What obligations do I assume after acquiring my own home?

The new everyday life: Your agenda as an owner

To keep track of everything, it's helpful to divide the obligations after buying a home into clear areas of action. These include money, security, and bureaucracy.

Financial obligations to the bank

The most obvious obligations after buying a home concern your financing. With the disbursement of the mortgage, you are taking on long-term liabilities.

• Interest payments: Timely payment of mortgage interest is essential. A delay violates your contractual obligations after purchasing your home and can lead to loan termination.
• Amortization: In Switzerland, you must repay the second mortgage (the portion of the loan-to-value ratio exceeding 65%) within 15 years or by retirement. This amortization is one of the fixed obligations after purchasing a home , which will strain your liquidity. Whether you amortize directly (to the bank) or indirectly (via Pillar 3a) does not change the binding nature of this obligation.

Tax obligations after buying a home

For many new homeowners, especially those who have recently moved to Switzerland, the tax obligations after purchasing a home come as a surprise. The Swiss system includes the concept of imputed rental value.

• Imputed rental value: You must declare fictitious rental income as income, even though no money actually changes hands . The correct declaration of this value is one of the annual obligations after purchasing a home, as stated in your tax return.
• Property tax: In many cantons (but not all, e.g., Zurich does not levy one), a separate property tax is due. Knowing these deadlines is one of your obligations after purchasing your own home .
• Capital gains tax: If you sell the property later, you have to pay tax on the profit. As a buyer, this affects you indirectly: You must ensure that the seller has paid their taxes, otherwise the legal lien on your house will apply. Checking these documents is one of the first tasks after buying a home, immediately after moving in.

Maintenance and liability of the property owner

Perhaps the most far-reaching obligations after purchasing a home concern the condition of the property. According to Article 58 of the Swiss Code of Obligations (OR), as the owner of the property, you are liable for damages caused by defects in your building.

• Safety: If a tile comes loose from the roof and hits a passerby, or the mail carrier slips on your icy path, you are liable (even without direct negligence). Therefore, regular inspection of the building structure and winter maintenance (snow removal) are among the responsibilities after purchasing a home .
• Maintaining the value of the property: The bank often obligates you in the loan agreement to maintain the value of the property. If the house falls into disrepair, you are in breach of your obligations to the lender after purchasing the home, which could theoretically lead to the termination of the mortgage.

Insurance obligations

Risk management is an important part of the obligations after purchasing a home .

• Building insurance: In most cantons (except GUSTAVO cantons like Geneva or Valais), building insurance against fire and natural hazards is mandatory. Registration with the cantonal insurance institution is one of the administrative obligations after purchasing a home .
• Liability: Due to the aforementioned liability of property owners, you should absolutely check whether your personal liability insurance covers damages as a homeowner. While not a legal requirement, this is a sensible obligation after purchasing a home .

Administrative obligations after purchasing a home

Bureaucracy is unavoidable. Among the immediate obligations after purchasing a home are various registrations.

• Utility companies: You must register with the water, sewage, and electricity companies as the new owner. Reading and submitting the meter readings on the day of handover is one of the practical obligations after buying a home to avoid paying for the previous owner's consumption.
• Municipality: Notifying the residents' registration office and the tax office about the change of ownership is one of the standard obligations after purchasing a home .

Special feature: Condominium ownership

obligations after purchasing your own home expand to include the communal component.

• Renewal fund: You are required to contribute a share to the renewal fund. These payments are among the financial obligations after purchasing a home , which are often underestimated.
• Meetings: While attending the owners' association meeting is not legally required, those who wish to protect their interests should consider it one of their obligations after purchasing a home . Renovations and cost allocations are decided at these meetings.

Neighbor law obligations

Even dealings with neighbors are regulated. Among the obligations after purchasing a home is adhering to boundary distances for plantings.

• For example, you may not plant trees too close to the property line or you must trim overhanging branches (right to prune). Knowing these provisions of the Swiss Civil Code (ZGB) protects you from unknowingly violating your obligations after purchasing a home and getting involved in a legal dispute.

Conclusion

The question "What responsibilities do I assume?" reveals that owning property means work. The obligations that come with buying a home transform you into a manager of finances, taxes, building maintenance, and legal matters.

be discouraged by the many responsibilities after buying a home . Many tasks, like filing taxes or reviewing insurance, are annual routines. Others, like maintenance, directly contribute to building your own wealth. It's important to take your responsibilities after buying a home seriously, especially owner liability and mortgage amortization. Being proactive in these areas protects you from liability claims and problems with your bank. A well-maintained house is not only a pleasure to live in, but also the safest way to fulfill your responsibilities after purchasing a home .

If you are looking for support in managing your administrative tasks or need an overview of when which obligations are due after purchasing your home, Loft offers digital tools and checklists to simplify your home management.

Glossary

• Obligations after home purchase: The entirety of all financial, legal and administrative tasks that an owner must perform after the acquisition.
• Owner's liability: The legal obligation (Art. 58 of the Swiss Code of Obligations) to be liable for damages caused by defects in the building. One of the key obligations after purchasing a home .
• Imputed rental value: A notional income from living in one's own property, which is subject to taxation. Declaring this income is one of the tax obligations after purchasing a home .
• Amortization: The contractual obligation to repay the second mortgage. It is one of the strictest financial obligations to the bank after purchasing a home.
• Renewal fund: A reserve account for condominium owners. Contribution is one of the communal obligations after purchasing a home .