Pre-Emption Rights – An Unfailing Source Of Conflict

Swiss property law recognises various forms of collective ownership of real estate. One of these is co-ownership (Art.646, Civil Code (CC)), whereby several persons own a share in an object that is physically undivided.

The law provides more than a basic regime on the management of co-ownership – it confers on co-owners a statutory pre-emption right against any person acquiring a share who is not already a co-owner (Art.682, CC). The holder of the pre-emption right is entitled to buy the property on the conditions agreed by the seller with the buyer (Art.216d, Code of Obligations).

These seemingly simple rules have proved to be an unfailing source of dispute in the sale of real estate, not only shedding uncertainty on the ability of a buyer to acquire an object, but also leading to sometimes unwanted results for the seller.