Real estateglossary.

The key terms of real estate and propertydevelopment in Switzerland, explained simply.

3

3rd Pillar Pledge: The 3rd pillar allows for voluntary retirement savings, with banking or insurance products offering tax benefits. Assets from pillar 3a can be used as security for mortgage financing through pledging.

A

Accelerated procedure application: A simplified application format for low-impact construction projects or minor renovations. It allows for faster processing by the competent administration.
Acceptance of works: Joint inspection at the end of construction, during which the buyer or client checks the property and records any defects.
Accrued expense: Accounting provision established by the owner to anticipate future expenditures or loss of rental income. This mechanism ensures financial stability when facing renovation work or periods of property vacancy.
Ad hoc curator: A representative appointed by a judicial authority to protect the specific interests of an incapacitated person in a particular matter. This measure prevents conflicts of interest, particularly during property inheritance.
Additional Guarantees: Additional guarantees may be required by lenders when standard equity is insufficient to cover mortgage risks. These supplements include pledging pension assets or second-rank mortgages.
Adjudication: The process by which a contract is awarded to a bidder following a formal competitive tendering process. The responsible entity selects the most advantageous offer based on specific criteria such as price, quality, and timelines.
Administrative practices: These official documents issued by cantonal services collect indicators on prices, construction costs, and land regulation. They serve as a reference for professionals to interpret the local application of real estate legislation.
Advance on inheritance: Transfer of a property during one's lifetime to a future heir, as an advance on their share of the estate. It is taken into account when the estate is divided.
Advance payment: Mortgage financing quota corresponding to the share of the collateral value lent by the bank. In Switzerland, this limit is generally set at 80% of the property's market value.
Affordability: A household's ability to bear the costs of a home. As a rule, notional interest, amortisation and maintenance should not exceed one third of gross income.
Affordability ratio: Ratio between the theoretical housing costs (interest at a notional 5%, amortisation and maintenance) and gross income. Banks require it to stay below one third.
Age-related technical depreciation: The decline in a building's value resulting from normal wear, natural aging, or lack of maintenance. This parameter is essential for the accurate valuation of a property.
Agent: The agent is the natural or legal person responsible for executing a mission on behalf of the principal. Their actions are strictly limited by the terms defined in the mandate contract.
Agreement in principle: Preliminary confirmation, for example from a bank, that it is willing to finance a purchase. It shows intent but is not legally binding.
AHV: The old-age and survivors' insurance constitutes the first pillar of the Swiss social security system. This mandatory pay-as-you-go scheme guarantees retirees and survivors a basic income funded by social contributions.
Alienation: Transfer of ownership of a property to a third party, whether by sale, gift or exchange.
Amortization (property): The reduction in value of a property due to aging or the periodic repayment of a mortgage debt. In Switzerland, financial amortization specifically concerns the second-rank mortgage according to bank requirements.
Annuity: A periodic amount paid for loan repayment, encompassing both the capital portion and the interest due. The term more frequently refers to the annual payment, whereas monthly payments are termed monthly installments.
Annuity loan: This type of mortgage involves constant periodic payments consisting of an interest portion and a capital amortization portion. The structure of the charge evolves with the gradual decrease of the total debt.
Application for registration: Request filed by the notary with the land register after signing, to enter the new owner and any charges or easements.
Arcade (retail unit): Geneva term for a ground-floor commercial unit in a building, used for a shop or a professional activity.
Architect: Professional who designs the project, draws up the plans, submits the permit application and may manage the works through to handover.
As-built documentation: Set of plans, manuals and warranties handed over at the end of construction, describing the building as built and making maintenance easier.
Asbestos: A fibrous silicate formerly used in construction for its insulating properties, now banned due to its toxicity. Its presence requires professional intervention to assess risks and proceed with containment or removal.
Asking price: The asking price represents the amount initially requested by the seller when listing the property. It serves as a basis for negotiation that may change according to market conditions.
Assisted living apartment: Accommodation specifically designed for the elderly or persons with reduced mobility, offering safety equipment and support services. It allows residents to maintain their independence while benefiting from a suitable care environment.
Association of Cantonal Fire Insurance Establishments – VKF: An umbrella organization coordinating fire prevention and natural hazard policies in Switzerland. It issues technical fire protection standards widely applied in construction.
Assumption of leases: When a let property is sold, the buyer takes over the existing leases. Early termination is only possible for an urgent personal need.
Attic apartment: A dwelling located under the roof, characterized by sloping ceilings or eaves. This type of accommodation offers distinct natural lighting and an interior atmosphere often sought after for its intimate character.
Auction: An auction is a sales procedure where the property is awarded to the highest bidder. In Switzerland, real estate auctions are often conducted by the Office of Debt Enforcement and Bankruptcy.
Audit report: A summary drafted by the auditors of a condominium (PPE) regarding the compliance and accuracy of accounting entries. This document is submitted to the general meeting of co-owners to validate the financial management of the past fiscal year.

B

Backfill: A technical process of filling an excavation or uneven ground with solid materials to obtain a flat surface. This operation is often a prerequisite for earthworks to prepare the ground for future construction.
Bare ownership: Right to own a property without receiving its income, with usufruct reserved to a third party. This mechanism is frequently used in the context of estate planning in Switzerland.
Base plot: The base plot is the land unit constituting the legal foundation of a condominium ownership. It physically groups together all private units and common areas that make up the real estate co-ownership.
Basement: Level below natural ground, usually housing cellars, plant rooms and the underground car park.
Bearer mortgage note: Debt security guaranteeing a mortgage debt without naming a specific beneficiary. This negotiable instrument allows the holder of the document to enforce the real estate pledge with the land registry, thus facilitating transactions.
Borrowed capital: It refers to the portion of the purchase price financed by a bank mortgage loan and repaid with interest. This debt must be secured by a lien on the property.
Bourgeois House: This residential dwelling is characterized by its noble architecture and durable materials, independent of any agricultural operation. It represents a typical residence of the affluent class, often located outside densely populated areas.
Brokerage commission: Remuneration due to the broker upon the successful completion of a real estate transaction, typically calculated as a percentage of the sales price. This amount covers all search, advisory, and negotiation services.
Brokerage mandate: A brokerage mandate appoints a broker to introduce parties or facilitate a transaction for remuneration generally linked to success. In Switzerland, the Code of Obligations governs the mandate, while the broker’s tasks and commission mainly follow from the parties’ agreement.
Builders' lien: Right of contractors and tradespeople to register a charge on the property they worked on if they are not paid, within four months of finishing their work.
Building: A building is a fixed construction intended to house people or activities, distinct from underground civil engineering. Its design incorporates aesthetic and functional requirements specific to surface use.
Building inspection authority: This public authority ensures compliance with legal and regulatory requirements governing construction activities within a given territory. It verifies the conformity of projects with land-use plans and current safety standards.
Building insurance: Mandatory coverage for material damage caused to the structure of a building by natural elements or fire. It is distinct from household insurance, which protects movable property.
Building insurance certificate: Attestation issued by the insurer confirming the scope of fire and natural hazard coverage for a building. This document is essential for proving the property's protection to financial lending institutions.
Building permit: Permit issued by the cantonal or municipal authority allowing a building to be constructed, altered or demolished.
Building Permits Office (OAC): Geneva cantonal service responsible for reviewing applications and issuing building permits. It verifies project compliance with current planning and safety regulations.
Building profiles: Poles and frames set up on site during the public consultation to show the volume and height of the future building.
Building right (leasehold): Easement allowing a building to be constructed and owned on someone else's land for a fixed period.
Building right rent: Financial compensation paid by the holder of the building right to the landowner for the use of the plot. Its amount and terms are contractually set between parties, without strict legal framework.
Building services (MEP): The building's technical installations: heating, ventilation, plumbing and electrical systems. They account for a large share of construction costs.
Building volume: Built volume of a building calculated according to SIA standards, used in particular to estimate construction costs.
Building zone: Area of land designated for construction under the municipal or cantonal land-use plan.
Built-up area (BA): This corresponds to the total footprint of a building, measured at the outer limits of the structural elements. This data is essential for assessing compliance with land occupancy coefficients according to local regulations.
Burnt listing: A property is considered burnt if it remains on the market for an unusually long period, typically exceeding six months, without finding a buyer. Poor pricing strategies or inadequate marketing can permanently damage the asset's reputation among potential investors.
Business Transfer Mandate: This mandate concerns the sale of a business, often including lease rights and customer base. The intermediary facilitates the operational transition while complying with the legal conditions of assignment.
Buy-back right: Right reserved by the seller to buy back the property sold, on terms set in the deed. It can be noted in the land register for up to 25 years.
Buyer's extras and credits: Price adjustments resulting from changes requested by the buyer on a home under construction, such as choosing finishes other than those planned.

