property financing is possible, subject to verification of the documents. This means that the necessary funds, information on the property and the required documents have been checked. However, this confirmation is not legally binding. The financing becomes secured only when the contract is signed by both parties, still allowing the buyer or the financial institution to withdraw from their decision before that signature.
Financing of a property project Financing
Financing of a property project refers to the process by which an owner or developer obtains funds from third parties in order to carry out a project. These funds may come from individuals (via direct loans or crowdfunding), banks, insurance companies or specialised institutions such as public pension funds or PostFinance. Thus, this financing may be granted by private or public players, depending on the type of project and the resources available.
FINMA Financing
FINMA (the Swiss Financial Market Supervisory Authority) is an independent Swiss authority responsible for supervising the financial markets. Its main mission is to ensure their proper functioning while protecting the parties involved. It also oversees the mortgage market by regulating the banks that grant mortgage loans. FINMA carries out inspections, issues directives and can require banks to increase their own funds according to their risk profiles, in order to prevent financial crises, in particular mortgage-related ones.
Fire insurance Financing
Building fire insurance is a compulsory contract in the canton of Vaud that covers damage caused by fire or natural events (storms, floods, etc.) affecting a building, whether under construction or already built, as well as its contents (furniture). This cover is taken out with the Cantonal Insurance Establishment (ECA), which guarantees fair and mutual protection of property.
First-rank mortgage Financing
The first-rank mortgage is a portion of the mortgage loan, generally equivalent to 65-67% of the value of the property, which is not repaid by the borrower. Although the latter pays interest on this sum, the amount of the debt remains unchanged and is not amortised.
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First-time buyer Market & practice
A first-time buyer is a person or household purchasing a property for the first time, whether a flat, a house or another type of dwelling. In Switzerland, this status is subject to specific financial and administrative conditions, such as a minimum personal contribution of 20%, a maximum debt ratio of 33% of gross income, and no prior ownership.
Fitted kitchen Planning & construction
A fitted kitchen is a pre-installed kitchen in a dwelling, comprising essential elements such as cupboards, worktops, sinks, cookers and built-in appliances. It is designed to maximise space, facilitate daily tasks and optimise the layout according to the dwelling. Unlike an equipped kitchen, which includes appliances without necessarily being custom-fitted, the fitted kitchen features a design conceived for the space and often with built-in furniture and appliances. Fitted kitchens are practical, ergonomic, and particularly suited to small spaces, as in Switzerland, where optimising space is essential. They can also increase the value of a property, becoming an important selling point. When choosing a fitted kitchen, one must take into account the quality of the materials, the layout of the space, the built-in equipment, and the aesthetics to avoid mistakes such as insufficient lighting or a lack of storage. A good fitted kitchen combines functionality, durability and design, while adding value to a property.
Fixed price Market & practice
Fixed and invariable remuneration for a service provider covering costs, tasks and profit, determined in advance according to the complexity and constraints of the project. Even if quantities increase, no additional charge may be claimed.
Fixed-rate mortgage Financing
A fixed-rate mortgage is a property loan in which the interest rate remains constant throughout the repayment period. It is the most common type of loan, offering predictability of payments and of the total amount to be repaid from the outset. However, in the event of early repayment, penalties may be applied by the bank.
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Floor plans Planning & construction
Floor plans, or storey plans, provide a scaled top-down view showing the precise layout of a property: walls, doors, windows, furniture. They make it possible to visualise the size and arrangement of spaces, as well as their orientation, in order to anticipate light exposure and comfort. Useful for interior fitting-out, they facilitate the planning of renovations and accessibility, and may include 3D or virtual versions for immersive viewings. In Switzerland, they must comply with local building, safety and accessibility standards.
Forest distance line Planning & construction
Minimum distance between a building and the forest edge (and sometimes roads/facilities). Objectives: safety, environmental protection, fire prevention. Indicative examples: VS 10 m (with exceptions), VD 10 m (waivers possible), FR 20 m, GE 30 m (LForêts art. 11), JU/NE/BE 30 m under certain conditions. Waivers exist depending on the canton and local plans.
Formal expropriation Legal
Formal expropriation in Switzerland is a legal process by which public authorities can compel an owner to give up their property or a real right in a property for a project of public interest, such as the construction of essential infrastructure. Unlike de facto expropriation, which restricts use without transferring ownership, formal expropriation involves a transfer of ownership. The procedure follows a strict legal framework, guaranteeing official notification, an assessment of the property and a fair offer of compensation. Owners have the right to challenge the decision and the compensation, with possible remedies. Compensation is calculated on the basis of the market value of the property, taking into account its condition and future potential, and independent experts ensure its fairness. In certain cases, if the property is not used for the project, the owner may buy back their property under the right of retrocession (droit de rétrocession).
Forms of ownership Legal
There are three forms of ownership for a property: exclusive ownership, joint ownership and co-ownership. Each form is recorded in the land registry for each property. The law allows the form of ownership best suited to each building to be chosen on an individual basis.
Foundation for Industrial Land in Geneva (FTI) Planning & construction
FTI (Foundation for Industrial Land in Geneva) is a Swiss public undertaking responsible for managing the industrial zones (ZI) of the canton of Geneva. It supports industrial, craft and technology businesses in setting up and developing their operations. The foundation manages the financial, legal and environmental aspects of the ZI, applying an industrial ecology policy. It also contributes to the enhancement of industrial land and regulates the property market in this sector. The 68 industrial zones it administers cover more than 800 hectares, notably in Collonge-Bellerive, Meinier, Puplinge, Thônex, Bellevue and Versoix.
Free-market rent Legal
Free-market rent governed by the Code of Obligations, without subsidies. In Geneva, specific access conditions and priority criteria apply (domicile, residence, release of social housing, household/floor-area suitability).
Full letting Legal
Situation in which all of an owner's units (dwellings, commercial premises, etc.) are let. Units already reserved by contract for future occupancy are counted as let.
Furnished accommodation Legal
Accommodation let with the furniture and equipment necessary. Inventory of fixtures drawn up before signing of the lease.
Furniture storage Planning & construction
Furniture storage is a secure storage space for storing belongings, whether for individuals or businesses. In Switzerland, there are several types of furniture storage, ranging from individual boxes to shared warehouses, and they are often used to meet temporary needs such as lack of space, a house move, or home renovation works. Available solutions include: Classic storage: a company handles the transport, packing and management of the belongings. Self-storage: you rent a space to store your belongings independently, with flexible access. Hybrid solutions: a combination of the two previous options, offering more flexibility while benefiting from professional services on demand. To choose the right furniture storage, factors to consider include security, location, size, and additional services. It is also important to organise the space properly to maximise its efficiency: sort before storing, dismantle furniture, label boxes clearly, and protect fragile items. Certain items such as flammable products, foodstuffs or high-value items should not be stored. Finally, alternatives exist, such as storage with a private individual or via digital platforms.
G15 terms
General contractor Market & practice
A general contractor is a construction sector company that manages and carries out building projects, offering a turnkey service. It signs a contract with the client (maître d'ouvrage), and oversees all stages of the project. It sets a fixed price, coordinates the various trades (carpenters, electricians, etc.) and is responsible for delivery of the building. In the event of changes, this price may be adjusted. The general contractor is solely liable to the client (maître d'ouvrage), regardless of the number of subcontractors involved.
General estimate Market & practice
A general estimate is a final estimate of the costs for carrying out a construction project. It follows an estimative quote and includes a detailed description of the works to be carried out as well as the material required.
General terms and rental rules and practices (RUL) Legal
The general terms and rental rules and practices (RUL) define a set of rules supplementing the legal obligations relating to leases. They clarify or amend certain aspects of the law and result from negotiations between tenants' associations and representatives of the property sector. These rules are often incorporated into the lease agreement. In Switzerland, the RUL are governed by federal law and adapted by each canton, subject to validation by the Federal Council. They then become binding on the signatory parties, except where a derogating provision applies. For example, the RUL of the canton of Valais combine a framework contract approved by the Federal Council with cantonal specificities. In Geneva, the RUL are drawn up by local players such as the Chambre genevoise immobilière and are revised periodically. A notable recent amendment concerns the exclusion of the binding force of article 8 RULV in 2020, allowing the parties to depart from it freely. The RUL supplement the laws in force and may clarify or amend them. Their content varies according to canton and requires approval by the Federal Council. Most provisions are binding on signatories, subject to validated exceptions.
General Zoning Plan (PGA) Planning & construction
A General Zoning Plan (PGA) is a territorial planning document drawn up by the communes, in accordance with cantonal and federal directives. It defines land use within a commune and the applicable building restrictions. The main objective of the PGA is to ensure a measured and rational occupation of the territory. It aims to: create a harmonious built environment, protect the landscape and heritage, and regulate construction. The PGA has a direct influence on owners' building rights and on the value of properties.
Geneva building permit Legal
The Geneva building permit is the official procedure required for any construction, alteration or demolition project in the canton of Geneva. The cantonal service provides standardised forms, an electronic filing platform for applications, a real-time tracking system for the progress of applications, and public access to files for consultation. This paperless procedure makes things easier for clients (maîtres d'ouvrage), architects and citizens while ensuring transparency and compliance with Geneva's planning rules. → Apply for a building permit at GE.CH
Geneva construction price index Financing
Official index published by OCSTAT that measures the evolution of construction costs in Geneva. Used for the indexation of rents and construction contracts.
Geneva Industrial Services (SIG) Legal
Geneva Industrial Services (SIG) is a public establishment of the canton of Geneva, responsible for providing essential services to the population and businesses. A key player in the region, SIG meets the needs of its 234’000 customers through a diversified offering including: drinking water distribution, electricity supply, gas supply, wastewater treatment and access to the Internet via fibre optics. Founded in 1896, SIG's mission is to promote energy and environmental transition in the canton of Geneva. The establishment also plays a crucial role in the development of smart neighbourhoods, putting innovation at the service of sustainability and quality of life.
Geneva Land Registry Legal
The Geneva Land Registry is the official department of the canton of Geneva that manages all property rights across the cantonal territory. It allows public consultation of ownership rights, charges, easements and property liens registered against each plot. This essential service issues official land registry extracts, indispensable for any property transaction, and oversees property acquisitions by ensuring compliance with legal procedures. Accessible online, it is the essential legal reference for ascertaining the legal situation of any Geneva property. → Access the Geneva Land Registry GE.CH
Green space ratio Planning & construction
The green space ratio (or land occupancy index - IOS) is an indicator measuring the ratio between the surface area of actual green spaces and that of the built-up or impermeabilised areas of a plot. Green spaces are defined as natural or vegetated areas, excluding parking areas.
Gross rent Legal
Sum due monthly including net rent and service charges (energy, water, maintenance, caretaking, lift, etc.). Reflects the total cost to the tenant.
Gross rental yield Financing
The ratio between annual rental income and the purchase price of a property, expressed as a percentage. In Geneva, it generally ranges between 3% and 5%.
Gross yield Market & practice
A financial indicator used in property to assess the profitability of an investment before taking into account charges and operating costs. It represents the percentage of annual rental income relative to the total acquisition cost of the property. Useful for an initial analysis but does not reflect actual profitability as it does not take management charges into account.
Guarantee (caution) Financing
The deposit is a guarantee provided by the tenant at the start of a lease agreement to protect the landlord against any debts, unpaid amounts or damage to the premises. It must be deposited into a bank account in the tenant's name, and the bank only releases these funds after certain conditions are met, such as a judgment or an order. The amount of the deposit may not exceed three months' rent. If the tenant fulfils their obligations, the deposit is returned to them at the end of the lease. The landlord may use the deposit for repairs in the event of damage, but must inform the tenant and provide supporting documents. The tenant may contest the use of the deposit and consult the Conciliation authority in the event of disagreement.
Guarantee institution Financing
A guarantee institution is a company that undertakes to stand in for a debtor in the event that the latter is unable to settle its debt. This undertaking by the company only takes effect after payment of a contribution by the borrower, that is, by the person who must repay the sum owed. In the event of default by the borrower, the guarantee institution covers the debt in its place.
H11 terms
Heat pump Planning & construction
A heat pump captures energy present in the air, water or ground to heat a building. Economical and environmentally friendly, it does not require fossil fuels. Although its installation is costly, it allows significant savings over the long term.
Hedonic method Market & practice
Estimate by statistical comparison based on recent transactions, adjusting for characteristics (location, floor area, condition, etc.). Widely used by banks and AVMs.
Hedonic valuation Planning & construction
The hedonic valuation is a statistical method used to assess the value of a property by comparing it with other similar properties sold under comparable conditions. It relies on the analysis of prices paid before the notary, allowing them to be compared with market prices. This method is often used in online property valuations.
Heritage conservation Legal
Heritage conservation involves preserving historic or cultural buildings and sites, so as to keep them in good condition for future generations. This applies particularly to historic monuments, generally managed by the cantons or communes, which decide on protection and preservation measures. Owners of historic monuments are required to invest in their maintenance, but may benefit from subsidies for this purpose.
Heritage protection Planning & construction
Heritage protection encompasses measures aimed at preserving buildings of historical value. In Switzerland, around 4% of buildings are listed as heritage, which imposes significant restrictions on any renovation or alteration in order to preserve the condition and authenticity of the property.
Holiday home Market & practice
Property intended for temporary stays. Stricter financing (e.g. higher deposit, no use of 2nd/3rd pillar). Resales are often quicker in the event of financial strain.
Home staging Market & practice
Home staging is a marketing technique used to make a property more attractive to potential buyers. It involves removing the personal belongings of the previous owners, keeping the decoration and furniture simple, cleaning the property and redoing certain finishes if necessary. The aim is to help visitors picture themselves in the space and imagine their life in the house.
Household insurance Financing
Household insurance is a contract that covers damage caused by external events to property found in the home. It notably protects against: fires (natural causes, explosions, lightning, etc.), theft (burglary, violence, pickpocketing, etc.), natural events (floods, storms, landslides, etc.), water damage (aquariums, pipes, water mattresses, etc.), breakage of glass (glazing, glazed surfaces of the home, etc.). It is possible to supplement the basic cover by taking out a "supplementary inventory". However, damage caused directly by family members is not included: for this, it is necessary to take out the "household casco" option.
Housing cooperative Legal
A housing cooperative is a non-profit organisation that offers housing to its members at affordable rents. It operates by collecting share capital from its members, which is used to acquire a building of which the cooperative becomes the owner. Members are tenants of the cooperative and take part in decisions concerning the building. This model fosters solidarity, mutual support and the collective management of responsibilities among residents.
HPE (High Energy Performance) and THPE (Very High Energy Performance) Planning & construction
In Switzerland, the labels HPE (High Energy Performance) and THPE (Very High Energy Performance) denote buildings designed to be highly energy-efficient, with a low environmental impact. These standards aim to reduce buildings' energy consumption and ecological footprint through the use of insulating materials, efficient heating, ventilation and lighting systems, as well as renewable energy sources. HPE buildings consume less energy than average, while THPE buildings consume even less. To achieve these standards, strict criteria must be met, such as excellent insulation and efficient energy management. Owners of compliant buildings can benefit from financial incentives, such as tax credits, subsidies and tax exemptions, which increases the value of the properties and makes them more attractive to buyers or tenants. Recent examples of THPE constructions on Geneva's Left Bank: the Castan 5 project in Chêne-Bougeries, the Villa Coya in Florissant, the Villa Alma on chemin de l'Ermitage in Chêne-Bougeries (near the Clinique des Grangettes), the Nautilus project with its exceptional villas in the heart of Cologny facing Lake Geneva, and the Villa Mirage in Vésenaz (commune of Collonge-Bellerive). These prestigious projects, marketed by the estate agency Rousseau 5, perfectly illustrate the integration of the most demanding energy standards into Geneva's luxury real estate, combining environmental performance and architectural excellence.
HVAC and electrical engineer (ingénieur CVSE) Market & practice
An HVAC and electrical engineer (ingénieur CVSE) (Heating, Ventilation, Plumbing, Electricity) is a key professional in the Swiss property sector, responsible for the design, installation, maintenance and optimisation of buildings' technical systems, ensuring comfort, safety and energy efficiency.
I23 terms
IBGI — Tax on real estate profits and gains Tax
The IBGI is the Geneva cantonal tax levied on the profit realised upon the sale of a property. It is calculated on the difference between the sale price and the acquisition price, increased by duly documented purchase costs and value-adding works — hence the importance of keeping invoices and deeds throughout the entire holding period. Its rate is degressive: the longer the property is held, the less the gain is taxed, the legislator seeking to discourage short-term speculation without penalising the long-standing owner. The tax is due by the seller and levied at the time of transfer; the notary generally withholds the amount from the sale price. It is the item that weighs most heavily between the advertised price and what actually reaches the seller's account.
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IEPA (Immeuble avec Encadrement pour Personnes Âgées) — supervised housing for the elderly Planning & construction
An IEPA is a building offering self-contained dwellings specially designed for elderly people, notably those of AVS age or benefiting from an exemption linked to a disability. These dwellings have facilities that make daily life easier: common areas, activities, dedicated staff, emergency communication system.
Immovable property Legal
Immovable property, which cannot be moved. Examples: land, buildings, houses, agricultural properties. This also includes elements permanently fixed to a building, such as a built-in kitchen unit.
Impense (improvement expenditure) Planning & construction
An impense (improvement expenditure) is an expenditure incurred to maintain or improve a property.
Imputed rental value Tax
The imputed rental value is the theoretical rent that an owner is deemed to receive by living in their own property. In Switzerland, it is added to taxable income, as though the owner were renting the dwelling to themselves. In return, they may deduct mortgage interest and maintenance costs. This mechanism, specific to the Swiss tax system, has historically encouraged owners to maintain a mortgage debt rather than amortise it. Its abolition has been initiated at federal level, along with the disappearance of the accompanying deductions — a change that alters the financial equation of a purchase and deserves to be anticipated in any acquisition project.
Income value method Market & practice
Market value based on net rental income capitalised at a market rate (capitalisation rate). Sensitive to risk and location.
Increase in value Financing
The increase in value of a property relies on careful maintenance and regular investment. The use of quality materials and the addition of amenities can significantly increase its appeal and value. Common improvements include: Building a new garage, Installing a fireplace or a Swedish stove, Fitting out a sauna or a gym, Adding a veranda or a covered balcony, Fitting out and extending the attic. While effective in increasing the value of a property, these works are only partially tax-deductible, depending on national legislation. It is advisable to consult a specialist to assess the tax implications and ensure that investments are optimised.
Indexation clause Legal
An indexation clause in a lease agreement allows the rent to be adjusted according to economic fluctuations, which may result in an increase or decrease in the rent for the tenant. According to art. 269b CO, this clause applies only if the lease has a minimum term of five years and if the national consumer price index is established. Furthermore, the adjustments concern only the gross rent, excluding additional charges.
Indexed rent Legal
Periodic contractual adjustment of the rent based on the Swiss Consumer Price Index (ISP). Must be provided for in the lease; minimum intervals between indexations. In 2024, indicative statutory increase of approximately 3% according to the annual ISP.
Indicative prices Market & practice
Estimation benchmarks derived from the experience of local experts, reflecting trends (rents, land, construction) in an area. They vary according to local specificities and demand and serve as a basis for discussion rather than a final value.
Indirect amortisation Financing
Indirect amortisation consists of depositing each year the amount to be amortised into a pillar 3a savings account, rather than repaying the mortgage capital directly. The amount deposited is then blocked at the bank as a guarantee. The major advantage lies in the fact that mortgage interest (which remains high since the capital is not repaid) stays tax-deductible, and that payments into the pillar 3 are also deductible. In other words, this provides a notable tax advantage compared with direct amortisation.
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Individual ownership Market & practice
Individual ownership, as defined by article 641, paragraph 1 of the Swiss Civil Code, allows a person to hold a property exclusively and in full, in compliance with the laws in force. This includes the rights of use, of collecting fruits (such as rent or income) and of freely disposing of the property (sale, donation, etc.). The individual owner assumes full responsibility for the maintenance of the property, necessary repairs and any damage. In addition, they must bear the financial charges associated with ownership, such as land taxes and mortgage interest. The advantages include freedom of management, the possibility of letting or selling without the agreement of third parties, and potential tax advantages.
Industrial building Planning & construction
An industrial building is a building intended, in whole or in part, for the production or storage of goods. Unlike residential buildings, it is subject to stricter fire protection standards, ideally incorporated from the construction stage. In Switzerland, the commissioning of these buildings requires an inspection and approval by the fire protection authority.
Initial rent Legal
Amount agreed at the start of a lease, influenced by the previous rent, the market, costs, and regulation. May be contested if deemed abusive; specific caps/criteria apply in certain cantons.
Interest rate floor Financing
The interest rate floor is a protection mechanism in mortgages: it sets a minimum interest rate to be paid, even if the reference rate falls below this threshold. In exchange for a fee, the bank guarantees this minimum rate for a defined period, protecting the borrower against unforeseen rate falls while ensuring income stability for the bank.
Interest rate forecasts Financing
Interest rate forecasts are expert estimates of how rates will move (up or down) over the coming months. They remain uncertain, as unexpected events may alter the trajectory of rates. Consulting them before signing a mortgage can help secure more favourable financing terms.
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Interest rate reversal Financing
An interest rate reversal occurs when a central bank adjusts its key rate. A cut leads to cheaper borrowing for banks and therefore for borrowers (lower mortgage rates). Conversely, a rise makes borrowing more expensive, resulting in less favourable conditions for borrowers.
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Interior fitting-out Planning & construction
Interior fitting-out refers to all the works carried out inside a building, apart from purely structural elements and the exterior cladding. Various trades are involved, such as electricians, joiners or plumbers. This work includes in particular the installation of dry partitions, the plumbing and heating system, electrics, floor coverings (including the screed), painting or wallpapering, and the fitting of interior staircases.
Inventory of fixtures Legal
The inventory of fixtures is a document that precisely describes the condition of a dwelling at the tenant's entry and departure. Although not compulsory in Switzerland, it is strongly recommended to prevent disputes. Objectives of the inventory of fixtures: Recording the condition of the rooms, fittings and any defects. Clarifying responsibilities in the event of damage. Facilitating the return of the rental deposit. Legal basis in Switzerland: Not required by law, but recommended by associations such as ASLOCA. Certain cantonal rules (e.g. Vaud) specify the procedures. Key steps: On entry: Thorough inspection with the landlord or their representative, taking photographs and joint signature. On departure: Dwelling emptied and cleaned in order to check its condition against that on entry. Normal versus excessive wear: Normal wear: Worn carpet, faded walls. Excessive wear: Deep scratches, damaged appliances. Practical advice: Use natural light and document with photographs. Require a signed copy of the document. In the event of disagreement, call on a mediator or ASLOCA. The inventory of fixtures is an essential tool for ensuring a smooth tenancy, protecting the interests of each party and avoiding any conflict.
Investment amount Financing
Total sum committed: price/land + construction costs + taxes/fees/honoraria (or price of the property + acquisition costs).
Investment horizon Financing
Investment horizon refers to the period during which an investor plans to place their capital. In real estate, this is generally a long-term investment, often exceeding six years. The horizon depends on how long the investor can afford to be without access to their capital. A short horizon, with a rapid need for liquidity, entails low risks, but also lower returns.
Investment property Planning & construction
An investment property is a property generating rental income for its owner. It may be commercial premises, mixed-use property, detached houses, multi-family buildings or offices. Advantages: regular income, diversification, protection against inflation, potential for appreciation. Disadvantages: risk of rental vacancy, high charges, a large share of assets tied up, risk of depreciation. Criteria: location, condition of the property, regional demand, average rent and growth potential.
IUS — Land utilisation index Planning & construction
The land utilisation index expresses the ratio between the gross constructible floor area and the plot area. An IUS of 0.5 on a 1’000 m² plot thus permits 500 m² of floor area. It is this index, set by the zoning plan, that determines what can actually be built on a plot — far more than its surface area alone. Two neighbouring plots of identical size may therefore be worth very different amounts depending on the index applicable to them. In Geneva, it varies considerably from one zone to another, and a development zone may substantially raise this ceiling in exchange for requirements on exit prices.
J3 terms
Joint account Financing
A joint account is a summary document of the charges and income shared between several buildings.
Joint and several guarantee Financing
A joint and several guarantee is a guarantee contract similar to the simple guarantee, but with one important difference: in the event of non-payment by the tenant, the landlord may turn directly to the guarantor to recover the claim, without having to pursue the tenant beforehand.
Joint ownership (propriété en mains communes) Legal
Joint ownership (propriété en mains communes) refers to a mode of holding a property by two or more persons, who are simultaneously owners of it, regardless of their respective financial contribution to the acquisition. It may arise from a marriage contract under a community of property regime, from the formation of a company where the partners collectively hold the assets, or from an inheritance (hoirie) where the heirs share ownership together.
L47 terms
LaLAT (Loi d'application de la loi fédérale sur l'aménagement du territoire) Legal
Came into force on 1 January 1980. Implements the LAT: balanced management of land use, distinction between building and non-building zones, protection of resources and promotion of compact development.
LAMAP.ch Planning & construction
LAMAP.ch is an innovative Swiss property platform dedicated to the valuation, promotion and matching of properties across the whole of Geneva. Developed to meet the needs of private individuals, investors and property professionals, LAMAP.ch offers a technological and intuitive approach to the market, drawing on up-to-date local data and advanced analysis tools. Services offered: 1. Instant property valuation: Thanks to a proprietary AVM (Automated Valuation Model), LAMAP.ch enables users to obtain a free, immediate valuation of their property (flat, villa, plot) based on precise criteria: location, floor area, condition of the property, features, etc. The algorithm draws in particular on Geneva market data, recent transactions and public databases such as the SITG. 2. Interactive price-per-square-metre map: LAMAP.ch offers a dynamic map allowing users to visualise average prices per square metre by neighbourhood, commune or street in Geneva. This intuitive tool helps users understand price variations across the territory. 3. Matching with local experts: In addition to the valuation, the platform allows users to receive personalised advice from estate agents specialised in their area. An intelligent matching system directs each seller to the most relevant contact. 4. Access to off-market properties: LAMAP.ch has an exclusive database of off-market properties, not visible on conventional portals. Interested users can access these opportunities via a secure form, after verification of their profile. 5. Interactive property games and content: To educate, retain and entertain its users, LAMAP.ch also offers interactive experiences, such as quizzes (e.g. "Guess the right price", "True or False about Geneva property"), personalised simulators, practical guides for buyers, sellers and investors. 6. CRM module for professionals: LAMAP.ch offers an ultra-complete integrated CRM for partner brokers, including mandate management with an interactive map, intelligent listing publication, automatic generation of brochures and listings with AI, virtual home staging, and a collaborative chat system between agencies (Chat Nexus). Objective: To make the Geneva property market more transparent, accessible and interactive, while equipping professionals with the latest market technologies for an optimised user experience.
Land charges Legal
Land charges are obligations imposed on property owners in Switzerland, requiring them to take specific actions or to refrain from certain actions. They differ from easements, which limit the use of a property. Land charges may include obligations such as maintaining infrastructure or providing services to other properties. They are recorded in the land registry, a public document essential for identifying these obligations before purchasing a property. There are several types of land charges: Real land charge: Linked to the property, it remains in effect upon sale. It may concern the maintenance of shared infrastructure or the preservation of natural or historic features. Personal land charge: Linked to a specific person or entity, it is not transferred to the new owner without agreement. Public-law land charge: Imposed by the State for reasons of public interest, such as environmental protection. Private-law land charge: Agreed between private parties, it may include obligations such as a right of way or the maintenance of a structure. Example: A property in the canton of Vaud with a historic public access path. The owner is responsible for its maintenance, which represents a cost and an ongoing obligation, but may also increase the value of the property due to its unique character.
Land occupancy ratio (COS) Planning & construction
The land occupancy ratio (COS) is an indicator used in planning to determine the proportion of a plot that may be built on. It is expressed in decimal form and represents the ratio between the maximum buildable area and the total size of the plot. The higher the COS, the greater the density of construction. This ratio regulates urban density, preserves green spaces and avoids over-densification. The rules vary according to the Swiss cantons, and the COS is calculated by dividing the built-up area by the total area of the plot. It is often accompanied by other parameters such as the footprint ratio (CES), which measures the floor area in relation to the plot area. COS values (for example, 0.2, 0.3, 0.4, or 0.8) determine the intensity of construction permitted and have an impact on property value, planning and biodiversity. Exceeding the COS is possible in certain cases, but requires authorisation and may have legal consequences.
Land registry Legal
The land registry is a public system that records all immovable property, detailing the real rights associated with each of them as well as the holders of those rights. It comprises three main sections: the main register (detailed information on each property), the journal (requests for transactions carried out) and the supplementary documents (additional information relating to the registered properties).
Land registry (cadastre) Legal
The Swiss land registry (cadastre) is the administration responsible for managing land properties and drawing up the cadastral plan. The latter is a precise cartographic representation of plots, having legal value, notably for defining land boundaries. The three pillars of the Swiss land registry (cadastre): 1. Official land survey (MO): provides geographical information on properties. 2. Land Registry (RF): lists plots and landed properties. 3. RDPPF land registry: brings together public-law restrictions on land ownership. Purpose of the RDPPF land registry: This system allows the regulatory limitations applicable to a plot of land to be consulted, thereby strengthening legal certainty for owners and property professionals. Locating cadastral plots: Each plot has a unique number within its commune. To locate it, use the commune's mapping portal, entering the plot number and the name of the commune. Key points: Guarantees land ownership rights in Switzerland. Allows restrictions and up-to-date plot data to be consulted. A tool accessible online to citizens and professionals.
Land registry extract Legal
The land registry extract is an official document that attests to ownership of a plot. It contains essential information, such as the owner, the date of acquisition, rights, charges, as well as any pledges. In Switzerland, to obtain this extract, a request must be made by post, email or telephone to a land registry office. It is somewhat like the plot's "identity card".
Land share Legal
The land share (quote-part terrain) refers to the fraction of the value of a plot of land allocated to a purchaser upon the sale of a property, clearly separating the value of the land from that of the building. This practice, very widespread in property developments in the canton of Geneva, makes it possible to split the overall price into two components: the portion corresponding to the land (often calculated on the basis of the surface area allocated and its value per square metre) and the portion linked to the building (construction cost). This form of presentation facilitates transparency for the buyer and can sometimes optimise the taxation or financing of the project.
Land Utilisation Plan (PUS) Planning & construction
The Land Utilisation Plan (PUS) is a guiding document that sets out the broad lines of urban development in Geneva. It governs building projects, giving attention to quality of life, the creation of housing and the promotion of local shops. Compliance with the PUS is compulsory in order to obtain a building permit. It imposes certain standards, such as the creation of green spaces for any construction exceeding 1’000 m², or the obligation of public access to ground floors giving onto the street.
Land utilisation ratio (CUS) Planning & construction
The Land utilisation ratio (CUS), also known as the land utilisation index, is a key indicator in planning and property in Switzerland. It measures the ratio between the built-up area (including dwellings, shops, garages, etc.) and the total area available for construction on a plot. This ratio defines the intensity with which a plot may be developed. The CUS is calculated according to the following formula: CUS = Gross floor area used (SBPu) / Total available area (STd). This index is used to regulate land use, ensuring balanced and sustainable development of urban and rural areas. It has a direct impact on property values and property development potential. The CUS varies according to zones and cantons, with each region having its own rules. It is also important to distinguish it from the Land utilisation index (IUS), which may take into account other factors such as the determining floor area. Understanding the CUS is essential for investors, planners and landowners in the planning of property projects.
Landlords' right of visit Legal
Landlords' right of visit in Switzerland is governed by article 257h of the Code of Obligations (CO). It stipulates that the tenant must allow the landlord to visit the let property for maintenance reasons, in the event of the sale of the property or for reletting purposes. However, the landlord must give notice of the visit in advance, except in cases of emergency works. The landlord has no right to enter without prior authorisation and may not hold a duplicate set of keys without the tenant's explicit consent.
Land-use planning Planning & construction
Land-use planning consists, for the State, in planning and organising the use of land so as to respect political choices, while ensuring a good quality of life and sustainable economic development for the current and future population. This action is based on legal foundations (laws, constitution) and on cantonal and local master plans.
LAT (Loi fédérale sur l'aménagement du territoire) Planning & construction
National framework governing territorial development: measured use of land and balanced organisation of the territory (art. 75 Cst.).
LATeC (Loi sur l'aménagement du territoire et les constructions) Planning & construction
Coherent organisation of zones (housing, activities, leisure, mobility) and building rules at cantonal/communal level for the optimal use of land.
LCAP (Loi fédérale encourageant la Construction et l'Accession à la Propriété) Market & practice
LCI (Loi sur les constructions et les installations diverses) Planning & construction
Governs the authorisation, design, execution and operation of buildings (safety, functionality, energy efficiency, sustainability). Requirements and procedures vary by canton.
LDFR (Loi sur le Développement de la Propriété Foncière Rurale) Market & practice
Supports rural land ownership: reasonable prices for agricultural land, transmission/division of farms, combating overbidding, regulation of rural property liens; preservation of the rural landscape.
LDTR Legal
Law on the demolition, conversion and renovation of residential buildings. A Geneva law that protects the rental housing stock and strictly regulates the conversion of buildings.
LDTR (Loi sur les démolitions, transformations et rénovations) Market & practice
In Geneva, regulates the demolition, conversion and renovation of residential buildings: prohibition on demolition without a waiver, prior authorisation required to convert or change the use, conditions for sales into PPE.
