Hi All - not sure whether this is the right place to post. We are planning to buy a house in canton Vaud and have a query:
Would you have any advice in terms of forward sales vs direct sales? Any suggestions or recommendations? our bank / interest rate etc. is already arranged (WIR, 0.65% SARON).
We want to go ahead with direct sales - it seems simpler while property dealer is pushing for the forward sale. Thanks,
As I understand, a forward sale (vente Ă terme) is used to secure the terms of the deal, but with transfer of property at a significantly later date; it is notarized, and penalties apply if buyer or seller wants to withdraw and cancel the contract.
A direct sale is done when the date of transfer of property is “soon enough”, less than a few months.
As buyer you can choose the notar, she/he would advise fairly (the notar is neutral and aims to protect both parties).
Thanks - exactly this point.
We want the transaction to be completed in Jan. We (buyer) are ready, seller is also apparently ready and bank is confirmed. Hence, we can’t understand why the property dealer in pushing for forward sale (vente a terme) in early Jan and then full payment in late Jan.
Good suggestion - let me reach out to the notary for his view.
It secures his fee.
But it is normal to finalize and sign the contract some time before the handover of the property. Otherwise both buyer and seller run the risk of the other backing out some time before the date of completion.
Thanks. The property is 10 year old and vacant as of now. So it is ready to move in. Hence we are unable to understand the reason for this additional step…
are there more fees to collect by someone if you do this forward sale?
The notary charges are marginally higher but we reached out to the notary and he seems to be fine with direct sale as well.
I think it’s just the property dealer trying to secure his fee - as highlighted above.
In fact there is no extra step with a Vente a Terme. You and the vendor sign at the notary on day A, you pay e.g. 10% of the agreed price plus the estimated notary fees. (Normally the notary will pay out the agency fee out of your 10% downpayment immediately, but that nothing to do with you).
This is a final sale, no coming back for both parties, otherwise penalties, etc. come into play.
Then at the agreed upon date, the property transfers to the buyers, no further notary visit, signature, etc. You just go there and pick up the keys from the vendor, check everything is as you expect and perhaps give a call to the notary office to say they can transfer the money.
In practice little to no difference with a direct sale.
Comparing with the french system, this is simpler: in France you sign a “promesse de vente” with the notary and pay some money. Then on the day of the sale, you go back and sign the final purchase contract. So two visits which you end up paying for (this was in 2018, maybe it has changed).
So don’t worry, it’s just the way it is in Switzerland, I have signed three VaT (from both sides), no problems, found it very simple.
Thanks Ach for the detailed reply.
For us - both buyer (us) and seller want to conclude it asap. The house is vacant. We are suggesting a final inspection of the property and then visit notary same day and conclude everything. Maybe we do Vente a Terme on Monday and then remaining 90% on Tuesday…most likely we are being overly cautious…first time buyer and huge sums involved…
Hi Tama, the Vente a Terme does not have to be slow, you can agree on a deadline and conclude earlier than that if both buyer and vendor agree.
As you say, sign on Monday, then your bank will need to establish the “hypotheque” and then send the funds to the notary for the agreed date. If everything takes one day, on Tuesday you have the keys and you’ll be a happy owner!
Buying a property everywhere in the world implies huge sums, more so here, it is normal to be a) stressed and b) wishing to have access asap.
Unfortunately it always takes longer than wished/expected: I agreed to the sale of an apartment on June 20 a few years ago, the VaT was for August 18, 2 months.
We managed, but it was short, very very short. In your case, with a vacant property you can already relax a bit.
My advise is to be patient, after all you don’t buy a property every year… take the time to figure out the process and enjoy it, you might never do it again 
Sorry to hijack a bit the thread, but do you know the tax status of this 10% (or whatever) advance?
I’ve concluded a Vente a Terme a few months back, and it’s becoming clear it won’t be effective before next year.
Is this amount part of my taxable wealth and has to be declared? Or maybe a debt the notary (which currently holds the money) has towards me until the transaction is actually concluded?
Did any of your VaT crossed a year boundary?
Nice question, never had this 
In fact, with a VaT my downpayment was paid to the seller at the signature, the notary did not have it anymore.
Any way, you have a claim for that 10% against whoever has the money, so logically it should go into your wealth declaration, but how you would declare this and with which supporting papers, no idea.
Best guess is to ask your fiscal authority, they must have seen this happen.
Yes it is. You can mention it as " x% advance payment for real estate purchase" in your wealth section.
In my case, I add it as a bank account for one year.