Off-plan acquisition

News from DL MoneyPark and information on the financial market and Swiss romande real estate

Author : Kristen

Forward sale or "turnkey" buying

This type of acquisition is made through the payment of an advance (5% to 20% of the purchase price) when signing the forward sale deed. The balance is paid when the property is delivered, that is, when the title is transferred. 

Generally speaking, mortgage financing is necessary for the payment of the initial advance because the advance is equivalent to the required personal equity.

At the time of the first signing at the notary's office, the buyer does not yet become the owner of the property, but gains the right of purchase, a type of property reservation in the buyer's name that is registered with the land register. The buyer will become the official owner only when the title has been transferred, that is, when they have paid the total purchase price.

At the time of the transfer, when the buyer legally becomes the owner of the property, he must pay purchasing fees to the tune of 5% of the purchase price. This amount could also vary depending on the easements that need to be created, the mortgage note organisation costs and other notary fees related to more specific cases.

For a forward sale, these purchasing costs are calculated based on the total price of the property, including capital gains.

MORTGAGE SIMULATOR 

Articles on off-plan acquisition