Private Home Loan Contract Template for Switzerland

The Private Home Loan Contract serves as a fundamental legal instrument in Swiss property financing, typically used when an individual or institution provides a loan for residential property purchase or renovation. This document is essential in Switzerland's sophisticated real estate market, where private lending complements traditional banking channels. The contract must comply with Swiss federal laws, including the Civil Code (ZGB) and Code of Obligations (OR), while addressing specific cantonal requirements for property transactions. It encompasses critical elements such as loan terms, security arrangements, payment schedules, and default provisions, providing a robust legal framework for both lender and borrower. The document is particularly relevant in scenarios involving private wealth management, family loans, or situations where traditional mortgage financing may not be optimal.

1. Parties: Identification of the lender and borrower with full legal names, addresses, and any registration details

2. Background: Context of the loan, including purpose (home purchase/renovation) and property details

3. Definitions: Key terms used throughout the agreement, including but not limited to Loan Amount, Property, Security Interest, and Payment Terms

4. Loan Details: Specific details of the loan including principal amount, interest rate, and term of the loan

5. Disbursement of Funds: Terms and conditions for the release of loan funds, including any staged release provisions

6. Repayment Terms: Payment schedule, method of payment, and calculation of installments

7. Interest: Interest rate specifications, calculation method, and adjustment provisions

8. Security: Details of the mortgage security over the property and registration requirements

9. Borrower's Representations and Warranties: Confirmations regarding legal capacity, property ownership, and financial status

10. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, and tax payments

11. Events of Default: Circumstances constituting default and consequences thereof

12. Lender's Rights and Remedies: Actions the lender may take in case of default

13. Costs and Expenses: Allocation of legal fees, registration costs, and other expenses

14. Notices: Communication methods and contact details for formal notices

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

16. Execution: Signature blocks and witnessing requirements