Seller Financing Agreement Template for Switzerland

The Seller Financing Agreement is utilized in Switzerland when traditional bank financing is either not preferred or not available for a property or asset purchase. This document serves as both a sales contract and a financing arrangement, typically used in real estate transactions but also applicable to other asset sales. The agreement must comply with Swiss law, particularly the Swiss Code of Obligations and financial regulations, and requires careful structuring to protect both parties' interests. It includes detailed terms about the property transfer, financing conditions, security arrangements, and payment schedules. The Seller Financing Agreement is particularly valuable in situations where buyers seek alternative financing options or when sellers wish to generate ongoing income through interest payments while potentially securing better overall returns on their property sale.

1. Parties: Identification of the Seller/Lender and Buyer/Borrower with full legal names and addresses

2. Background: Context of the transaction, including description of the property being sold and the parties' intention to enter into a seller financing arrangement

3. Definitions: Key terms used throughout the agreement, including financial terms, property-related definitions, and other relevant terminology

4. Sale Agreement: Details of the property sale, including purchase price, property description, and transfer conditions

5. Financing Terms: Core financial terms including principal amount, interest rate, payment schedule, and loan duration

6. Security and Collateral: Description of security interests, including mortgage or other collateral arrangements

7. Payment Terms: Detailed payment provisions, including payment methods, dates, and late payment consequences

8. Default and Remedies: Events of default and the seller's remedies, including acceleration rights and foreclosure procedures

9. Representations and Warranties: Statements of fact and guarantees from both parties regarding their capacity, authority, and property condition

10. Insurance and Maintenance: Requirements for property insurance and maintenance obligations

11. Transfer and Assignment: Conditions and restrictions on transferring the property or assigning the agreement

12. Notices: Process and requirements for formal communications between parties

13. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes

14. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments