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The Building Lease Agreement (Baurecht) is a fundamental instrument in Swiss real estate law used when a party wishes to construct and own buildings on land owned by another party. This arrangement is particularly valuable in locations where land acquisition is prohibitively expensive or impossible, or where landowners wish to maintain long-term ownership while allowing development. The agreement, governed by Swiss law, typically runs for 30 to 100 years and must be notarized and registered in the land registry. It includes essential provisions regarding construction specifications, building right fees, usage restrictions, maintenance obligations, and return conditions. This document type is commonly used for commercial, residential, and industrial developments, particularly in urban areas where land is scarce and expensive. The agreement must comply with federal, cantonal, and municipal regulations, making it a complex but vital tool in Swiss real estate development.

1. Parties: Identification of the landowner (grantor) and the building right holder (grantee)

2. Background: Context of the agreement, including description of the land and intended construction project

3. Definitions: Key terms used throughout the agreement

4. Grant of Building Right: Formal establishment of the building right and its basic parameters

5. Duration: Term of the building right (specified date range, up to 100 years)

6. Building Right Fee: Amount, payment terms, and adjustment mechanisms for the building right fee

7. Land Description: Detailed description of the plot, including cadastral details and current encumbrances

8. Construction Requirements: Specifications for permitted construction, timelines, and approval processes

9. Use Restrictions: Limitations on how the building and land may be used

10. Maintenance and Repair: Obligations regarding building and land maintenance

11. Insurance: Required insurance coverage for the building and liability

12. Transfer and Encumbrance: Rules for transferring or encumbering the building right

13. Return Provisions: Conditions for returning the property at termination, including compensation

14. Termination: Grounds and procedures for early termination

15. Miscellaneous: Standard contractual provisions including notices, amendments, and governing law