Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 07.06.2019, 08:12
sailorimc's Avatar
Member
 
Join Date: Mar 2009
Location: Location, Location, Location
Posts: 136
Groaned at 9 Times in 6 Posts
Thanked 32 Times in 13 Posts
sailorimc has no particular reputation at present
A question regarding Schuldbrief

Hello,
I was wondering whether a seller of a house should mention that a property has a Schuldbriefe or not?


1. What is the practice in Switzerland? Is it compulsory for the seller to say that the property has Schuldbrief?



2. Is it a common practice that the seller keep secret the fact that the property has a Schuldbrief?




Thank you for your advise!
Reply With Quote
  #2  
Old 07.06.2019, 08:35
Today only's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Europe
Posts: 7,203
Groaned at 783 Times in 535 Posts
Thanked 8,854 Times in 4,193 Posts
Today only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond reputeToday only has a reputation beyond repute
Re: A question regarding Schuldbrief

Quote:
View Post
Hello,
I was wondering whether a seller of a house should mention that a property has a Schuldbriefe or not?


1. What is the practice in Switzerland? Is it compulsory for the seller to say that the property has Schuldbrief?



2. Is it a common practice that the seller keep secret the fact that the property has a Schuldbrief?




Thank you for your advise!



What excactly is a "Sculdbrief" i couldn't find it in the Oxford English dictionary.......
Reply With Quote
The following 2 users would like to thank Today only for this useful post:
  #3  
Old 07.06.2019, 08:41
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,296
Groaned at 311 Times in 207 Posts
Thanked 9,659 Times in 3,408 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: A question regarding Schuldbrief

A Schulbrief (a document lodged with the Grunbuchamt (land registry)) indicating that there is a mortgage on a property and the in case of default or sale the lender (bank etc) has priority when it comes to repayment.

These are transferable and cost money to set up. Thus a Schuldbrief is actually an asset to have on a house when selling. We took over one on the land our house was built on and saved the cost of a new one.

1) It is not usually mentioned in sales bumf. But later when a buyer is found.

2) I don‘t believe it is compulsory. However the purchase contract should state that all debts on a property have been settled - even when paid, a Schuldbrief can be passed on if the buyer needs to use it. A mortgage is not possible without the lender covering their loan with one.

3) There is no reason to keep it a secret...
__________________


************************************
Fed up of smoking? 10 tips to quit in 10 days
Reply With Quote
The following 5 users would like to thank AbFab for this useful post:
  #4  
Old 07.06.2019, 08:42
sailorimc's Avatar
Member
 
Join Date: Mar 2009
Location: Location, Location, Location
Posts: 136
Groaned at 9 Times in 6 Posts
Thanked 32 Times in 13 Posts
sailorimc has no particular reputation at present
Re: A question regarding Schuldbrief

Here is a nice explanation for a Schuldbrief:
Source: https://www.englishforum.ch/housing-...huldbrief.html

Re: why would I want to take over Schuldbrief? In Switzerland a Schuldbrief is a document issued for a fee by the county (Bezirk) book of deeds against a real property. There can be several Schuldbriefe, in various amounts, recorded against a property. If there is more than one, they are recorded in a specific order of seniority. The total of all Schuldbriefe against a property can even exceed the value of the property, although that would be pointless and expensive. The owner of a property can request the issuance of new junior Schuldbriefe in arbitrary amounts as necessary. It seldom makes economic sense to cancel an existing Schuldbrief, except, perhaps, to break it into smaller pieces. When a property is sold, in theory the seller hands all the Schuldbriefe with the keys to the new owner. In practice, Schuldbriefe usually go from one bank to another.

Schuldbriefe are used to secure debts, usually mortgages. When a bank issues a mortgage, it wants in exchange to hold the most senior Schuldbriefe against the property totaling at least the value of the mortgage. When a mortgage is paid down or paid off, the debtor can request the return of his Schuldbriefe, usually in order from most junior to most senior.

So, if the seller is simply offering to hand you the existing Schuldbriefe instead of cancelling them, you should accept with thanks. There's no advantage to the seller to cancel Schuldbriefe, but if he does so and you need a mortgage, he can cause you extra costs at the book of deeds, and he knows that. So he might ask for compensation to turn over the Schuldbriefe to you. Bear in mind that any such compensation must be mentioned in the official sales contract; to do otherwise is criminal.

Another possibility might be that the seller wants you to take over his existing mortgage. The reason might be that his mortgage carries a higher rate of interest than the current (low) rate, and therefore the bank would penalize him substantially if he paid off his mortgage early. It might make sense for you to take over his mortgage if he thanked you for this favor with an appropriate reduction in the sales price or with some other consideration. Again, any such compensation must be mentioned in the official sales contract.
Reply With Quote
The following 3 users would like to thank sailorimc for this useful post:
  #5  
Old 07.06.2019, 10:22
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 26,437
Groaned at 1,637 Times in 1,257 Posts
Thanked 30,644 Times in 14,631 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: A question regarding Schuldbrief

Quote:
View Post
We took over one on the land our house was built on and saved the cost of a new one.
We also took over the one that the previous owner had, for the same reason.

Tom
Reply With Quote
This user would like to thank st2lemans for this useful post:
  #6  
Old 07.06.2019, 10:40
sailorimc's Avatar
Member
 
Join Date: Mar 2009
Location: Location, Location, Location
Posts: 136
Groaned at 9 Times in 6 Posts
Thanked 32 Times in 13 Posts
sailorimc has no particular reputation at present
Re: A question regarding Schuldbrief

Quote:
View Post
We also took over the one that the previous owner had, for the same reason.

Tom

Yes, I understand this matter.

However, what is strange for me is why the Seller didint mention anything about this matter in the selling advertisement or in the sale documentation.
Because if i have to learn about this just before signing the contracts(buying and financing) that would put me in a very bad situation.
This is what bugging me!
Any similar experiences?
Thank you
Reply With Quote
  #7  
Old 07.06.2019, 10:55
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 8,502
Groaned at 298 Times in 245 Posts
Thanked 9,111 Times in 4,613 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: A question regarding Schuldbrief

The notary did not mention this?
Reply With Quote
  #8  
Old 07.06.2019, 11:01
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 13,261
Groaned at 268 Times in 174 Posts
Thanked 15,650 Times in 6,646 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: A question regarding Schuldbrief

Quote:
View Post
Hello,
I was wondering whether a seller of a house should mention that a property has a Schuldbriefe or not?


1. What is the practice in Switzerland? Is it compulsory for the seller to say that the property has Schuldbrief?



2. Is it a common practice that the seller keep secret the fact that the property has a Schuldbrief?
Thank you for your advise!
1. no
2. it's not common for the seller to mention since it is recorded in the land registry extract and so also impossible to 'keep it secret' not that the seller has any reason to do that anyway

why would it put you in a bad situation? i think you misunderstand what this is if you think so.
Reply With Quote
The following 2 users would like to thank Phil_MCR for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Question regarding Fundsmith Dr Mick Finance/banking/taxation 137 09.05.2019 11:28
Question regarding employment arielch Employment 16 15.05.2018 10:40
Missing Schuldbrief ? CH_ch Housing in general 17 24.01.2011 09:50
Question regarding Taxes lavania Finance/banking/taxation 6 08.03.2009 16:54
question regarding SEPERATION papamol Family matters/health 1 26.12.2007 10:11


All times are GMT +2. The time now is 02:38.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0