Land Option Agreement Template for Switzerland

The Land Option Agreement is a strategic document used in Swiss real estate transactions when a party wishes to secure the right to purchase property without immediate commitment to the full purchase. It provides a mechanism for developers, investors, or businesses to lock in future purchase rights while conducting due diligence, securing financing, or obtaining necessary permits. Under Swiss law, this agreement must be notarized and comply with strict formal requirements, including detailed property descriptions and precise terms for option exercise. The document typically includes provisions for purchase price, option period, exercise conditions, and completion requirements, while addressing specific Swiss regulatory considerations such as Lex Koller for foreign buyers or BGBB for agricultural land. It serves as a critical tool in property development projects, allowing option holders to manage risk while securing development opportunities.

1. Parties: Identification of the Option Grantor (property owner) and Option Holder, including full legal names, addresses, and registration details for legal entities

2. Background: Context of the agreement, including brief description of the property and parties' intentions

3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Option Price, Purchase Price, and Completion Date

4. Property Description: Detailed description of the land, including exact measurements, boundaries, and land registry details as per Swiss requirements

5. Grant of Option: Core terms of the option, including the explicit grant of the right to purchase

6. Option Period: Duration of the option, including start and end dates, and any extension mechanisms

7. Option Price and Purchase Price: Details of the option fee and the final purchase price for the property

8. Exercise of Option: Process and formalities for exercising the option, including notice requirements and Swiss notarization provisions

9. Conditions Precedent: Any conditions that must be satisfied before the option can be exercised

10. Completion Requirements: Steps required for completion of the purchase after option exercise, including registration requirements

11. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

12. Termination: Circumstances under which the agreement can be terminated and consequences

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

14. Notices: Format and delivery requirements for formal communications between parties