What is real estate: definition
Under Swiss law, real estate is immovable property in the legal sense, including a parcel of land, a distinct and permanent right, or a co-ownership share. In everyday language, it mainly refers to land, a house, or an apartment.
Legal definition of real estate in Switzerland
A house is generally not a legal object separate from the land: it forms part of the parcel. With condominium ownership (PPE), you do not legally purchase the apartment as a separate object, but a co-ownership share combined with a special right of exclusive use over certain rooms. A distinct and permanent building right may also constitute real estate even though its holder does not own the land.
Real estate: example and mortgage implications
A detached house with its parcel, a PPE co-ownership share, or a building right recorded in the land register are examples of real estate. The mortgage security covers the property recorded in the land register; movable furniture and removable equipment are normally excluded. The bank also reviews easements, land charges, and registered restrictions, as they may reduce the property’s value or marketability.
Resources about the term “real estate”
- property/income-producing property
- the property pledge over real estate
- What is a mortgage on real estate?
