Non Disturbance Agreement Template for Switzerland

A Non Disturbance Agreement is a three-party contract that protects your rights as a tenant when your landlord mortgages the property or when ownership changes due to foreclosure. Under Swiss law, this agreement ensures that your lease remains valid and enforceable even if the property ownership changes hands through mortgage enforcement or bankruptcy proceedings.

When do you need this document?

You need a Non Disturbance Agreement when entering into a commercial lease on mortgaged property, when your landlord seeks new financing that uses your leased premises as collateral, or when existing mortgage terms require tenant protections. Swiss commercial tenants often require this protection before signing long-term leases in major business districts like Zurich's financial quarter or Geneva's international zones. The agreement becomes crucial during economic uncertainty when property foreclosures are more likely, ensuring your business operations continue uninterrupted regardless of your landlord's financial situation.

Key legal considerations

The agreement must clearly define each party's obligations under Swiss mortgage and tenancy law. Critical provisions include the lender's commitment to recognize your lease rights, continuation of lease terms at original rental rates, and maintenance of security deposits. You should ensure the agreement addresses scenarios where the lender becomes the new landlord through foreclosure, specifying that all lease covenants transfer to the new owner. The document must also establish clear procedures for rent payments during transition periods and define what constitutes acceptable lease modifications. Under Swiss law, the agreement should specify compliance with cantonal commercial lease regulations and address any Lex Koller implications if foreign parties are involved.

Legal requirements in Switzerland

Swiss Non Disturbance Agreements must comply with formal requirements under the Swiss Code of Obligations, particularly Articles 253-274g governing lease relationships and property transfer provisions. The document requires proper written form with signatures from all parties, and certain cantons may require notarization for enforceability. You must ensure compliance with the Federal Act on Debt Collection and Bankruptcy (SchKG) provisions that govern creditor rights during enforcement proceedings. The agreement should reference specific Swiss Civil Code articles covering real estate rights and mortgage provisions. Additionally, if any party is a foreign entity, the agreement must comply with Lex Koller regulations governing foreign real estate ownership. Cantonal variations in commercial lease laws may require additional clauses or specific language to ensure full legal protection across different Swiss jurisdictions.