Selling your home requires an authentic deed, meaning it must be notarized by a notary practicing in Geneva. There are three main formats of sale possible:
Direct Sale:
This is the simplest form of sale. The buyer pays the full purchase price and acquisition costs before signing. The sale becomes effective at signing, and keys are handed over on the spot. Ownership transfers shortly after the signature once the notary records the sale in the Land Registry. The notary then transfers the sale amount to the seller, after deducting any sales commission owed to the broker, repayment of any mortgage, repayment of your pension fund (2nd pillar), and any provision for property gains tax (IBGI). Direct sales are rare in practice since sellers often need time to move out. In such cases, a deferred sale with a right of redemption is used.
Deferred Sale with Right of Redemption:
This type of sale delays the transfer of ownership to allow time for certain actions, such as the seller needing time to move or the buyer finalizing financing. The parties agree on a latest or earlier date for the transfer. The buyer is given a right of redemption to ensure they can enforce the sale if the seller fails to meet their commitments. Usually, the buyer pays a 10% deposit into the notary’s account before signing the deferred sale, with the balance due before the transfer. The buyer becomes owner only at the transfer date. The contract also specifies penalties if either party withdraws, typically a penalty equal to the deposit amount. However, the buyer can enforce the sale if the seller defaults using the right of redemption.
Promise to Sell or Conditional Sale:
These options are typically chosen to allow time for conditions beyond the parties’ control to be fulfilled (e.g., obtaining building permits or release of land from agricultural zoning). With a promise to sell, the parties commit to signing a direct sale once conditions are met. In a conditional sale, the transfer at the Land Registry only occurs if the conditions are fulfilled. Both may include a right of redemption for the buyer. Usually, the buyer pays a 10% deposit before signing the promise or conditional sale, and the balance is paid once conditions are met to trigger the transfer.
Summary:
Choose direct sale when everything is clear and ready at signing.
Choose deferred sale when more time is needed before transfer.
Choose promise to sell or conditional sale when external conditions must be met first.
Each case should be discussed with your notary to choose the best format for your sale. Our GRANGE Properties team is also here to support you through these decisions.
Excerpt from our guide: Selling Your Home in 42 Questions