Lease agreement Legal
The lease agreement is a contract defined by article 253 of the Swiss Civil Code (CC), whereby a landlord grants a tenant the use of a property in exchange for rent. This contract may concern houses, flats or commercial premises. Key points: 1. Form of the contract: There is no obligation for a written form, but a paper contract is preferable. A consensual agreement is sufficient for its validity. However, termination must be made in writing. 2. Content of a written contract: Identity of the parties (landlord and tenant). Start date and, if applicable, end date of the lease. Amount of the rent, service charges and deposit. Termination conditions, description and floor area of the property. 3. Term and termination: The lease may be for a fixed or indefinite term. Three months' notice is required to terminate an indefinite-term lease. In certain cantons, fixed termination dates apply (for example, in the canton of Vaud). Early termination: the tenant must propose a solvent Replacement tenant. 4. Obligations of the parties: Landlord: Provide a property in good condition and carry out major repairs. Tenant: Pay the rent, maintain the property, report defects and tolerate inspections. Minor repairs (up to CHF 150) are at his expense. 5. Rent deposit: Often requested by the landlord. Limit: up to 3 months' rent for a dwelling (no limit for commercial premises). May be deposited with a bank or covered by a guarantee agreement. In summary, the lease agreement is based on reciprocal obligations and clearly defined rules, with particularities depending on the Swiss canton.
Legal mortgage Financing
Legal guarantee granted to certain creditors over a building, without registration in the land registry. Notably for craftsmen and contractors.
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Legal mortgage with registration Financing
A legal mortgage with registration is a type of mortgage that must be registered in the Land Registry to be valid. It notably includes: The seller's mortgage: allows the seller of a property to assert their rights in the event of non-payment by the new owner. It must be registered within 3 months of the transfer of ownership. The craftsmen's and contractors' mortgage: protects claims relating to work or improvements carried out on a property. It must be registered within 4 months of completion of the works. This registration in the land registry is essential for the mortgage to be legally enforceable against third parties and to allow the creditor to assert their rights in the event of non-payment.
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Legal mortgage without registration Financing
A legal mortgage without registration is a security that applies automatically without being registered in the Land Registry. It concerns: Claims incurred to maintain the value of the property. Claims relating to costs falling under cantonal public law, such as taxes, communal charges or fire insurance premiums. When a property is realised, this mortgage takes precedence over all contractual mortgages.
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Lending limit (limite de charge de gage) Financing
Lending limit (limite de charge de gage): the share of a property's value that can be mortgaged. Depends in particular on the borrower's income and wealth. In practice, charges (interest, amortisation, maintenance) must not exceed approx. 33% of the household's gross income.
Letting order Legal
A letting order is a provisional document issued by the Cantonal Office for Housing and Land Planning (OCLPF). It certifies that, in a development zone, a building may be let before its definitive rental status is obtained. Thanks to this order, the owner is authorised to conclude leases and to legally let the property.
Lex Koller Legal
Federal law (1983) restricting the acquisition of property by persons abroad. Succeeds Lex Friedrich and Lex Furgler. Recurring debates on a possible tightening.
LFAIE (Loi fédérale sur l'acquisition d'immeubles par des personnes à l'étranger) Market & practice
Regulates the purchase of property by foreigners; cantonal authorisation is compulsory except for commercial activities or main residence. Also known as Lex Koller.
LGL (Loi générale sur le logement et la protection des locataires) Market & practice
Rules protecting tenants' rights and landlords' obligations (safety, habitability, rents, termination, mediation). Aims for a transparent and balanced market.
LGZD housing Planning & construction
Housing situated in a development zone (ZD) whose sale/rental prices are periodically controlled (e.g. every 10 years). Constructions subject to public-interest criteria and procedures (localised district plan, State Council authorisations, etc.).
LGZD (Loi générale sur les zones de développement) Planning & construction
Regulates development zones (state control of new buildings over 10 years, restrictions on use/purchase). Aims for balanced and sustainable development of the territory.
LIBOR-rate mortgage Financing
A LIBOR-rate mortgage is a loan whose interest rate is based on the LIBOR (London Interbank Offered Rate), a rate used for short-term loans between banks. This rate is generally lower than those charged by banks to their clients, but it can fluctuate. Borrowers are advised to choose this type of rate towards the end of their loan or if they are considering selling their property. LIBOR was to be replaced by SARON (Swiss Average Rate Overnight) from the end of 2021.
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Life Cycle Cost (LCC) Financing
The Life Cycle Cost (LCC) of a building takes into account all the costs related to its management and maintenance over the long term, often higher than its initial purchase price. The Life Cycle Cost project aims to anticipate and adjust these future costs from the planning phase onwards, whether for an acquisition or a renovation. This includes the assessment of all relevant factors for optimised financial management.
Life insurance Financing
Life insurance is designed to provide financial protection for family members in the event of premature death. In Switzerland, it can incorporate various types of cover, such as protection in the event of loss of earnings, and can serve as a Pillar 3 savings vehicle. In certain circumstances, it is even possible to redeem this savings to finance the purchase of a property.
Light exposure certificate Planning & construction
The light exposure certificate is a report informing about the hours of natural light and sunshine that a buyer can expect throughout the year in a dwelling. It takes into account factors such as orientation, exposure to light, window size, floor level and overlooking buildings. The report specifies not only the hours of direct sunshine, but also the average number of daily hours during which it is possible to read using natural light. A comparison with the city's sunshine level is also included.
Limited real right Legal
A limited real right is a private, absolute subjective right that is enforceable against third parties, giving its holder partial control over an asset. It may concern a right of disposal (such as a security), or a right of enjoyment or use. For example, property charges and property liens (gage immobilier) are security rights, whereas easements fall under use or enjoyment. This right restricts the ownership right over the object for as long as it exists.
Loan Financing
A loan is a legal agreement whereby one party lends money to another for a defined period, generally in exchange for interest. The terms (amount, duration, frequency of instalments) are negotiated between the parties, and the sum borrowed must be repaid in full at maturity. For property, the loan often takes the form of a mortgage where a bank is involved.
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Loan-to-value ratio calculator Financing
A loan-to-value ratio calculator is a tool that quickly checks whether you have sufficient own funds to obtain a mortgage. Simply enter a few personal details to assess your financial situation. The calculator then suggests several financial institutions from which you can request a mortgage offer with no obligation. The lower the pledge, the higher the chances of obtaining a favourable interest rate. Although an expert may be consulted afterwards, this tool already provides a useful overview.
Local Expert Appraisal Market & practice
Specialists in the Left Bank with an in-depth knowledge of the area
Localised District Plan (PLQ) Planning & construction
A Localised District Plan (PLQ) is an urban planning tool intended to organise the development and servicing of a specific territory. Often referred to as a "master plan", it establishes the rules and conditions necessary for the construction of new buildings in a given district. This plan is approved by the Council of State and serves as a framework to guide urban development while respecting local needs and constraints.
Location class method Planning & construction
Ranking of the location (general situation, intensity of use, access, residential sector) scored 1–8; land value derived from rental income or as a percentage of construction value.
Location factor Planning & construction
A location factor refers to the elements influencing the quality of a site, which are essential in property valuations. On a large scale, this includes aspects such as the tax rate and infrastructure, whereas on a small scale, it concerns more subjective criteria such as available leisure facilities or the quality of the environment. The main elements to be assessed are centrality, accessibility, public services, the quality of the residential environment and the social neighbourhood.
Loft Market & practice
Large apartment in industrial style, often consisting of one or two large rooms with high ceilings. Resulting from the conversion of industrial spaces (workshops, factories). Cost often higher than a conventional flat. Poorly suited to families due to reduced privacy.
Loss aversion (aversion à la dépossession) Financing
This is the tendency to attribute a higher value to a good when one owns it, compared with the value one would place on it if it did not belong to us. This cognitive bias, also called the endowment effect, can distort decisions, particularly in real estate, where an owner attached to their house may overvalue it because of their emotional bond, exceeding its actual market value. This is known as loss aversion (aversion à la dépossession).
Loss-of-earnings insurance Financing
Loss-of-earnings insurance guarantees the payment of an income if the insured person can no longer work due to illness or accident. It is particularly important for owners with a mortgage loan, as it enables them to continue repaying their monthly instalments and thus avoid the risk of losing their property.
Low-cost Housing (HBM) Legal
Low-cost Housing (HBM) is accommodation intended for people with modest incomes. Subsidised by the State, it remains under its control for 20 years.
Lowest value principle Financing
Rule applied in Switzerland since 2014 by banks and insurers, requiring that the lower of the sale price and the estimated value of the property be used in valuations. If the estimated value is lower, the buyer must contribute more own funds.
LPP (Loi sur la prévoyance professionnelle) Planning & construction
Framework for Swiss pension funds. Savings usable for housing via early withdrawal (purchase, construction, renovation, mortgage repayment) or pledge. Application required at the latest 3 years before retirement; written consent of spouses required.
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M37 terms
Main residence Legal
A main residence is a property in which a person lives on a regular and permanent basis, serving as their principal home.
Maintenance Planning & construction
Maintenance refers to all actions (care, repairs, expenditure) aimed at keeping an object or property in good condition. In real estate, this includes maintenance, repair or restoration works necessary to preserve a property.
Maintenance costs Financing
Maintenance costs refer to the expenditure required to keep a property in good condition. This includes minor costs, such as painting walls, as well as more substantial works, such as renewing a kitchen. These costs are not regular and can arise unpredictably, which makes them difficult to anticipate in the budget. It is therefore essential for the owner to set aside reserves to cover these costs.
Management fees Financing
Management fees are costs that the owner of a property pays to entrust the management of the property to a specialised company. This company handles the day-to-day management of the property, including services such as finding and selecting tenants, managing leases, collecting rent, maintenance, handling complaints and repairs, and upkeep of the common areas. These fees are generally calculated as a percentage of rental income, often between 5% and 10%, but this can vary depending on several factors such as the type of property or its location. Engaging a management company offers several advantages, such as optimising the occupancy rate, professional handling of disputes, and preserving the value of the building through regular upkeep. However, management fees can represent an additional cost and reduce the owner's direct control, which may be a drawback for some. Ultimately, good professional management can increase profitability and reduce the risks associated with managing a property.
Management mandate Market & practice
Contract by which an owner entrusts a professional with the administrative, technical and commercial management of their property.
Management report Market & practice
A management report is a document that presents a status report on the management of a property or a business over a given period, while also providing forecasts for the coming period. In the case of a property entrusted to a manager, it includes the rents collected, expenses, management fees, and may be sent monthly or quarterly.
Management statement of account Financing
A management statement of account is an accounting document that presents the charges (expenses) and income (revenue) of a co-ownership or a rental building. By comparing these elements, it allows the balance available to the owner(s) of the building to be determined.
Mandate Legal
Power of attorney by which a principal authorises an agent to act for them. In real estate: contract between an owner and a broker/agency to sell/let a property (exclusive or non-exclusive).
Manor house (maison de maître) Market & practice
Large old residence, often pre-1914, noble architecture (stone, large windows, fireplaces), historically linked to a farming/industrial/craft business.
Market launch (sale) Market & practice
The set of actions taken to sell a property: valuation, pricing strategy, media, professional photos, drafting, distribution.
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Market price Legal
Real value of a property determined by the meeting of supply and demand. Differs from the listed price, and depends on factors such as location, the condition of the property, and local trends.
Market rent Legal
Rent set by supply and demand upon a new letting or an adjustment. Increases during the lease remain governed by Swiss law.
Market value estimate Planning & construction
The market value estimate is an essential process when selling a property. It allows a price to be set that is neither too high nor too low, thereby facilitating a quick and successful sale. This estimate is generally carried out by an independent expert or software, and it is presented in the form of a detailed document. Several methods can be used to assess the value of a property.
Market-driven capital gain Tax
Rise in the value of a property due to economic factors or one-off events, such as a shortage of land leading to a sudden increase in prices.
Marketing (letting) Planning & construction
Actions intended to attract tenants for a newly built property (marketing, viewings, adjustment of rents, etc.).
Marketing mandate Market & practice
Contract by which an owner instructs an agent to find a tenant/buyer. Obligation of means (not of result); remuneration/expense terms specified.
Memorandum of understanding Legal
A legal document formalising the commitments made between two parties in a transaction, in particular between the seller (transferor) and the buyer (acquirer). In property, it secures the transaction by setting out the terms and conditions before the signing of the final deed of sale.
Micro-location Market & practice
The immediate surroundings of the property (neighbourhood/amenities/transport/nuisances). A key factor for value and liquidity.
Minergie Planning & construction
Swiss construction/renovation label guaranteeing energy efficiency and comfort (insulation, reduced consumption, renewables, efficient ventilation).
Minergie-A Planning & construction
The most demanding Minergie label: zero or positive energy balance (production ≥ consumption), increased use of renewable energy.
Minergie-Eco Planning & construction
A complement to Minergie focused on health/ecology: natural light, low-impact materials, additional requirements (on top of Minergie criteria).
Minergie-P Planning & construction
A label superior to standard Minergie (but below A): very low energy consumption and high standards of comfort/quality.
Mixed Housing (HM) Legal
Mixed Housing (HM) is accommodation whose rent may be subsidised by the State for 25 years. This type of accommodation is intended for people with average incomes.
Mobilisation of equity capital Financing
Building up the personal contribution (approx. 20%) for a property loan through savings, pillar 3/pillar 2 depending on legal conditions, gifts or private loans.
Monuments and Sites Department (SMS) Planning & construction
In the canton of Geneva, the Monuments and Sites Department (SMS) is the body responsible for the management and preservation of urban space. This department plays a key role in planning and documentation relating to land-use planning. Its main tasks are: ensuring compliance with federal land-use planning legislation as well as plans specific to urban sites; analysing property projects, whether involving the construction or transformation of buildings, and issuing opinions on them; managing and protecting listed areas; designing and publishing strategic documents (such as atlases or registers) aimed at guiding decisions on land-use planning and occupation.
Mortgage Financing
A mortgage is a loan granted by a bank for the purchase of a property. The borrower repays the amount borrowed plus interest over a fixed period, which makes it possible to buy a property even without having the full capital available. In Switzerland, there are several types of mortgages: Fixed-rate mortgage: The interest rate remains constant throughout the term of the loan. Variable-rate mortgage: The rate can change, depending on monetary policy, offering more flexibility, but also a risk in the event of rising rates. SARON mortgage: Based on the SARON interest rate, which fluctuates daily. It is more flexible, but difficult to predict in the long term. Combined mortgage: Combines a fixed rate and a SARON rate. Special mortgages: For example, environmental mortgages for sustainable properties or mortgages for young families. The amount of the mortgage cannot exceed 80% of the price of the property, which means that at least 20% must be financed from own funds. If additional financing is needed, for example for renovations, it is possible to increase the mortgage. Comparing interest rates between banks is essential, since even a small difference can represent a significant amount over the term of the loan. Lastly, most mortgages are annuity loans, where the monthly instalments remain constant but the proportion allocated to capital repayment increases over time.
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Mortgage broker Financing
A mortgage broker is a professional who helps clients find the best mortgage loan by comparing offers from banks and insurance companies. They analyse the available proposals and select those that best match their clients' needs, taking their profile into account. Their role is remunerated by the bank or insurer only if the mortgage is granted. For clients, the advantage lies in the possibility of choosing among several offers, meaning they are not limited to that of their usual institution.
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Mortgage buyout Financing
A mortgage buyout consists of replacing a mortgage contract reaching maturity with a new one, in order to readjust the financial terms according to the borrower's current situation. It is recommended to look into this around 18 to 24 months before the end of the contract. This process involves assessing the desired amount of credit, the most suitable form of mortgage (fixed, LIBOR or variable), and the repayment term most advantageous for the individual's situation.
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Mortgage calculator Financing
A mortgage calculator is an online tool that simulates a property loan. It helps you determine whether you have sufficient funds to finance a property and to find out the minimum contribution required. These simulators are generally free of charge.
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Mortgage consolidation Financing
Mortgage consolidation involves refinancing your current loans by restructuring your debts, often in order to group several loans under a single mortgage loan. This may include converting a construction loan into a mortgage loan or the partial or total refinancing of an existing loan. This process makes it possible to fix an interest rate from the outset, making financial management and repayments easier. Property refinancing involves re-borrowing part of the value of your property in order to repay the current mortgage, with the possibility of using the surplus for other debts or expenses. A valuation of the property is required, and access to refinancing depends on your income and your own funds. The advantages of grouping one's debts include simplified financial management, a potentially lower interest rate, and an improved credit rating. It is essential to compare loan offers, taking into account the type of rate, the term and the amount, in order to choose the best option. In Switzerland, mortgage rates vary according to the term and the borrower's creditworthiness, and the Swiss National Bank is planning rate cuts from June 2024.
