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.
What does it mean to alienate a property?Read more
An agreement in principle is an agreement between two parties on the terms of a future contract.Read more
An 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.Read more
Appraise your property online in 2 minutes.
Free of charge, no strings attached.
Wondering how much you can afford to spend on your dream property? Give a try to our easy calculator.
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 more
The collateral value is the value of a property that is used by banks and other lenders as the basis for calculating a mortgage.Read more
Condominium 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 more
What is debt relief? Debt relief is a type of contract between the creditor and the debtor, allowing the latter to be released from his debts.Read more
If you take out a mortgage to finance the purchase of your property, you will have to pay it back.Read more
A 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 more
In 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 more
A 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 more
An exclusive sales mandate grants the right to sell the property to a single estate agent chosen by the owner.Read more
The External Surface concerns all the external parts of the dwelling and is not closed on all sides such as balconies, loggias or terraces.Read more
Equity is the personal contribution you have to finance the purchase of a property.Read more
An 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 more
A 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 more
The 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 more
The gross sales area includes in its calculation, almost all surfaces of a dwelling.Read more
A 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 more
When repaying your mortgage, you have two options: direct or indirect amortization.Read more
The imputed rental value is a fictitious rental income to which property owners are subject.Read more
The Interior Building Area is the area used by the building elements.Read more
A land charge is an obligation imposed on the owner of a property. This means that the owner is required to perform certain services related to property ownership.Read more
Limited right of first refusal is a type of contractual right of first refusal where the price of the sale (and possibly other terms) are laid down in advance.Read more
The liberal notary's office is a type of notary's office in which the notary is independent at his own risk and expense. He is nevertheless under the supervision of the state.Read more
The living area corresponds to the total of the surfaces that can be fitted out inside the dwelling.Read more
The 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 more
Minergie is a Swiss construction label created in 1998 that certifies certain new or renovated buildings.Read more
The mixed notary's office is a form of notary's office that combines the liberal notary's office and the official notary's office. Thus, the function of the notary is divided according to the fields.Read more
A mortgage is a loan that a financial institution gives to a buyer to purchase a property.Read more
According to the Swiss Code of Obligations, a mortgage note is "a personal claim secured by a pledge of real estate".Read more
When you buy or sell real estate in Switzerland, it is mandatory to use the services of a notary.Read more
The net sales area is used in the cantons of Fribourg, Vaud and Neuchâtel for the sale of a property.Read more
The net living area is the sum of the areas of the various rooms in the property that are liveable.Read more
The official notary's office, also known as the state notary's office, is a form of notary's office in which the notaries are employed by the state and are part of the administration.Read more
The Official Gazette is a document published regularly by all the cantons.Read more
Property 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 more
Property is defined by law as "any area of land with sufficiently defined boundaries".Read more
The purchase of an investment property is ultimately a form of capital investment. As with any investment, a key factor is how economical or profitable the investment is.Read more
A resolutive condition is a condition that cancels a contract as soon as it is realized.Read more
What is the Regime of Acquired Property? The regime of acquired property is the statutory matrimonial property regime in Switzerland.Read more
A mandate is a contract between two parties which allows the fiduciary to act on behalf of another person called the mandator.Read more
The 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 more
The 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 more
The second mortgage is equal to the difference between the total mortgage loan and the 1st mortgage.Read more
A suspensive condition is a clause that conditions an act, mainly a sale in the real estate sector.Read more
A semi-exclusive mandate allows only the owner and a designated estate agent to proceed with the sale of the property.Read more
A simple mandate is a sales mandate that allows the seller to sell his property by himself but also to call on several agencies if he wishes. It is also called a non-exclusive mandate.Read more
The transfer tax is a cantonal tax, levied by the cantons or their communes when a property is transferred between two people.Read more
A person granted an unlimited right of first refusal may purchase a property ahead of any third party in the case of a sale at the same price as that third party.Read more
Unfinished secondary floor space is defined as non-liveable areas that are enjoyed by the owner or tenant.Read more
The cost approach is one of the commonly used methods for valuting a property. The cost approach method judges the value of a property based on the hypothetical costs of building an identical structure in the same location.Read more
The 1st mortgage amounts to no more than two thirds, that is, 66 % of the value of the property.Read more
We have asked our brokers to share their expertise with you; visit our blog where you will find everything you are looking for!Check out our latest blog posts
Benefit from a 15-minute consultation with one of our experts.
Benefit from a 15-minute consultation with one of our experts.