After 12 months the landlords cannot legally keep the deposit any longer, and the bank will release the deposit without any argument.
To be clear you said she rented a Room, not an apartment / flat - in that case I am also surprised that the refund could take a year. However what were the terms in her agreement for the Refund?
But because the agents hasn't had the final works done (and therefore paid the final bills) we're unable to get our money back. 8'500 chf is a lot of money to be holding back for about 300 chf worth of work!
And you're saying they can hold it for twelve months?!
Is there any sort of legal recourse we can take?
We moved in Sept. 2014, we got our deposit back about 6 months later, once the bills from suppliers to the building for 2014 had come and we had paid our share. We knew in advance it would be like this (the management company was very helpful in explaining everything), but I could see that someone who doesn't know might get nerveous, especially since you have to pay a new deposit for your new rental in the meantime. It's a lot of money!
Then you don't need to have any money frozen over any period of time. Honestly, if I can spare the cash then I wouldn't pay for something like that but if your overall cash is not that much and the deposit makes you feel uneasy, then go for it.
Swiss Code of Obligations Art. 257e.
https://www.admin.ch/opc/en/classifi...dex.html#a257e
From cancellation date until twelve month later the landlord or landlady must approve the payout. (Importantly, also tenant must approve to pay out) After twelve month the landlord or landlady must object to the payout, if the bank receives no object the full amount is paid out. With a court order payout is possible anytime. See the law:
Swiss Code of Obligations Art. 257e.
https://www.admin.ch/opc/en/classifi...dex.html#a257e
Good to here that you received the deposit. The contract normally never stipulates a time frame as the law defines it. Also the money must be paid in a special deposit account running on the tenants name. See the law:
Swiss Code of Obligations Art. 257e.
https://www.admin.ch/opc/en/classifi...dex.html#a257e
Most likely the ones defined by the law. There is no need to mention it in the contract.
Swiss Code of Obligations Art. 257e.
https://www.admin.ch/opc/en/classifi...dex.html#a257e
Ever read the Gerneral Terms and Conditions of Swisscaution?
static.swisscaution.ch/docs/cga/bh/current/CGA_PDF_BH_EN.pdf
See in particular Art. 5 and Art. 6
For rental periods longer than 2 years a small credit for CHF 10000 by Migros Bank is cheaper than Swisscaution!