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Mortgage loan Financing
The mortgage loan is a loan intended mainly to finance the purchase of a property. It is generally secured by a mortgage, a claim right over the property registered with the land registry. This security ensures repayment of the loan in the event of default. The mortgage may be first-rank or second-rank, which affects the interest rate: a first-rank mortgage involves a lower risk for the lender, hence a lower rate. This type of credit can also finance other projects or the purchase of different properties. The mortgage may be secured against the property being financed or against another property, as long as it belongs to the borrower.
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Mortgage model Financing
Type of loan: (1) fixed rate; (2) market rate (e.g. SARON); (3) variable rate. Choice depends on objectives and risk profile.
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Mortgage note (cédule hypothécaire) Financing
A mortgage note (cédule hypothécaire) is a claim secured by a property, often linked to a mortgage loan. It formalises the pledging of the property in the event of non-repayment of the loan, and must be registered with the land registry. There are two forms: traditional (paper) and dematerialised (since 2012). It states information such as the value of the mortgage, the address of the property, the interest rate and, if it is registered, the debtor's personal details. The "rank" of the note determines the priority of repayment in the event of the sale of the property. The cost of creating a note varies according to canton, generally representing 2% of the loan amount. Once the loan has been repaid, the note may be retrieved, transferred upon a sale, or kept for a future loan. It may also be amended, for example to increase its value in the event of renovation of the property.
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Mortgage renewal Market & practice
Mortgage renewal occurs when a mortgage reaches the end of its term without being fully repaid. The borrower may transfer the mortgage to another institution or request an extension from the current lender. This process should be started between 18 and 24 months before the end of the contract in order to compare available offers and negotiate terms.
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MOUP (Maître d'ouvrage d'utilité publique) — public-utility developer Market & practice
Mainly non-profit housing cooperatives. They offer cost-price rents to member-tenants; assets not saleable to third parties; possible public subsidies.
Movable property Legal
Movable property, which can be moved. Examples: personal belongings (books, clothing), valuables (jewellery, works of art), appliances (fridge, cooker) and furniture (bed, wardrobe).
Municipal opinions, City of Geneva (préavis communaux) Legal
Municipal opinions, City of Geneva (préavis communaux) constitute the compulsory consultative municipal opinion for any building project within the commune of Geneva. These opinions examine the compliance of projects with communal regulations, local master plans and the city's urban planning objectives. They cover in particular architectural integration, impact on public space, mobility and the urban environment. The City of Geneva provides citizens and professionals with access to current opinions, reference municipal plans and planning guidelines specific to the various districts. → Consult the Municipal opinions, City of Geneva
N11 terms
Negotiation margin Market & practice
Gap between the listed price and the accepted/paid price. Depends on market conditions, the valuation and the broker's strategy.
Net rent Legal
Base price excluding charges (water, electricity, heating, etc.). Distinct from gross rent, which includes charges.
Net yield Market & practice
An indicator of the actual profitability of a property investment taking into account all costs related to the management and ownership of the property. Unlike gross yield, it deducts charges (taxes, insurance, co-ownership charges, maintenance, loan interest). It more accurately reflects the performance of the investment.
New build Planning & construction
A recent building meeting current standards; the term does not always imply first occupancy. In Geneva, projects are subject to authorisation procedures (public enquiry, OAC decision).
New mortgage Financing
The first mortgage taken out when purchasing a property. It entails costs (bank processing, notary fees, registration with the land registry). Subsequent changes (extension/renewal) are no longer regarded as "new mortgages".
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Notarial deed / authentic deed Legal
A notarial deed / authentic deed is a document drawn up and certified by a notary, a legal professional vested with a public authority function. The notary verifies the legality and authenticity of the content before validating it. Thanks to the notary's involvement, the deed benefits from superior evidentiary force and enhanced legal value, guaranteeing in particular its compliance with the laws in force.
Notary Legal
A notary is a qualified lawyer authorised to authenticate documents, execute legal deeds and carry out legal formalities, guaranteeing the veracity of the facts. Sworn in and registered with a cantonal notarial chamber, the notary operates under the authority of the cantons, which govern the organisation of notarial practice and set the procedures for deeds. However, federal law lays down certain minimum requirements, notably in the area of successions. Neutrality and impartiality are essential in the practice of the notarial profession, and in the event of a conflict of interest a notary may withdraw from a matter. Types of notary in Switzerland Professional notaries: Self-employed, they work exclusively outside the administration or the courts. In cantons such as Geneva or Vaud, a notary practises solely in that capacity, whereas in Berne he may also be a lawyer. State notaries: Employed by the cantonal administration, they do not need a full legal education, but undergo specialised training. This system is in place in cantons such as Zurich and Schaffhausen. Mixed notarial system: A combination of state and professional notarial practice, found in certain cantons, where responsibilities vary according to area, such as management of the land registry or successions. Main duties of the notary The notary is involved in legal transactions requiring public authentication, such as: - Contracts relating to land rights - Marriage and succession contracts - The formation of companies or foundations - The certification of signatures - Legal advice in specialised fields - The safekeeping of authentic documents. Role of the notary in a property sale In the sale of a property, the notary ensures that all legal obligations are met, that there are no defects in the sale contract, and that it is correctly drawn up as a notarial deed. The notary also ensures that the terms of payment and the intentions of the parties are respected. The notary in the context of a property succession The notary drafts the deeds of partition in a succession, ensuring that the heirs comply with the legal rules and clearly understand the terms of the succession. Legal and tax advice In property matters, the notary also acts as a legal and tax adviser, providing advice on property taxation, estate planning and other legal questions relating to real estate. Notary fees Notary fees include: 1. Authentication fees 2. The notary's expenses 3. Taxes due, such as transfer duty 4. Cantonal registry fees Each canton sets its own rules regarding fees, such as the canton of Berne with its ordinance on notaries' fees. Points to remember - The notary drafts notarial deeds and keeps them on file. - He guarantees the legal security of property transactions. - He ensures that all legal obligations are met in property sales and successions. - The notary also plays a key role in legal and tax advice relating to real estate.
Notary fees Financing
Notary fees in Switzerland correspond to the costs linked to a property transaction requiring the involvement of a notary. They include not only the notary's charges, but also the registration duties (transfer duty), the land registry registration fees, and any additional fees. In general, these costs represent around 3 to 5% of the purchase price and vary according to the canton. For example, in the canton of Vaud, transfer duties amount to 3.3% and land registry registration fees to 0.3%. The notary's remuneration is around 0.7% of the purchase price, covering their administration costs (photocopies, travel, etc.). The charges are fixed costs regulated by law, calculated according to the value of the transaction, while the notary's fees relate to additional services such as drafting specific deeds. The costs are generally borne by the buyer, who may choose their own notary, although the amounts vary by canton. For example, for a property purchased for CHF 500’000 in the canton of Vaud, notary fees can reach CHF 20’500, comprising the transfer duties, the registration fees and the notary's remuneration.
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Notice (préavis) Legal
Period of notice that a party to a contract must observe to inform the other party of its intention to terminate the contract. In a tenancy, it is often set at 3 months and runs from notification of termination to the effective end of the contract.
Notice prohibiting trespass (mise à ban) Legal
Judicial decision imposing restrictions on the use of a property (e.g. prohibition of access/parking). Requested by the owner/usufructuary and officially published.
O16 terms
Offer to purchase Financing
An offer to purchase is a proposal made by a prospective buyer to an owner for the purchase of a property. It specifies the amount the buyer is prepared to offer to acquire the property. Under Swiss law, there is no mandatory form for this offer, and it has no binding value, unlike a notarial deed. Thus, as long as the offer has not been accepted by the seller and formalised by an official deed, it remains merely a non-binding proposal.
Official Gazette (Feuille d'Avis Officielle, FAO) Legal
The Official Gazette (Feuille d'Avis Officielle, FAO) is a document published by the Swiss cantons, disseminating essential legal and administrative information for communication between the State, institutions and citizens. It contains legal texts, court notices, building permits, invitations to tender, land registry information and public auctions. In real estate, the FAO is crucial for tracking transactions, construction projects and public auctions. The information it contains helps ensure transparency and prevent disputes. Publication of the FAO varies from canton to canton: Geneva publishes it online free of charge, while Vaud continues to distribute it in paper form. Other cantons adopt a hybrid format. It is accessible online via cantonal websites, and it is possible to search for and download specific notices there. For property investors, regularly consulting the FAO is important for keeping track of administrative and legal developments. → Consult the Official Gazette
Official land survey Planning & construction
Swiss legal system (since 1912) guaranteeing landed property: precise surveying of boundaries/plots and registration with the land registry and cadastral plans.
Off-market Market & practice
An off-market sale is a marketing process conducted without any public advertisement: no portal, no sign, no publication. The property is presented directly to a restricted circle of buyers whose profile is known and qualified. This mode of sale meets two distinct needs. For the seller, it preserves confidentiality — neighbours, tenants and professional acquaintances do not learn that the property is for sale — and prevents a property from remaining visible for months on a portal, which would devalue it. For the buyer, it provides access to properties that will never appear publicly. Off-market does not mean selling for less: it means selling differently, to a chosen buyer.
Off-plan purchase (achat en état futur d'achèvement) Market & practice
Off-plan purchase (achat en état futur d'achèvement), also called buying "off plan", consists in acquiring a property that has not yet been built or completed, based on its plans and specifications. Payment is made progressively, according to a schedule established in line with the progress of the works.
Online mortgage Financing
An online mortgage allows a mortgage loan to be taken out directly from home, without a physical meeting with an advisor. This option is particularly suited to experienced individuals, wishing for a quick procedure and having clearly defined needs. However, in case of doubt, a meeting with an expert remains advisable.
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Online mortgage loan extension Financing
The online mortgage loan extension makes it possible to renew the term of a loan from a computer. This process is fast and economical, suited to straightforward cases. For particular or complex situations, it is advisable to speak with an advisor in order to obtain a tailor-made solution.
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Ordinance on the Lease and Farm Lease of Residential and Commercial Premises (OBLF) Legal
The Ordinance on the Lease and Farm Lease of Residential and Commercial Premises (OBLF) is Swiss legislation governing relations between tenants and landlords, aiming for a balance between their rights and responsibilities. It was created to prevent abuses, ensure transparency in letting practices and prevent disputes. This legal framework specifies the conditions of letting, the setting of rents, their adjustment, as well as the procedures for terminating contracts. It is designed to protect tenants, in particular against unjustified rent increases and abusive terminations. The OBLF has its place within a complex Swiss legal system, where it stands out for its central role in regulating lettings. It is particularly important because it reflects the country's desire to promote fairness, transparency and respect for rights in property transactions. Tenants benefit from specific protections, such as limitations on rent increases and strict conditions for the termination of leases. Landlords, for their part, must comply with clear criteria to justify terminations or rent adjustments. This includes reasons such as non-payment of rent, renovation works, or fluctuations in interest rates. In practice, the OBLF makes it possible to resolve common cases, such as challenging a rent increase considered excessive or a landlord reclaiming a dwelling for personal use, by imposing strict rules regarding notice periods and the necessary justifications. Finally, the OBLF also influences the online valuation of properties. Valuation tools can adjust estimates according to the regulations relating to rents and works carried out, thereby ensuring realistic valuations that comply with current legislation.
Ordinary co-ownership Legal
Ordinary co-ownership is a type of ownership in which several persons jointly hold a property, without it being physically divided. Each co-owner holds an equal share of the property, registered with the Land Registry. Co-owners share the rights and obligations according to their share and may assign or transfer their rights to third parties. In the event of the sale of a share, a right of pre-emption is granted to the other co-owners. This form of co-ownership is common, in particular among married couples under the participation in acquired property regime in Switzerland.
Ordinary general meeting Legal
The ordinary general meeting is the main decision-making body of a PPE (co-ownership by floors). It is made up of all the co-owners, each holding one vote, whatever the type of property (garage, flat, etc.). Meeting in principle once a year, it takes decisions relating to the running and administration of the co-ownership (e.g. approval of accounts, works, budget) and appoints those responsible for carrying them out. A meeting held on another date or for specific reasons is called an extraordinary general meeting.
Orthogonal axonometry Planning & construction
Orthogonal axonometry, also known as military perspective, is a 3D representation used for detailed plans, notably in architecture and formerly in military operations. It is characterised by a plane inclined at 45 degrees and vertical lines representing the height of elements.
Outbuilding Planning & construction
An outbuilding is a construction or room attached to a main residence, but separate from it, and which generally cannot be lived in. Examples of outbuildings include a garden shed, a garage, a shed, an attic, or a terrace.
Overall price Market & practice
Rate agreed for all the services under a contract. Covers all services but allows for additional charges if quantities or requirements increase beyond what was initially planned (unlike the fixed price).
Over-indebtedness Financing
A situation in which a borrower exceeds the standard debt capacity, that is, beyond 80% of the financing of a property granted by mortgage. This excess may be accepted if the borrower provides additional guarantees, often drawn from the 2nd or 3rd pillar (occupational or private pension provision in Switzerland). This makes it possible to cover the excess portion of the loan, but significantly increases the financial risk.
Owner-occupied housing Market & practice
Property occupied by its owner or a relative. Failing personal occupation, it falls under non-occupied personal property.
Ownership share Legal
When a property belongs to several owners, each of them holds a specific percentage of the ownership. These shares may be allocated equally or unequally. In Switzerland, three forms exist: 1) Exclusive ownership: a single owner holds the entire property; 2) Co-ownership: each owner holds a share expressed as a percentage, which may be freely defined; 3) Joint ownership (propriété en mains communes): the owners hold the property together in its entirety, without individualised shares. The applicable form is always recorded in the land registry.
P61 terms
Partial Zoning Plan (PPA) Planning & construction
A PPA (Partial Zoning Plan) is an urban planning document that defines land use over a specific portion of the territory. It specifies the building zones, the agricultural zones, as well as the standards and building rules applicable within that zone. It supplements the General Zoning Plan by providing further detail on certain sectors or particular aspects of the territory, such as local development projects or specific regulations for certain zones.
Partially underground construction Planning & construction
Partially underground construction is a building whose average height exceeds a certain standard in relation to the reference or excavated ground level. In the canton of Jura, this standard is 120 cm, whereas in the canton of Neuchâtel it is 150 cm, with the restriction that the height must never exceed 3 metres from any angle.
Participation in acquired property Market & practice
Participation in acquired property is a hybrid matrimonial property regime: during the marriage, it operates like a separation of property; in the event of dissolution (divorce or death), it resembles a community of property. Property acquired during the union is added together and shared equally. Personal property remains the exclusive property of each spouse.
Pension fund Financing
A pension fund is a body responsible for managing retirement benefits and occupational savings. In Switzerland, the pension fund (LPP) represents the second pillar of the retirement system. It collects and invests members' contributions on the financial markets, then pays a life annuity on retirement, calculated according to each individual's savings effort.
Penthouse Planning & construction
Synonymous with attic flat (attique) in Switzerland. Penthouse flats offer a unique combination of luxury, privacy and outstanding views, while being subject to higher costs and maintenance requirements. They represent a sought-after option for those seeking the comfort of a house right in the city centre.
Perimeter contribution Financing
A perimeter contribution is a payment made when a property benefits from advantages resulting from works or developments carried out in a specific zone, such as the construction of flood protection or advantageous pathways. These contributions are paid to the entity responsible for developing the zone, such as a company or a public body. They are generally attached to the land rather than to the person, and may sometimes be partly financed by communes or other bodies where the advantage also benefits the general public.
Period of validity Legal
The period of validity refers to a period set by contract, such as for a lease or a mortgage. It is governed by general terms applicable throughout the period, generally including a termination procedure with specific conditions, a payment frequency and, where applicable, an amortisation schedule.
Permanent construction Planning & construction
Permanent construction refers to any building durably connected to the ground, combining craftsmanship and technique, and designed to remain permanently fixed in place. This includes both buildings and civil engineering structures. Such constructions are frequently used in agriculture.
Personal contribution Financing
The personal contribution is the sum of money that an individual must invest themselves for the purchase of a property, in addition to the loan granted by a credit institution. Generally, the personal contribution must represent at least 20% of the value of the property. For example, for a property worth CHF 1’000’000, the personal contribution would be at least CHF 200’000.
Perspective drawing Planning & construction
A perspective drawing is a technique used to represent a building in a realistic manner, simulating depth and scale. Nowadays, 3D renderings and light simulation are frequently used to create photorealistic images, thereby offering architects and their clients precise visualisations of rooms or entire buildings.