C

Cadastral plan: The cadastral plan is the official document inventorying and locating land plots geographically. It is authoritative for defining property boundaries and official land rights in each Swiss municipality.
Cadastre: Set of official survey plans and data that define the boundaries of the plots in a territory.
Call for funds: A payment request sent by the building administrator or property manager to co-owners to finance current or exceptional building expenses. These payments cover the collective costs inherent to the co-ownership.
CAMAC (Centralized Construction Permit Authority): CAMAC coordinates construction permit applications by centralizing inputs from various cantonal services. It ensures the electronic transmission of files to accelerate the administrative procedure.
Cantonal master plan: The cantonal master plan is the strategic planning instrument defining the territorial development of a canton over the long term. It ensures coherence between buildable zones, infrastructure, and environmental objectives at the cantonal level.
Cantonal Office for Housing and Land Planning (OCLPF): Geneva entity coordinating public housing policy and management of land subsidies. Its role includes regulating the rental market and supporting public utility projects within the canton.
Cap: A cap is a financial instrument limiting the maximum interest rate of a variable mortgage loan. It protects the borrower against a sudden rise in rates while maintaining market flexibility.
Capital gain: Real estate capital gain results from qualitative investments or renovation work that increases the property's market appeal. It is the positive difference between the final sale price and the initial acquisition cost.
Carport: A covered parking space, typically attached to a house and open on at least one side. It protects vehicles from weather conditions while remaining a more economical solution than a closed garage.
Casatax: Casatax is a Geneva scheme reducing transfer taxes for the acquisition of a primary residence under certain conditions. This program supports household property ownership within the canton.
Cash Flow: Cash flow represents the difference between rental income and expenditures related to operating a property. A positive balance demonstrates the property's ability to self-finance its costs and generate a net return.
CECB / GEAK: Cantonal building energy certificate rating the efficiency of a building's envelope and its overall energy performance from A to G.
Certificate of inheritance: Official document naming the heirs of a deceased person. It is needed to register them in the land register or to sell an inherited property.
Certified Real Estate Appraiser: This certified expert objectively assesses the market value of a property by applying recognized valuation methods. Their mission ensures a rigorous professional analysis, which is essential for transactions, legal disputes, or financial planning.
CFE (Code of Costs by Elements): Classification standard used to structure construction project costs by technical elements. This method facilitates estimation, budget control, and cost comparison throughout the various phases of the building process.
Change of use: Modification of the use of premises or a building, for example from offices to housing, generally subject to authorisation.
Civil liability insurance: Insurance covering civil liability for bodily injury or material damage caused to third parties by the insured or their circle. It is essential for protecting one's assets against damage claims.
Claim: A claim is the right to demand performance from a debtor, usually payment of money, based on law or contract. In Swiss real estate, it may be secured by a mortgage note or another real right, without transferring ownership of the property.
Client's civil liability insurance: Insurance protecting the owner against financial risks arising from damage caused to third parties during construction. It is essential given the owner's strict liability during building works.
Co-ownership: Form of ownership in which several people each hold a share of a property, which they can in principle sell or pledge separately.
Code of Obligations (CO): Federal law governing contractual relationships and obligations in Switzerland. It defines essential rules for sales contracts, leases, and real estate guarantees within the Swiss legal framework.
Color plan: The color plan is a technical document detailing the distribution of usage rights within a condominium. It uses a color code to distinguish private areas from common spaces and exclusive usage rights.
Combined mortgage: A combined mortgage allows splitting debt into several tranches with distinct pricing structures. This strategy aims to diversify interest rate risk by mixing fixed-rate components with variable-rate products.
Commercial property: Commercial property refers to buildings used for business purposes, such as offices, retail, or industrial spaces. The valuation of such assets relies primarily on rental yields and the strength of the lease agreements.
Common account statement: Summary document of financial flows related to the shared management of a condominium or a set of buildings. It allows for the allocation of income and expenses among the different owners or units concerned.
Common parts: Parts of a condominium building owned jointly by all owners: structure, roof, facades, stairwell, lift and technical installations.
Community of heirs: Group of heirs jointly owning the assets of an estate until it is divided.
Community of property: Marital regime where most of the spouses' assets are held in common. Unlike participation in acquired property, this status alters the ownership of assets both before and during the marriage.
Company law: Company law governs the real estate aspects of corporations, including rental priorities for members. It may offer financial benefits upon the sale of company-owned assets.
Completion guarantee: Guarantee, often from a bank, assuring the buyer that the building will be finished even if the builder runs into difficulties.
Completion statement: Document drawn up by the notary detailing the price, deposits paid, costs and the pro-rata split of charges, taxes and rents between seller and buyer.
Conciliation authority: This joint body intervenes to resolve rental disputes amicably before any judicial proceedings. Its role is to propose neutral mediation to avoid the costs and delays of the courts.
Condition precedent: Clause making a contract's effect dependent on a future event, such as obtaining a building permit or financing.
Condominium association: Body bringing together the co-owners of a condominium building, responsible for managing common areas and making administrative decisions. It operates through the general meeting of co-owners and the mandated property management.
Condominium manager: Person or property management firm appointed by the owners' meeting to run the building, keep the accounts and carry out joint decisions.
Condominium ownership (PPE): Form of co-ownership giving each owner exclusive rights to their unit and a share of the common areas.
Condominium regulations: Document setting out the rules for using and managing a condominium: common areas, charges and renovation fund.
Condominium service charges: Running costs shared by the owners of a condominium building, such as maintenance, caretaking, heating, building insurance and contributions to the renovation fund.
Condominium statement: A periodic document detailing the distribution of common charges and revenues among the co-owners of a property under the condominium ownership model. It applies the allocation keys defined in the administration regulations.
Consortium: A consortium is a contractual cooperation between several companies or persons pursuing a joint project, often construction, without necessarily creating a separate legal entity. In Switzerland, the agreement should define liability, representation, contributions, decision-making, and recourse between participants.
Constitutive general meeting: The inaugural meeting of a legal entity to validate statutes, appoint governing bodies, and approve the initial budget. This official act formally commences the structure's activities.
Construction and zoning regulations: A set of municipal rules determining land use and technical standards applicable to construction. It defines heights, distances, and authorized uses to ensure orderly urban development in accordance with cantonal requirements.
Construction cost classification (BKP): Standard Swiss breakdown of project costs, from 0 (land) to 9 (furnishings), used to prepare estimates and track spending.
Construction Costs Code (eCCC): Swiss reference system standardizing the description and calculation of building costs by main groups and elements. It harmonizes communication among construction professionals to ensure financial transparency.
Construction loan: A construction loan finances project expenses progressively as works advance and costs are documented. In Switzerland, drawdowns, interim interest, security, and conversion into mortgage financing depend on the bank, budget, and contractual documentation.
Construction permit City of Geneva: The construction permit is a municipal authorization required in Geneva to temporarily occupy public domain. It governs the installation of construction equipment, traffic management, and potential noise nuisances on public roads.
Construction price: The construction price encompasses all costs necessary for the physical realization of the building. This amount includes fees, structural works, and finishes, excluding land costs.
Construction schedule: Detailed timetable that sequences the work of the various contractors and sets the key milestones up to handover.
Construction specification: Document detailing the materials, equipment and finishes planned for a home. Attached to the contract, it defines exactly what the buyer will receive.
Construction works insurance: This coverage protects the construction site against accidental property damage and theft during the building phase. It ensures compensation for equipment and materials, limiting financial losses for the project owner or contractor.
Contract for work and services: A contract for work and services obliges the contractor to deliver the agreed work and the client to pay the stipulated remuneration. In Switzerland, performance, price, deadlines, variations, acceptance, and defects are primarily governed by the Code of Obligations and the contract.
Contractual penalty: Amount set in a promise of sale, often a percentage of the price, payable by the party that withdraws from the sale without valid reason.
Control body: Body elected within a co-ownership to oversee financial management and validate annual accounts. It ensures the necessary transparency towards co-owners regarding the use of common funds.
Controlled Rent: Controlled rent is a capped amount, set or approved by the relevant authorities, often applied in development zones or for subsidized housing. It aims to ensure financial accessibility and can be subject to challenges.
Conversion penalty: Contractual fee or compensation when a loan is converted to another mortgage model or interest rate before maturity. Its amount and conditions depend on the financing agreement; an early repayment charge may also apply.
Coordination: Coordination organises the interaction of services, information, and decisions among participants in a property or construction project. In Swiss practice, it may be assigned to the client, project manager, or appointed consultant, depending on the contract, phase, and incorporated standards.
Cost estimate: Detailed estimate of a project's total cost, broken down item by item, which serves as the budget reference throughout construction.
Cost of capital: The cost of capital represents the overall price of equity and borrowed funds used to finance a property or real-estate activity. It includes interest, financing expenses, and the expected return on equity, and is not limited to the mortgage rate.
Cost of renting: The cost of renting comprises net rent and, where validly agreed, ancillary charges connected with use of the property. In Switzerland, the amount must comply with tenancy rules concerning yield, comparable rents, and the passing-on of costs.
Cost price of a dwelling: This is the cumulative sum of all expenses incurred to make a property available. This calculation includes purchase, construction, taxes, financing, and all intermediary costs.
Cost-covering gross yield: A ratio measuring the relationship between rental income and total investment costs, including land and construction. In Switzerland, this yield is regulated to prevent abusive rents based on benchmark interest rates.
CRB (Swiss Centre for Construction Rationalization): The CRB (Swiss Centre for Construction Rationalization) develops and publishes Swiss tools for classifying, describing, and managing construction costs. Its catalogues and systems are professional instruments rather than legislation, and their use depends on the contract or project.
Credit: Credit is the provision of funds or payment facilities repayable under agreed terms, generally with interest. For Swiss property, financing may be secured by a mortgage note, while ownership and security interests follow applicable legal formalities.
Creditor: A creditor is the person entitled to demand performance of an obligation from a debtor, particularly payment of a debt. In Switzerland, the creditor may act under the contract and statutory procedures and may hold secured or unsecured rights.
Cyclical capital gain: This refers to an increase in a property's market value resulting from macroeconomic factors or unforeseen market changes. This rise exceeds the maintenance or investment efforts made by the owner on their property.

D

Daylight availability certificate: Technical report assessing the natural light exposure of a dwelling based on its geometry and environment. It allows buyers to evaluate the quality of sunlight and the availability of natural daylight.
Debt: A financial commitment by an individual to repay a borrowed sum to a creditor. In real estate, it is often secured by a mortgage registered in the land registry.
Decontamination: Technical operations aimed at eliminating polluting substances present in the soil or structures of a site. It is required before any new development on industrial land.
Defects warranty: Liability of the seller or contractor for defects in the works. Under the SIA 118 standard, defects can be reported at any time for two years after acceptance.
Delegate: An elected representative within a condominium who facilitates communication between residents and the professional administrator. They perform a neutral oversight function without exercising independent decision-making power.
Deposit: Partial advance payment of the price, usually paid into the notary's account when the deed of sale is signed.
Depreciation: A reduction in value applied to a real estate asset to reflect physical wear or obsolescence over time. It is distinct from market-driven depreciation.
Design plan: The design plan is a development document specifying the terms of integrating a project into its public environment. It binds the owner to specific architectural and functional constraints after validation by municipal authorities.
Design-and-build contractor: Company that handles both the design (plans) and the construction of a building. The client deals with a single party, but has less independent oversight.
Detached House: A detached house is an independent building designed to accommodate a single household on a private plot. This housing mode ensures total autonomy and does not involve any common built elements.
Development (letting): Marketing and operational strategy aimed at attracting tenants for a new building. It includes setting rents, targeted promotion, and organizing viewings to ensure an optimal occupancy rate.
Development zone: In Geneva, a zone where the State controls land, housing and rent prices to encourage housing construction.
Dimension: A dimension is a numerical indication of size, level, or position on a technical drawing, irrespective of graphic scale. In a Swiss project, its interpretation depends on the drawing conventions, stated units, tolerances, and contractually prevailing documents.
Direct amortisation: Regular repayment of mortgage debt directly to the bank, gradually reducing the mortgage amount.
Discounted Cash Flow (DCF): A financial valuation method based on discounting future cash flows generated by an asset. It is used to determine the present value of a real estate investment.
Distance between buildings: A zoning rule requiring a minimum distance between two structures built on the same or adjacent plots. It aims to limit density and safety risks.
Distance to boundary: The minimum regulatory space that must be maintained between a structure and the boundary line of a neighboring property. It is governed by cantonal and municipal law.
Diversification: A strategy consisting of varying real estate assets to reduce market or vacancy risks. It optimizes the overall resilience of the investment portfolio.
Dominant position: This term refers to a property located on a topographical elevation overlooking surrounding buildings. This privileged geographical position offers an unobstructed view and can significantly influence the property's market attractiveness.
Draft deed: This is a legal draft prepared by the notary to submit the terms of a sale to the parties. This document allows for validating conditions before the establishment of the final authentic deed.
Duplex: Apartment spread over two levels connected by an internal staircase, offering space close to that of a house.

