Document background
The Memorandum of Understanding (Real Estate) is a crucial preliminary document in Swiss real estate transactions, used when parties wish to formalize their initial understanding before proceeding to a binding agreement. It serves as a roadmap for the transaction, incorporating specific requirements of Swiss property law, including considerations from both federal and cantonal regulations. This document is particularly important in complex real estate transactions where detailed due diligence is required, or when dealing with commercial properties, foreign investors (subject to Lex Koller), or multi-party transactions. While primarily non-binding, it helps establish clear expectations, timelines, and responsibilities while protecting confidential information exchanged during negotiations. The MOU typically precedes more formal agreements such as sale contracts or lease agreements, and its content often forms the basis for these subsequent binding documents.
