Property Options Contract Template for Switzerland

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Key Requirements PROMPT example:

Property Options Contract

"I need a Property Options Contract for a commercial land parcel in Zurich, with a 12-month option period starting March 2025, including specific provisions for environmental due diligence and potential development permits."

Document background
The Property Options Contract is a crucial instrument in Swiss real estate transactions, providing a structured framework for securing future property acquisition rights. This document is particularly valuable when parties need time to arrange financing, conduct due diligence, or obtain necessary permits before committing to a full purchase. Under Swiss law, the agreement must address specific requirements of the Civil Code and Code of Obligations, including formal notarization where required. The contract typically includes detailed property descriptions, option exercise mechanisms, pricing structures, and completion procedures. It's commonly used in commercial real estate development, strategic land acquisition, and complex property transactions where immediate purchase may not be optimal or possible. The document must account for cantonal variations in property law and registration requirements, making it essential to adapt the agreement to local Swiss legal requirements.
Suggested Sections

1. Parties: Identification of the option grantor (property owner) and option holder, including full legal names and addresses

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

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

4. Grant of Option: Express grant of the option rights and basic terms of the option

5. Option Period: Duration of the option, including start and end dates

6. Option Price: Amount payable for the option right itself, payment terms and conditions

7. Purchase Price: Price for the property if the option is exercised, including any adjustment mechanisms

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

9. Completion: Terms and process for completing the property purchase upon option exercise

10. Property Title: Warranties regarding property title and any encumbrances

11. Representations and Warranties: Standard representations and warranties from both parties

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

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

14. Notices: Process for giving formal notices under the agreement

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability

Optional Sections

1. Due Diligence: Terms for conducting property investigations and surveys - include when due diligence period is part of the option

2. Financing Conditions: Include when the option exercise is subject to the buyer obtaining financing

3. Development Conditions: Include when the option is connected to specific development or planning permissions

4. Environmental Provisions: Include when environmental investigations or warranties are specifically required

5. Tenant Provisions: Include when the property has existing tenants and their rights need to be addressed

6. Assignment Rights: Include when the option holder may want to transfer the option rights

7. Extension Rights: Include when there's a possibility to extend the option period

8. Multiple Properties: Include when the option covers multiple properties with specific terms for each

Suggested Schedules

1. Property Description: Detailed legal description of the property, including land registry details

2. Title Documents: List of relevant title documents and encumbrances

3. Form of Exercise Notice: Template for the formal notice to exercise the option

4. Purchase Agreement Terms: Terms that will apply to the purchase agreement upon exercise of the option

5. Due Diligence Documents: List of documents provided or to be provided for due diligence

6. Existing Encumbrances: Details of any existing mortgages, easements, or other encumbrances

7. Plans and Drawings: Property plans, boundary maps, and relevant drawings

8. Payment Schedule: Detailed breakdown of payment terms and schedules for both option and purchase price

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Hospitality

Retail

Industrial

Agriculture

Mixed-Use Development

Urban Planning

Construction

Banking and Finance

Relevant Teams

Legal

Real Estate

Property Development

Investment

Finance

Corporate Development

Asset Management

Risk Management

Facilities Management

Project Management

Relevant Roles

Real Estate Director

Property Development Manager

Legal Counsel

Chief Investment Officer

Land Acquisition Manager

Real Estate Investment Manager

Commercial Property Manager

Development Director

Head of Real Estate

Property Portfolio Manager

Real Estate Transaction Manager

Corporate Lawyer

Facilities Manager

Asset Manager

Chief Financial Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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