Pillar 3 pledge Financing
The Swiss pension system is made up of three pillars: the 1st and 2nd pillars, which are compulsory, guarantee around 60% of the final salary at retirement, while the 3rd pillar is voluntary provision that supplements this cover. The 3rd pillar is divided into two parts: Pillar 3a (tied pension provision): this allows retirement savings to be built up with tax advantages. Contributions are tax-deductible, but access to the funds is restricted until retirement, except in certain cases such as buying property or leaving Switzerland. This pillar offers various products: savings accounts, investment funds, or insurance policies. Pillar 3b (unrestricted pension provision): this offers more flexibility without tax advantages. Products include life insurance, property investments, etc., and the savings can be withdrawn at any time. The 3rd pillar is essential to supplement the benefits of the 1st and 2nd pillars and to maintain the standard of living in retirement.
Planning Market & practice
Planning consists of chronologically organising the stages of a project, defining the means and resources required. It makes it possible to structure and coordinate actions in order to ensure the smooth running and success of the structure.
Pledge (gage) Financing
A pledge is an asset or item of value handed over by a debtor to a creditor as security for a debt. The creditor keeps this asset until the debt is repaid. If the debtor fails to repay in time, the creditor may sell the asset to recover the sum owed.
Pledge of securities (nantissement) Financing
Pledging of an asset or holding (e.g. 2nd pillar) as security for a loan. The bank may enforce this pledge in the event of default, without releasing the savings placed as security.
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Plot Market & practice
A plot is a land unit defined by a single cadastral nature, corresponding to a portion of land over which ownership or usufruct rights are exercised. It may designate bare land, a house or any other type of property belonging to a natural or legal person. In short, a plot represents a piece of land identified as individual property within the land registry.
Plot number Market & practice
Identifier of a plot of land belonging to the same owner within a commune. Used to locate and officially identify the plot in the land registry and cadastral plans.
Power of attorney Legal
A power of attorney is an official document by which a co-owner authorises another person to represent them at a general meeting. The agent then acts on their behalf and may take part in decisions, even in the co-owner's absence.
PPE — Co-ownership by floors Legal
Form of ownership in which each co-owner holds a share of the building and has exclusive use of certain premises (flat, cellar, parking space).
PPE administrator Legal
The PPE administrator is the natural or legal person elected by the assembly of co-owners to handle the technical, financial and administrative management of the building. They ensure compliance with the Administration and Use Regulations (RAU), the laws in force and the decisions taken at assembly meetings. They may be a co-owner or an appointed third party. In the case of a new PPE, the administrator is often chosen by the developer or builder. Their role also includes advising co-owners, so as to ensure good organisation and the proper execution of day-to-day management tasks.
PPE unit Legal
PPE unit in a co-owned building, giving a share (quote-part) of the common areas and an exclusive right of use over the private areas (e.g. a flat).
Precise Valuation Market & practice
Professional valuation based on expertise in the Geneva market
Preliminary application Legal
A preliminary application is a document submitted to the Building Permits Office (OAC) in order to obtain an opinion on certain elements of a property project, such as the location of the building, its use, its dimensions and the access routes.
Preliminary contract Legal
A preliminary contract is a unilateral commitment by the seller of a property to reserve that property for a prospective buyer. It may cover all or part of the property. However, this commitment binds only the seller: the buyer remains free to decide whether or not to proceed with the acquisition of the property reserved for them.
Preliminary design Planning & construction
The preliminary design of a property project in Switzerland is a crucial stage that determines the viability and direction of a construction or renovation project. It includes: Feasibility study: Analysis of technical, regulatory and financial constraints to ensure the success of the project. Sketches and plans: Visualisation of ideas and communication between stakeholders to guide development. Collaboration: Interaction between the project manager (maître d'œuvre, architect) and the client (maître d'ouvrage) to combine feasibility with vision. Regulatory compliance: Compliance with standards to obtain the necessary permits and ensure the safety and sustainability of the project. Planning and budget: Precise cost assessment and risk management to avoid overruns and delays. Used for new construction or renovations, the preliminary design lays the technical, financial and creative foundations while ensuring compliance and sustainability.
Preliminary design plan Planning & construction
A preliminary design plan is a preliminary sketch that gives a general idea of the appearance, size, massing and design of a building before its construction or renovation. Used during the early stages of the project, it is used to obtain an estimate and may also be submitted to the authorities for approval before works begin.
Preliminary sale agreement Legal
A preliminary sale agreement is a contract between a buyer and a seller which formalises their agreement on the sale of a property. It sets out their respective obligations and includes suspensive conditions, such as obtaining a loan or the resale of another property, which are necessary for the sale to be completed.
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Price ceiling Market & practice
Maximum amount set by the State for a good or service in order to protect consumers (e.g. the maximum rent that may be charged). Aims to prevent abuse and guarantee affordability.
Price per cubic metre Planning & construction
Indicator obtained by dividing the value of a building by its built volume. Allows the cost per cubic metre of space to be assessed. The price of the land, servicing costs and other land-related charges are calculated separately.
Principal Legal
Person who grants power of attorney to an agent to act on their behalf. The delegation is set out in a contract.
Private areas Market & practice
Private areas designate all the spaces of a building held in co-ownership that are reserved for the exclusive use of a single co-owner. Unlike common areas, these spaces are accessible only to the co-owner concerned.
Private law Legal
Private law governs relations between individuals, whether natural or legal persons. It applies in particular to areas such as marriage, divorce, contracts, and property. For example, contracts for the purchase or sale of property are governed by private law, often referred to as "property law". This law includes branches such as civil, social, business, or rural law, and fulfils two functions: a supplementary function, when it completes agreements between parties, and a corrective function, when it imposes mandatory rules.
Private residence Legal
A private residence is a property, whether rented or owned by an individual, which they use as their main and habitual residence.
Progressive mortgage Financing
A progressive mortgage is a property loan in which the monthly instalments increase progressively over time. This type of loan is ideal for buyers whose income is lower than that required for a traditional mortgage loan, thus offering a more accessible solution.
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Prohibition period Legal
A temporary measure preventing the sale or termination of a property, generally lasting 3 years, which may be extended in the event of a dispute. It is often applied when there is a change of owner, in order to protect tenants' rights.
Project manager (maître d'œuvre) Market & practice
Person/entity appointed by the client (maître d'ouvrage) to design/coordinate/oversee the execution of the works (often the architect).
Project plans Planning & construction
Project plans are scaled technical documents (1:100 or 1:200) illustrating all levels of a building, including the basement, the roof and the facades. They are used as part of a building permit application and made public during the legal publication procedure. Their purpose is to ensure the transparency and compliance of the project before the permit is granted.
Promise to sell Market & practice
A promise to sell is a preliminary agreement between a seller and a buyer, whereby the seller undertakes to transfer a property subject to the conditions being agreed. It is often used when the final price cannot yet be set.
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Property asset management Market & practice
Property asset management consists of optimising the management of a property throughout its life cycle, whether residential or commercial. It includes management, marketing, letting, as well as the development of construction projects, renovations, and the management of commercial, technical and infrastructural aspects.
Property charges Financing
Property charges refer to the costs linked to the use of a property, including day-to-day operating expenses, maintenance, amortisation and interest on borrowed capital. Property tax may also be included in these charges. Depending on the terms of the lease agreement, the owner may, in part, pass on certain financial charges to the tenant.
Property council Legal
The property council is an optional body within a PPE (co-ownership by floors) which represents the co-owners. Its role is to advise and assist the PPE administrator in the management of the property. It is elected at the general meeting of co-owners.
Property dealer Planning & construction
Investor who buys, improves and then resells properties to generate a capital gain. Holds the property temporarily (unlike the estate agent). Key activities: sourcing, renovation/restructuring, resale. An occupation exposed to market and tax risks, but potentially lucrative.
Property developer Market & practice
A property developer is a person, whether an individual or a legal entity, who takes charge of the construction of buildings with a view to subsequently operating them, whether by sale or letting. It is a key player in the property sector. Its main roles include: 1. Obtaining the financing and loans necessary for the project. 2. Assuming the risks associated with construction. 3. Selecting the architects, the project manager (maître d'œuvre), and the necessary service providers. 4. Supervising construction and managing the site. 5. Depending on the project, proceeding with the sale or letting of the properties. A property developer is not limited to residential dwellings alone. They may also develop office, retail, or even industrial premises projects. They manage the entire project, from design to handover, ensuring that each stage runs correctly.
Property development Market & practice
Property development is the activity of designing and building new housing units intended for sale or letting. It may involve the construction of a detached house, a housing estate, or an entire building. The aim is to meet property market demand by creating new residential spaces.
Property expert appraisal Planning & construction
Professional assessment of the value of a property by a certified expert. Compulsory for certain transactions and mortgage financing.
Property lien (gage immobilier) Financing
A property lien (gage immobilier) is a limited real right that secures a debt by encumbering a property. If the debtor fails to meet their obligations, the creditor may sell the property to recover their claim. This mechanism is formalised by a pledge agreement, generally recorded in the land registry, and it may take the form of a mortgage note (cédule hypothécaire), a document detailing the claim and the pledged property. A property lien offers several advantages, notably security for the creditor and more favourable financial terms for the borrower, such as a reduced interest rate and the possibility of deducting mortgage interest. However, the creditor does not acquire ownership of the property, but has a priority right in the event of a forced sale. The property lien is governed by the Civil Code (CC), which requires the deed to be authenticated and registered. A typical example of its application is a property loan, where a lien is placed on the purchased property to secure repayment. In the event of non-payment, the creditor may sell the property to obtain repayment. An alternative to the property lien is the antichresis, whereby the creditor takes direct possession of the building to secure the debt. Precautions to be taken include a good understanding of the law, choosing a competent creditor, and assessing the value of the pledged property to avoid the risk of a forced sale.
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Property management (gérance) Market & practice
A building management company (gérance d'immeuble) is a company appointed by the owner of a rental property to manage its operation. It handles various tasks, such as supervising the caretaker, collecting rents, managing relations with tenants and maintaining the building.
Property market Market & practice
The totality of transactions (purchase, sale, letting) of properties. Influenced by supply/demand, the economy, demographics, public policy and financing conditions.
Property (ownership) Legal
Personal possession of an asset recorded in the land registry. It confers the right to use, modify, sell, let or transfer it. In Switzerland, three forms exist: exclusive ownership, co-ownership and joint ownership, each recorded in the land registry.
Property portfolio Market & practice
A property portfolio is a structured set of properties held by an investor or an organisation, with the aim of tracking and optimally managing their investments. Generally, it is investors who build up their portfolio in order to have a precise overview of their assets. Management of this portfolio is often entrusted to specialised firms that ensure regular updating of the information relating to the properties. However, many owners prefer to handle it themselves. Furthermore, an increasing number of public institutions are creating portfolios to manage their own properties.
Property portfolio management Planning & construction
Property portfolio management consists of ensuring the proper functioning and long-term viability of a property. This includes planning and carrying out investments or renovations to anticipate future needs. Careful management helps to maintain, or even increase, the value of the property.
Property refinancing Financing
Refinancing consists of replacing an existing mortgage loan with a new one, often with a view to obtaining better terms (lower interest rate, altered term, reduced instalments, accelerated repayment). Unlike renegotiation, which changes the terms with the current lender, refinancing involves a new loan, often with another institution. It requires the valuation of the property, the analysis of repayment capacity, the selection of the terms of the new loan and the closing of the old one.
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Property stock Market & practice
The property stock offers diversified investment opportunities, ranging from the ownership of residences to income-producing properties. Effective management relies on regular maintenance, sound management of tenant relations and adaptation to market developments. Understanding local legislation is essential in order to optimise returns while complying with legal obligations.
Property transfer Tax
Transfer of ownership of a property; may give rise to transfer duty calculated on the value of the property (often borne by the purchaser depending on the canton).
Property valuation Planning & construction
Property valuation consists in assessing the market value of a property in order to determine its sale price. It is carried out by professionals such as Estate agents or property valuation experts, based on criteria such as location, the condition of the property, its features and market trends. It can be carried out in several ways: by oneself, using free online tools, by an Estate agent or a certified expert who uses advanced valuation methods. This valuation is crucial for setting a realistic price when selling, for tax purposes or in order to obtain a mortgage loan. The main factors influencing the valuation are location, the condition of the property, its features (such as a view or a swimming pool), and market trends. Online tools make it possible to obtain a free approximate estimate before consulting a professional. It is essential to update the valuation regularly to remain competitive on the market and to call on an expert to avoid common mistakes.
Property valuation models Market & practice
Main approaches: income value, real/intrinsic value, discounted cash flow (DCF). Choice depends on the type of property and the objective.
Property valuer Planning & construction
A property valuer is an online tool used to estimate the value of a property in Switzerland. It relies on data and algorithms to provide an approximate estimate of a property's price, taking into account factors such as location, floor area, number of rooms and the prices of comparable properties in the region. Although quick, free and accessible, this tool does not replace a professional valuation. The estimates obtained should be regarded as general indications. Online property valuers are useful for owners, buyers and investors, as they make it possible to compare several properties and quickly assess their attractiveness. However, they cannot take into account all the specific features of a property and results may vary depending on the quality of the data used. The LAMAP tool, for example, uses advanced statistical models and databases to provide a reliable estimate in under three minutes. In short, a property valuer is a convenient way of obtaining an initial estimate, but for a precise valuation, it is recommended to consult a property valuation expert.
PropTech Market & practice
Over the past decade, property, a sector long perceived as resistant to change, has undergone unprecedented transformations. Behind this evolution: Proptech, or property technology. This phenomenon, which merges digital technology and property, has given rise to numerous start-ups and companies that are reinventing the processes of buying, selling, letting and managing properties. What is Proptech? The term "Proptech" was born from the contraction of "property" and "technology". This digital revolution aims to simplify and improve every aspect of the property sector, from the search for a property to the signing of the contract. Its aim: to make property more fluid, transparent and accessible by better meeting consumer expectations. Origins and evolution The history of Proptech begins with the emergence of the Internet in the 1990s and the advent of smartphones and advances in artificial intelligence (AI). These innovations paved the way for a questioning of traditional property models, giving rise to technological solutions that are transforming the sector. Proptech vs Fintech Just as Fintech revolutionises the financial sector with digital solutions, Proptech does the same for property. Although these two fields share a common desire for automation and optimisation, Proptech is concerned with buildings, land and property transactions, whereas Fintech focuses on financial and monetary aspects. How Proptech works Proptech redefines every stage of the property journey, from search to management, by introducing innovative digital solutions. These technologies go well beyond simple property search platforms: they modernise the entire sector. Fields of application Proptech is involved in various aspects of property, ranging from the search for a property with online valuation tools such as LAMAP, to virtual reality viewings, through to automated letting management and digital contract signing. Innovations such as the use of blockchain for secure transactions or data analysis to predict market trends demonstrate the full potential of this sector. Advantages: - Transparency: Proptech provides easy access to information, facilitating decision-making for buyers and sellers. - Efficiency: The automation of processes makes transactions faster and less complex. - Accessibility: Online platforms open up access to the property market, even for novices. Challenges: - Regulation: Technological innovations often have to adapt to existing legal frameworks, which are sometimes outdated. - Security: Digitalisation raises questions of cybersecurity and data protection. - Adoption: The transition to technology is sometimes slow for traditional players in the sector. The Proptech ecosystem in Switzerland Although relatively recent, the Swiss Proptech ecosystem stands out for its dynamism and its potential for innovation. The country's political stability and technological excellence make it fertile ground for the emergence of new property solutions. Influential start-up: LAMAP, a Swiss company specialising in online property valuation, perfectly illustrates this revolution by offering precise valuations and tools enabling owners to better understand the value of their property. Current trends in Switzerland: - Total digitalisation - Sustainability - Artificial intelligence - Blockchain Conclusion Proptech is a genuine revolution in property, transforming a traditionally complex sector into a simpler and more transparent experience. In Switzerland, start-ups such as LAMAP are paving the way towards a future in which technology and property will become one.
Public enquiry (planning application) Planning & construction
Permit procedure for impactful projects: official publication (public noticeboard/Official Gazette (Feuille d'Avis Officielle, FAO)/cantonal websites) and possibility of objections by third parties.
Public law Legal
Public law governs relations between private persons (individuals and companies) and public institutions (the state, public bodies, administrations). It regulates the functioning of public institutions and their interactions. The main areas of public law are constitutional law, administrative law and international law, but it also covers criminal, tax and ecclesiastical law. In Switzerland, it may also intervene in certain aspects of private law, such as family law or tenancy law. In real estate, public law applies in particular to town planning and land-use planning, through laws such as the Federal Act on Land-use Planning (LAT).
Public-utility housing (LUP) Planning & construction
Housing with moderate/affordable rents supported by the State or the canton (sheltered housing, student housing, cantonal financing). Allocation according to criteria (income, household composition, etc.). Aims for accessibility and social cohesion.
Purchasing power guarantee in case of inflation Financing
The purchasing power guarantee in case of inflation protects the funds invested in a property. In the event of inflation, an owner may adjust the rent, but the increase may not exceed 40% of the inflation observed in consumer prices since the last rent review, pursuant to article 16 of the VMWG.
