What guarantees do I have when buying a newly built house?

The foundation of safety: OR vs. SIA Standard 118

understand the scope of the warranties for new construction , you need to know which set of rules applies in your contract.

The legal regulation according to the Swiss Code of Obligations (OR)

If only the Swiss Code of Obligations (OR) applies, the warranties for new buildings are strictly regulated for the buyer.

• Immediate notification requirement: If you discover a defect, you must report it immediately (within a few days). If you fail to do so, the defect is considered approved, and the warranties for the new building are void with respect to that issue.
• Statute of limitations: The warranty period for new construction is 5 years for immovable structures.

The gold standard: SIA standard 118

Most construction contracts stipulate the applicability of SIA standard 118. This significantly strengthens your warranties for new construction .

• Two-year period: You can report any visible defects at any time within the first two years. You don't have to rush to action immediately after discovering them. This is one of the most important advantages of warranties for new construction according to SIA standards.
• Burden of proof: During these first two years, the burden of proof often lies effectively with the contractor. He must prove that he has worked correctly in order to defend against claims arising from the new construction warranties .
• Hidden defects: For defects that only appear later (hidden defects), the warranties for new buildings continue for a further three years (a total of 5 years from acceptance).

The three pillars of warranty rights

If a defect occurs, the new construction guarantees apply and provide you with three tools.

1. Improvement: The standard case

The primary right under warranties for new buildings is the free rectification of defects. The contractor has the right – and the obligation – to repair the damage. You cannot demand immediate payment.

• Important: Set a reasonable deadline. If this deadline passes, the contractor is in default, which strengthens your position regarding the new construction guarantees .

2. Reduction: Money back

If a repair is impossible or disproportionate (e.g., a slightly incorrect ceiling height), the warranties for new buildings provide for a reduction in value. You will receive the diminished value of the house back in cash.

• Potential for dispute: Calculating this reduced value within the framework of new construction guarantees is often complex and requires expert opinions.

3. Transformation: The Resignation

In cases of catastrophic defects that render a house uninhabitable, the warranties for new construction theoretically allow for rescission (reversal of the contract). This is extremely rare in practice, as demolishing a newly constructed building is economically nonsensical.

The trap of general contractors (GCs)

If you buy from a general contractor, you only have one contractual partner. This is convenient, but it carries risks regarding the warranties for new construction .

The assignment problem

The general contractor agreement often states: "The warranty claims are assigned to the buyer."

• What this means: The general contractor is shirking their responsibility. If the heating system leaks, you'll have to argue directly with the heating installer you don't know and didn't choose, under your new building warranty .
• The risk: If the installer goes bankrupt , your new building guarantees are worthless.
• The solution: Do not accept a simple assignment of warranties for new construction . Insist that the general contractor remains your point of contact or at least assumes subsidiary liability (stepping in if the tradesperson fails). Solid warranties for new construction mean that the general contractor remains responsible.

The performance guarantee

What happens if the general contractor goes bankrupt during construction?

Here, special financial guarantees for new construction come into play , usually in the form of a bank or insurance guarantee. This secures completion. Without such a performance guarantee, the technical guarantees for new construction are invalid, as the house will never be finished.

Construction liens: A risk despite guarantees

A specific Swiss risk indirectly threatens your new construction guarantees .

If the general contractor doesn't pay the tradesman, the latter can register a lien on your house – even if you have already paid the general contractor.

• Double payment: You would have to pay the tradesman to avert the forced auction.
• Protection: As part of the contractual guarantees for new construction , demand that the general contractor provide proof of payments to subcontractors, or pay the tradespeople directly.

Deadline management: The key to success

The best guarantees for a new building are useless if you miss the deadlines.

• Final inspection: This marks the start of all warranty deadlines for new construction . Be meticulous. Bring an expert with you. Anything not documented here will be harder to enforce later.
• Two-year review: Shortly before the two-year period expires, you should conduct another inspection. This is the "last call" for the convenient warranty period for new construction according to SIA standards.
• 5 years: This is the end of the warranties for latent defects in new buildings. After that, the contractor is only liable for intentional deception (10 years).

Conclusion

The question "What guarantees do I have when buying a new building?" delves deep into contract law. New building guarantees are not an automatic, all-inclusive protection, but rather a set of tools that must be actively managed. The standard according to SIA norm 118 offers solid protection with a 2-year notification period and a 5-year limitation period.

The biggest risk to your new construction warranties lies in the contracts with general contractors. If they simply assign liability, your dream home will turn into an administrative nightmare. Insist on joint and several liability from the general contractor. Document every defect in writing and by registered mail to ensure the evidentiary value of your new construction warranties . Knowing your rights and adhering to deadlines ensures that your new construction warranties fulfill their purpose: preserving the value of your biggest investment.

If you need support in reviewing your general contractor agreement or are looking for a digital template for the notice of defects in order to assert your new construction guarantees in a timely manner, Loft offers neutral checklists and expert access.

Glossary

• Guarantees for new construction: The collective term for the buyer's legal (OR) and contractual (SIA) rights to rectification of defects, price reduction or rescission of the contract.
• SIA Standard 118: A private set of rules that is often agreed upon and contains buyer-friendly regulations for warranties for new buildings (e.g., a 2-year complaint period).
• Notice period: The period within which defects must be reported in order not to lose the claims arising from the new building guarantees .
• Hidden defects: Damage that was not apparent during the acceptance inspection. For these, warranties for new buildings usually have a limitation period of 5 years.
• Construction lien: The right of tradespeople to secure their claims against the property. It represents a financial risk that should be mitigated through contractual guarantees for new construction .