Home Equity Agreement Template for Switzerland

A Home Equity Agreement lets homeowners tap into their property's value without taking on debt. It's a unique financial arrangement where investors provide upfront cash in exchange for a share of your home's future value changes - common in Swiss residential property markets, especially in cities like Z��rich and Geneva.

Under Swiss civil law, these agreements differ from traditional mortgages because there's no monthly payment or interest. Instead, when you sell your home or the agreement term ends (usually 10-30 years), you share an agreed percentage of your property's appreciation or depreciation with the investor. The Swiss Financial Market Supervisory Authority (FINMA) oversees these contracts to protect both homeowners and investors.

Consider a Home Equity Agreement when you need to access substantial home value without increasing your monthly expenses. This option works particularly well for Swiss homeowners facing major life events like funding a child's education, starting a business, or covering unexpected medical costs - situations where traditional lending might not fit your needs.

These agreements make sense when you're confident about your property's long-term value but need immediate capital. They're especially valuable in Swiss urban markets with strong appreciation trends, like Basel or Lausanne. Just ensure you understand the Swiss Civil Code provisions governing property contracts and consult with a notary, as these agreements involve complex legal obligations regarding future property value sharing.

• Fixed-Term Agreements: Standard 10-30 year contracts where investors receive a set percentage of appreciation at the end of the term
• Sale-Triggered Agreements: Arrangements that activate only when the homeowner sells the property, common in Swiss vacation home markets
• Hybrid Agreements: Combine both fixed-term and sale-triggered elements, offering more flexibility under Swiss property law
• Capped Return Agreements: Include maximum profit limits for investors, popular in stable Swiss urban markets
• Partial Value Agreements: Allow homeowners to unlock only a specific portion of their equity, maintaining greater control over future appreciation

• Homeowners: Swiss property owners seeking to access their home equity without taking on traditional debt obligations
• Investment Companies: Licensed Swiss financial firms that provide capital in exchange for future home appreciation rights
• Notaries: Required under Swiss law to authenticate Home Equity Agreements and ensure compliance with cantonal regulations
• Property Appraisers: Independent experts who assess initial and final property values according to Swiss valuation standards
• Legal Advisors: Specialists in Swiss property law who review and structure agreements to protect both parties' interests

• Property Details: Gather current property valuation, ownership documents, and existing mortgage information from your cantonal registry
• Financial Assessment: Document your equity stake and compile recent tax assessments and property insurance certificates
• Agreement Terms: Define investment amount, percentage of future appreciation to share, and agreement duration
• Legal Requirements: Confirm compliance with Swiss Civil Code requirements and FINMA regulations for property investments
• Documentation Review: Use our platform to generate a legally-sound agreement, then have all parties review terms before notarization

• Party Identification: Full legal names, addresses, and identification numbers of homeowner and investor per Swiss Civil Code
• Property Description: Detailed property specifications, including land registry number and cantonal location
• Investment Terms: Precise amount invested, percentage of appreciation shared, and duration of agreement
• Valuation Method: Agreed procedure for initial and final property valuations under Swiss standards
• Exit Provisions: Clear terms for early termination, property sale, or agreement expiration
• Notarization Block: Required format for official authentication under cantonal regulations

A Home Equity Agreement differs significantly from an Equity Agreement in both purpose and structure under Swiss law. While both involve sharing value, they operate in fundamentally different contexts.

• Asset Type: Home Equity Agreements specifically deal with residential property value sharing, while Equity Agreements govern business ownership stakes
• Payment Structure: Home Equity Agreements involve future property appreciation sharing without regular payments; Equity Agreements typically include dividend rights and voting powers
• Legal Framework: Home Equity Agreements fall under Swiss property law and require notarization; Equity Agreements operate under corporate law with different filing requirements
• Duration: Home Equity Agreements typically have fixed terms (10-30 years); Equity Agreements usually remain active until business dissolution or share transfer
• Exit Mechanisms: Home Equity Agreements end through property sale or term completion; Equity Agreements involve share transfers or company buyouts