Q2 terms
Quantity surveys Market & practice
Detailed measurements of the elements of a building for planning or renovation purposes; recorded on plans (paper/digital).
Quick Sale Market & practice
Optimised marketing strategy for an efficient transaction
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R42 terms
Raised floor (plancher technique) Planning & construction
A raised floor (plancher technique) is an elevated floor covering, resting on pedestals, which creates a space between the floor and the slab of a building. This space is used to route cables, pipework or other technical installations, while making it easier to maintain and access the systems located beneath the floor.
Rating Planning & construction
A rating is a number shown on a technical drawing or a plan, indicating the dimension of an object. This number is linked to a scale, which may be in millimetres, centimetres or metres, as required. Ratings make it possible to know the actual dimension of the object represented, regardless of its size on the plan.
RAU (Administration and Use Regulations) Legal
The RAU is a legal document that governs the management and use of a building held in co-ownership. It sets out the rules for the use of common and private areas, the conduct of co-owners, the hours of use, and the calling of general meetings. Its aim is to ensure harmonious management, to prevent conflicts, to preserve order and tranquillity, and to see to the maintenance of common property. The RAU also sets out the rights (e.g. use of common areas, voting rights), the duties (payment of charges, compliance with the rules), as well as the possible penalties in the event of non-compliance.
Real right Legal
Real right refers to the right that an owner holds over an asset, whether movable or immovable. It defines the relationship between persons and their assets. Falling under private law, it is regulated in Switzerland by the fourth book of the Civil Code (CC), which deals with ownership, possession, the land registry, as well as limited real rights such as property liens (gage immobilier) and liens on movable property, land charges and easements. Like the law of obligations, it governs patrimonial rights.
Real value method Market & practice
Value = land value + construction value (replacement cost – depreciation), adjusted by market factors.
Reference date Planning & construction
The reference date is the moment at which the valuation of a property must be carried out. It is on this date that the quality of the land and the market conditions are determined. It should be noted that market conditions differ between residential and commercial property.
Reference mortgage rate Financing
Reference interest rate set by the Federal Housing Office, used to calculate rents and their adjustments in Switzerland.
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Registered mortgage note (cédule hypothécaire nominative) Financing
A registered mortgage note (cédule hypothécaire nominative) is an official document registered with the land registry and drawn up in the name of a specific person. Unlike the bearer mortgage note, it is not transferable. Although it is a key element of mortgage procedures in Switzerland, its use is declining over time. Currently, each mortgage in Switzerland is associated with a mortgage note as part of the standard procedures with financial institutions.
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Registered partnership Legal
A registered partnership is a legal union between two people of the same sex, distinct from marriage and governed by a federal law since 2007. Registered partners are subject to the separation-of-property regime, unless otherwise stipulated in a notarial deed. Property acquired belongs exclusively to the person who purchases it.
Registration duties Tax
Registration duties are a tax applied to civil or judicial transactions that must or may be registered, such as declarations, assignments, or transfers. For example, when a mortgage note (cédule hypothécaire) is created, these duties (also known as transfer duty) amount to 1.365% of the amount of the mortgage note. They are collected by the notary and paid to the state.
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Reinvestment Financing
Reinvestment consists of using the profits generated by a company or an investor to finance new projects instead of distributing dividends. It may concern the acquisition or replacement of assets, modernisation, or the development of new infrastructure. In property, it involves buying, improving or modernising properties in order to increase their value and profitability, sometimes with tax advantages. Reinvestment supports long-term growth but also carries risks linked to markets, financing costs and regulations.
Reinvestment (remploi) Market & practice
Reinvestment (remploi) is a concept used in the property sector, referring to the reallocation of an asset or of resources. This may take the form of the sale of a property followed by its repurchase within a relatively short period. It is also used to describe the reallocation of the taxable profit arising from a property sale when it is reinvested in the purchase of a new property. This operation allows for a deferral of the tax on real estate gains, since the profit is reallocated and does not give rise to immediate taxation.
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Remaining useful life Planning & construction
The remaining useful life of a property is estimated by subtracting its current age from its usual total useful life. However, factors such as actual wear and tear may influence this estimate. This residual period is also used to calculate depreciation linked to the age of the building.
Renovation Market & practice
A renovation or restoration of a property becomes essential over time, as daily wear and tear and weather conditions eventually leave visible marks. This process helps preserve the integrity of the building and strengthen its market value. Renovation may concern certain parts of the building or the whole of it and is often essential to attract buyers or tenants.
Renovation fund Financing
A renovation fund is savings set up by the owners of a PPE (Co-ownership by floors) to finance maintenance or repair work on the common areas. It is a collective provision that is not compulsory, but is decided by the general meeting of the co-owners.
Rent Legal
Periodic amount paid by the tenant for the use of a property. Generally does not include service charges, which are distinct from net rent.
Rental building Planning & construction
A rental building is a building comprising spaces available for letting for various uses, such as offices, shops or dwellings.
Rental income Tax
Rental income refers to the amounts received by an owner in exchange for letting a property, whether it be a flat, a house, commercial premises or offices. Gross rental income corresponds to the total amount received (rent + service charges – arrears), while net rental income is calculated after deducting mortgage interest, management fees, maintenance and local taxes. Managing rental income involves optimising rents, selecting tenants, reducing operating costs and implementing strategies to avoid arrears or vacancy. In Switzerland, rental income is taxable, but certain costs such as mortgage interest or maintenance costs are deductible.
Rent-controlled Housing (HLM) Legal
HLM (Rent-controlled Housing) are dwellings subsidised by the State for 20 years, aimed at offering affordable rent to people with modest incomes.
Repair Market & practice
A repair refers to all actions aimed at maintaining or restoring a dwelling. In principle, these are the responsibility of the owner. However, 'minor repairs' or 'minor maintenance' fall to the tenant, provided they can be carried out without particular technical skills or significant effort. This includes, for example, greasing hinges, tightening screws or replacing a faulty shower hose.
Repayment capacity Financing
Replacement tenant Legal
A person who takes over an existing lease when the tenant wishes to leave before its expiry. Must generally satisfy the financial requirements set by the administration or the landlord.
Reservation agreement Legal
A reservation agreement is an agreement between an owner and a buyer for the sale of a property. This preliminary contract, which is not binding, sets out the terms of the future sale, which will be formalised in a notarial deed, the only form valid in Switzerland. It is often used in off-plan sales to protect the buyer, who generally pays a deposit. This deposit may be held either directly by the seller, or in a blocked account, which allows the buyer to recover it should the sale fall through. If the deposit is held by the seller and the sale does not go ahead, costs may be withheld by the latter to cover the expenses incurred.
Residual value method Market & practice
Deducts the value of the land or of a project from the future income value less costs (construction, expenses, margin). Useful for building land and projects to be developed.
Resolutive condition Legal
The resolutive condition is a contractual clause which provides for the automatic termination of a contract when specific, clearly defined conditions are met. It provides legal certainty by governing the end of a contract without recourse to the courts, while avoiding potential disputes thanks to its precision. Application in property: In the property field, this clause is used to automatically terminate a contract, such as a lease agreement, in the event of specific occurrences (e.g. sale of the leased dwelling). Difference from the suspensive condition: Suspensive condition: the contract only takes effect if a condition is fulfilled (e.g. obtaining a loan). Resolutive condition: the contract is in force, but its termination occurs if a condition is fulfilled (e.g. sale of the property leading to the end of the lease). Key points: it protects the parties against unforeseen events. It provides clear outcomes to avoid disputes. It must be drafted precisely in order to comply with legal frameworks and avoid ambiguity. In property, it affects the term of a lease, rendering it indefinite until the triggering event. In summary, the resolutive condition is an effective preventive tool for managing changes that may affect a contract, particularly in the property sector.
Retirement plan Market & practice
A retirement plan is a strategy for financially preparing for the period following one's working life. It consists in assessing the amount of income that the accumulated capital (savings, pension provision) can generate and in identifying any gaps between the projected level and the level actually required to maintain one's standard of living. Where a gap exists, adjustment measures may be put in place before retirement. For certain people (low mortgage debt, property in good condition), a solution such as an Immo-Rente may be relevant in order to convert part of the property value into retirement income.
Return of a rental property Market & practice
The deadline for the return of a rental property generally depends on the letting period and the arrangements agreed between the tenant and the landlord. As a general rule, a dwelling is handed back on the last day of the letting, often during office hours. In Switzerland, it is common for the return to take place the day after the end of the letting. If this day falls on a Sunday or public holiday, the deadline is extended to the next working day. In all cases, the precise date of return is negotiated directly with the landlord.
Return on equity Market & practice
Profit generated by a property relative to its annual purchase price, often in the form of rental income. Its objective is for the property to be self-financing through rents, or even to generate a surplus after repayment. A negative yield suggests giving up the purchase or negotiating a lower price.
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Reverse calculation Financing
The reverse calculation method is used to determine the value of a plot of land based on the investment required to develop it. It compares the investment costs with the potential proceeds from future sale or letting. This approach is mainly used for investment properties, such as residential or commercial buildings intended for letting, in order to estimate the value of the land based on the expected yield.
Right of habitation (droit d'habitation) Legal
Right of habitation (droit d'habitation) is a real property right that allows its beneficiary to reside in a property without being its owner. This right is generally granted for personal reasons, such as within the context of an inheritance or estate planning. Unlike usufruct, it is limited to the personal use of the property and does not allow it to be let or to generate income. It is established by notarial deed and generally ends upon the death of the beneficiary, although exceptions may be provided for. The beneficiary must maintain the property and bear minor repairs, while major charges, such as property taxes, remain the responsibility of the owner. This right is commonly used in estate planning to provide secure housing for a surviving spouse or other family members, while allowing the transmission of ownership. It also makes it possible to anticipate property transfers within blended families or remarriages.
Right of pre-emption Legal
Right of pre-emption allows a person to hold a priority right to purchase a property put up for sale. The seller must inform this person before selling to another party. If the buyer is interested, they have three months to make an offer to purchase, in accordance with the price and conditions set out in a pre-emption agreement. This right may be legal or contractual, and if registered with the land registry, it may last for up to 25 years.
Right of redemption (droit de réméré) Legal
Right of redemption (droit de réméré) in Switzerland allows a property owner to sell their property while retaining the possibility of buying it back later at a price fixed in advance. This sale with an option to repurchase is used for financial, tax or estate planning reasons. It provides immediate cash flow while leaving the door open to a possible repurchase, useful in particular to avoid seizure. However, this approach is more complex than a traditional sale, requiring a specific contract registered with the authorities. Uncertainties in the property market may make the repurchase difficult or costly, and the possibility of a repurchase may deter potential buyers, thereby reducing interest in the property. In Switzerland, this right is entered in the land registry for a maximum period of 25 years.
Right of reversion Legal
Right of reversion allows an owner to grant another person the right to build on their land for a limited period. Once this period has elapsed, the property reverts entirely to the original owner, which is known as reversion. The holder of this right may sometimes receive a reversion fee, but the terms are defined in each contract.
Right of use (droit d'usage) Legal
Right of use (droit d'usage) in Switzerland allows a person to enjoy a property without being its owner. This right is generally limited to personal use, without the possibility of selling, gifting or letting the property. It may concern both immovable and movable property, such as a flat or a vehicle, and is often temporary. The right of use may be formalised by an easement, a limited real right, which specifies the conditions of use and may be applied over the long term, particularly in co-ownership schemes. Within PPE schemes, arrangements may be made to grant an exclusive right of use over certain common areas, such as a garden or a parking space. Such arrangements must be drafted clearly to avoid disputes, specifying maintenance obligations and conditions of use.
Right of withdrawal (droit de repentir) Legal
Right of withdrawal (droit de repentir) allows a buyer to withdraw after signing a deed of sale for a property, within a period of 10 days (30 days if the sale is conducted through an agency). This right is reserved for private individuals and does not apply to professionals. The buyer may cancel the sale without having to justify their decision.
Right to use vacant parking spaces Financing
Right to use vacant parking spaces allows a loan to move up a rank in the order of repayment when a loan with a higher rank is repaid. For example, at the auction of a property, creditors are repaid according to a predetermined order. If a loan (loan 1) is repaid, the next loan (loan 2) takes its place and now occupies the position of rank 1.
Risk premium Market & practice
The risk premium is compensation (or remuneration) linked to the assumption of risk. In the context of a loan or a mortgage, it serves to cover unforeseen events (e.g. loss of the property). Its amount is tailored to the profile of the owner and the property. In the event of financial difficulties, it helps to prevent the loss of the mortgaged property.
Roll-over mortgage Financing
A roll-over mortgage in Switzerland is a type of mortgage based on the money-market SARON rate, with no fixed term. This allows the borrower to repay their debt more quickly, with a transparent interest charge, adjusted each period according to the prevailing SARON rate. It is often possible to combine this mortgage with a fixed-rate mortgage.
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Romand framework contract Legal
The Romand framework contract, also known as the framework contract for lease agreements, is an agreement signed between landlords' and tenants' associations, regulating the terms of lease agreements in French-speaking Switzerland. This contract, made binding by federal law, was designed to balance the rights and obligations of the parties. Since 30 June 2020, its binding force has come to an end, but it continues to influence lease relationships under certain conditions. Leases concluded before that date remain governed by the framework contract. For new leases, the Romand framework contract may be incorporated on an optional basis, provided that its clauses supplement Swiss legislation without contradicting it. Landlords and tenants may still choose to include elements of the framework contract in their lease agreements, while ensuring compliance with the Swiss Code of Obligations.
Room allocation schedule Legal
A room allocation schedule is an official document of a PPE — Co-ownership by floors which represents the common areas and units of the property. It details the elements of the building, the co-ownership shares and floor areas, the allocation of premises and the location of the building (including the plot number). Drawn up by an official surveyor, it is submitted to the land registry (cadastre) and to the Land Registry.
Rousseau 5 Market & practice
Rousseau 5 – Prestige Estate Agency in Geneva and the Left Bank. For over 12 years, Rousseau 5 has been the undisputed reference in high-end property in Geneva, specialising in the sale, purchase and exclusive marketing of villas, flats and prestige properties. With more than 100 successful sales and 20 new-build projects marketed, our agency has built a reputation for excellence, particularly in the most prestigious districts of the Left Bank. Our districts of excellence: Cologny – The elite of Geneva property: Perched above Lake Geneva, Cologny offers contemporary villas and exceptional properties with panoramic views over the lake and the Alps. Champel – Residential elegance and urban proximity: A high-end residential district, Champel is appealing for its spacious flats in prestigious residences. Eaux-Vives – Luxury on the lakeshore: Renowned for its exceptional properties just steps from Lake Geneva. Florissant & Malagnou – Prestige and greenery: These residential districts offer light-filled flats and elegant houses within a green environment. Vandoeuvres & Chêne-Bougeries – Exceptional villas and gardens: Sought after for their tranquillity and vast properties with gardens and swimming pools. Why Rousseau 5 dominates the Left Bank: Precise property valuation based on micro-local knowledge, Premium marketing with luxury home staging, HDR photography, drone, 3D virtual tours, International network of qualified buyers and investors, Discretion and confidentiality in every transaction. With Rousseau 5, every property project becomes a successful high-end experience, combining local expertise, innovation and human relationship. 🏡 Would you like to know the value of your property? Benefit from a free, professional valuation of your property by our experts. Click here for your free valuation
Rural land law Legal
Rural land law in Switzerland concerns the specific rules governing ownership of agricultural land in rural areas. The Federal Act on Rural Land Law (LDFR) aims to promote the ownership of land in these areas, to strengthen the position of farmers when acquiring farms or agricultural land, and to combat rising prices of agricultural land.
S44 terms
Sale file Market & practice
The sale file is a set of essential documents used to facilitate a property transaction in Switzerland. It contains key information to inform and promote a property, and plays a crucial role in prospective buyers' purchasing decisions. A well-prepared and complete file highlights the strengths of the property (size, condition, fittings) and serves as a basis for negotiations. It comprises two main parts: the promotional part (quality photographs, detailed description, plans of the property) and the administrative part (land registry extract, energy certificate, financial documents, inspection reports). An effective file attracts buyers' attention, facilitates obtaining a mortgage loan, and can speed up the sale. It is important to keep the file up to date, especially in the event of renovations or alterations to the property. In short, a well-organised and detailed sale file strengthens the seller's credibility and helps buyers make an informed decision.
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Sale price Legal
Amount requested by the seller, set according to location, floor area, the condition of the property, its surroundings and the market. May differ from the market value. Good preparation, comparison with similar properties and a serious valuation help negotiate effectively.