E

Early departure: Termination of a lease agreement before the legal or contractual deadline, provided a solvent replacement tenant is presented. The outgoing tenant must obtain formal approval from the landlord.
Early repayment penalty: Charge made by the bank when a fixed-rate mortgage is repaid before maturity, for example when the property is sold.
Earnest money: A sum paid upon signing a contract to secure the parties' commitment. Under Swiss law, their forfeiture or double return depends on the specific contractual clauses defined in the sales agreement.
Earthworks: Excavation and backfilling that prepare the site before construction: digging the basement, levelling and removing soil.
Easement: Charge on a property in favour of another property or a person, for example a right of way.
Econometrics: Econometrics applies statistical methods to economic data to analyze relationships and make forecasts. It can be used to estimate the future value of real estate based on various factors.
Economies of scale: Economies of scale reduce the unit production cost as volume increases. In real estate, this is seen in lower per-unit costs when interventions affect a large number of units.
Energy retrofit: Works aimed at cutting a building's energy use: insulation, new windows and heating system, installation of solar panels.
Energy-efficiency renovation loan: An energy-efficiency renovation loan finances works improving a building’s energy performance, such as insulation, heating, or renewable generation, subject to the lender’s criteria. In Switzerland, subsidies, tax deductions, technical requirements, and cantonal or municipal support vary by location and require verification.
Enforceable building permit: A building permit becomes enforceable when it enters into force after exhaustion of legal remedies. This administrative act legally allows construction work to begin in accordance with plans approved by the competent authority.
Engagement capacity: This concept defines the maximum limit of credit that a household can assume based on its income and assets. It is used to validate the financial sustainability of the real estate project.
Equipment construction cost plan: This plan details the investments necessary for the complementary furnishing and technical development of a building. It includes mobile equipment and consumables essential for the operation and daily functioning of the real estate space.
Equipped kitchen: A kitchen featuring all essential household appliances such as an oven, stovetop, and refrigerator. Unlike a fitted kitchen, this term primarily denotes the functional presence of the equipment.
Equity: Share of the purchase price financed without borrowing. In Switzerland, at least 20% of the price is generally required for a home.
Escrow account: Bank deposit where funds are unavailable until a specific condition is met, such as the signing of the sales deed. This procedure secures the down payment made by the buyer for the seller's benefit.
Excavation: Excavation refers to the removal of earth required to create underground spaces or foundations on a construction site. In Switzerland, this term technically describes the execution of foundation work or basement levels during construction.
Exclusive right of use: Right granted to a single condominium owner to use part of the common areas, such as a garden, a terrace or a parking space.
Exclusive sales mandate: Contract by which an owner entrusts the sale of their property to a single broker for a fixed period.
Execution plan: Execution plans provide the detailed technical guidelines essential for the effective realization of works on site. They integrate the final dimensions and materials validated for construction by the various trades.
Existing property: Refers to a building already completed and potentially occupied, distinct from a new project under construction. Its acquisition requires a rigorous technical assessment to anticipate potential renovation costs or energy compliance upgrades.
Exit: A term designating the closure of an investment or the early repayment of a mortgage debt. This operation generally aims to secure capital gains or to adapt to a new wealth situation requiring immediate liquidity.
Exit option: Contractual clause allowing the tenant to terminate their lease before the scheduled expiration date according to defined terms. This right guarantees occupancy flexibility subject to compliance with return conditions.
Expropriation: Expropriation allows a public authority to compel an owner to relinquish their property rights for a public interest project. This strictly regulated mechanism ensures fair compensation is paid to the dispossessed owner.
External audit: This is an in-depth evaluation of a real estate asset conducted by an independent entity to identify optimization opportunities. This rigorous procedure ensures technical compliance and improves operational asset management.
Extraordinary general meeting: A meeting convened during the fiscal year to deliberate on urgent matters requiring immediate decision by co-owners. It requires adherence to quorum rules to ensure the validity of the votes cast.

F

Family mortgage: This is a targeted banking product designed for families with children living in their primary residence. It typically offers preferential interest rates for a specific initial term.
Federal Diploma in Real Estate Brokerage: This diploma certifies the technical, legal, and commercial skills necessary to practice professional real estate brokerage in Switzerland. It guarantees the client a level of advice consistent with national standards.
Federal Statistical Office (FSO): National body producing official statistical data on Switzerland, including real estate price indices. This objective information guides public policies and national economic analyses.
Felling permit: This administrative permit is required to cut down a tree on a plot to preserve the urban landscape. Ecological compensation, often through new planting, is frequently imposed by cantonal authorities.
Fiduciary: A fiduciary is a professional agent specializing in the administrative, accounting, and tax management of assets. They advise property owners on optimizing their holding structures and ensuring compliance with reporting obligations.
Final account: Definitive financial statement of a construction project, setting the initial budget against the actual costs, including all change orders.
Final application: A complete file submitted to the competent authorities to obtain a formal building permit. It contains all the plans and supporting documents necessary for the legal review of the project.
Financial plan: The financial plan synthesizes the needs for equity and external financing for any real estate project. It integrates construction costs, ancillary expenses, and the strategy for repaying the mortgage loan.
Financing confirmation: Provisional document issued by a bank attesting to a buyer's borrowing capacity for a specific real estate operation. It does not constitute a final commitment until the credit contract is formally signed.
Finishing work: Fit-out and equipment work carried out after the structural work: electrics, plumbing, heating, joinery, floor coverings and painting.
FINMA: The Swiss Financial Market Supervisory Authority oversees banks and ensures the stability of the Swiss financial sector. It issues prudential rules regarding the granting of mortgage loans, particularly in terms of capital requirements.
Fire insurance: Specific coverage protecting buildings against damage linked to fire and natural forces. In some cantons, it is managed by cantonal establishments with a public monopoly.
Fire protection (VKF): Rules of the Association of Cantonal Fire Insurers setting safety requirements: materials, fire compartments, escape routes and detection.
First-rank mortgage: Portion of the loan covering roughly the first two thirds of the property value, which generally does not need to be amortised.
First-time buyer: A first-time buyer is a purchaser who becomes an owner of a primary residence for the first time. They must comply with the solvency and down payment criteria set by Swiss prudential authorities.
Fitted kitchen: A kitchen where furniture and appliances are custom-integrated to maximize available space. It enhances property value through ergonomic design tailored to the room's specific layout.
Fixed price: The fixed price is a remuneration agreed contractually for a defined service. This amount remains intangible even if the actual quantities executed diverge from the service provider's initial forecasts.
Fixed-rate mortgage: Loan whose interest rate stays the same for the whole agreed term, making costs highly predictable.
Floor area ratio: Ratio between the buildable floor area and the plot area. It sets the permitted density.
Floor area ratio (FAR): Index defining the authorized construction density on a plot, expressed as the ratio between floor area and total land area. This parameter regulates land use at the municipal level.
Floor plans: These technical documents provide a scaled horizontal view showing the layout of rooms and structural elements. They allow for the analysis of interior design, circulation, and lighting orientation within a building.
Floor slab: Horizontal reinforced concrete element separating two levels and carrying the floors. Its thickness affects strength and sound insulation between storeys.
Forest Distancing Line: This is a regulatory minimum distance between a building and the forest edge, aimed at ensuring safety and environmental protection. Regulations vary by canton, with indicative distances often ranging from 10 to 30 meters.
Forfeit: A contractually agreed sum that one party must pay if they renounce the performance of their obligations. This mechanism ensures legal security between the contracting parties.
Formal Expropriation: Formal expropriation results in the full transfer of ownership of a real estate property or a property right to the public authority. This procedure is reserved for the realization of infrastructure of major importance for the community.
Forms of Ownership: Swiss law distinguishes between sole ownership, co-ownership, and joint ownership based on the real rights exercised. Each form determines the extent of the owners' disposition powers over a building or unit.
Forward mortgage: Fixed-rate mortgage whose rate is locked in today for financing that starts later, for example when a new home is handed over.
Forward sale: Sale signed before a notary where the transfer of ownership and payment of the balance take place later, often on delivery of the home.
Foundation for Industrial Land in Geneva (FTI): The FTI is a public entity managing industrial zones to promote economic development in the canton of Geneva. It offers land and infrastructure tailored to the needs of local and industrial businesses.
Foundations: Buried part of the structure that transfers the building's weight to the ground. Depending on the soil, they take the form of footings, a raft or piles.
Full Occupancy: This term refers to a situation where all of a property owner's units, whether residential or commercial, are currently leased. Units already reserved for future occupancy are also considered rented.
Furnished Apartment: A furnished apartment is rented with all necessary furniture and equipment for living. A detailed inventory is usually drawn up and attached to the lease agreement before signing.

G

General contractor: Company that undertakes to deliver an entire construction project for an agreed price and deadline, coordinating all trades.
General lease terms and local customs: Set of contractual standards supplementing the lease to specify maintenance obligations and current management procedures. Their validity depends on applicable cantonal and federal agreements.
Geneva construction price index: This official indicator measures the evolution of material and labor costs in the Geneva sector. It serves as a benchmark for the contractual indexation of rents and construction works.
Geneva Industrial Services (SIG): As a public law entity, this provider manages the distribution of energy, water, and essential digital services for the canton of Geneva. It focuses its activities on the energy transition and sustainable urban infrastructure development.
Geneva land-use regulation plan (PUS): A City of Geneva planning instrument regulating the allocation of housing and activities, together with open spaces. Its scope and applicable rules should be checked for the particular area and proposed development.
Geotechnical survey: Analysis of a site's soil and subsoil through boreholes, determining its bearing capacity, groundwater and the right type of foundations.
Geothermal probes: Pipes drilled deep into the ground that capture the earth's heat to feed a heat pump. Drilling them requires a permit.
Gift: Free transfer of a property to another person, which must be made by notarial deed. Depending on the canton and family relationship, it may be taxed.
Global price: This tariff covers all services provided in the contract but allows for financial adjustments. If the scope of work extends, the provider may charge supplements justified by additional costs.
Graduated mortgage: A graduated mortgage features a repayment structure where monthly installments increase gradually over time. It facilitates home ownership for those with lower initial incomes by scaling financial obligations.
Green space coefficient: Urban planning indicator requiring a minimum proportion of green area relative to the built plot. This ratio aims to preserve biodiversity and limit soil sealing in urban environments.
Gross floor area: Total area of all floors of a building, including walls, used to calculate density and building potential.
Gross Rent: Gross rent is the total monthly amount payable by the tenant. It includes the net rent plus all ancillary charges associated with the property's use (energy, water, maintenance, etc.).
Gross yield: A simple profitability measure calculated by comparing the annual rental income to the purchase price of the property. This indicator does not account for operating expenses and provides a preliminary view of financial performance.
Guarantee institution: Company guaranteeing the repayment of a debt in case of default by the primary debtor. The borrower pays a fee to benefit from this coverage, thereby securing the granting of bank financing.
Guarantor: A guarantor is an individual or entity that jointly undertakes to assume the financial obligations of the tenant in case of default. This surety strengthens the landlord's security against the risk of rent non-payment.

