In the new episode of the Resolve Podcast, Omara Schaub, Director of Resolve Zurich, speaks with Marco Keller, managing director and owner of Solivia, about the most common pitfalls in new-build purchase contracts – and about how buyers can effectively protect themselves.

Why the new-build purchase contract holds a special position

With a new-build, the buyer purchases something that often does not yet exist at the time the contract is signed. The basis is plans, construction specifications and visualisations – not an existing, visible property. This significantly increases the quality and completion risk compared with an existing property.

On top of that, depending on the project, payment can be made in tranches in line with the progress of construction. Buyers are effectively pre-financing part of the development – which makes it all the more important that the contract clearly regulates what happens in the event of delays, defects or payment difficulties on the part of the developer.

The biggest risks in the purchase contract – and what must be clearly regulated

Marco Keller puts it in a nutshell: «In the end, only what is signed and notarised counts.» Verbal assurances or messages sent via WhatsApp carry little evidential weight in a dispute. The following points should therefore be bindingly set out in the contract or recorded as an annex:

• The payment terms ("turnkey" vs. payment based on construction progress)
• A detailed construction specification
• Clear deadlines for readiness for occupancy and completion – including legal consequences in the event of delay
• Deadlines, definitions and liability for defects, including the acceptance process
• Transfer of the guarantees
• And many other specific clauses that we at Resolve review and discuss in detail with our clients as part of our notary mandate

The more complete the contract, the smaller the risk of expensive disputes after handover.

Special requests and quality: why WhatsApp is not a contract

Special requests are part of every new-build – but they almost always affect price, schedule and quality. In practice, adjustments are often discussed informally, by phone or messenger. This is a common starting point for later conflict.

A clean process means: special requests are recorded in writing, with a clear deadline by which requests can be submitted, with transparent pricing and – ideally – as part of the notarial deed or as a formal addendum. Quality itself should also be specified in the contract: which suppliers, which product lines, which standards? «Quality is often difficult to assess after the fact», explains Keller – which makes clarity before signing all the more important.

Warranty: does liability stay with the developer – or is it assigned?

A core element of the new-build purchase contract is the arrangement of the warranty. According to current standards (SIA 118 – see also Corrigenda C1 to SIA 118), in the first two years buyers benefit from a reversal of the burden of proof and from the new, consumer-friendly 60-day notification period. While the warranty for construction works is generally five years, the decisive question is often a different one: does the seller remain under obligation, or will you, in the event of defects, be referred directly to the individual tradespeople?

Two models are common:

• The warranty stays with the developer or seller – who is the first point of contact for defects and coordinates remediation with the tradespeople.
• The warranty is assigned to the individual tradespeople – in the event of defects, the buyer has to contact and enforce claims against each trade individually.

The guarantee-assignment model looks formally equivalent, but in practice it is an enormous burden for the buyer – you become a "site manager against your will" and have to argue with dozens of tradespeople. Keeping liability with the developer (general contractor) massively simplifies the process, but carries its own risk: if the general contractor goes bankrupt, you are left without a point of contact.

The role of the notary: neutrality is not advice

A widespread misunderstanding – particularly among international clients – is the assumption that the notary acts as an independent advisor who weighs the interests of both parties against each other. In Switzerland, however, the role of the notary is clearly defined: they are a neutral officer of the public record.

Their task is to draw up the contract within the sometimes very broad statutory guardrails, to verify the identity of the parties, and to carry out the act of notarisation in a formally correct manner. What the notary explicitly does not do:

• Represent interests: they do not negotiate terms on behalf of one side.
• Conduct an economic review: they do not assess whether the price or the specific construction conditions are advantageous for you.
• Provide individual advice: while they point out fundamental legal consequences, they do not optimise the contract in line with your personal risk strategy.

Since the draft is usually commissioned by the seller or developer, it naturally reflects their standard processes. An independent review of the full draft purchase contract by experts such as Resolve is therefore not a vote of no confidence in the notary, but a necessary complement to safeguard your individual interests.

Expats and language barriers: clarity before signing

A Swiss notarial deed is legally binding. In practice, many expats are confronted with complex German-language contracts without having a full translation or analysis available to them beforehand.

At this point the process often hits a legal hurdle: the officer of the public record may only proceed with notarisation if they are certain that all parties have understood the content of the contract in linguistic terms. If this cannot be ensured because of language barriers, the purchase contract must be signed by a representative acting on behalf of the buyer.

This is precisely where Resolve's notarial mandate comes in: we proactively support you through this entire process. We review the contract in advance, explain the complex clauses to you in English (or another language) and resolve all open questions before we proceed to notarisation together.

With our mandate, we make sure that the official appointment does not turn into an ordeal, but that the signature can be given with full conviction and genuine understanding.

Conclusion: contract review is risk management

A neutral expert who analyses the purchase contract before notarisation is not a formality – they are a central instrument of risk management. The cost of this review bears no relation to the potential follow-up costs of unclear clauses, incomplete provisions or unfavourable liability structures.

Clarity before signing protects both sides: the buyer from unexpected risks – and the seller from later disputes. Good contracts are fair, complete and understandable.

Listen to the episode on your preferred platform:

• Spotify
• Apple Podcasts
• Deezer
• RSS feed