Document background
The Certificate of Mortgage (Schuldbrief) is a fundamental instrument in Swiss real estate financing, used to secure loans against property. This document type emerged from the Swiss Civil Code's provisions on real estate security interests and has evolved to become a standardized, transferable security instrument. It serves multiple purposes: creating a formal security interest, evidencing the debt, and facilitating the transfer of mortgage rights. The certificate must contain specific mandatory information about the property, parties, and mortgage terms, and requires notarization and registration in the Swiss land registry to be legally effective. It's commonly used in both residential and commercial property financing, and can be issued in either physical or, increasingly, electronic form. The document's strict formal requirements and registration process provide legal certainty for all parties involved in real estate financing transactions in Switzerland.
