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 is unchangeable. You won't find this identity in optimized sales flyers from brokers, but exclusively at the Land Registry Office. For private buyers, this look into the records is important – but for you as a business owner, it is an existential duty.
Anyone buying or long-term leasing a commercial property needs clarity: Who is the rightful owner? What rights do neighbours claim on the premises? And most importantly: Are there legal constraints that restrict or even prohibit your planned business activity at this location? A look into the land register extract provides you with these legally sound answers.
What is the Land Register?
To understand its significance, one must know what this register technically and legally represents. The land register is not merely a simple list; it is a state, public register maintained by the cantons (according to Art. 942 ZGB). It forms the fundamental system of real rights in real estate in Switzerland.
The most important principle here is the so-called "public faith" of the land register. This means: What is written in the land register is considered true and correct. Anyone who relies in good faith on an entry is legally protected. Conversely, a right to a property (such as ownership or a mortgage) generally only arises when it has been entered in the land register (principle of entry). A complete land register extract provides you with information on four central areas:
Ownership: Who is entitled to dispose of the property? (Sole ownership, co-ownership, or joint ownership).
Easements (Servitudes): These specify the "duties of toleration". Is the neighbour allowed to drive over your property (right of way)? Are you only allowed to build up to a certain height? Is commercial use restricted?
Land Charges: Obligations weighing on the property, such as the duty to maintain a retaining wall or a common path.
Mortgages: Here you can see the financial burden on the property due to debt certificates (hypothecs). This shows you how heavily the property is already encumbered.
Easements
The core section for every entrepreneur is that of easements (servitudes). Here, rights and burdens affecting the property are registered. A classic, often expensive example is a use restriction.
Here's an example: You plan a car workshop or a popular restaurant. The premises seem perfect, and the municipal zoning plan agrees. However, the land register contains a private law easement from 1980 stating: "Restriction to quiet trade" or "Prohibition of gastronomy". Such entries are binding. You cannot open your business there, regardless of what building regulations state. Resolving these private law constraints requires the consent of all beneficiaries – and this is usually expensive or simply impossible.
Rights of way and proximity building rights are also critical. Is the neighbour allowed to drive his lorries over your yard, exactly where you plan your outdoor seating? Or is he allowed to build closer to your hall than the law actually permits, thereby depriving you of daylight for production? The land register clarifies these questions.
The Preliminary Registration
In Switzerland, the principle "sale does not break lease" applies. This means that if the owner sells the property, the new owner generally takes over your rental agreement. However, there is a dangerous exception: if the new owner claims "urgent personal use" for themselves or close relatives, they may be able to terminate your lease prematurely.
For businesses that have invested hundreds of thousands of francs in the fit-out of the rental 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 rental agreement provisionally registered (preliminary registration according to Art. 261b OR).
Through this preliminary registration, your rental agreement gains a "real effect". This means: Every new owner must take over the contract exactly as it is until the end of its term. They cannot assert the right to terminate due to personal use. This preliminary registration incurs a fee but is absolutely advisable for long-term commercial lease agreements.
Mortgages and Annotations
The section on mortgages lists the debt certificates. For buyers, it is clear: they need to know how heavily the property is encumbered. But this is also relevant for you as a tenant. If a property is excessively over-indebted, a forced auction threatens in the worst case. While the tenancy generally transfers to the successful bidder here too, complex cases can lead to uncertainties. A look at the encumbrance gives you a sense of your landlord's financial stability.
Under "Annotations", there are also references to public law ownership restrictions. Here you should look for the keyword contaminated sites. Is the property listed in the Register of Contaminated Sites (KbS)? Especially on old industrial areas, this is a warning sign for potential health risks or remediation costs that could disrupt operations.
How do you obtain an extract?
In Switzerland, the land register is not fully publicly accessible. Although anyone can find out the owner of a property (name and address) – many cantons now offer this online via geoportals like Terravis. However, for a full extract with all easements and annotations, you need a verifiable interest.
As a potential buyer, you usually gain this interest through a power of attorney from the seller or within the framework of 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 here. If they refuse, alarm bells should ring.
Conclusion
Renting or buying a commercial property without checking the land register is like buying a car without checking under the hood. The rights and burdens registered there are set in stone. Take the time to review the extract with a notary or real estate lawyer before signing the contract.