What steps are involved in buying a property, from the search to moving in?

The roadmap to home ownership: the phases in detail

1. Clarify the financial basis (before the search)

Many people believe that the steps involved in buying a property begin with browsing property portals. This is a fallacy. The professional steps involved in buying a property always start with a review of your finances. Before you arrange a viewing, you need to know your budget.

Switzerland has strict financing rules. The first steps in buying a property therefore include checking your own funds (at least 20% of the purchase price) and affordability (housing costs max. 33% of income). Without a financing certificate from the bank, you will hardly be taken seriously in the later stages of buying a property. Clarify this basis before you start actively searching.

2. Searching for and inspecting the property

Once the budget is clear, the operational steps of buying a property begin: the search. The Swiss market is dry, and good properties are rare. Once you have found a property, due diligence follows.

The critical steps in buying a property at this stage include:

• Substance check: Assess the condition (possibly with a construction expert).
• Legal review: Take a look at the land register extract. Are there any easements such as rights of way?
• Regulations check: In the case of condominiums, checking the minutes and regulations is one of the essential steps in buying property.

3. Reservation and deposit

Once you have decided on a property, more binding steps follow in the property purchase process. In most cases, a reservation agreement is drawn up and a deposit is paid (often between £10,000 and £30,000).

Important: from a strictly legal point of view, such a contract is often not binding without notarisation. Nevertheless, it is one of the usual steps in the property purchase process to prove your seriousness. Make sure that the deposit is paid into a blocked account held by the notary or estate agent. This protects you in case the further steps in the property purchase process fail.

4. Secure definitive financing

Parallel to the reservation, you must take the next financial steps in the property purchase process. The bank will re-evaluate the property. If the value matches the purchase price, you will receive an "irrevocable promise to pay".

This document is the fuel for the next steps in the property purchase. Without a promise to pay, no solicitor will set a date for the notarisation. At this stage, compare mortgage models to ensure that the steps involved in purchasing the property are also economically viable in the long term.

5. The draft purchase agreement

Now it's getting formal. The notary draws up the draft purchase agreement. Reviewing this document is one of the most important steps in the property purchase process.

The contract regulates:

• The exact purchase price and payment terms.
• The securing of the property gains tax (so that no lien is placed on your property).
• The condition of the property ("exclusion of warranty").

Take your time with these steps in the property purchase process and clarify any open questions before the appointment.

6. Public certification (the notary appointment)

This is the heart of the property purchase process. The buyer, seller and notary meet to sign the contract. The notary reads the contract aloud and both parties sign it.

With the notarisation, important steps in the property purchase are completed: the transaction is contractually sealed ("binding transaction"). You have committed to pay, the seller to deliver. But you are not yet the owner! This subtle difference is essential in the steps involved in buying a property.

7. Transfer of ownership and land registry entry

The final legal steps in the property purchase often take place in the background or at a separate appointment. Only when the entry is made in the land registry ("transaction in rem") are you officially the owner.

The solicitor reports the change of ownership to the land registry office. At the same time, your bank transfers the money. This completes the legal steps involved in buying a property.

8. Paying ancillary purchase costs

One aspect that is often forgotten in the steps involved in buying a property is the fees. These are incurred in addition to the price.

The financial steps involved in buying a property include:

• Transfer tax (depending on the canton).
• Notary fees.
• Land registry fees.
• Mortgage deed fees.

Plan for these steps in the property purchase process to cost an additional 3 to 5 per cent of the purchase price.

9. Key handover (benefit and risk)

The most emotional moment in the property purchase process is the handover. Legally, "benefit and risk" are transferred to you. From now on, you benefit from the value, but also bear the risk (e.g. storm damage).

Be sure to draw up a handover report noting meter readings and any defects. Once these steps have been completed, the house is yours.

10. Moving in and administration

After the handover, the practical steps of buying a property follow: the move. Don't forget the administrative steps of buying a property:

• Register with the local authority.
• Notify the electricity and water companies.
• Adjust your insurance policies (building insurance is compulsory in most cantons).

This completes the steps involved in buying a property and you can start enjoying everyday life in your own home.

Conclusion

At first glance, the steps involved in buying a property seem like an insurmountable mountain of tasks. But if you divide the process into clear phases, you can keep track of everything. From proof of financing to notarisation and entry in the land register, each step in the property purchase process builds logically on the previous one.

Above all, do not underestimate the lead times at banks and notaries. Good preparation of the first steps in buying a property (budget & financing) is the foundation for a stress-free completion. If you are well informed, you will master the steps involved in buying a property confidently and securely.

Find out about Loft's offers to make your path to home ownership efficient and transparent.

Glossary

• Steps in buying a property: The entire chronological process from initial interest in buying to moving in, divided into search, financing, legal matters and handover.
• Public certification: One of the central steps in buying a property, in which the purchase contract is certified by a notary. Without this step, the purchase is invalid.
• Promissory note: Irrevocable guarantee from the bank that the purchase price will be paid. Without this document, the notarial steps involved in purchasing a property cannot be completed.
• Benefit and risk: The point in time (usually when the keys are handed over) at which the risk associated with the property is transferred to the buyer. Marks the end of the physical steps involved in purchasing a property.
• Land registry entry: The legal completion of the property purchase process. Only with this entry does the buyer become the legal owner.