Document background
The Subordinate Deed of Trust is essential in Swiss real estate financing where multiple layers of security interests exist on a single property. This document is typically used when property owners seek additional financing while maintaining an existing primary mortgage or deed of trust. It must carefully comply with Swiss federal and cantonal requirements, particularly regarding form, content, and registration in the land registry (Grundbuch). The document details the property description, secured obligations, subordination provisions, and enforcement mechanisms, all while ensuring alignment with Swiss property law principles. Given Switzerland's strict requirements for real estate security interests, the Subordinate Deed of Trust must be precisely drafted to ensure enforceability and proper ranking of the security interest in relation to other encumbrances.