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Sale process Legal
The process of selling a property takes place in several key stages. First, there is the valuation of the property to determine its market value. Next comes the marketing phase, including putting the property up for sale and organising viewings for potential buyers. After these viewings, negotiations may take place, both with interested buyers and with the final buyer. Finally, the sale is finalised by the signing of the authentic deed at the notary's office, thereby formalising the transfer of ownership. To sell, value or appraise any type of property on Geneva's Left Bank with tailor-made support, call on the expertise of Rousseau5.ch. Would you like to sell a villa or a prestige flat on Geneva's Left Bank? Rousseau 5, an agency specialising in high-end real estate, supports you in valuing, showcasing and selling your property under the best conditions. Our thorough knowledge of the local market and our international network enable us to target serious, qualified buyers in order to maximise the sale price. We operate in all the prestigious communes of the Left Bank: Cologny, Collonge-Bellerive, Vandoeuvres, Chêne-Bougeries, Chêne-Bourg, Meinier, Anières and Gy, as well as in the exclusive neighbourhoods of the city of Geneva. Each mandate benefits from a precise property valuation, professional showcasing (photos, videos, virtual home staging) and a targeted marketing strategy to reach local and international buyers. Trust Rousseau 5 to sell your prestige property on Geneva's Left Bank quickly and at the best price. Contact us today for a free and confidential valuation of your property.
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SARON Financing
An acronym for "Swiss Average Rate Over Night", SARON is the reference rate of the Swiss money market, mainly used for variable-rate mortgages. It is based on actual transactions on the Swiss repo market and has replaced LIBOR since 2009. Calculated daily and published by SIX Swiss Exchange, it reflects interbank rates applied in Switzerland. More reliable and transparent than LIBOR, it serves as the basis for calculating mortgage rates, to which banks add a margin depending on the borrower's creditworthiness.
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Scale drawing Planning & construction
A scale drawing is a drawing that represents a reality (such as a house, a plot or a building) at a reduced or enlarged size according to a precise ratio. This ratio makes it possible to obtain consistent and proportional dimensions, rendering the drawing understandable and usable by all parties involved in a building site.
Search mandate Market & practice
Contract by which a buyer instructs an agent to find a property according to defined criteria. Obligation of means; fees and costs specified.
Second home Market & practice
A second home refers to a property used on a non-permanent basis as a place of residence. It may be bought or rented, irrespective of the location of the main residence (in Switzerland or abroad). Buildings used for professional, educational or tourist purposes are not considered second homes. In Switzerland, most communes also impose a specific tax on second homes.
Second Homes Act Market & practice
Since 2016, prohibits the construction of second homes in communes where they exceed 20% of the housing stock. Aims to ensure a sustainable resident population in tourist areas.
Secondary market (property) Market & practice
Resale of existing properties between successive owners; provides an investment exit before term.
Second-rank mortgage Financing
A second-rank mortgage corresponds to the portion of the mortgage loan that must be repaid in full by the borrower, either before retirement or within a period of 15 years. It generally represents 13 to 15% of the value of the property.
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Semi-detached house Market & practice
Two adjoining dwellings sharing a wall/garage; sometimes horizontal PPE. Advantages: energy/cost savings. Disadvantages: nuisance/proximity, smaller gardens.
Service charge call Financing
A service charge call is a request for payment sent by the manager or the managing agent to the co-owners to cover the co-ownership's expenses. It may involve routine costs (planned over a defined period) or exceptional expenses (for example, unforeseen works).
Service charges Financing
Service charges correspond to the additional costs that an owner or landlord may ask a tenant to pay on top of the rent. These costs include services such as heating, refuse collection, caretaking, electricity, water and administrative management. They may be charged on a flat-rate basis, but must correspond to the actual charges borne by the landlord. Tenants may pay these costs in advance or after the relevant period. Service charges in Switzerland are additional costs that the tenant must pay on top of the rent, covering services such as heating, hot water, maintenance of common areas, etc. They are divided into individual charges (linked to the tenant's personal consumption) and common charges (concerning shared services). Charges may be recoverable (passed on by the owner) or non-recoverable (such as management or improvement costs). The calculation of charges is strictly regulated by law, and the owner must provide a detailed statement. Tenants have the right to contest incorrect charges and may reduce their costs by optimising their consumption.
Share (quote-part) Legal
A share (quote-part) refers to the portion of a sum that each individual must pay according to their participation in a given project. For example, in the context of the creation of a co-ownership by floors (PPE), each co-owner will have to pay a share corresponding to the part of the property that will be theirs once the project is completed, such as a floor or a flat. This contribution is generally calculated according to the value or the surface area of the property allocated to each co-owner.
Shell construction (gros œuvre) Planning & construction
Shell construction (gros œuvre) refers to the construction phase that ensures the strength and stability of a building. It includes the elements essential to the structure of the building, such as foundations, walls, floors, frameworks, beams, etc. This work guarantees the durability of the construction.
Sheltered flat Planning & construction
A sheltered flat is a home specially fitted out for disabled, frail or reduced-mobility persons. It offers easy access, a secure setting (with an alarm system), as well as social assistance. Communal spaces and various activities (entertainment, events) are offered there, and it may also include health-related and socio-hotel services (housekeeping, meals, etc.). The aim is to preserve residents' independence while ensuring them a suitable and caring environment.
Short-term letting Legal
Furnished lettings for temporary stays (often with services such as cleaning). Much sought after by businessmen/businesswomen, exchange students and tourists; potentially profitable in sought-after areas.
SIA architect / SIA engineer Planning & construction
An SIA architect or SIA engineer is a professional who is a member of the Swiss Society of Engineers and Architects (SIA), a reference organisation in the field of construction and the development of the built environment. The SIA is notably known for drawing up and publishing standards and directives recognised in Switzerland, promoting sustainable, high-quality construction. Membership of the SIA guarantees a commitment to excellence, reliability and the continuous updating of professional knowledge.
SIA contract Legal
An SIA contract is a contractual document used in construction projects in Switzerland to formalise the relationships between the client (maître d'ouvrage) (often the owner of the project) and construction professionals, such as architects and engineers. It is drawn up in accordance with the standards of the Swiss Society of Engineers and Architects (SIA), and is based on the Swiss Code of Obligations. Although it is not a law, it is recognised as an industry standard, guaranteeing quality, safety and efficiency in projects. The contract sets out the rights and responsibilities of the parties, with precise clauses concerning services, deadlines, remuneration and insurance. It includes annexed documents to define the client's expectations and the technical specifications of the project, as well as safety and compliance obligations. The responsibilities of service providers are also specified, as are powers of representation and risk management arrangements. This contract is favoured for its clarity, the guarantee of quality it imposes and the legal protection it offers in the event of a dispute. It makes it possible to structure projects in a transparent and efficient manner, aligning expectations and ensuring risk coverage. The various elements of the contract include detailed project stages, flexible remuneration arrangements and dispute resolution mechanisms.
SIA Norm 416 and 116 Market & practice
SIA Norm 416, introduced in 2003, replaces SIA Norm 116, which had been in force since 1952. Whereas SIA 116 was based on the total volume of buildings to estimate construction costs, SIA 416 focuses on the precise calculation of building surfaces and volumes, offering standardised methods suited to modern requirements. Since 2005, it has become the official reference for property valuations in Switzerland. The standard defines three main categories of surfaces: main surfaces (living rooms, bedrooms), secondary surfaces (cellars, attics), and outdoor surfaces (balconies, terraces). It also includes a clear distinction of volumes, which only take into account fully enclosed spaces (indoor rooms and technical spaces). This standard is crucial to ensuring accurate and uniform property valuations, reducing errors and disputes, and facilitating the planning of new projects or renovations. It also ensures transparency and compliance with Swiss legal and administrative requirements.
SIA standards Market & practice
A set of technical standards drawn up by the Swiss Society of Engineers and Architects to guarantee quality, safety, durability and procedures in construction (new build and renovation). Not legal in nature by themselves, they become binding once incorporated into contracts or referred to by legislation.
SIA (Swiss Society of Engineers and Architects) Legal
A Swiss professional organisation in the construction sector. It harmonises practices and publishes reference standards (e.g. SIA 416 for areas/volumes, SIA 102 for architects' services and fees) in order to raise standards of quality, sustainability and environmental respect in the property sector.
SIAL (Tenant-Shareholders' Real Estate Company) Legal
A particular form of co-ownership by floors (PPE) used in Switzerland: each shareholder holds a flat/floor with an exclusive right over their unit and shares ownership and the charges of the common areas (corridors, staircases, etc.). Shareholders may be occupants or landlords (tenant-shareholders). Management is collective (general meeting, internal regulations) and the sale/purchase of units follows specific procedures (review of minutes, financial statements, regulations).
Simple guarantee Financing
A simple guarantee is a contract whereby a person (the guarantor) undertakes to guarantee payment of the rent in the event of default by the tenant. If the tenant does not pay, the landlord may turn to the guarantor to recover the sums owed, but only after having unsuccessfully attempted to recover the debt from the tenant.
Site cabin unit (attelage de chantier) Planning & construction
A site cabin unit (attelage de chantier), also called a "chevalet de chantier", is a temporary structure made up of bars or posts arranged to visually represent the outline and dimensions of a future building or extension. In addition to making it easier to visualise the project, it serves to inform the public and the authorities that works are about to begin. Depending on the region, it may also be called "construction profiles" or "construction visors".
SITG (Geneva Territorial Information System) Planning & construction
SITG is the official cartographic and geographical data platform of the canton of Geneva. It provides the public and professionals with a comprehensive catalogue of interactive maps, territorial data and up-to-date geospatial information. SITG offers detailed plans including cadastral plots, zoning areas, transport networks, the environment and numerous other layers of information essential for land-use planning. This indispensable tool enables architects, town planners, surveyors and citizens to view and analyse Geneva's territory with precision. → Access SITG - Maps and geographical data
Slope Planning & construction
A slope is a physical quantity that represents the gradient or inclination of a surface, such as a plot of land.
Small-scale construction Planning & construction
A small-scale construction is a free-standing building, detached from any other structure, which complies with size criteria defined by the regulations. It comprises only ancillary spaces, not intended for main activities or for permanent occupation.
Smart Building Planning & construction
A Smart Building refers to a building equipped with advanced digital technologies, generally integrated via intelligent software and interconnected sensors. This includes spaces such as shopping centres, offices or logistics sites, where these systems make it possible to simplify building management while optimising energy costs. Smart buildings also offer high levels of security. For private homes, this approach is called Smart Home, and on a larger scale, it can develop into a Smart City, where all urban infrastructure is interconnected to improve daily life. Brands such as Crestron and Lutron are used in property developments led and sold by Rousseau 5, a luxury estate agency in Geneva, in projects on Route de la Capite. The Evergreen and Nautilus property projects are a perfect example of new, smart and connected buildings.
Spatial planning region Planning & construction
Land-use planning regions are structures formed when a group of neighbouring communes decide to join together in order to coordinate their spatial organisation and foster harmonious development on a scale wider than that of a single commune. Their aim is to create effective links between the communes and the canton. In Switzerland, there are around 130 planning regions, which may be reorganised or dissolved each year according to the needs and projects of territorial development.
Special right of use (droit d'utilisation spéciale) Legal
Special right of use (droit d'utilisation spéciale) allows its holder to use certain common areas of a building, such as the garden, roof terrace or parking, without altering their structure. This right does not affect the ownership of these areas. When selling co-owned flats, such a right can make a property more attractive.
Specifications (CDC) Planning & construction
Specifications (CDC) is an essential document in construction or renovation projects. It defines the expectations of the Client (maître d'ouvrage) with regard to the Project manager (maître d'œuvre), specifying the technical specifications, materials, and regulatory requirements. This document serves as a guide for all parties involved, ensuring transparency, proper organisation and compliance of the project. In the event of non-compliance with the clauses, penalties may be applied. The CDC makes it possible to structure the project by defining the objectives, constraints, and quality criteria. It also serves as a legal reference in the event of a dispute, by setting out the responsibilities and obligations of each party. It facilitates project management by providing a schedule, a projected budget, and performance criteria. The drafting of the CDC must be precise and detailed, often carried out by the architect or the Project manager, in collaboration with the owner and other experts.
Staggered rent Legal
Rent increasing in predefined steps in CHF on fixed dates. Minimum lease term of 3 years; one increase max. per year; new clause possible upon renewal.
Stamp duty Tax
Stamp duty in Switzerland is an indirect tax applied to certain financial transactions and legal documents, including in the property sector. It is notably levied when mortgage notes (cédules hypothécaires) are created, in addition to other costs such as VAT, notarial fees and land registry registration fees. The amount of stamp duty is calculated based on the value of the loan secured by the mortgage. Although this duty represents a fraction of acquisition costs, it can influence the overall property budget. Exemptions may exist for certain transactions, such as those relating to an inheritance or a gift, depending on cantonal legislation. It is important to consult a tax expert to fully understand the tax implications and local particularities.
Steering (pilotage) Market & practice
The steering (pilotage) of a property project refers to the supervision exercised by the client (maître d'ouvrage) throughout its execution. It consists in ensuring proper coordination of all stages, from the planning and programming of the building site through to administrative follow-up, financing management and coordination of service providers (architects, contractors, surveyors, etc.).
Structure Planning & construction
A structure refers to the whole of a building construction, comprising not only its main framework but also all its constituent elements and fittings. It may also be defined as the result of construction or restoration works intended to fulfil a technical or economic function. In this sense, the structure is regarded as the product of the labour of the worker, the contractor or the craftsman, who contribute to its completion.
Subletting (sous-location) Legal
A legal practice in Switzerland allowing a tenant to let all or part of their accommodation to a third party, subject to obtaining the landlord's consent. A written contract must specify the rent, the term, the subtenant's obligations and the conditions for termination. The main tenant remains liable to the landlord (payment of rent, condition of the accommodation). The rent must be in line with the market and a deposit may be required. Certain platforms such as Airbnb are subject to specific local rules.
Subsidised rent Legal
Substantial damage Planning & construction
Superstructure right (droit de superstructure) Legal
Superstructure right (droit de superstructure) allows the owner of a piece of land to build on a neighbouring piece of land, whether above, below or on the ground, while remaining attached to the original property. In exchange, the owner of the land receives compensation, generally financial or in the form of a reciprocal right. This right is governed by article 674 of the Swiss Civil Code.
Supervisory body Legal
The supervisory body in PPE (Co-ownership by floors) plays an essential role in overseeing the finances of the co-ownership. Elected by the General Meeting, it ensures transparent and responsible management of the accounts. This article presents the duties and responsibilities of the supervisory body within PPE schemes. Definition of the supervisory body in PPE The supervisory body, also known as the auditing body, is a key figure in the management of PPE schemes in Switzerland. It may be composed of elected co-owners or an external entity, such as a trustee or an accountant. Its main function is to oversee and validate the financial management of the PPE, ensuring compliance with applicable standards and regulations. Responsibilities of the supervisory body The duties of the supervisory body are varied and crucial to guaranteeing sound management of funds. It: Checks financial movements: it monitors all financial transactions to ensure they are lawful, transparent and properly documented. Analyses balance sheet balances: it verifies the accuracy of financial balances in order to detect any anomaly or possible error. Verifies accounting entries: it reviews accounting documents and supporting evidence to guarantee their accuracy and consistency. Reporting and reading process After carrying out the verification, the body drafts a detailed report of its findings. This report is then presented at the General Meeting of co-owners, where it is read out and discussed. This process allows co-owners to become acquainted with the financial situation of the PPE and to make informed decisions based on the report's conclusions. Key points to remember The supervisory body ensures the transparency of the PPE's finances and guarantees the compliance of the annual accounts. It checks financial movements, balance sheet balances and accounting entries. After its review, it drafts a report which is discussed at the General Meeting of co-owners. This report may influence important financial decisions of the PPE. If irregularities are found, corrective measures must be taken to address them. In summary, the supervisory body is an essential player in the financial management of PPE schemes, guaranteeing compliant and transparent administration of the co-ownership's resources.
Surveyor Planning & construction
A surveyor is a professional who specialises in measuring and delimiting land properties. They produce topographic documents based on surveys, plans and levelling. In Switzerland, access to this profession requires a specific licence. Surveyors' duties fall within the scope of public law.
Suspensive condition Legal
A suspensive condition is an uncertain future element the fulfilment of which is necessary for a contract to produce its full effects, in particular for the obligations provided for to be valid. This condition cannot depend solely on the will of the party who will have to perform an obligation if the condition is fulfilled. Example: if obtaining a building permit is a suspensive condition in a contract for the sale of land, the seller will be bound to sell the land only if the buyer obtains the permit. If it fails, the contract becomes void, and the seller is not obliged to complete the sale. Thus, a suspensive condition is always marked by its uncertainty and its independence from the will of the obligated party.
SVIT Romandie Legal
SVIT Romandie is the French-speaking branch of the Swiss Real Estate Association, active in the cantons of Geneva, Vaud, Valais, Fribourg, Neuchâtel and Jura. It brings together property sector professionals, offers training courses, publishes materials and organises networking events. It also has an arbitration tribunal to resolve disputes outside the traditional courts.