H

Handover report: Document signed at handover listing the defects found and the deadlines for remedying them. Any defect not recorded is harder to claim afterwards.
Hazardous materials survey: Survey identifying hazardous substances in a building, such as asbestos or PCBs, before renovation or demolition work.
Heat pump: Heating system that draws heat from the air, ground or water to heat the home and hot water, using little electricity.
Heat-recovery ventilation: System that continuously renews the air while recovering heat from the extracted air. It improves comfort and energy efficiency, notably in Minergie buildings.
Hedonic valuation: Statistical valuation method estimating a property's value from comparable transaction prices and its characteristics.
Heritage protection: Public measures aimed at preserving the historical and cultural substance of notable buildings. This protection imposes strict renovation constraints, often offset by financial aid or cantonal subsidies.
Holiday Home: This is a real estate property primarily intended for the seasonal or occasional stays of its owners. Bank financing is often more restrictive, frequently excluding the use of second pillar pension funds.
Home ownership promotion (WEF): Option to use pillar 2 or pillar 3a savings, through early withdrawal or pledge, to finance one's main residence.
Home staging: This property enhancement technique aims to prepare a home for sale by making it more visually appealing. It involves neutralising the decor and strategically arranging space to maximize buyer interest.
Household insurance: Insurance covering the contents of a home against theft, fire, water damage, and other disasters. It protects the occupants' personal items as well as their private civil liability.
Housing cooperative: A housing cooperative is a legal entity that owns or manages homes and grants members occupancy rights under its articles. In Switzerland, members subscribe for shares, participate in governance, and generally occupy homes through a cooperative tenancy relationship.
Housing for the elderly (IEPA): An IEPA is a building specifically designed for seniors, offering adapted housing and supportive services. These facilities promote independent living while ensuring a secure environment.
HPE and THPE standards: HPE and THPE labels certify high energy efficiency in new or renovated Swiss buildings. They mandate rigorous optimization of thermal requirements, insulation levels, and the integration of renewable energy sources.

I

Improvement expenditure: Expenditure refers to costs incurred for the preservation or enhancement of a property's value. These expenses may be classified as necessary, useful, or purely aesthetic depending on their objective.
Imputed rental value: Notional income corresponding to the rent an owner would receive by letting the home they occupy, added to taxable income.
Incidental Construction Costs (CFC 5): Incidental costs according to CFC 5 include indirect expenses necessary for the realization of a real estate project. They encompass technical fees, official permits, interim interest, and insurance premiums during construction.
Income property: An income property is acquired primarily to generate periodic rental revenue. Profitability is the decisive factor for investors, requiring effective management of operating expenses and vacancy rates.
Indexation clause: Contractual provision allowing rent adjustment based on the evolution of the consumer price index. Under Swiss law, its application is strictly conditioned by the lease duration and applicable legal provisions.
Indexed Rent: Indexed rent is periodically adjusted according to the Swiss Consumer Price Index (CPI), as per the lease agreement. Minimum intervals between indexations must be observed, with an indicative increase of 3% mentioned for 2024.
Indicative prices: These are reference values established by local experts to guide the pricing of a property. These statistical markers have no binding value for the final sale.
Indirect amortisation: Payments into a pension account (pillar 3a) pledged to the bank. The debt stays constant and is repaid later with the savings.
Individual ownership: A form of exclusive holding where a single person exercises full rights over a property. This holder alone may use, modify, rent, or dispose of the object without requiring the consent of any associated third parties.
Industrial building: These structures are dedicated to production or storage and must adhere to strict fire safety standards. Their operation requires official validation ensuring compliance with specific technical requirements.
Initial Rent: The initial rent is the amount agreed upon at the start of the lease, influenced by previous rents, market conditions, and regulations. It can be challenged if deemed excessive, with specific caps applying in certain cantons.
Interest floor: The interest floor refers to a minimum rate limit applied to a mortgage, preventing the debtor from benefiting from a rate drop below this level. This mechanism guarantees stable remuneration to the bank creditor.
Interest rate forecasts: These are analytical estimates regarding the future trajectory of refinancing costs based on financial markets. Such anticipations influence financing decisions and the strategy for selecting mortgage products.
Interest rate reversal: This phenomenon refers to the trend reversal of key interest rates set by monetary authorities influencing the cost of mortgage loans. An increase or decrease in these rates immediately alters financing conditions for both borrowers and investors.
Interim interest: Interest paid on the construction loan during the works, before it is converted into a mortgage.
Interior fitting: Secondary construction work carried out inside a building, including technical installations, partitioning, and finishes. These interventions, performed by various trades, transform the raw structure into a habitable and functional space.
Inventory of fixtures: The inventory of fixtures describes the condition of a dwelling upon a tenant's entry and exit. Although not mandatory in Switzerland, it is recommended to prevent disputes regarding damages and the return of the deposit.
Investment amount: Global cost including land purchase price and construction costs, plus incidental expenses. It represents the total financial commitment required to realize a real estate project or acquire a property.
Investment horizon: The investment horizon specifies the intended holding period of a real estate asset before disposal. This timeframe directly influences the tax strategy and the selection of financing instruments used by the investor.
Irrevocable payment undertaking: Written commitment by the buyer's bank to pay the price to the notary or seller once ownership is transferred. It secures payment for the seller.

J

Joint and several suretyship: Commitment where the surety is liable for the rental debt in the same capacity as the debtor. The landlord may claim the entire debt directly from the surety without prior proceedings against the tenant.
Joint ownership: Form of ownership in which several people, such as spouses or heirs, together own the whole property and must decide jointly.

L

LaLAT: The LaLAT establishes the cantonal framework for implementing federal land-use regulations. It organizes land management and zoning allocation to ensure a sustainable and balanced development.
LAMAP: LAMAP is a Swiss digital real estate platform offering valuation and matchmaking tools for the property market. It aims to provide a technological approach to real estate, utilizing local data and advanced analytics for individuals and professionals.
Land register: Public register kept by the canton recording properties, their owners and the rights and charges attached to them.
Land register extract: Official document showing a property's owner and area, as well as the easements, charges and notations affecting it. It is checked before any sale.
Land register fees: Charges levied by the land register for recording the transfer of ownership and any charges. The amount varies by canton and sale price.
Land share: The fraction of the overall value of a real estate project specifically allocated to the land parcel at the time of sale. This distinction allows for greater transparency between land and construction costs, often used for tax calculations.
Land-use plan: Planning document that sets, plot by plot, what may be built and for which use: housing, business, public facilities or green spaces.
Landlord's right of entry: A landlord's right of entry in Switzerland allows access to the rented property for legitimate reasons, with reasonable notice. The tenant must consent to these visits, except in emergencies.
LATeC (Spatial Planning and Construction Act): This act governs the organization of land use zones and sets construction rules at the cantonal and communal levels. It aims for optimal land utilization and ensures coherent territorial planning for residential and activity areas.
Latent defects: Defects that could not be detected by a normal inspection at the time of purchase. They must be reported to the seller as soon as they are discovered.
LCAP (Federal Act Encouraging Construction and Home Ownership): Historically designed to facilitate home ownership, this act has seen its role evolve alongside other instruments like the LOG. It has been supplemented by mortgage guarantee mechanisms, with direct aid diminishing over time.
LCI (Act on Buildings and Various Installations): This act governs the authorization, design, execution, and operation of buildings to ensure safety, functionality, and energy efficiency. Specific requirements and procedures vary significantly between cantons.
LDTR: Geneva law on the demolition, conversion and renovation of residential buildings, protecting the housing stock and regulating rents after works.
Lease: Contract by which a landlord grants a tenant the use of a property for a given period in return for rent.
Legal mortgage: A legal mortgage is a security interest that arises directly by operation of law. It allows designated creditors to secure claims against a property without prior contractual agreement.
Legal mortgage with registration: This type of mortgage requires formal entry into the land register to be effective against third parties. It typically covers claims from contractors for construction work performed on a property.
Legal mortgage without registration: This security interest applies automatically by law without any land register formalities. It primarily covers real estate taxes and priority public charges levied against the property.
Lex Koller: Federal law restricting the acquisition of Swiss real estate by persons abroad, particularly for homes not used as a main residence.
LGL (General Act on Housing and Tenant Protection): This act sets rules to protect tenant rights and define landlord obligations, aiming for a balanced rental market. It governs aspects like housing safety, rents, and terminations.
LGZD (General Act on Development Zones): This act governs development zones by subjecting new constructions to state control for a defined period. It aims for balanced and sustainable territorial development, including limitations on use and purchase.
LGZD Housing: This type of housing is located in a development zone (ZD) and is subject to periodic price controls for sale or rent. Its construction meets public interest criteria and requires specific authorization procedures.
LIBOR-based mortgage: This historical mortgage type was indexed to short-term interbank rates. Following its discontinuation, it is no longer offered, as the market has successfully migrated to SARON-based interest rates.
Licensed business agent: A professional authorized to represent clients before Swiss courts and authorities, particularly in lease and debt collection matters. Their role sits at the intersection of amicable debt collection and legal assistance by an attorney.
Life Cycle Cost (LCC): Life Cycle Cost (LCC) aggregates a building’s foreseeable expenses during design, construction, operation, maintenance, renovation, and end of life. In Switzerland, this approach supports comparison of alternatives over their service life but is not generally a statutory requirement.
Life insurance: This financial contract ensures the protection of loved ones in the event of death and allows for long-term savings. In Switzerland, this third pillar is often utilized to finance the acquisition of a primary residence.
Limitation period: Period during which claims relating to defects can be asserted. For a building, it is in principle five years from handover.
Limited real right: A limited real right is a subjective right enforceable against third parties, granting partial control over a property. It can be a right of security, use, or enjoyment, restricting full ownership.
Living area: Interior area of a home that can actually be lived in, measured inside the walls, excluding balconies, cellars and service ducts.
Load-bearing wall: Wall that carries the weight of the upper floors and roof. It can only be removed or opened up with an engineer's approval and often a permit.
Loan-to-value ratio (LTV): Share of the purchase price covered by the mortgage. In Switzerland it is generally capped at 80% for an owner-occupied home.
Local improvement contribution: A local improvement contribution is a financial charge linked to the specific benefit that infrastructure or development works provide to a property. In Switzerland, its legal basis, calculation, due date, and appeal procedures primarily depend on applicable cantonal or municipal law.
Local neighbourhood plan: In Geneva, a land-use plan defining the location, size and use of buildings within a given area.
Location Factor: The location factor aggregates the geographical, fiscal, and infrastructural parameters that directly influence a property's value. The attractiveness of a site depends on its connectivity, nearby services, and its socio-economic environment.
Loft: A loft is a large living space, often converted from former industrial premises, characterized by an open design and high ceilings. It offers a modern lifestyle but may lack privacy, making it less suitable for large families.
Loggia: Covered outdoor space set back from the facade and enclosed on three sides, extending the living room while staying sheltered.
Loss aversion: This cognitive bias leads owners to assign a higher subjective value to their property simply because they own it. This can hinder a real estate sale by creating a gap from actual market prices.
Loss of earnings insurance: Coverage ensuring income maintenance in the event of prolonged work incapacity due to illness or accident. It is essential for securing the owner's mortgage obligations.
Low-cost housing (HBM): HBM refers to social housing where rents are regulated by the state to assist low-income households. This specific framework requires property owners to adhere to strict subsidy agreements for a defined duration.
Lowest value principle: This prudential rule requires banks to use the lower value between the purchase price and the estimated market value for advance calculations. It thereby limits over-indebtedness when granting mortgages.
LPP (Occupational Pension Act): The LPP governs the Swiss pension system, allowing for the early withdrawal of assets for owner-occupied housing acquisition. The insured party must comply with legal requirements regarding withdrawals or pledges before retirement.

