Land register, burdens and easements: What you absolutely need to pay attention to

Foreclosures in Switzerland are no longer just a niche market for bargain hunters. They offer transparent, legally secure investment opportunities that are comprehensible for all parties involved, thanks to modern land registry practices and clear legal frameworks. However, it is essential to direct your proper attention to the land register as well as existing liens and servitudes, otherwise, the supposed dream property can quickly become a costly trap.

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1 Legal Framework: Overview of Debt Collection Law and Civil Code

The forced sale (commonly referred to as "foreclosure") is regulated in Articles 133 et seq. of the Swiss Debt Collection and Bankruptcy Act (SchKG). For real rights, such as mortgages, liens, servitudes, and land charges, the Civil Code (ZGB) is also relevant. Together, these laws ensure legal certainty, a clear advantage for buyers.

“The legal structure of Swiss forced sales protects both debtors and buyers. Transparency in the land register is the key element.”

2 Reading the Land Register Correctly

2.1 What Does It Contain?

• Property sheet: Ownership, location, area
• Liens sheet: Liens, preemption and buy-back rights
• Servitude sheet: Right of way, usufruct, etc.
• Annotations: e.g., ownership restrictions by public authorities

2.2 Digitization as an Advantage

As part of the eGRIS program, numerous land registry offices have already been transitioned to electronic management. This allows for quicker access and automated plausibility checks, thereby minimizing the risk of hidden charges.

3 Liens and Servitudes, the Hidden Pitfalls

Term	Typical Examples	Impact on Buyers
Mortgage	Fixed or variable interest, construction loan	Ranks first, must either be assumed or cleared before the award.
Land charge	Consolidation loan	Can remain as long as the purchase price is sufficient.
Servitude	Right of way, usufruct, building rights	Continues regardless of changes in ownership.
Public law ownership restriction	Heritage protection, water protection	Can restrict construction projects or changes in use.

Note: Servitudes are always mentioned in the auction catalog. Do not overlook them assuming they are purely theoretical, they are real rights and thus binding for you.

4 Due Diligence: How to Check Your Desired Property

1. Order a land register extract (CHF 15 - 35)
2. Request liens sheet and servitudes sheet separately
3. Provide security deposit ("rent") of typically 10% of the appraised value
4. Obtain financing approval from your bank (mandatory for taking over ranking)
5. Inspect the property in advance and request an access protocol
6. Engage an expert (notary, architect) for examination

What happens if an undeclared burden appears after the auction?

Generally, "undeclared" burdens are rare because the auction catalog is reviewed by the debt collection office. If you still discover an overlooked burden, you can raise a legal objection within 10 days (§ 257 ZPO). Seek legal support immediately.

5 Process of the Foreclosure

5.1 Announcement of Date & Security Deposit

The debt collection office publishes the location, time, appraised value (market value), and all liens in the Swiss Commercial Gazette (SHAB) and on the municipality's website. Interested parties must provide the security deposit by the auction day at the latest, usually through a bank guarantee or payment order.

5.2 Type of Auction: Multiple Calls with Minimum Bid

The multiple calls method is common: after the first call at the appraised price, any bidder may offer a higher price. If the minimum price is not reached, the office sets up to three dates after which the property may be sold freely.

6 Economic Perspective: Return vs. Risk

• Price discount: Realistically 10 - 30% below market value, even more in rural areas.
• Financing: Banks usually assess foreclosure properties more stringently (higher repayment rates, own funds ≥ 25%).
• Taxes: The property transfer tax may be waived in some cantons for debt collection sales, check locally.
• Return potential: Significant value increases can be achieved through renovation or repurposing.

7 Technical Particularities: eGRIS & Blockchain Pilots

Starting in 2024, several cantons (including Zug) will test a Blockchain Pilot for securely recording property transfers. The goal is to completely process foreclosures without media breaks, including digital signatures and immediate ranking changes. For bidders, this means: Faster land registry entries and thus less interim financing.

Art. 135 Abs. 4 SchKG  
“The award is only valid when the purchase amount recorded in the bidding protocol has been fully deposited or paid.” 

8 Practical Example: From Rough Diamond to Yield Property

In the canton of St. Gallen, a multi-family house with eight units was auctioned in 2023 for CHF 1.45 million, with an estimated market value of CHF 1.9 million. After an energy-efficient renovation (cost: CHF 260,000), the market value was increased to CHF 2.6 million. The total return after deducting all costs (including taxes, fees) was around 22%.

9 FAQ: Common Questions at a Glance

Can I bid online at the auction?

In some cantons yes, provided the debt collection office offers a live auction. Check the listing for whether a video or phone connection is allowed.

What happens to rental agreements?

Existing rental contracts remain valid under Article 261 of the Swiss Code of Obligations (OR). As new owners, you can terminate them no earlier than three months, observing the legal notice periods.

10 Conclusion: Knowledge is Your Best Bid

Foreclosures are not a lottery. Those who thoroughly study the land register and are familiar with liens and servitudes benefit from legal certainty, attractive prices, and often uncut yield gems. Whether as an investor or future self-user, transparency and due diligence are the two cornerstones for your success at the auction table.