My husband and I recently reserved an apartment that is currently rented out to an old couple. Initially we assumed that the seller will vacate the apartment before we take over the apartment, but I just found that it is not the case. The tenants will stay in the apartment until we own it, and we have to vacate the apartment ourselves.
The reasoning according to the real estate agent is that in Switzerland, you need a reason to terminate a rental contract from the landlord side. We as a buyer who plan to live in the apartment will then have the reason to say we want to apartment back because we need to live in it. But won't the seller also have the reason to vacate the apartment because he wants to sell it?
It is kind of bothering me because I heard that in Switzerland it can be difficult to ask a tenant to leave the apartment because they have a lot of rights. I am just worried that it can be a lengthy process, especially we don't speak German, it will be a pain to deal with all the paperwork.
Does anyone has any advice on this? Also, can I assume that we will receive the rent after we take over the apartment?
Sounds like a bad deal, hope your paying substantially less than you would for an empty flat.
I would walk unless the savings exceeded 100k, can you even get a mortgage on that basis ? you cant use any pension fund to buy an investment property.
Assumption is the mother of all f**** ups. Do you have that in contract in writing or not?
Only if you have a written assurance that the apartment would be vacant, then you can charge the seller for damages if it's not
No, you can start the process without mentioning any reason. The tenants can try to dispute your cancellation in any case and then if you can't justify it with good reasons, you could lose and get stuck with them for many more years. The occasion of the sale when you want to move in yourself is a very good reason, however. You just may have to wait until next possible contractual termination date, but you get paid for that in rent. Or cancel at next standard local date + compensate damages to tenants in rent differences due to nonfulfullment of contract.
This could take a very long time, especially if the current tenants can claim they are in difficult financial circumstances and any move would put them in a worse situation or need to claim State benefits
Sometimes properties are sold with a clause that the old people can live in it until they die so you will have a very long wait & not be able to live in it.
At this link is a Beobachter article called "Termination by Landlord" (German) which describes the processes and justifications for terminating a rental agreement:
It notes that a rental contract termination can only occur at sale only after the property has been officially registered in the property register.
As a homeowner, you might wish to consider joining the Hauseigentümerverband of Basel-Stadt (or Basel-Landschaft). This organization also offers legal advice to homeowners:
If you were familiar with the sitaution and in command of the local language, it could be a profitable situation because the buyer will want to be re-imbursed for the risk he assumes.
In your situation however: Walk away.
The renters are likely to have rented for a long time, meaning they may indeed get an extension upon request. Being old alone is also reason to get an extension. Add the two and you may have to wait for quite some time until you can move in.
Generally speaking:
Don't pay the full price before you have confirmation all liabilities have been paid for. In particular that's all craftsmen where applicable, plus all taxes. Pay 10-15% of the purchase price into escrow.
Do you mean "If the rental contract is extended after we have bought, will the rent be owed and paid to us?"
The answer to that is "Yes". Once you're the owner the rent is to be paid to you, the seller no longer has any claim on the rent. But again, you're probably better off if you just walk away.
Selling is not a good reason for termination. Wish to live in your own apartment is a good reason. But even then, and specially it is an old couple which may have been living there for a long time, expect that the rental court may extended the rental agreement 12 to 24 months.
For the last part: You have to take over the contract and you will receive the rent.
If possible, the seller (or you) should get the current renters to agree to a fixed leaving date. The renters will then not be able to seek an extension since there is no termination (but a mutually agreed fixed term rent agreement). If the current renters are not willing to settle on a date, you will have a good indication of the problems up ahead.
Friends (as renters) have been in this situation. The new owner wanted to move in, and they wanted to stay. Since my friends were young and agreeable they agreed to a period of over two years to move out, but they could've stayed and dragged out the proceedings until the bitter end. As a buyer I would say to stay clear.
It's not a certainty. At the proceedings the interests of both parties will be examined and weighed against each other. Buyer who just cancelled his apartment and needs the place vs young, childless couple who can easily find another place to live - I'd rather bet they'd get kicked out in this situation. To be able to stay there needs to be an element of hardness for your situation, you're not guaranteed to get an extension automatically by asking
Don't know how they came to their agreement, but I think they had a reason. Obviously its case-to-case, but its definitely its not as easy as say Anglo-Saxon countries where you can just be turfed.
You can't be turfed out in anglo Saxon countries if you hold a long lease......Only if you have a shorthand tenancy usually for a period of 6 months or a year.
A generalization, but at least in Canada (in BC and now more often in Ontario).. no one gets a lease for more than a year. After a year, you are typically converted to a month-to-month with a low rent increase (legal max). If you are "lucky" and want another fixed-term then your rent increase is unlimited (no legally mandated increase since its a new contract). So most people would risk month-to-mont and at that point, you can evict for many reasons, most commonly, cosmetic renovations and "kids" moving home. 1 month notice and tata.
Certainly much less protections for tenants than it is here.