Private Mortgage Agreement Template for Switzerland

The Private Mortgage Agreement is essential for documenting private lending arrangements secured against real estate in Switzerland. This document is typically used when individuals, private entities, or non-banking institutions provide mortgage financing, as opposed to traditional bank mortgages. It must comply with Swiss federal laws, including the Swiss Civil Code (ZGB) and Code of Obligations (OR), as well as relevant cantonal regulations. The agreement covers crucial elements such as property details, loan terms, security arrangements, and enforcement rights. It's particularly relevant in situations involving private wealth management, family lending, or alternative financing structures. The document must be notarized and registered with the appropriate cantonal land registry to create a valid security interest in the property.

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

2. Background: Context of the mortgage agreement, including property details and purpose of the loan

3. Definitions: Key terms used throughout the agreement, including technical and financial terminology

4. Loan Amount and Purpose: Specification of the mortgage amount and its intended use

5. Property Details: Full legal description of the mortgaged property, including land registry details

6. Interest Rate and Calculations: Interest rate specifications, calculation method, and adjustment provisions

7. Repayment Terms: Payment schedule, amounts, and methods of repayment

8. Security: Details of the mortgage as security, including ranking and type of mortgage

9. Borrower's Representations and Warranties: Borrower's confirmations regarding their 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

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

13. Costs and Expenses: Allocation of fees, taxes, and other expenses

14. Notices: Communication requirements and contact details

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