Real estate should be simple: it is a human affair that almost all of us are confronted with at least once, whether in the context of a sale or a purchase. And yet, it is also a matter of laws, technical constraints, specificities en obscure notions.
Our real estate experts regularly contribute to this lexicon, to popularise the terms of real estate jargon so that you have all the keys to talk about your project - the project of a lifetime.
Understand each term, and demystify the purchase of real estate with the glossary of the real estate agency Neho.
An agreement in principle is an agreement between two parties on the terms of a future contract.
Read moreAn authentic act is a contract drawn up by a public officer, generally a notary, and can also be called a notarial act. As soon as it is signed, it has an important legal value and allows to frame several operations.
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The right to build is an easement granted to a person allowing him or her to build a property on land that does not belong to him/her. He or she can also buy an existing property on this same land. In both cases, the lessor receives an amount for making his/her land available. In a few words, the leaseholder is the owner of a property on land that does not belong to him/her.
Read moreCondominium ownership is a widespread form of co-ownership in Switzerland. In a condominium, several purchasers own different parts of the same building and each has an exclusive right to certain parts of the building.
Read moreA draft deed is a draft of the sales contract drawn up by a notary. It is therefore not the final deed of sale, as changes may be made.
Read moreIn real estate, a deposit is a sum of money paid by the buyer to the seller, which constitutes a partial payment of the total amount due.
Read moreA direct sale is the simplest and fastest way to sell. It is possible when the buyer and the seller agree on an immediate sale date.
Read moreThe External Surface concerns all the external parts of the dwelling and is not closed on all sides such as balconies, loggias or terraces.
Read moreEquity is the personal contribution you have to finance the purchase of a property.
Read moreAn easement is an encumbrance imposed on a property for the benefit of one or more other property(ies) which forces the owner to accept certain constraints (parking of vehicles, water pipe, right of way, etc.) but can also prohibit certain acts (new construction, etc.). In the real estate sector, we speak of land easements which can be contractual or legal. Each easement must be the subject of an authenticated deed and a deposit in the land register.
Read moreA forward sale is a form of sale that takes effect at the end of the term defined between the seller, the buyer and the notary. It allows the different parties to have more time to organize a move or to end a lease for example.
Read moreThe gross living area is made up of the net living area, the interior construction area, as well as the exterior and common walls, which are weighted at 50% of their total value.
Read moreThe gross sales area includes in its calculation, almost all surfaces of a dwelling.
Read moreA hedonic property valuation is the estimation of the property value based on the analysis of comparable properties that have recently been sold. This method is usually carried out using specialised software.
Read moreThe Interior Building Area is the area used by the building elements.
Read moreThe living area corresponds to the total of the surfaces that can be fitted out inside the dwelling.
Read moreThe land register is a state administration that gathers all the information related to real estate. It contains all the rights and charges attached to a property (easements, pledges, etc.). Any modification, deletion or constitution must be reported to the land register. The cantons generally have several land registers organized by district or by arrondissement. They can be kept on paper or by computer.
Read moreThe Official Gazette is a document published regularly by all the cantons.
Read moreProperty gains tax is a contribution due when a profit is made when selling a property. In other words, if the sale price is higher than the purchase price and investment costs, then the amount of the gain is taxed.
Read moreProperty is defined by law as "any area of land with sufficiently defined boundaries".
Read moreThe right of pre-emption grants a preferential right of purchase which may be in favour of a natural person or a legal entity. In this case, the person having obtained this right of pre-emption will be able to acquire the property on which the right applies in priority if the owner decides to sell it. This right must be recorded in the land register and cannot exceed 25 years.
Read moreThe right of purchase gives a person the right to acquire a property for a defined period. It must be authenticated before a notary and cannot exceed 10 years to be valid.
Read moreThe transfer tax is a cantonal tax, levied by the cantons or their communes when a property is transferred between two people.
Read moreUnfinished secondary floor space is defined as non-liveable areas that are enjoyed by the owner or tenant.
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