Real estate transactions in Switzerland
The real estate due diligence process is a verification of the purchased property before concluding the transaction. Performed by professionals, the due diligence covers certain key areas that can indicate the real state of the property and its true market value.
The process is important for investors in Switzerland
who want to avoid any unnecessary risks when buying property
and who want to be certain that they can make the best value-price purchase.
The real estate due diligence process
The real estate due diligence verification is a process that covers a few key areas like law, taxes, environment safety or the actual construction of the building. A real estate due diligence will include:
- legal due diligence for the property: any purchase/sale agreements or previous rent agreements;
- tax due diligence: property taxes, inheritance taxes or profit taxes if the property is bought by a company in Switzerland;
- technical due diligence: an inspection of the construction plans, official approvals for further construction in the building or repair work modifications; the structural quality of the building;
- environmental due diligence: pollution issues, water supply for the building, energy consumption;
- financial due diligence: a look at the expenditure and future opportunities for the re-sale of the property.
Combined, all of this information will provide a complete analysis of the building's current situation
. These elements can be important in a real estate purchase
and can help the buyer decide if the transaction will be profitable in time.
The Swiss real estate market
The Swiss real estate market offers opportunities for investments both in housing and in office buildings. The country is known as one that offers a high quality of life and as a tourist destination. Many of the investors who choose to buy real estate do this with a clear business purpose in mind. Switzerland has a Land Register that contains information about properties and owners, cadastre plans and geological data.