1) Sale Price

The sale price of the apartment will be paid into the notary’s client account in a Swiss bank.

2) Breakdown

a. Mortgage

If the vendor has an outstanding mortgage on the property, the notary must pay this off using the funds from the sale. For this reason, the notary must be informed with which establishment the mortgage deeds have been deposited.

If the vendor has no mortgage, he must indicate where any previous mortgage documents for the property have been deposited, if any. In case of loss of mortgage documents, the notary must publish requests in an official newspaper, la feuille des avis officiels. This process lasts approximately one year, and prevents the completion of sale in the interim.

b. Outstanding tax charges

In the case of sale by foreigners, the notary must make sure that all taxes are paid up until the day of transfer. Even if the taxes have been paid regularly, there always remains a balance, since charge of taxes is made with a delay of a few months. If the notary does not pay these taxes on the vendor’s behalf, the property cannot be transferred and the sale price will remain blocked in the notary’s bank account.

c. Outstanding co-ownership charges

In the case of sale of an apartment owned in a co-ownership by floors, the notary will, in principle, ask the building administrator for the total of charges up until the day of transfer. This prevents these charges being referred to the purchaser. The amount brought forward from any renovation fund on the property is transferred to the purchaser.

d. Tourist tax – communal contributions

In cases of sale by a foreigner, the notary always asks for the total of communal charges and tourist tax still outstanding. These must also be paid by the notary in order to avoid them being charged to the purchaser.

e. Deposit for property gains tax

Cantonal law on direct taxation obliges the notary to reserve 5% of the price to guarantee the payment of an eventual property gains tax. This deposit is obligatory, legal measures will be taken if not even if it is clear that there will be no property gain. This amount will be returned to the vendor with the deduction of an eventual tax once the agreement of the cantonal tax administration is received.

This agreement can be made by means of a tax declaration for taxation of property gains. If you wish the notary to complete this declaration, the notary must be informed. If no such wish is indicated, the notary will act on the assumption that the vendor will himself undertake the necessary steps for the registration of this tax declaration before the fiscal administration.

f. Commission

Normally the agent who found the purchaser will send the notary a bill for commission. (Usually 5 % of the price). Unless otherwise stated, the notary will assume that this already forms part of the agreement between the vendor and the agent.

3) Notary’s fees

All the notary’s fees are by default charged to the purchaser. However, in all that concerns the eventual powers of attorney, legalisation of the vendor’s signatures, and the tax declaration mentioned above (communications with the tax office, establishment of a tax declaration for taxation of property gains, requests for statements from banks, etc.), a separate bill will be drawn up at the expense of the vendor. In fact the costs mentioned above do not concern the purchaser.

4) Balance of sale price

The balance of the sale price will be transferred to an account in the vendor’s name, whose details he will have sent to the notary.

This transfer will be made upon approval by the vendor of the final breakdown.