Property Due Diligence in Switzerland

Legal due diligence

Legal due diligence begins with the land register extract (extrait du registre foncier). This document shows the current owner, the property description, any mortgages or charges registered against the property, easements (rights of way, building restrictions, servitudes) and any other registered encumbrances. A clean land register extract is an important indicator of a straightforward transaction.

For apartments in PPE ownership, buyers should also review the PPE regulations (règlement de copropriété), the minutes of recent general meetings of the co-owners, and the service charge accounts. These documents reveal the financial health of the building, any planned major works and any disputes between co-owners.

Physical due diligence

Physical due diligence involves assessing the condition of the property. For newer properties in good condition, a visual inspection during viewings may be sufficient. For older properties or those that appear to require renovation, buyers should consider commissioning an independent building survey (expertise technique) by a qualified surveyor.

Key areas to assess include: the condition of the roof, facade and structural elements; the state of the plumbing, electrical and heating systems; the presence of any moisture, damp or mould; the condition of windows and insulation; and any visible signs of subsidence or structural movement.

Planning and regulatory due diligence

Buyers should verify the planning status of the property and any neighbouring land. Key questions include: Are there any planning permissions for developments that could affect the property's views or amenity? Is the property subject to any building restrictions or heritage protections? Are there any pending planning applications in the area?

For properties in Montreux, buyers should also verify the Lex Weber status (whether the property is classified as a primary or secondary residence) and the Lex Koller status (whether it is Foreign Buyer Eligible) before making an offer.

Financial due diligence

Financial due diligence involves verifying that the purchase price is fair and that there are no hidden financial liabilities associated with the property. For PPE apartments, review the service charge accounts and the building's renovation fund (fonds de rénovation) — a well-funded renovation fund is a positive indicator; a depleted fund may signal upcoming special assessments.

Buyers should also verify that there are no outstanding service charges, utility bills or other debts associated with the property that could become the buyer's liability after completion.

Key points

• Caveat emptor applies — due diligence is the buyer's responsibility
• Legal: land register extract, PPE regulations, service charge accounts, meeting minutes
• Physical: building condition, roof, plumbing, electrical, moisture, insulation
• Planning: neighbouring developments, building restrictions, heritage protections
• Financial: service charge accounts, renovation fund, outstanding debts