What is the process for inspecting the construction of a building?
Experience has shown that there is no such thing as a new building without defects. It is all the more important for the contract for work and services to include a proper construction acceptance process. During a tour of the property, preferably with the architect or site manager, any defects are systematically identified and recorded in an acceptance report. The report must be signed by all parties.
If there is any uncertainty as to whether something really is a defect, it should be documented with photos and annotations. For the average homebuyer, the cost of hiring an independent expert can be worthwhile.
How do I find out what notice periods apply for reporting defects?
Following the acceptance report, it is up to the architect or the general contractor to notify the subcontractors of any defects. If the warranty services have been contractually assigned to the buyer, it is the building owner who must demand the rectification of defects.
The defects notification periods depend on whether the contract for work and services refers to the Swiss Code of Obligations or to the SIA 118 standard. The latter is a binding set of rules created by the Swiss Association of Engineers and Architects (SIA). In the case of household and other appliances, the manufacturer's warranty normally applies.
Notice periods applicable according to the Code of Obligations:
The warranty period for immovable property such as real estate is five years. This is how long subcontractors have to remedy the defects. The complaint must be made immediately by registered mail as soon as the defect is discovered.
If an obvious defect is not detected during the final building inspection, it shall be deemed to have been accepted. It will then no longer be possible to claim on the warranty.
The burden of proof lies with the building owner.
Notice periods applicable according to the SIA standard:
The warranty period for immovable property such as real estate is five years. In the first two years (defects notification period), however, all identified defects can be reported at any time and not immediately after the defect has been identified.
During the defects notification period, the burden of proof in the detection of defects lies with the contractor.
What should I be aware of if I am buying an old building?
You should never purchase residential property that is more than a few years old without inspecting it first. Check the general condition of the building structure, in particular the exterior facade including windows and doors, the kitchen and bathrooms, the floors and roof, and the cellar for damp. Also test if the heating system is working. A visit accompanied by an independent client advisor is advisable in order to avoid expensive surprises later on.
Unlike with the handover of a new building, older buildings are usually accepted "as seen". Defects that are not detected on the spot and immediately reported cannot often be objected to afterwards. It is also rarely possible to reverse the purchase. If, however, the seller knowingly conceals hidden defects, the buyer might still have recourse against the seller later.
What documents should I insist on when buying an old building?
When purchasing an old building, the buyer must insist on the handover of certain items and documents:
Plans, subcontractor's inventory (where were power lines and pipes laid?)
Use and administrative regulations for co-ownership shares
Regulations, establishment of condominium ownership (in the case of condominiums)
Minutes of the owners' meetings (in the case of condominiums)
Recent expense reports with budget
Liability or indemnity insurance policies relating to the property (excluding home contents insurance)
Contract with the local antenna association
Safety certificate for the locking system
All keys (house, letterbox, garage, cellar, room keys), remote control for garage door including code
Operating instructions for all appliances
Guarantee certificates for electrical appliances (if still available)
Buildings insurance statement and any additional insurance policies
Safety certificate for low-voltage installations
What other tasks do I need to complete when buying an old building?
There are a few other points you need to consider:
Retaining service contracts for the heating system, decalcification system, etc.
Notifying the electricity supplier and having the meter read
Notifying the water supplier and having the meter read
Oil level, waste disposal charges