M

Maintenance: Maintenance encompasses the actions necessary to keep a property in good condition, including repairs and care. It aims to preserve the value and functionality of the real estate in the long term.
Maintenance Costs: Maintenance costs represent the recurring expenses necessary to preserve the substance and value of a building over time. They encompass minor repairs as well as the replacement of technical installations that have become obsolete.
Major renovation: A deep transformation affecting the structure and essential technical installations of a building. Unlike a light refurbishment, it involves replacing systems such as heating or roofing for a complete renewal.
Management Fees: Management fees compensate the professional agent for the daily administration of a rental property. This remuneration covers tenant search, lease administration, and the ongoing technical maintenance of the building.
Management Mandate: This contract entrusts a professional with the responsibility to administer the technical, administrative, and financial aspects of a property. The manager acts according to the owner's instructions to enhance the real estate assets.
Management report: A periodic document detailing the financial status, rental income, and maintenance expenses of a property. It allows the owner to track the profitability of their investment and the performance of the manager over a given timeframe.
Management statement: An accounting report tracking all income and expenses related to the operation of a building. It allows owners to precisely determine the net financial result of their investment.
Mandate: A mandate is a contract through which the agent agrees to manage the matter entrusted to them. In real estate, it formalizes brokerage services for the sale or rental of a property.
Market Rent: Market rent is determined by supply and demand when a new lease is concluded or when rent is adjusted. Increases during an ongoing lease remain subject to Swiss legal regulations.
Market value: Price a property would most likely fetch on the open market under normal sale conditions.
Marketing (sales): Strategic process for selling real estate, involving valuation, visual enhancement, and commercial promotion. These coordinated actions optimize visibility among potential buyers to facilitate the final transaction.
Master House: A master house refers to a large historic residence often associated with a significant former industrial or agricultural operation. It is characterized by a monumental facade and prestigious construction materials.
Material Expropriation: Material expropriation occurs when a planning measure severely restricts the possible use of land, reducing its market value. The owner retains their title but receives compensation for this significant restriction of their rights.
Memorandum of understanding: A preliminary contractual document that establishes the essential terms of a future real estate transaction between parties. It secures negotiations by recording major points of agreement before the formal signing of the deed before a notary.
MEP engineer: The MEP engineer designs and optimizes heating, ventilation, air conditioning, and electrical systems. Their expertise is essential to ensure building energy efficiency and occupant comfort.
Micro-location: Micro-location precisely analyzes immediate environmental factors influencing the value and appeal of a specific plot. This detailed approach considers the direct surroundings, sunlight exposure, and noise disturbances specific to the chosen site.
Minergie: Swiss building label guaranteeing a high level of comfort and low energy consumption.
Minergie-A: The Minergie-A standard certifies buildings with a positive or net-zero annual energy balance. These constructions prioritize local renewable production to cover all residents' energy needs.
Minergie-Eco: This supplement to Minergie certifications focuses on construction ecology and occupant health. It imposes strict criteria regarding materials and indoor air quality.
Minergie-P: Swiss building standard targeting very low energy consumption and superior indoor comfort. It requires a high-performance thermal envelope and controlled ventilation to guarantee exceptional building energy efficiency.
Mixed housing (HM): The mixed housing status allows access to state support for units targeted at middle-income households. Owners receive construction or operational aid in exchange for complying with regulated rental pricing.
Moderate-rent housing (HLM): These units receive public funding to ensure affordable rents for low-income earners. The owner enters into a contractual agreement with the authorities regarding occupancy conditions and rental caps.
Monuments and Sites Service (SMS): This Geneva cantonal body ensures the protection and enhancement of architectural heritage and historical sites. It evaluates renovation projects to ensure compliance with conservation standards and the integrity of listed buildings.
Mortgage: In Switzerland, a mortgage is a real-estate security securing a claim, while financing is commonly documented by a mortgage note. Ownership is acquired through registration in the land register after a notarised deed, and ranking generally affects credit risk and terms.
Mortgage assumption: Arrangement in which the buyer takes over the seller's existing mortgage, with the bank's approval, instead of taking out new financing.
Mortgage broker: A mortgage broker compares and negotiates property-financing solutions for a borrower with one or more lenders. In Switzerland, remuneration, lender relationships, information duties, and the scope of advice should be clarified before the engagement.
Mortgage calculator: A digital tool used to simulate the financing of a property based on income and equity. It facilitates the assessment of a prospective buyer's actual borrowing capacity.
Mortgage consolidation: Mortgage consolidation combines or converts existing property financing, including construction financing into longer-term mortgage financing. In Switzerland, the transaction depends on the property valuation, affordability, established security interests, and the lender’s contractual conditions.
Mortgage Load Limit: This represents the maximum portion of a property's value that can be encumbered by a mortgage. In practice, the debt-to-income ratio, including interest, amortization, and maintenance, should ideally not exceed about one-third of the household's gross income.
Mortgage loan term: The term of a mortgage loan in Switzerland generally ranges from 5 to 30 years, or even longer. It is contractually determined and covers the period from fund disbursement to full repayment.
Mortgage model: Financing option chosen by the borrower among fixed, variable, or market-index rates such as SARON. This choice depends on individual financial objectives and risk tolerance.
Mortgage note: Real estate lien certificate entered in the land register, securing a mortgage loan granted by a bank.
Movable property: Movable property is an object that can be physically moved without altering its substance or the building. It is legally distinguished from real estate, which is permanently anchored to the ground.
Multi-family building: A multi-family building contains several housing units under one roof. These properties are generally structured as condominiums or held by a single owner managing the entire rental complex.
Municipal notices City of Geneva: These municipal notices constitute a mandatory procedural step for building permit applications submitted in the City of Geneva. They assess the suitability of an architectural project with local regulations and municipal urban planning goals.

N

Negotiation Margin: The negotiation margin is the difference between the initially listed selling price and the final transaction value. It results from a confrontation between the parties' expectations and economic reality.
Net Rent: Rent charged for use of the premises, excluding separately agreed ancillary costs. Depending on the lease, these costs may be settled against supporting documents, paid through advances or charged as a fixed amount, rather than individual consumption alone.
Net yield: A profitability percentage calculated by subtracting all holding and management costs from total rental income. It is the most accurate indicator for evaluating the actual performance of an investment.
New building: Recently erected building compliant with current regulatory requirements and issued building permits. This notion entails specific authorization procedures, notably in Geneva for compliance with urban planning regulations.
New mortgage: Credit contracted to finance the initial acquisition of a property, including notary and administrative fees related to land registry. Subsequent loan extensions are generally not classified under this term.
Notarial deed: Real estate sale contract drawn up and signed before a notary, mandatory in Switzerland for any transfer of property ownership.
Notary: Public officer who drafts and authenticates the deed of sale, checks the property's legal status, handles the funds and applies for entry in the land register.
Notary escrow account: Notary's bank account where the transaction funds are held, paid to the seller only once the conditions of the sale are met.
Notary fees: Notary fees, transfer tax and land register fees related to a purchase, to be budgeted in addition to the price.
Notation: Land register entry that makes a personal right enforceable against any future owner, such as a pre-emption, purchase or buy-back right, or a lease.
Notice of defects: Written notice sent to the contractor to report a defect. Since the revision of the Swiss Code of Obligations that came into force in 2026, it must be given within 60 days of discovery.
Notice period: The notice period corresponds to the legal or contractual timeframe a party must respect to terminate a lease. In Switzerland, this period is determined by the Code of Obligations and must be notified before the agreed deadline.

O

Occupancy permit: Authorisation issued after a compliance check, allowing a new or converted building to be lived in or used.
Off-market: Real estate transaction carried out confidentially without public advertising, to preserve the seller's privacy. This targeted process prioritizes a selection of qualified buyers to carry out the sale discreetly.
Off-plan sale: Purchase of a home before or during construction, based on plans and specifications, with payment as work progresses.
Official gazette: Official cantonal publication announcing, among other things, building permit applications and auctions.
Official Surveying: This is the exhaustive technical survey of land boundaries and parcels, forming the basis of the land registry. It ensures legal certainty regarding the precise definition of property rights.
Official surveyor: Licensed professional who carries out official surveying: plot boundaries, cadastral plans and the areas entered in the land register.
Online mortgage: An online mortgage refers to securing a loan through digital platforms without physical advisory intervention. This automated process is typically tailored to clients possessing sufficient knowledge of the financial market.
Online mortgage renewal: This involves the digital renewal of an existing mortgage contract via a web platform. This efficient service is ideal for standard financial situations, whereas complex cases require personalized consultation with a banking advisor.
Open book accounting: A billing method where the final price is determined by the actual sum of costs incurred and justified by the general contractor. Each expense must be supported by accounting evidence.
Ordinance on Residential and Commercial Lease and Tenancy Agreements (OBLF): This ordinance governs landlord-tenant relations in Switzerland, aiming for a balance of rights and obligations. It specifies lease conditions, rent adjustments, and termination procedures, protecting tenants from abuses.
Ordinary general meeting: The supreme body of a condominium association meeting annually to approve accounts, the budget, and elect representatives. Each co-owner has one vote to influence the management of the co-ownership.
Orthogonal axonometry: This is a three-dimensional graphic representation technique used to visualize architectural projects with precision. It maintains object proportions, thereby facilitating the understanding of building volumes.
Outbuilding: An accessory space or structure located in immediate proximity to the main dwelling, not intended for residential use. It includes premises such as garages, sheds, or huts.
Outdoor landscaping: All installations located outside the building, such as gardens, fences, or parking areas, aimed at enhancing the property. These external elements are taken into account when estimating the overall market value.
Over-indebtedness: Financial situation where the borrower exceeds mortgage financing limits authorized in relation to the property value. Supplementary guarantees, often from retirement savings, are then required to mitigate this increased risk.
Owner-Occupied Housing: Refers to a property occupied by its owner or a family member. If the owner does not occupy the dwelling, it is considered owner-unoccupied personal property.
Owner's representative: Independent expert acting solely on behalf of the client: reviews contracts, monitors quality, budget and schedule, and defends the client's interests towards all parties involved in the project.
Owners' meeting: Supreme body of a condominium, bringing together all owners to decide on the budget, works and management of the building.
Ownership: The absolute real right exercised over real estate, registered in the land registry, allowing the holder to use and dispose of it freely. Under Swiss law, this manifests as sole ownership, co-ownership, or joint ownership depending on the legal status.
Ownership share: Under Swiss law, the ownership share refers to the real right exercised over a property. It varies according to three forms registered in the land registry: sole ownership, co-ownership by shares, or joint ownership.
Ownership shares (thousandths): Share of each unit in a condominium, expressed in thousandths, determining the split of costs and voting weight.

