Legal Basis
What is the difference between a purchase commitment and a purchase contract?
A purchase commitment is a less binding preliminary stage or a reservation agreement that documents the intent to buy and is often associated with a small, time-limited deposit. It secures the property for the interested party for a defined period under agreed conditions, but it does not replace the notarially executed purchase contract. It is legally binding only to the extent of the agreed clauses; ownership is not transferred by it, and the entry in the land register remains unchanged.
16.12.2025
1 min
The purchase contract, by contrast, is the legal basis for the transfer of ownership. In Switzerland it is notarized and contains all essential elements: the parties, the property, the purchase price, payment modalities, transfer of possession, warranties, encumbrances and costs. Only after this step and the entry in the land register does the buyer acquire ownership. Until then, funds are usually held in escrow and existing encumbrances are cleared.
In practice, the purchase commitment is used to gain time for financing, due diligence and contract preparation. It should clearly regulate how long the reservation is valid, which conditions must be met and what happens to the reservation deposit if the purchase does not proceed. Excessive binding without notarization is problematic because real estate transactions in Switzerland require public notarization.
For buyers it is important to understand the limits of a purchase commitment. It creates practical certainty but does not replace the legal security of a notarized contract. Those seeking protection should use the reservation period to secure financing, check the land register and resolve outstanding issues so that the subsequent purchase contract can be notarized without surprises.
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