T26 terms
Tax charge certificate Tax
A tax charge certificate is a document that summarises the amounts of maintenance charges for a property that can be deducted for tax purposes. Issued notably by the managing agent in the context of a co-ownership, it helps the owner identify and declare deductible expenses more easily when filing their tax return.
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Tax valuation Tax
The tax valuation of a building in Switzerland, also known as the cadastral valuation, is an assessment carried out by the cantonal tax authorities to determine the taxable value of a property. This valuation takes into account criteria such as location, size, use of the property and local property market conditions. It serves as the basis for calculating various taxes, including property tax and income tax for owner-occupiers. In the canton of Vaud, for example, property tax is calculated by applying a rate to the property's tax valuation. The Imputed rental value, an estimate of the potential rent of an occupied property, is also included in the calculation of the owner's income tax. Changes in the tax valuation have a direct impact on tax charges, which requires careful management of properties. Revisions may be requested in the event of changes in ownership or market conditions, and careful preparation for the tax appraisal helps optimise this valuation.
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Taxable value Tax
Value attributed to a property by the Geneva tax authorities for calculating wealth tax and transfer duty.
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Technical depreciation due to age Planning & construction
Technical depreciation due to age refers to the loss of value of a property owing to wear, ageing or climatic conditions. To offset this loss of value, renovation or remediation works are necessary. When valuing a property, the cost of restoring it to a new condition is assessed. Several factors influence this depreciation, such as the quality of the materials, the construction, the maintenance carried out, the management by residents, and the impact of the environment.
Technical property appraisal Planning & construction
A technical property appraisal is an in-depth assessment of a property, carried out by a qualified professional. It makes it possible to identify anomalies or defects affecting the structure or functioning of a property, which is crucial for ensuring the safety of occupants and for influencing decisions to buy, sell or renovate. It is useful for: Buyers, to detect hidden defects before purchase. Sellers, to enhance the value of a property by proving its good condition. Builders, to ensure compliance with standards. Dispute situations, as evidence of the quality or value of a property. The process includes a detailed inspection, followed by recommendations for rectifying the problems detected, together with cost estimates. Appraisal reports, detailing the defects, proposed solutions and estimated costs, can be used in negotiations, legal disputes, insurance claims or for planning renovations.
Technical standards Planning & construction
Professional rules (e.g. SIA, VSS) setting out requirements for safety, functionality, durability and performance of materials/works. They become mandatory once a law refers to them or once they are incorporated contractually.
Tender process Legal
A tender process is a sales method that enables house sellers to maximise the sale price, particularly in highly sought-after neighbourhoods. Unlike a conventional sale where the property is offered at a fixed price, the auction process allows several potential buyers to submit competing offers. This procedure can result in a sale at a price higher than that initially set. There is no compulsory minimum offer, and if the highest offer does not meet the seller's expectations, the seller may withdraw the property from sale without any legal obligation to complete the transaction.
Term of a mortgage loan Financing
The term of a mortgage loan corresponds to the time between the signing of the contract and the full repayment of the loan. In Switzerland, it generally ranges from 5 to 30 years, or even 35 years in certain cases. This term is set out in the mortgage loan agreement.
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Termination Legal
A termination is the act by which a lease agreement for a property comes to an end, at the initiative of the tenant or the landlord. In Switzerland, the tenant must give written notice within the time limits specified in the contract, unless otherwise agreed. Time limits vary according to canton and type of accommodation. In the event of serious defects, immediate termination without notice is possible. On the landlord's side, termination is possible but must comply with a statutory notice period of at least three months.
Terraced house Market & practice
House sharing one or more party walls. Advantages: optimisation of land and costs; disadvantages: privacy, insulation, natural light.
Thermal transmittance coefficient (U-factor) Planning & construction
The thermal transmittance coefficient, or U-factor, measures the amount of heat passing through a surface (wall, window, roof, etc.) according to the temperature difference between its two sides. It is expressed in W/m²K, where heat is measured in watts, area in m², and temperature in Kelvin. The lower the U-factor value, the more insulating the element, which limits heat loss and therefore reduces energy consumption. The U-factor is used to assess the energy efficiency of buildings, for both buyers and sellers of property. A low U value indicates better insulation, reducing heating costs. For sellers, a low U-factor may increase the value of a property, as energy efficiency is a sought-after criterion. The recommended standards for various elements of a building are: Walls: 0.2 to 0.4 W/(m²K), Roofs: 0.2 to 0.4 W/(m²K), Windows: 1.2 to 2.4 W/(m²K). The U index is essential in Switzerland, where energy efficiency influences heating costs, especially during harsh winters.
Third-party liability insurance Financing
Third-party liability insurance (RC) is a contract that protects a person against the financial consequences of damage that they themselves, their family members or their animals may unintentionally cause to others. Whether such damage results from inattention, carelessness or negligence, third-party liability insurance allows the victim to be compensated for the harm suffered and prevents the insured from having to bear alone the costs linked to their liability.
Timeshare (multipropriété) Market & practice
Several owners share the use of a property over set periods. Acquisition and maintenance costs are shared; annual management fees apply; resale can sometimes be difficult.
To alienate Legal
To alienate a property means to transfer ownership of that property, generally immovable, to another person. This transaction is formalised by a legal document (for example a notarial deed) attesting to the transfer. In other words, when you alienate a property, you lose ownership of it in favour of a purchaser, who becomes its new holder.
To amortise (a debt) Financing
To amortise a debt means to repay it gradually, through successive and regular payments. As these repayments proceed, the total amount owed decreases progressively until the debt is fully settled.
To backfill Planning & construction
To backfill means to fill a cavity or a hole using materials such as earth, rubble or other similar substances. This operation aims to bring the ground level back to its original state or to make it level with the surrounding surfaces.
Total contractor Market & practice
A total contractor takes charge of the construction of a property from A to Z. It organises and plans the entire project, coordinating all the necessary services. For the client (maître d'ouvrage), this simplifies the process by providing a single contract and a single point of contact, which reduces stress. It is nevertheless crucial to choose the total contractor carefully according to one's needs.
Total cost of credit Financing
The total cost of credit corresponds to all the expenses related to a loan. It includes all fees, from the setting up of the credit to its complete repayment: file fees, guarantee, monthly instalments (capital and interest), insurance, and other possible charges.
Transaction price Legal
Final amount accepted by the seller to transfer the property, recorded in the notarial deed. To be distinguished from the total acquisition cost (which includes taxes, notary fees, etc.). Depends in particular on the broker's marketing, the state of the market, the characteristics of the property and the number of offers.
Transfer duty Tax
Transfer duty is a tax levied on property transactions in Switzerland, upon the transfer of ownership of a property from one person to another. This duty is collected by the cantons and, in some cases, by the communes, and is intended to cover the administrative costs associated with the transactions. It is calculated as a percentage of the purchase price of the property and ranges between 0% and 3%, depending on the canton. The majority of cantons apply it, with a few exceptions such as Aargau, Schwyz, Zug and Zurich. Transfer duty applies to property such as land, flats, houses and co-ownership shares. Generally, the purchaser is responsible for it, although in certain cantons payment may be shared between the purchaser and the seller. The rate is often between 1% and 3%, and exemptions or reductions may apply in certain cases, such as for purchases by public entities or in Geneva under the Casatax system. The tax is calculated on the basis of the purchase price of the property, and if no price is defined, it is based on the market value. In the canton of Vaud, for example, a purchase of CHF 2 million will incur a transfer duty of CHF 40’000 (2.2% of the purchase price).
Transfer requisition Legal
A transfer requisition is a formal request sent by a notary to the land registry office, seeking authorisation to update the information relating to the owner of a property. This procedure takes place after the signing of the official document evidencing the transfer of ownership between the parties concerned. Once the transfer has been recorded in the Land Registry, the purchaser officially becomes the full owner of the property.
Transferor Legal
A transferor is the person who transfers ownership of a property to another person, most often by means of a deed of sale. In practice, this is therefore the seller, who gives up or bequeaths their ownership right in favour of a purchaser.
Triple net lease agreement (NNN) Market & practice
A triple net lease agreement (NNN) is a lease agreement in which the tenant pays not only the base rent, but also three types of additional charges: maintenance, works related to the letting, and other costs associated with the property. This type of lease is a specific form of commercial lease, in which the tenant assumes most of the financial responsibilities relating to the management of the property. Other types of commercial leases include the net lease (in which only the tenant pays operating charges and property tax) and the gross full-service lease (in which costs are shared between the tenant and the owner). Under a triple net lease, the tenant bears regular maintenance, repairs and specific fitting-out works. The owner, for their part, provides a space in good condition but is not responsible for the charges. Force majeure and termination clauses are also important, allowing unforeseen events and possible terminations of the contract to be managed. The main advantage for the tenant is increased control over expenses, while for the landlord it reduces their responsibilities. However, the tenant must take into account the weight of the additional charges, which may represent a significant financial risk, especially in the event of economic difficulties. For a successful contract, it is advisable to call on a real estate expert for drafting and negotiation.
Trust (fiducie) Legal
A trust (fiducie) is a legal act whereby a person (the settlor) transfers the management of their assets, such as a property, a right or a security, to a trusted third party (the trustee). The trustee manages these assets for the benefit of the settlor, in exchange for various benefits. This contract is based on trust between the parties. For example, a settlor may entrust the management of their property to a trustee, who will be responsible for finding tenants, managing lettings, collecting rents and, if necessary, taking legal action against tenants.
Trustee Market & practice
A trustee is a person or entity responsible for managing assets. In Switzerland, numerous trust companies offer a variety of services, such as accounting, tax, administration and legal advice, aimed at individuals and businesses.
Turnover-based rent Legal
Turnover-based rent consisting of a reduced fixed amount plus a supplement indexed to the tenant's turnover. Often chosen by new businesses; sharing of risk and potential between landlord and tenant.
U7 terms
Unilateral promise to sell Market & practice
A unilateral promise to sell is a document formalising a seller's undertaking to transfer a property to a potential buyer, who then benefits from an exclusive right to purchase the property within a fixed period. The seller undertakes not to withdraw the property from the market during this period.
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Unlawful occupation Legal
Unlawful occupation of a dwelling refers to the act of occupying, alone or as a group, a property without authorisation, that is, without any legal right to reside there. A person who commits this offence is called an occupant without right or title. Consequences of unlawful occupation For the owner For an owner, unlawful occupation can lead to serious financial and legal consequences. The owner loses the rent he should have received and may face legal costs relating to eviction proceedings, such as lawyers' fees and court costs. These proceedings can be lengthy and complex. In addition, material damage may occur, requiring costly repairs to restore the property. For the occupant Unlawful occupants are exposed to legal proceedings, which may result in forced eviction. They may also be held liable for material damage or required to pay compensation for the unauthorised occupation, including rent not received during that period. Legal remedies and possible measures In the event of unlawful occupation, owners may bring legal proceedings to obtain the eviction of the occupants and claim compensation for unpaid rent and necessary repairs. It is often advisable to engage a lawyer specialising in property law to navigate this process. Preventing unlawful occupation Owners can prevent this phenomenon by securing their property (installing cameras or alarm systems) and by carefully selecting their tenants through solvency and background checks. Conclusion Unlawful occupation can have serious consequences for both parties, but legal and preventive measures make it possible to protect owners' rights. Support from a property law expert is essential to avoid mistakes in managing these complex situations.
Unsecured claim (créance chirographaire) Financing
An unsecured claim (créance chirographaire) is a debt contracted without any guarantee or specific privilege for the creditor. This means that the creditor has no particular right over the debtor's assets. In the event of bankruptcy, these claims are repaid last, after preferential and mortgage claims. Main characteristics: Absence of guarantee: no specific asset is allocated to the repayment of the debt. High risk: in the event of liquidation, repayment is uncertain and often partial, or even non-existent. Examples: 1. A commercial debt between a company and a supplier, without any associated guarantee. 2. Unpaid balances on a credit card. 3. A personal loan between individuals without a notarial contract. In the property field: unsecured claims are rare, as investors prefer guarantees such as mortgages. However, they may exist in certain financial arrangements, such as shareholder loans to real estate companies. In summary: the unsecured claim is a high-risk debt for the creditor, often used in commercial or personal relationships without formal guarantees.
Urban sprawl (mitage) Planning & construction
Diffuse and unplanned urbanisation of rural areas (housing/commerce/industry) creating fragmentation of the landscape; a problem in Switzerland.
Usage reserve Planning & construction
The usage reserve refers to the difference between the maximum use of the land area permitted by the building and zoning regulations, and the actual use of that area. It is the portion of land still available for future uses, without exceeding the limits imposed by the regulations in force.
Useful life Planning & construction
The useful life of a building corresponds to the period during which it can be used, generally estimated at between 40 and 50 years with good maintenance. The amortisation rate is around 20% every five years, but this may vary depending on factors specific to the building. Beyond this period, complete renovations are often required.
Usufruct Legal
Usufruct (usufruit) is the right to use a property and receive its income without owning it. Ownership is then split in two: the usufructuary lives in the dwelling or collects the rent from it, while the bare owner holds title but may neither occupy nor freely sell it. It is mainly encountered in inheritances and gifts, where a parent transfers bare ownership to their children while retaining use of the dwelling until their death. Usufruct is recorded in the land registry and, in principle, ends upon the death of the usufructuary, whereupon the bare owner regains full ownership. Selling a property encumbered with usufruct requires the agreement of both parties.
V6 terms
Valuation axiom Planning & construction
A valuation axiom is a principle used to estimate the value of a property based solely on its use value. Emotional or historical aspects are considered only insofar as they contribute to generating income. For example, a castle is taken into account only if it can host events or attract visitors as a museum. A property requiring alterations before use has a lower value compared with a property that is immediately usable. This axiom directly influences the final sale price.
Value reduction Market & practice
Progressive loss of value of a property, in particular buildings, due to wear and tear and weather conditions. This depreciation can be slowed by regular maintenance and renovation, but accelerates if the property is neglected. On average, it amounts to around 1% per year.
Value-maintaining investment Planning & construction
A value-maintaining investment consists of renovations or modernisations of a property to preserve or increase its value. This includes work going beyond simple maintenance, such as replacing faulty equipment or refreshing walls. These regular improvements are important to prevent the property from losing too much value over time.
Variable-rate mortgage Financing
A variable-rate mortgage is a mortgage loan whose interest rate fluctuates according to a reference rate, generally influenced by market interest rates. This variation makes the loan risky for the borrower, since if rates rise, they will have to pay more interest. A variable-rate mortgage is therefore advantageous only if interest rates fall.
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Vertical PPE Legal
Vertical PPE is a particular form of co-ownership by floors (PPE) that applies to co-ownerships not built in the form of multi-storey buildings. It applies when several villas are erected on the same plot. Each owner holds sole title to the unit in which their villa is located, together with a share of the common areas (e.g. garden). Although the architecture is not vertical, the legal structure remains based on the PPE principle.
VSS — Swiss Association of Road and Transport Professionals Planning & construction
The VSS is a private, independent, not-for-profit Swiss association responsible for defining standards for the field of transport and roads. It brings together public and private sector professionals who plan, design, build, operate and maintain road and transport infrastructure. Although its standards do not have force of law in themselves, they can acquire legal force when Swiss legislative texts refer to them, for example to set the number of parking spaces in new buildings.
W4 terms
Water abstraction right Legal
Water abstraction right concerns the extraction of water from public and private resources, including groundwater and springs. Before purchasing a property with water reserves, it is important to check the specific rules relating to this right in the land registry.
Water supply Planning & construction
Water supply consists of providing drinking and sanitary water to each building. In Switzerland, each region has its own distribution network managed by a local supplier. The water generally comes from treated springs, groundwater or lakes, and is then conveyed via suitable systems in order to guarantee its quality and availability for residents.
Weighting coefficient Planning & construction
The weighting coefficient, also known as the yield factor, is an indicator used in the valuation of investment properties. It reflects the profitability of a property by taking into account the future income generated by sale or letting. This factor is used to adjust the value of the property according to its profit potential, by weighting the value of the income against the actual value of the property. It is essential for assessing the investment and its long-term return.
Works contract Market & practice
A works contract is an agreement between a contractor and a client (maître d'ouvrage) for the carrying out of a structure. The contractor undertakes to carry out the structure, while the client must pay for it. To facilitate performance, the contract sets out several essential elements, such as: the description of the turnkey structure, the delivery deadline, penalties in the event of failure to meet the deadline, the payment schedule, and the termination conditions.
Y1 term
Yield calculation for residential buildings Financing
The yield calculation for residential buildings is divided into two types: gross yield and net yield. Gross yield is based on the purchase price and the annual net rent. Net yield, on the other hand, additionally includes reserves, management fees and ancillary costs related to the purchase of the property.