P

Parcel number: Unique identifier assigned to each land parcel in the Swiss cadastre to officially locate the property. This number allows access to legal data and information regarding land rights.
Parcel of land: Area of land with clearly defined boundaries, entered as real property in the land register.
Partial zoning plan: The partial zoning plan is a detailed planning instrument governing the development of a limited geographical sector. It specifies buildable possibilities, easements, and land use rules specific to that precise zone.
Participation in acquired property: This Swiss matrimonial regime applies automatically in the absence of a contract. It distinguishes between separate property and acquired property, the latter being shared equally between spouses upon dissolution of the marriage by divorce or death.
Partly underground construction: A partly underground construction is located partially below the reference ground level, with its classification governed by cantonal planning and building rules. Height, exposure, and measurement criteria differ between Geneva, Vaud, and other cantons, and must be checked locally.
Pension Fund: The pension fund, or occupational benefit institution, manages the second pillar savings of employees in Switzerland. These funds are invested, including in real estate, to guarantee the payment of future retirement pensions.
Penthouse (attic floor): Top floor of a building, often set back from the façade with a terrace, usually offering an open view.
Permanent construction: A permanent construction is a structure durably attached to the ground, including buildings and certain civil-engineering works. In Switzerland, its development generally requires approval under cantonal law, the applicable zoning plan, and relevant technical requirements.
Perspective drawing: A three-dimensional graphic representation of an architectural project allowing for the visualization of volume and spatial integration. Current digital tools enable realistic light simulations.
Planning: Planning involves chronologically organizing the stages required for an real estate project. It structures and coordinates resources to ensure the smooth execution of the construction and the ultimate success of the project.
Pledge: A pledge is a security interest where a debtor secures a debt with a specific asset. In the event of default, the creditor is authorized to liquidate this asset to satisfy the debt.
Pledge of pension assets: Using pension savings (2nd or 3rd pillar) as collateral for a mortgage without withdrawing them, which allows a larger loan.
Plot: A plot is a registered land unit representing a specific portion of land. It materializes the physical footprint on which property rights are exercised as recorded in the land registry under Swiss law.
Plot subdivision: Splitting one plot into several separate parcels, drawn up by an official surveyor and entered in the land register.
Power of attorney: Document by which a party authorises another person to sign the deed on their behalf. For a property sale it generally has to be certified.
PPE Lot: A PPE lot (Part Ownership Unit) refers to a unit within a co-owned building. It grants exclusive usage rights to private areas and a share of the building's common parts.
Pre-emption right: Right allowing a person or public body to buy a property first, on the same terms as a third-party buyer.
Preliminary design plan: The preliminary design plan formalizes the first design study for a construction or renovation. It validates the volume, placement, and architectural feasibility before initiating formal authorization requests with the authorities.
Preliminary project: This initial stage defines the technical, architectural, and financial feasibility of a real estate project before applying for a permit. It aligns the client's vision with regulatory constraints and the budget.
Preliminary request: An optional stage seeking an official opinion from the authority on the conceptual aspects of a project before its detailed development. It helps secure the investment through principle validation.
President of a condominium association: The president of a condominium association chairs the general meetings of co-owners and ensures compliance with the bylaws. They play an essential coordination role by signing meeting minutes and ensuring liaison with the administrator.
Price ceiling: A price ceiling refers to a tariff limit imposed by law to protect the purchasing power of tenants. This mechanism prevents rents from exceeding a threshold deemed locally abusive.
Price per cubic meter: This indicator measures the construction cost relative to the total volume of the building constructed according to SIA standards. It allows for a standardized comparison of construction costs between different real estate projects.
Price per m²: Price of a property divided by its area. A common benchmark for comparing homes, it depends heavily on location, quality and condition.
Primary residence: A primary residence is the permanent and habitual place of living for a taxpayer. This domicile constitutes the center of personal and civil life, determining the place of taxation and the applicable legal jurisdiction.
Principal: The principal refers to the party entrusting a third party, the agent, with the mission to perform legal acts on their behalf. The contractual relationship is governed by the provisions of the Code of Obligations.
Private areas: Private areas include interior spaces reserved for the exclusive use of a condominium owner. They are delimited by walls, ceilings, and floors, with the exception of load-bearing structural elements.
Private domicile: The primary residence of a natural person, constituting the center of their activities and domestic life. This legal status is protected by constitutional guarantees.
Private law: Private law governs relationships between private individuals and entities, whether natural or legal persons. It applies, among other things, to real estate contracts and acts either as a supplement to agreements or by imposing mandatory rules.
Professional fees: Fees represent the remuneration payable to independent professionals for advisory or service tasks. They are determined either by written agreement or according to established industry customs.
Project designer: Professional, usually the architect or engineer, responsible for designing the project and supervising its technical execution.
Project management: Project management consists of the overall coordination of a real estate project during its operational phase. It ensures compliance with deadlines, budgets, and the synchronization of technical stakeholders under the authority of the project owner.
Project owner (client): Person or company on whose behalf a building is constructed, who defines its brief and bears its financing.
Project plans: These detailed technical drawings illustrate an entire future building for the submission of a building permit application. They ensure project transparency towards competent authorities and neighbors during the public inquiry process.
Promise of sale: Notarised contract in which seller and buyer commit to completing the sale later, often used for off-plan purchases.
Property council: Optional body within a condominium owners' association, tasked with supporting the administrator in management duties. It is elected by the general assembly to supervise current operational activities.
Property Dealer: A property dealer buys real estate to resell for profit after performing improvement works. Unlike an agent, they act in their own name as the temporary owner of the assets.
Property developer: Company that runs a building project from start to finish: buying the land, design with the architects, permits, financing, construction and sale.
Property estimator: A property estimator is an online tool providing an approximate valuation of a property's worth. It uses data and algorithms to consider key factors but does not replace professional expertise.
Property Management: Property management is the mandate entrusted to an agency to ensure the technical, rental, and financial administration of a building. It manages the relationship between parties while ensuring the preservation of the asset's value.
Property stock: Collection of real estate assets owned by an entity, requiring regular maintenance to maintain value. Effective management optimizes rental yield while complying with Swiss legal obligations.
Property tax: Annual tax levied by some cantons or municipalities on the value of real estate located in their area, regardless of the owner's income.
PropTech: The collection of digital technological innovations applied to the real estate sector to optimize property search, management, sales, or valuation. This field enhances transparency and process efficiency for both professionals and private individuals.
Public ban: Judicial decision issued upon the owner's request to prohibit access or use of a private parcel. This official measure restricts third-party use of the land and is publicly disclosed to ensure enforcement.
Public inquiry: Period during which a building project is made public so that third parties can review it and, if necessary, object.
Public law: Public law governs interactions between public entities and private individuals. In Switzerland, it oversees urban planning and land development, thereby influencing certain aspects of real estate law.
Public Utility Housing (LUP): This housing offers moderate or affordable rents, often supported by public funding. Allocation is based on strict criteria such as income and household composition, aiming for accessibility and social cohesion.
Public utility project owner (MOUP): Organization, often cooperative, developing non-profit housing at cost price. These entities promote sustainable housing access while maintaining non-speculative real estate assets for their members.
Purchase costs: All costs added to the purchase price: transfer tax, land register fees, notary fees and the cost of creating mortgage notes.
Purchase offer: Written proposal from a buyer stating the price and conditions at which they wish to buy a property. Only the notarial deed makes the sale final.
Purchase option: Right to buy a property at a set price within a limited period (ten years at most). It must be established by notarial deed.
Purchasing Power Guarantee in case of Inflation: This legal mechanism regulates the adjustment of rents to inflation to protect both the tenant and the landlord's return. Law strictly limits the transfer of inflation-related cost increases to the rent.

Q

Quantities: Quantities correspond to the precise measurements of a building's surfaces and volumes for cost estimation. They form an essential technical basis for quantifying renovation or construction works.
Quick sale: Real estate technique aiming to maximize the interest of potential buyers to conclude a transaction within a very short timeframe. It generally relies on strategic pricing and meticulous preparation to facilitate a quick decision.
Quote: An estimated cost document detailing the price of planned construction or renovation work. It serves as a reference for the project owner's budgetary control.

