The donation (CO art. 242/243) and exchange (CO art. 237/216) of real estate must be executed via notary in order to be valid, unlike in the case of estate distribution, where written form is sufficient (CCS art. 634).
When the ownership of a property is transferred by operation of law (inheritance, foreclosure, expropriation, occupation, prescription), the acquisition is not entered in the land register.
A land property is composed of a demarcated parcel of land surface (CSS art. 667 et seq.).
Vertically (i.e. perpedicular to the ground in the direction of the sky and the center of the earth), the extent of the land property is depends on the owner's interests.
Ownership by floor or condominium ownership is a particular form of co-ownership that also represents a real estate property. Its particularity lies in the fact that the co-owner has the exclusive power to administer, use, and improve some parts of the building that are considered private.
All real estate properties are entered in the land register. The land register is a public register under the cantonal authority. It provides information on owners and property rights (ownership, easements and land encumbrances, notes, and collateral).
When granting a loan, the financial institution requires guarantees. In the case of a loan secured by real estate, the title cannot be transferred, since the borrower wants to either live in the house or rent it out.
The investor's task is to judge the estimated profitability of their property investment by assuming that they will pay the price requested by the buyer.
Another type of calculation, direct return on equity, can also be used to assess the profitability of an investment such as that proposed. Its formula is as follows:
Direct return = (rent – charges – interest) / equity