April 24, 2025
Foreclosure auctions in Switzerland enjoy an excellent reputation regarding transparency and legal certainty. Nevertheless, it can occur that formal errors, deceptions, or unforeseen defects disrupt the process. Good to know: Swiss law provides a comprehensive safety net, from the appeal of the auction bid to the rescission of the purchase. This article shows you step by step what options exist, how the processes work, and how to effectively assert your claims.
Regulation | Subject | Key Points |
---|---|---|
Art. 134 ff. SchKG | Appeal of the auction bid | Deadline: 10 days, appeal to the cantonal supervisory authority |
Art. 135 Abs. 4 SchKG | Suspensive effect | Purchase price remains blocked until the appeal is decided |
Art. 77 ff. ZPO | Restoration after missing a deadline | If the deadline was missed without fault: application possible within 30 days |
Art. 23 OR | Error & Defects of Will | Appeal due to a fundamental error (e.g., accidentally clicking a million) |
“The combination of short deadlines and clear responsibilities ensures that ambiguities are quickly resolved, a plus for all parties involved.”
Practice Tip: The value in dispute is determined by the estimated value of the property. For smaller apartments, obtaining legal protection insurance can be worthwhile, as it often fully covers the appeal process.
If the bid is legally binding and the land register entry has been made, essentially only the appeal due to defects of will (Art. 23 ff. OR) or the recovery based on a breach of contract (e.g., fraudulently concealed construction defects) remains. The procedure then takes place in civil court.
1. File a lawsuit for declaration of contract or rescission
2. Gather evidence: expert reports on concealed defects, witnesses, etc.
3. Court decides on annulment & refund of purchase price
4. Re-transfer in the land register → deletion of the property transfer
5. Compensation for expenses (Art. 208 OR) between the parties
In the canton of Aargau, a single-family home was auctioned in 2023. The second-highest bidder noticed that the highest bidder had only submitted their security as an unconfirmed e-banking statement. He filed an appeal within 10 days. The supervisory authority annulled the bid, and the property was auctioned again three months later. The appellant eventually received it for CHF 40,000 less, while the highest bidder had to bear the procedural costs.
Legal protection insurance covers costs for appeals, expert reports, and court depending on the policy. Investors increasingly utilize title insurance, which covers the risk of later property disputes and speeds up the release of loans from banks.
Yes. Anyone who can demonstrate a legitimate interest (e.g., creditor, tenant) is entitled to appeal.
In land purchases, it is generally five years (Art. 219 OR). The period begins with the entry in the land register.
Expenses that the buyer incurred during the possession period will be replaced or deductible offset according to Art. 208 OR.
Mistakes can happen, but Swiss law ensures that foreclosure auctions remain fair and transparent. Whether it’s an appeal, rescission, or damages: for almost every problem, there is a proven procedure that protects your investment and strengthens trust in the market.