R

Raft foundation: Reinforced concrete slab poured under the whole footprint of the building, spreading its load across the ground and forming the basement floor.
Real burden: Real obligation attached to a property, requiring the owner to perform periodic services for the benefit of a third party. Registered in the land register, this burden encumbers the real estate regardless of the current owner's identity.
Real estate appraisal: Real estate appraisal determines the market value of a property to set an optimal selling price. It is conducted by experts or software and can use various valuation methods.
Real estate capital gains tax: Cantonal tax on the gain made when selling a property, whose rate generally decreases with the length of ownership.
Real estate development: An activity consisting of designing, developing, and constructing housing units or commercial buildings for sale or rent. It encompasses project management, from initial land planning to the final completion of construction works.
Real estate expenses: Total costs related to holding and operating a real estate property, including interest, depreciation, and maintenance. These costs are essential for determining the net profitability of an asset under current management.
Real Estate Market: This market encompasses all real estate sales, purchases, and rental transactions subject to market forces. It is influenced by economic trends, interest rates, and the available local supply.
Real Estate Pledge: A real estate pledge is a security interest on a property to guarantee a debt, typically through a mortgage certificate. It grants the creditor the right to enforce a forced sale of the property if the debtor fails to meet obligations.
Real estate portfolio: A portfolio aggregates all real estate assets held by a private or institutional entity. Its management aims to optimize returns, track asset value, and plan long-term investments.
Real Estate Project Financing: This process involves mobilizing external financial resources, typically through bank loans, to carry out construction or acquisition operations. The financing plan incorporates both equity and the necessary foreign capital.
Real estate refinancing: The operation of replacing a maturing mortgage with a new contract to optimize financial conditions. This process requires a strategic assessment of prevailing interest rates and the borrower's risk profile.
Real estate transfer: Transfer of real estate ownership, often resulting in the collection of cantonal transfer taxes. This act must be recorded in the land registry to be legally valid under Swiss law.
Real Estate Valuation: Real estate valuation is a formal and independent assessment determining the value of an asset at a given date. It relies on technical and economic criteria to provide a reliable estimate to financial institutions or property owners.
Real estate valuation models: Analytical approaches using methods like income capitalization, intrinsic value, or discounted cash flows (DCF) to determine a price. The selection depends on the property type and the specific objective.
Real right: A real right, falling under Swiss private law, establishes the relationship between a person and a property. It is governed by the Civil Code and includes ownership, possession, and limited real rights such as servitudes.
Real Value Method: Real value is obtained by adding the land value to the current construction value. This calculation incorporates replacement costs after deducting physical and economic depreciation.
Real-estate broker: A real-estate broker introduces sellers to buyers or landlords to tenants under a mandate defining services and remuneration. In Switzerland, commission is generally payable when the contract is concluded through the broker’s intervention, subject to the agreement and applicable law.
Reference date: A precise point in time used as the basis for an objective assessment of a property's market value. This date establishes the market conditions and the property's state at that moment.
Reference mortgage rate: Rate published quarterly by the Confederation, used as the basis for adjusting rents in Switzerland.
Registered mortgage note: Debt security issued in the name of a specific natural or legal person. This document links the real estate pledge to a precise creditor, making the transfer of the claim subject to formal endorsement.
Registered partnership: Registered partnership allows two people of the same sex to formalize their union under federal law. This status defaults to a separation of assets regime, unless a contrary notarized agreement provides for a participation in acquired property.
Registration fees: Registration fees are taxes levied on certain legal transactions, such as the creation of a mortgage certificate. They are calculated as a percentage of the value concerned and paid to the state.
Reinforced concrete: Concrete strengthened with steel bars, combining concrete's compressive strength with steel's tensile strength. The core material of modern structures.
Reinvestment: The action of allocating financial surpluses or profits from a real estate asset to new projects or to the improvement of existing properties. This strategy aims to increase equity value and economic performance over the long term.
Reinvestment (tax deferral): A mechanism allowing for the deferral of real estate capital gains tax by reinvesting sale proceeds into the purchase of a replacement property. This tax measure encourages property mobility subject to compliance with legal conditions.
Remaining useful life: The remaining useful life of a property is calculated by subtracting its age from its estimated total useful life. This estimation considers actual wear and tear and affects age-related depreciation.
Render: Finishing coat applied to exterior or interior walls, protecting the surface and giving it its appearance and texture.
Renovation: A set of works aimed at restoring, modernizing, or improving a property to extend its lifespan. These interventions help maintain property value and meet current comfort standards.
Renovation fund: Financial reserve built up by condominium owners to pay for major future works, such as renewing the roof or the facades.
Rent: Rent is the periodic financial payment made by the tenant for the use of the rented property. It generally does not include ancillary charges, which are considered separate from the net rent.
Rent deposit: Sum paid by the tenant into a blocked account in their name as security for their obligations. For housing it is capped at three months' rent.
Rent Letter: A rent letter is a mortgage debt instrument providing a real security without personal liability for the debtor. Its use is marginal in Switzerland, with more robust security forms being preferred.
Rent roll: List of an apartment building's rents, unit by unit, with areas, tenants and lease terms. It is the basis for valuing an income property.
Rental authorization order: An official document authorizing the marketing of a building in a development zone for rent before obtaining its final status. This measure regulates the commercialization of new housing units.
Rental building: This refers to a building exclusively or primarily intended for leasing space to third parties. It serves as a diversified asset capable of accommodating various types of tenants.
Rental income: This refers to the amounts collected by the owner following the leasing of real estate property, after deducting operating expenses. In Switzerland, this income is subject to income tax after deducting necessary maintenance and operating costs.
Rental operating costs: Additional costs beyond the rent related to premises usage and common services, such as heating or water. These amounts must reflect effective costs and can be passed on by the landlord according to the lease.
Rental security deposit: Financial guarantee provided by the tenant to the landlord to cover potential claims related to the lease. The amount is limited to three months' rent and must be deposited in a secure bank account in the tenant's name.
Repair: Intervention aimed at restoring the functionality or original state of a defective building element. Minor repairs are generally borne by the tenant, while more significant ones fall to the owner according to contracts.
Replacement Tenant: This is a person who takes over an existing lease before its term, following the departure of the original tenant. This new tenant must generally meet the financial criteria set by the landlord or administration.
Request for information: An optional consultative procedure allowing the applicant to understand the authority's position before submitting a formal application. It clarifies the project's compliance with zoning regulations.
Reservation agreement: Agreement by which a buyer reserves a unit in a development, often against a deposit, before the deed of sale is signed at the notary.
Residential building yield calculation: This analysis assesses the profitability of a building by comparing net rental income to expenses and invested capital. It allows investors to measure the financial performance of their assets.
Residual value method: This method values land by subtracting construction costs and the developer's margin from the final sales price. It is commonly used to determine the maximum purchase price of a plot.
Resolutory condition: Contractual clause providing for the automatic termination of an obligation if a specific event occurs. Unlike a condition precedent, the contract remains in effect until the fulfillment of the specified condition.
Restricted period: The restricted period refers to a temporary restriction limiting the right to dispose of a property or terminate a lease. These measures aim to protect the rights of occupants during real estate ownership transfers.
Retention: Portion of payments held back by the client until acceptance and the correction of defects, often replaced by a bank guarantee.
Retirement plan: A real estate retirement plan consists of optimizing one's assets to generate long-term income after working life. This strategy analyzes the financial viability of retaining or selling a real estate property.
Return of a rental property: This refers to the handover of property keys to the landlord at lease expiry, ideally documented through a joint inspection report. This formal process releases the tenant from occupancy duties and allows for a condition verification against initial terms.
Return on equity: A financial indicator evaluating the profit generated by a real estate asset relative to the initial personal investment. It measures the efficiency of mortgage leverage on the net profitability for the investor.
Reverse: In the field of administrative permits, this conditional clause allows the authority to revoke a building permit if unforeseen circumstances or legal criteria require it. This measure ensures spatial planning flexibility in response to evolving local regulatory requirements.
Rezoning: Amendment to the land-use plan that changes a plot's zone, for example from agricultural to building land, or vice versa.
Right of repentance: The right of repentance, also known as the right of withdrawal, allows a buyer to retract after signing a real estate sale agreement. This right is strictly regulated and generally does not apply to professional transactions.
Right of residence: Personal right to live in all or part of a home owned by someone else, without being able to let or transfer it.
Right of reversion: The right of reversion allows an original owner to regain full ownership of land after a defined period. During this time, a third party may build on or use it, often in exchange for a fee.
Right of use: The right of use in Switzerland allows an individual to utilize a property without owning it, often for personal and temporary purposes. It can be formalized as a servitude and applies to real or movable property.
Right to benefit from vacant ranks: An agreement allowing a mortgage lien to move into a higher rank that becomes vacant. In Switzerland, rank advancement is not automatic: it depends on the agreed right and, where required, its entry in the land register.
Risk premium: In the financial sector, this premium represents the additional compensation required by a lender to offset the specific risk associated with a borrower or property. It is added to the base interest rate.
Roll-over mortgage: A roll-over mortgage is a financing solution linked to money market rates. It offers significant repayment flexibility with full transparency regarding interest charges that are adjusted on a periodic basis.
Romance Framework Contract: The Contrat Cadre Romand is a joint agreement concerning residential leases in French-speaking Switzerland, separate from the mandatory rules of the Code of Obligations. Its general binding force has ended, but clauses may still be contractually adopted when consistent with applicable law.
Roof frame: Timber or steel structure supporting the covering of a pitched roof. Its completion traditionally marks the end of the structural work.
Rural land law: Swiss rural land law (LDFR) regulates the ownership of agricultural land to promote its cultivation and ownership by farmers. It aims to stabilize agricultural land prices.

S

Sales dossier: The real estate sales dossier compiles essential information for a property transaction in Switzerland. It includes an attractive promotional section and a detailed administrative section to inform potential buyers.
Sales process: The sales process encompasses the phases from the initial appraisal to the notarized conclusion. It structures marketing, visit management, and negotiations between the various parties.
SARON: Swiss money market reference rate, used as the basis for variable-rate mortgages.
Scaled plan: A scaled plan is a graphic representation respecting precise mathematical proportions relative to reality. This technical tool allows measuring areas and distances with accuracy for real estate construction works.
Schedule of premises: This official document precisely defines the co-ownership shares and areas allocated to each unit in a condominium. It is essential for registration in the Land Register.
Screed: Layer of mortar poured over the slab to create a level surface before the floor covering is laid. It often contains the underfloor heating.
Search Mandate: Through this contract, a buyer instructs a professional to locate a specific property based on their criteria. The agent commits to an obligation of means to identify opportunities meeting the expressed needs.
Second Home Act: Since 2016, this law restricts the construction of second homes in municipalities where their proportion exceeds 20%. It aims to preserve the resident population and permanent housing, particularly in tourist areas.
Second-rank mortgage: Portion of the loan beyond the first rank, up to 80% of the value, which must generally be amortised within 15 years.
Secondary Market (Real Estate): The secondary market refers to all transactions involving existing, previously occupied, or owned real estate properties. It allows owners to liquidate their investments by reselling their assets on the market.
Secondary residence: Housing used for vacation or occasional stays, distinct from the owner's primary residence. In Switzerland, this status may be subject to specific municipal regulations limiting the number of authorized new constructions.
Section plan: The section plan represents a vertical view of a building's structure, allowing for the visualization of heights and internal layout. It is essential for understanding the distribution of spaces over several levels.
Security deposits: Guarantees required by the landlord to cover potential financial defaults or damages caused by the tenant. They most often take the form of a bank deposit blocked in the tenant's name for the duration of the lease.
Semi-detached House: A semi-detached house consists of two adjacent units sharing a common wall and often featuring symmetrical architecture. It enables the balance of individual living benefits with increased land density.
Separate and permanent right (DDP): The DDP is a Swiss building right allowing ownership of structures on third-party land, registered in the land register. It has a time limit and offers financial advantages to both the builder and the landowner.
Share: A fraction of co-ownership allocated to an owner. It can determine cost allocation and certain voting majorities under the Civil Code, deed and regulations; not every decision is taken solely in proportion to shares.
Short-Term Rental: These are furnished rentals for temporary stays, often with services like cleaning. They are sought after by business travelers, exchange students, or tourists and can be highly profitable in desirable areas.
SIA (Swiss Society of Engineers and Architects): This professional organization establishes technical and contractual standards for the Swiss construction sector. Its regulations ensure the standardization of professional practices and guarantee the quality as well as the safety of structures.
SIA 112 phases: Division of a building project into six phases: defining objectives, preliminary studies, project design, tendering, construction and operation.
SIA 416 standard: Swiss technical standard governing the calculation of building areas and volumes. It ensures the harmonization of measurement methods necessary for planning and real estate valuation.
SIA architect / engineer: A professional member of the Swiss Society of Engineers and Architects, ensuring adherence to high quality and sustainability standards. This label guarantees recognized expertise in the Swiss construction sector.
SIA contract: An SIA contract incorporates, by reference or expressly, contractual conditions and standards developed by the Swiss Society of Engineers and Architects. It is not legislation, and its provisions apply only when adopted by the parties, subject to mandatory law.
SIA Standard 118: General conditions for construction work issued by the Swiss Society of Engineers and Architects. Frequently incorporated into contracts, it notably governs handover and defects.
SIA standards: Standards issued by the Swiss Society of Engineers and Architects, the reference in Switzerland for the design, contracts and execution of construction work.
SIAL (Property Company of Tenant Shareholders): This is a form of real estate ownership where shareholders hold exclusive usage rights to apartments via shares. Unlike condominiums, this structure is based on corporate law rather than on ownership of floors.
Simple suretyship: Commitment by which a surety guarantees the tenant's debt to the landlord. The latter may only demand payment from the surety after unsuccessfully pursuing the principal debtor first.
Site management: Role entrusted to the architect or a specialist who coordinates contractors on site and controls quality, deadlines and costs.
SITG (Geneva Territory Information System): Official digital platform providing precise geographic data on the Geneva territory for professionals and the public. This cartographic information is essential for planning construction projects while respecting spatial planning constraints.
Situation Classification Method: This technique classifies a property's location according to various factors to estimate its market value. It uses a rating scale to reflect geographic attractiveness and potential for usage.
Slope: A physical measure representing the inclination or gradient of a plot of land relative to the horizontal plane. This factor significantly influences construction costs and external property layout.
Small building: A small building refers to an outbuilding of limited size, detached from the main structure. It is generally subject to simplified standards and must not serve as a permanent dwelling according to local law.
Smart Building: Building incorporating digital technologies to optimize energy performance, user comfort, and security. These connected systems allow for proactive facility management, thereby reducing the overall environmental footprint of the structure over the long term.
Snagging list: Record drawn up at acceptance listing the defects found and the deadlines within which the contractor must fix them.
Spatial planning: State planning of land use aimed at balancing economic, social, and environmental needs. This task relies on legal frameworks and cantonal master plans to ensure the sustainable development of the territory.
Spatial Planning Act (SPA): Federal law governing land use in Switzerland. It limits the extension of building zones and encourages densification of already built-up areas.
Spatial planning region: An administrative structure grouping several municipalities to coordinate spatial development and infrastructure over an expanded area. Its goal is to ensure coherent and sustainable land planning by going beyond strict municipal boundaries.
Specifications: This document formalizes the expected services, technical constraints, and quality objectives of a construction project. It serves as a contractual basis between the project owner and the stakeholders.
Spouse's consent: Written approval required from the spouse or registered partner to sell or mortgage the family home, even if they are not its owner.
Staggered Rent: Staggered rent involves pre-defined increases in Swiss francs on agreed dates, for a minimum lease term of three years. Only one increase per year is permitted, and a new clause can be introduced upon renewal.
Stamp duty: Swiss stamp duty is an indirect tax levied on certain transactions, particularly the creation of mortgage certificates. Its calculation depends on the loan value and is added to other property costs.
Standardized Item Catalogue: This standardized directory lists construction services to allow for a uniform description of quotes. It facilitates price comparison and budgetary monitoring of construction sites.
Start of works: Official start of construction, which must be notified to the authority once the building permit is final and any conditions are met.
Statutory tax lien: Charge the canton may register on a property to secure taxes linked to the sale, such as property gains tax. The notary often withholds the amount from the price.
Storage Facility: A storage facility offers temporary or extended storage solutions for personal or professional belongings in secure spaces. This service is frequently used during moves or renovation work that requires freeing up space.
Structural engineer: Specialist who designs the building's load-bearing structure (foundations, slabs, walls, beams) and ensures its stability and safety.
Structural work: Works that form the building's structure: foundations, load-bearing walls, floor slabs and roof frame. They come before the finishing work.
Structure / Building: Result of real estate construction including structure, finishes, and integrated technical equipment. It represents the completed material entity resulting from the work of contractors or qualified craftsmen.
Subleasing: The act of renting all or part of a property to a third party with prior authorization from the owner. The primary tenant remains solely liable for the performance of the initial lease agreement toward the landlord.
Subsidized Rent: This rent benefits from public aid aimed at fostering housing accessibility for low-income households. The fixation conditions and maximum limits are defined by the relevant cantonal authorities.
Substantial damage: Serious deterioration of a building compromising its stability or normal use, requiring heavy structural interventions. This concept is relevant in the assessment of construction defects.
Superstructure right: The superstructure right permits construction on neighboring land, linked to the original property. It involves compensation for the owner of the used land and is regulated by the Swiss Civil Code.
SVIT Romandie: Professional association of real estate experts in French-speaking Switzerland aiming to harmonize quality standards and ethical practices in the sector. It offers continuing education and ensures the representation of the profession's interests before authorities.
Swiss Association of Road and Transportation Experts – VSS: An association establishing technical standards for road infrastructure in Switzerland. Its recommendations often serve as a legal reference for the dimensioning of structures and parking spaces.
Swiss Council for Accident Prevention: This Swiss organization conducts research and issues recommendations to reduce accident risks in housing and leisure. It collaborates with authorities to improve infrastructure safety.

