Real Estate Mortgage Agreement Template for Switzerland

The Real Estate Mortgage Agreement is a fundamental document in Swiss property financing, used when a property owner seeks to obtain financing secured against real estate. This agreement is particularly important given Switzerland's unique mortgage system, which utilizes mortgage certificates (Schuldbriefe) as transferable securities. The document must comply with federal Swiss law, particularly the Swiss Civil Code (ZGB) and Code of Obligations (OR), while also adhering to specific cantonal requirements. It's commonly used in both residential and commercial property transactions, covering various scenarios from simple home purchases to complex commercial developments. The agreement includes essential elements such as property details, loan terms, security creation, borrower obligations, and enforcement rights, all structured to align with Swiss banking practices and regulatory requirements.

1. Parties: Identification of the lender (typically a bank or financial institution) and borrower(s), including full legal names, addresses, and registration details if applicable

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical banking and real estate terms

4. Property Details: Detailed description of the mortgaged property, including land registry details and exact location

5. Loan Amount and Purpose: Specification of the mortgage amount, currency, and intended use of the funds

6. Interest and Payments: Interest rate provisions, payment schedule, and calculation methods

7. Security Creation: Legal mechanism for creating the mortgage security, including type of mortgage instrument used

8. Borrower's Representations: Borrower's confirmations regarding property ownership, authority to enter agreement, and absence of encumbrances

9. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, and payment of taxes

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

11. Enforcement Rights: Lender's rights and procedures in case of default, including foreclosure provisions

12. Costs and Taxes: Allocation of costs, fees, and taxes related to the mortgage

13. Notices: Communication requirements and contact details for formal notices

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