What steps are involved in the process of buying a home, from the search to the handover?

The roadmap to home ownership: the stages in detail

1. Clarify the financial basis (before the search)

Many people believe that the steps to buying a home begin with browsing property portals. This is a mistake. The first and most important step in buying a home is to take stock of your finances. Before you start viewing properties, you need to know what you can afford.

• Budget analysis: Determine your equity (at least 20% of the purchase price). Check your account balances, pillar 3a and pension fund assets.
• Affordability: Your housing costs (imputed interest, amortisation, maintenance) should not exceed one third of your gross income.
• Proof of financing: Obtain a basic financing commitment from your bank. This will greatly strengthen your position in the later stages of buying a home.

2. The search and initial viewings

Once the financial guidelines have been set, the operational steps of buying a home can begin. The Swiss market is dry; good properties are snapped up quickly. Use search subscriptions and contacts with estate agents.

Viewings are not just about "liking" a property. One of the critical steps in buying a home is checking its condition. Take an expert with you on second viewings to assess the renovation work required. Ask for the GEAK (energy performance certificate) and, in the case of condominiums, the minutes of the owners' meeting. These documents are essential for the next steps in buying a home.

3. Reservation and purchase commitment

Have you found your dream property? Then one of the more binding steps in buying a home follows: the reservation. In Switzerland, it is customary to sign a reservation agreement and make a deposit (often between 10,000 and 30,000 Swiss francs).

Important: from a strictly legal point of view, a reservation agreement is not binding without notarisation. Nevertheless, it is a common part of the home buying process to prove your seriousness. Make sure that the deposit goes into a blocked account held by the notary or estate agent, not directly into the seller's private account. This protects you in case the next steps in the home buying process fail.

4. Finalise the financing

At the same time as making the reservation, you need to get the financing sorted. This part of the home buying process involves comparing mortgage models (Saron vs. fixed-rate mortgage).

Submit all property documents to the bank. The bank will reassess the value of the property. If this matches the purchase price, you will receive an irrevocable payment promise. This document is the fuel for the next steps in buying a home: without a payment promise, there can be no notary appointment.

5. The draft purchase agreement

Now it's time to get formal. The notary draws up the draft purchase agreement. This is one of the most complex steps in buying a home. The agreement regulates the price, payment terms, easements (rights of way, rights to build nearby) and the condition of the property.

Read the draft carefully. Do you understand all the clauses relating to property gains tax security? Are all defects listed? Reviewing this draft is one of the steps in buying a home that you should take your time with. Clarify any open questions before the notarisation appointment.

6. Public notarisation (the notary appointment)

This is the heart of the steps involved in buying a home. The buyer, seller and notary meet to sign the contract. The notary reads the contract aloud and both parties sign it.

Once notarised, the purchase contract is valid ("binding legal transaction"). However, you are not yet the owner! It is important to understand this subtle difference in the steps involved in buying a home. You have merely committed to paying the price and the seller to transferring ownership to you.

7. Transfer of ownership and land registry entry

Notarisation and transfer of ownership often do not take place on the same day. The transfer of ownership is the final legal act in the process of buying a home. The notary registers the change of ownership with the land registry office. Only when the entry is made in the land register ("legal transaction in rem") are you officially the owner. At the same time, your bank transfers the money. This largely completes the financial and legal steps involved in buying a home.

8. Transfer of benefits and risks (key handover)

The most emotional step in buying a home is the handover. Legally speaking, this is referred to as the transfer of "benefit and risk" to you. From this moment on, you benefit from the value of the property, but also bear the risk (e.g. in the event of storm damage).

Be sure to draw up a handover report. Document meter readings, keys and any defects that still need to be repaired. Once these steps have been completed, the house is yours.

9. After the purchase: fees and taxes

Even after you have moved in, the steps involved in buying a home are not quite over. You will receive invoices for notary and land registry fees as well as transfer tax (depending on the canton). Make sure you have budgeted for these costs when buying a home, as they are not covered by the mortgage.

Conclusion

The steps involved in buying a home may seem daunting at first glance, but they follow a clear structure. From budget analysis to viewings to the notary appointment, each step builds logically on the last. Mistakes made in the early stages (e.g. overestimating your budget) will come back to haunt you in the later stages.

Those who plan the steps involved in buying a home carefully and do not allow themselves to be rushed minimise risks. It is particularly important for newcomers to be aware of the cantonal differences in notaries and taxes. Professional support can help you to master the steps involved in buying a home efficiently.

Loft is happy to support you on your way to owning your own home and will guide you competently through all the steps involved in buying a property.

Glossary

• Reservation agreement: An agreement to reserve the property for the buyer in exchange for a deposit. One of the first binding steps in the home buying process, even if it is only partially legally enforceable without a solicitor.
• Public certification: The formal act at the notary's office where the purchase agreement is signed. This is one of the central legal steps in the home buying process.
• Benefit and risk: The point in time (usually when the keys are handed over) at which the risk and benefit of the property are transferred to the buyer. Marks the end of the physical steps involved in buying a home.
• Irrevocable payment promise: A guarantee from the bank to the seller that the purchase price will be paid when ownership is transferred. Essential for the final steps of buying a home.
• Land registry entry: The official registration of the new owner. Only then are the legal steps involved in buying a home complete.