T

Tax charge statement: This accounting document details the deductible maintenance expenses related to property ownership over a given period. It is primarily provided by the condominium administration to facilitate the owner's tax declaration.
Tax value: Value of a property used by the tax authorities to calculate wealth tax. It is usually lower than the market value.
Technical Building Inspection: This structural analysis examines in depth the physical condition, facilities, and the building's compliance with current standards. It allows for the detection of potential hidden defects and the estimation of future necessary renovation costs.
Technical floor: A technical floor is a raised structure creating a void above the load-bearing slab for the passage of utilities. This system facilitates access to wiring and the maintenance of infrastructure integrated into buildings.
Technical standards: Professional guidelines defining safety and performance standards applicable to construction. They become binding once integrated into contracts or explicitly mandated by current legislation.
Tender: Request for bids sent to contractors for a package of works, based on a precise specification, in order to compare prices and timeframes.
Termination: A legal act ending a lease contract prematurely or upon its expiration. It must comply with the forms and notice periods stipulated by law or the contract to be valid.
Terraced House: A terraced house shares its side walls with adjacent units, forming a homogeneous linear structure. This typology optimizes land usage and improves energy efficiency by reducing the surfaces exposed to external elements.
Thermal insulation: Materials installed in walls, roof and floors to limit heat loss in winter and overheating in summer, reducing energy use.
Thermal transmittance coefficient (U-value): Measure of a building component's thermal performance, expressing heat flow per square meter for a given temperature difference. A lower value indicates better insulation of the building envelope.
Timesharing: Right to periodic use of a property shared among several holders during a year. Each buyer bears a share of maintenance costs but does not hold full individual ownership of the dwelling.
Topping-out ceremony: Traditional Swiss celebration held when the building reaches its full height, to thank the workers and mark the end of the structural work.
Total cost of credit: The total cost of credit includes interest and financing charges incurred throughout the loan term, according to the applicable calculation method. In Switzerland, its content depends on the product and contract and may differ from the annual percentage rate or total repayments alone.
Transaction price: The transaction price is the final value established by the notarized authentic deed upon the transfer of ownership. It reflects the meeting point between market supply and real demand.
Transfer of ownership: Moment when the buyer legally becomes the owner. In Switzerland it takes place on entry in the land register, not merely on signing the deed.
Transfer of possession: Date on which the buyer takes possession of the property and assumes its costs and risks. It often coincides with the handover of the keys.
Transfer tax: Cantonal tax levied on the transfer of ownership of a property, usually paid by the buyer.
Transferor: A natural or legal person who transfers the ownership rights of a property to a third party during a transaction. It refers to the seller who gives up their ownership prerogatives in favor of the designated buyer.
Triple-net lease (NNN): A triple-net lease (NNN) contractually places on the tenant, in addition to rent, specified operating, maintenance, and property-related costs. In Switzerland, transferring such costs is valid only within tenancy-law limits, admissible charges, and sufficiently precise contractual provisions.
Trust: A trust is a legal arrangement allowing the management of an asset or estate to be entrusted to a trusted third party. The trustee holds the assets on behalf of the grantor, according to specific contractually defined instructions.
Turnkey: Delivery method where the property is handed over fully finished and ready to live in, at a price agreed in advance.
Turnover-Based Rent: This type of rent combines a reduced fixed component with a variable supplement linked to the tenant's turnover. It allows for sharing risks and growth potential between the landlord and tenant.

U

Unilateral promise of sale: This legal act exclusively binds the property owner to sell their real estate to a potential beneficiary within a set period. The buyer holds an exclusive purchase option, while the seller is prohibited from selling the asset to third parties.
Unlawful occupation: Use of a dwelling without legal title or owner authorization, exposing the occupant to eviction proceedings. The owner then has legal recourse to recover the enjoyment of the property.
Unregulated rent: Market rent refers to a price set by the landlord under the Code of Obligations without government subsidies. In Geneva, this rent remains subject to regulations intended to prevent abusive rental practices.
Unsecured claim: An unsecured claim benefits from no security interest or special priority attached to a specific asset. In Swiss enforcement or bankruptcy proceedings, its ranking and recovery depend on debt-enforcement and bankruptcy rules and any statutory preferences.
Urban sprawl: Disorderly dispersion of buildings in rural areas, leading to detrimental fragmentation of the Swiss landscape. This phenomenon complicates sustainable development and the management of public infrastructure in non-built spaces.
Useful life: The useful life of a building in Switzerland is estimated at 40-50 years with regular maintenance. An amortization of about 20% every five years is common, but major renovations may be needed thereafter.
Usufruct: Right to use a property and receive its income, such as rent, without owning it.
Utilization reserve: Residual buildable potential of a plot, defined by the difference between the maximum area authorized by regulations and the area already built. It represents the future expansion capacity authorized by local authorities.

V

Validity period: The validity period defines the timeframe during which a contract, such as a lease or mortgage, remains in effect. It is subject to specific conditions, often including termination clauses.
Valuation axiom: This principle stipulates that the value of a property is based exclusively on its ability to generate income or utility. Sentimental criteria are excluded in favor of a strictly economic and objective analysis.
Value maintenance investment: These investments aim to prevent asset depreciation through regular repairs and upgrades to compliance standards. They are critical to ensuring the long-term viability of real estate capital.
Variable-rate mortgage: Mortgage without a fixed term whose rate moves with the market. It can usually be terminated at short notice.
Vaud Rural and Land Code (CRF): A Vaud cantonal law governing rural neighbour relations, fences, planting and certain land matters. It supplements federal rules and must not be confused with French rural legislation.
Ventilated facade: Facade whose outer cladding is separated from the insulation by an air gap, which removes moisture and gives the building envelope lasting protection.
Vertical condominium division (PPE): An arrangement of condominium units through vertical division, which may include separate houses or buildings on shared land. Exclusive rights, common areas and ownership shares follow the constitutive deed and plans, not merely the architecture.
Vertical extension: Adding one or more floors to an existing building to create new space without using additional land.
Visible defect / Latent defect: A visible defect can be seen at handover; a latent defect only appears later. Both must be reported to the contractor promptly once discovered.

W

Warranty exclusion clause: Common clause in the deed of sale by which the seller is not liable for defects in the property, unless they were fraudulently concealed.
Water abstraction right: The water abstraction right governs the extraction of water from public or private sources in Switzerland. Its exercise is generally subject to verification with the land register, particularly during real estate transactions.
Water supply: A system ensuring the distribution of drinking and sanitary water to buildings via a locally managed public network. Water quality and delivery are guaranteed by adapted infrastructure under the control of municipal authorities.
Waterproofing: Layers and membranes that stop water from entering the building, especially on flat roofs, terraces and basements.
Weighted floor area: Living area plus balconies, terraces and private gardens counted with a coefficient, used to compare prices.
Weighting coefficient: Ratio used to adjust the value of a property by considering its specific characteristics and theoretical yield. It allows for a fair comparison between areas with distinct qualities or usage types.
Windows and exterior doors: A building's windows, French windows and entrance doors. Their quality, triple glazing in particular, is key to thermal and sound insulation.

Y

Yield Value Method: This method estimates the value of a property by capitalizing its future rental income. The result primarily depends on the yield rate required by investors according to risk and location.