Risks & due diligence in forced sales
The biggest risk at a forced sale is the usually complete exclusion of warranty: you buy “as seen”. Careful due diligence – schedule of encumbrances, condition, tenancies and financing – is therefore indispensable before every bid.
Understanding the exclusion of warranty
At auctions, the property is generally sold without any guarantee as to condition, area or defects. Later complaints are hardly possible – the review has to happen beforehand.
Schedule of encumbrances and mortgages
The schedule of encumbrances (Lastenverzeichnis) shows which mortgages, easements and other charges affect the property. Check carefully which encumbrances you take over – they can significantly affect the effective purchase price.
Existing tenancies
Rented properties are often taken over with the existing leases. Clarify rents, notice options and personal use in advance.
Checklist before bidding
- Have you read the auction terms and the schedule of encumbrances in full?
- Have you compared the official valuation with your own assessment?
- Have you viewed the property and noted its condition and need for renovation?
- Is financing secured on a binding basis and the down payment available in liquid funds?
- Have you set a maximum bidding limit and will you stick to it?
- Have you taken possible encumbrances, tenancies and a double call into account?
Frequently asked questions
What does “double call” (Doppelaufruf) mean?
With a double call, the property is called twice – once with and once without a specific encumbrance (e.g. an easement). This determines whether the encumbrance remains. It can change the price and the terms.
Can I view the property before the auction?
In most cases, viewing appointments are offered. Be sure to use them, ideally with an expert, as there is no warranty claim.
See current property auctions all over Switzerland – prepared every day from official publications.
View auctionsNote: This article provides general information and does not replace legal, tax or financial advice. The official publications and the auction terms of the competent debt enforcement or bankruptcy office are decisive.