Does anyone have any experience of doing this, ie paying directly where there is no agent involved? I have talked to the bank who tell me this is fairly normal practice. The notary has also confirmed they would not manage this process.
We are considering buying privately in Zurich and the seller is asking for the standard purchase deposit of 30,000 to be paid directly to them.
It is normal practice. Just ensure that it is clear what happens if either party decides to pull the plug.
Also, such agreements are easier to enforce if they are notarized. However, we never did and it was never an issue.
You may be fortunate in that it all goes through without any problems, however you paying a deposit does not obligate you to buying the property, and if you change your mind, then the deposit must be returned and that is where the problem could lie.
You will anyway need a notary, so appoint one (you as the buyer have the right to choose the notary - do not accept the sellers notary) and pay the deposit to them. This will ensure your rights (and the deposit) are protected.
If he's honest he'll not have a problem with that. If the seller threatens to pull the sale unless you pay them directly, then you are much better off not dealing with them.
We did this the other way round when we sold. In fact, our buyers were so desperate that they insisted that they pay CHF20,000 to ensure they got the house...
The buyer being able to choose the notary is kanton dependant, In Zurich it is according to the Gemeinde of the property.
Not altogether true. The seller would be entitled to deduct "justified costs" from the deposit. And THAT is where the argument would likely be: what reasonable costs would be. If a notary has already started the process of drawing up a contract, there would be costs involved there. The party pulling out would have to agree to cover those.
The OP has already said that the notary won't do that. I also disagree with your comment about choosing the notary. A notary is impartial and has to represent the interests of all parties. The notary's job is to ensure that the contract has been understood and is signed lawfully. They generally use a boiler-plate contract. If there are any special terms / clauses, these should be agreed upon by the parties before the signing. Whenever we have sold a property, we have always nominated the notary (in agreement with the buyers of course) and there has never been an issue.
A bit radical and OTT if you ask me, but you are entitled to your opinion.
First point I agree, and that's why I'd use my notary.
A notary should be impartial, but if you as a seller are a large client impartiality can be like a piece of elastic.
I've bought and sold many properties here, and while I've been pushed to use the sellers notary on many occasions, I always use mine - and she has saved my skin several times.
Thanks and yes to clarify the notary is government department, assigned automatically and does not handle deposits. The bank neither. Both of them have said this is normal practice in ZH so I feel a bit more comfortable but it was surprising to learn.
Please just ensure that there is a document to state exactly what you are paying the deposit for, and on what basis it can be returned.
I would never advise slmply paying CHF 30k without documentation what this amount relates to