Forms of Security over Assets
Real Estate
1. What is considered real estate in your jurisdiction? What are the most common forms of security granted over it? How are they created and perfected (that is, made valid and enforceable)?
Real Estate
The definition of real estate (Grundstücke) under the Swiss Civil Code includes:
- Parcels of land with or without buildings on them.
- Distinct and permanent rights recorded in the land register (most notably rights to build on a parcel of land (Baurecht)).
- Co-ownership in land (with or without buildings on it) and condominium apartments.
Common Forms of Security
Common forms of security over real estate are mortgage certificate security transfers and land charges (Grundpfandverschreibungen). For both forms, real property of the borrower or a third party serves as security for any kind of actual, future and contingent claims.
