The land register explained: easements, encumbrances and priority notices
Restrictions on use or contaminated sites? A look at the land registry protects you from unpleasant surprises. Find out how to use reservations and minimise risks.
Every property in Switzerland has a legal DNA that cannot be changed. You won't find this identity in the optimised sales flyers of estate agents, but only at the land registry office. For private buyers, this look at the books is important – but for you as a business owner, it is an existential obligation.
Anyone buying or long-term leasing commercial space needs clarity: Who is the legal owner? What rights do neighbours have on the site? And above all: Are there any legal restrictions that limit or even prohibit your planned business activities at this location? A look at the land registry extract will provide you with these legally secure answers.
What is the land register?
To understand its significance, you need to know what this register represents in technical and legal terms. The land register is not just a simple list; it is a state-run, public register maintained by the cantons (in accordance with Art. 942 of the Swiss Civil Code). It forms the fundamental system of rights in rem to real estate in Switzerland.
The most important principle here is the so-called ‘public faith’ of the land register. This means that what is written in the land register is considered true and correct. Anyone who relies on an entry in good faith is protected by law. Conversely, a right to a property (such as ownership or a mortgage) usually only arises once it has been entered in the land register (principle of registration). A complete extract from the land register provides you with information on four key areas:
Ownership: Who has the right to dispose of the property? (sole ownership, co-ownership or joint ownership).
Easements (servitudes): These refer to ‘obligations to tolerate’. Is your neighbour allowed to drive across your property (right of way)? Are you only allowed to build up to a certain height? Is commercial use restricted?
Basic charges: Obligations that encumber the property, such as the obligation to maintain a retaining wall or a shared path.
Real estate liens: Here you can see the financial burden on the property due to debt certificates (mortgages). This shows you how much the property is already mortgaged.
Easements
The heart of every entrepreneur's interest is the section on easements (servitutes). This is where rights and encumbrances relating to the property are recorded. A classic, often expensive example is a restriction on use.
Here's an example: you're planning a car repair shop or a busy restaurant. The premises seem perfect, and the local authority's zoning plan is fine. But the land register contains a private law easement from 1980 with the wording: ‘restriction to quiet trade’ or ‘prohibition of catering’. Such entries are binding. You cannot open your business there, regardless of what building regulations say. Removing these private law restrictions requires the consent of all beneficiaries – and this is usually expensive or simply impossible.
Rights of way and rights to build closer are also critical. Is the neighbour allowed to drive his lorries across your yard, right where you plan to put your outdoor seating? Or is he allowed to build closer to your hall than the law actually permits, thus depriving you of daylight for production? These questions are clarified in the land register.
The priority notice
In Switzerland, the principle of ‘purchase does not break lease’ applies. This means that if the owner sells the property, the new owner generally takes over your lease. However, there is one dangerous exception: if the new owner claims ‘urgent personal use’ for themselves or close relatives, they may be able to terminate your lease early.
For companies that have invested hundreds of thousands of pounds in the expansion of the rented space – be it in shopfitting, ventilation technology or IT infrastructure – this is a nightmare scenario. The solution lies in the land register: you can have your tenancy agreement registered (priority notice pursuant to Art. 261b OR).
This priority notice gives your tenancy agreement a so-called ‘real effect’. This means that any new owner must take over the contract exactly as it stands until the end of its term. They cannot exercise their right of termination for personal use. This priority notice incurs a fee, but is highly recommended for long-term commercial leases.
Mortgage rights and notes
Mortgage notes are listed in the mortgage rights section. For buyers, it is clear that they need to know how much debt is attached to the property. But this is also relevant for you as a tenant. If a property is excessively indebted, there is a risk of foreclosure in the worst case. Although the tenancy agreement is generally transferred to the buyer at auction, uncertainties can arise in complex cases. A look at the debt will give you a feel for your landlord's financial stability.
Under ‘Comments’, you will also find references to public law restrictions on ownership. Here, you should search for the keyword ‘contaminated sites’. Is the property listed in the register of contaminated sites (KbS)? Especially on old industrial sites, this is a warning sign for potential health risks or remediation costs that could disrupt operations.
How can you obtain the extract?
In Switzerland, the land register is not fully accessible to the public. Anyone can find out who owns a property (name and address) without giving a reason – many cantons now offer this information online via geoportals such as Terravis. However, to obtain the full extract with all easements and notes, you need to have a credible interest.
As a potential buyer, you can usually obtain this interest through a power of attorney from the seller or as part of the specific purchase negotiations. As a tenant, you should ask the landlord to provide you with a current extract. Transparency is the first step towards a good business relationship. If they refuse, alarm bells should start ringing.
Conclusion
Renting or buying a commercial property without checking the land registry is like buying a car without checking under the bonnet. The rights and encumbrances entered there are set in stone. Take the time to review the extract with a solicitor or property lawyer before signing the contract.