Query on Grundpfandrechte entry in the land register

Real Estate
1

In the final discussions with the bank, they mentioned that there should be an entry in the land register document for the ‘Grundpfandrechte’. This would cost around 1000 CHF which is to be borne by us.

I can understand the need to have the entry in the land register - however, is it a good to have or a must have? Also, normal for the charge to be paid by the buyer?

Secondly, the advisor was explaining to me that this amount to be entered can be higher than the disbursed mortgage. This would allow us to potentially request for more mortgage later for any changes/upgrades.

I guess having a higher amount there should be fine; are there any cons/pitfalls in keeping the amount more than the disbursed mortgage?

2

The bank will not lend to you without this. So unless you are buying for cash you will need it.

Payment split between buyer or seller probably varies by canton in terms of what is customary.

3

Must have. Potential buyers and lenders that would take the real estate as collateral have a right to know there’s a lien on it. It also protects the bank’s right as first/second rank lender. That’s what this mention is about.

Yes (at least in Valais/Wallis and to my knowledge).

Having a higher amount prevents from paying additional fees to update the stated amount in case the mortgage is increased. It is usually not updated as amortization occurs, which is how, I guess, the stated amount usually ends up being higher than the actual mortgage.

It may vary by canton but at least in Valais/Wallis, the amount stated appears only on extracts required for mortgage, sale or 3a/2nd pillar withdrawal/use as collateral. That is, when your affordability or the actual value of the land is assessed. I don’t think there’s really big drawdowns to having a higher amount written though I wouldn’t see that much use in it either (if I have access to more borrowing power and wanted to use it, I would use it now).

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