Unknown legacies and hidden deficiencies: How to protect yourself from them

A property from a foreclosure can shine financially, as long as there are no "skeletons in the closet." Contaminated soil, asbestos in the roof, or invisible moisture can completely devastate any return on investment. Because the debtor's liability is removed, you must manage the risk. Fortunately, Switzerland has clear databases, smart measuring techniques, and experienced experts that enable a reliable risk assessment, even with limited viewing appointments. The following guide shows you step by step how to track down contamination, evaluate defects, and protect yourself contractually, technically, and financially.

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1 Contamination: Poison in the Ground, Trouble in the Budget

1.1 Check the "Contaminated Sites" Registry

• Publicly available via geo.admin.ch → Filter "Contaminated Sites"
• Entry "investigated, requires remediation" = Warning Signal
• Entry "no action required" = green light, but check soil class

1.2 Soil Reports: When Are They Worth It?

Indicator	Measure	Cost (Avg)
Former gas station / metalworking shop	Full report + core samples	CHF 6,000-10,000
No registry entry, but built before 1960	Screening for PAHs / heavy metals	CHF 2,500
Residential zone, built after 1990	Only visual & odor check	CHF 0*

*Can be done during the viewing itself.

1.3 Understanding Cost Implications

• Remediation obligation under Art. 32 of the Environmental Protection Act is always the owner's responsibility
• Cost contributions from the cantons cover 40-70%, the rest is your risk
• Insurance solution: "Land Liability Policy" with deductible ≈ CHF 50,000

2 Hidden Construction Defects: The Quick Report for the Auction

2.1 Quick Kit for the Viewing

• Moisture meter (< CHF 80)
• Infrared thermometer
• Endoscope camera
• Mini-checklist (roof, basement, technology)

2.2 Typical Defects & Rules of Thumb

• Moist basement wall > 85% relative humidity → Sealing ≈ CHF 600/m²
• Building technology > 25 years → Replacement within 5 years mandatory
• Window condensation → U-value > 2.0: Calculate replacement
• Roof tiles with moss + loose ridge tiles → Full renovation risky, CHF 130-160/m²

3 Asbestos, PCBs & Co.: Quiet, but Burdensome

Construction year indicators:

• Before 1990 → Suspected asbestos (floor coverings, plaster, pipe insulation)
• 1975-1990 → PCBs in seals / paints

Prevention: Screening Package (CHF 1,800-2,500) to be commissioned. Disposal costs: Asbestos ≈ CHF 200-300/m², PCB-containing joints CHF 60/linear meter.

4 Financial Safeguards

4.1 Buffer & Calculation

Remediation buffer  =  Technology  +  Building envelope  +  Unknown 10 %
                    =  (40 % HP) + (25 % HP) + (10 % HP)

4.2 Insurance

• Title Insurance: Covers legal errors (easements, registry errors)
• Construction Guarantee Plus: Insurance against hidden construction defects for up to 10 years (after remediation)

5 Legal Protection: What Is Possible (and What Is Not)

• No warranties after the award → no revocation due to defects
• Appeal only in case of procedural errors (Art. 134 et seq. of the Debt Collection and Bankruptcy Act)
• Therefore: Check beforehand, insure afterward

6 10-Point Checklist for the Auction

1. Check the "Contaminated Sites" registry
2. Mark easements in the land register excerpt
3. Construction year → Toxic substance screening yes/no
4. Moisture test basement / ground floor
5. Roof: Visual inspection of tiles & rafters
6. Building technology: Photograph construction years
7. Electricity: Is an RCD (Residual Current Device) present?
8. Comparison of estimated value vs. remediation budget
9. Collateral + interim financing fixed
10. Obtain insurance offer "Land/Title"

7 Conclusion: Knowledge + Buffer = Carefree Award

Unknown contamination and hidden defects can be managed with the right mix of databases, quick tests, expert insights, and financial buffers. If you do your homework, the foreclosure won't turn into a gamble, but rather a calculable opportunity with sustainable returns.