Real estate reservation agreement in Switzerland

In Switzerland, a real estate reservation agreement signed in private form is legally void if it has not been executed before a notary (art. 216 CO). The deposit paid (typically between CHF 10'000 and CHF 50'000) is therefore recoverable by the buyer, minus any actual costs the seller can demonstrate. The Federal Supreme Court has confirmed that full retention of the deposit is normally excessive and may be reduced by the court (art. 163(3) CO).

The problem: "blocking" a property with a deposit

It happens often in the Ticino property market: a buyer finds the right property, signs a document labelled "reservation agreement" and pays a sum, usually between CHF 10'000 and CHF 50'000, on the understanding that the seller will take the property off the market. The buyer believes the deal is locked in. The seller assumes a guarantee is secured.

In reality, the legal position is very different from what the parties imagine.

The rule: the requirement of a public deed

Swiss law requires that any transfer of real property, and even the promise to buy or sell real estate, be executed in the form of a public deed before a notary (art. 216 CO). This provision is mandatory and admits no exceptions.

A simple document signed privately, even if called a "reservation contract" or "preliminary agreement", is therefore void. Void means it produces no legal effect whatsoever: neither party can demand that the sale go ahead.

The nullity extends beyond the main contract to all ancillary clauses, including any clause providing for automatic forfeiture of the deposit upon withdrawal.

The deposit: in principle, it must be returned

If the contract is void, what happens to the deposit paid by the buyer?

The settled case law of the Federal Supreme Court leaves no doubt: the amount remains recoverable. The seller cannot retain the deposit simply because the buyer changed his or her mind, since the contract underlying the payment is void.

The Federal Supreme Court has, however, recognised that the seller may retain part of the deposit, but only as compensation for the so-called negative interest (negatives Vertragsinteresse), that is, the expenses actually incurred and documented in anticipation of the sale that did not materialise.

What the seller may retain

In practice, the seller may deduct the following proven costs from the deposit:

• costs of publishing property advertisements
• fees of consultants or surveyors
• costs of documented project modifications
• costs of removing the property from the market (if demonstrable)

What the seller may not retain

Retention is not permitted on the basis of:

• lost profit margin (lucrum cessans)
• a penalty for the buyer's change of mind
• a lump sum unrelated to actual costs

A clause providing for full forfeiture of the deposit is considered an excessive contractual penalty, and the court may reduce it of its own motion (art. 163(3) CO). The Federal Supreme Court has held that a penalty clause in an agreement lacking the required form can survive only if it aims to compensate the negative interest, not to sanction the failure to conclude the contract.

What this means for the parties

For the buyer

Before signing any "reservation agreement", you should be aware that the document, if not notarised, is void. If the deposit has already been paid and the sale does not proceed, the buyer is entitled to a refund, minus the seller's actual costs.

Practical advice: insist on paying the deposit into an escrow account held by the notary, with an express clause governing its return.

For the seller

For protection, it is possible to agree a reasonable cap on the amount retained (indicatively 50-70% of the deposit), linked to actual, documented costs. A higher amount risks being reduced by the court. The safest route remains the execution of a public deed: a notarially executed preliminary contract (art. 22 CO read together with art. 216 CO) binds both parties.

The notarially executed preliminary contract: the safe alternative

Anyone who genuinely wishes to "block" a property with binding effect must enter into a preliminary contract in the form of a public deed (art. 22 CO read together with art. 216 CO). In this case, both parties are bound to complete the sale and the deposit carries full legal weight.

Haab Legal, drawing on the notarial expertise of Avv. Roberto Haab, can assist both with drafting the preliminary contract and with the execution of the public deed.

Deutsche Zusammenfassung

Reservationsvereinbarungen für Schweizer Immobilien: Ist die Anzahlung rückforderbar?

Nach Schweizer Recht muss jeder Vertrag, der eine Partei zum Kauf oder Verkauf einer Immobilie verpflichtet, vor einem Notar in der Form einer öffentlichen Urkunde errichtet werden (Art. 216 OR). Eine einfache privatschriftliche «Reservationsvereinbarung» ist rechtlich nichtig, ungeachtet ihrer Bezeichnung.

Die praktische Folge: Die Anzahlung des Käufers (in der Regel CHF 10'000 bis CHF 50'000) ist grundsätzlich rückforderbar. Der Verkäufer darf nur nachgewiesene, tatsächlich angefallene Kosten abziehen (Werbung, Beraterhonorare, dokumentierte Projektänderungen). Der vollständige Verfall der Anzahlung gilt als übermässige Konventionalstrafe und kann vom Gericht nach Art. 163 Abs. 3 OR herabgesetzt werden.

Das Bundesgericht hat bestätigt, dass eine Strafklausel in einem formungültigen Vertrag nur bestehen kann, wenn sie das negative Interesse (tatsächliche Aufwendungen) des Verkäufers abdecken soll, nicht aber den Rücktritt des Käufers bestrafen will.

Für eine verbindliche Vereinbarung sollten die Parteien einen Vorvertrag in der Form einer öffentlichen Urkunde (Art. 22 OR in Verbindung mit Art. 216 OR) vor einem Notar abschliessen.

Practical tips:

• Buyers should insist on paying into a notary's escrow account and negotiate an explicit refund clause.
• Sellers seeking security should opt for a notarially executed preliminary contract rather than a private reservation form.
• Any penalty clause should be proportionate to actual costs to withstand judicial review.

For a personal consultation: info@haablegal.ch | +41 91 913 30 70