Document background
The Real Estate Term Sheet is a crucial preliminary document used in Swiss real estate transactions to establish the framework for property acquisitions and sales. It is typically prepared after initial negotiations but before detailed due diligence and final contract drafting. The document captures key commercial and legal terms agreed between parties, including property specifics, pricing, payment structure, conditions, and timelines. While mostly non-binding under Swiss law (except for specific provisions like confidentiality and exclusivity), it serves as an essential roadmap for transaction documentation and helps ensure all parties have a clear, common understanding of the proposed deal structure. The term sheet must reflect Swiss legal requirements, including cantonal regulations and federal laws such as the Lex Koller for foreign investments, making it a vital tool for complex real estate transactions in Switzerland.
