The right of pre-emption (droit de préemption) in Geneva: what you need to know

The Geneva property market can sometimes hold surprises for sellers and buyers. An owner accepts an attractive offer, the buyer secures financing, but the sale does not go through.
Why? A holder of the droit de préemption (right of pre-emption) has come forward and lawfully taken their place in the transaction.

What is the right of pre-emption (droit de préemption)?

The right of pre-emption gives certain persons priority to purchase a property before it is put on the market. In Geneva, this mechanism governs many transactions and sets precise rules for sellers and buyers alike.

The legal basis of the right of pre-emption

The Swiss Civil Code sets out the legal framework for the right of pre-emption in articles 681 to 682a. These articles define the conditions under which this right applies and how it is exercised.

Who can hold the right of pre-emption?

Several categories of persons may hold it in Geneva:

• Co-owners of a building have priority, as do holders of a building right.
• In certain zones, the municipality or the canton may also exercise this right.
• For agricultural land, direct descendants are often given preference.
• Finally, tenants may also hold it, depending on the specific clauses of their lease.

The different types of right of pre-emption

There are three main categories:

1. The legal right of pre-emption: it arises directly from the law, with no need for a contract.
2. The contractual right of pre-emption: it results from an agreement between parties.
3. The urban right of pre-emption: specific to certain cantons, it allows municipalities to acquire land to build public-interest housing.

Consequences for owners and buyers

The sale of a property subject to a right of pre-emption follows a particular procedure:

For the seller

The seller is required to notify the holders of the right of pre-emption of the sale. Once this notification has been sent, the conditions or the sale price can no longer be changed. In addition, a waiting period of 3 months is required before the transaction can be finalised.

For the original buyer

The original buyer faces the risk of having the purchase cancelled if a holder exercises their right of pre-emption. It is therefore essential to check whether such a right exists before starting the purchase process. Including a condition precedent in the contract can also provide important protection.

Millenium Properties' expertise

At Millenium Properties, our 15 years of experience in the Geneva market enable us to support our clients effectively with the issues raised by the right of pre-emption.

Our experts:

• Anticipate potential obstacles
• Prevent disputes
• Facilitate negotiations between all parties

Rely on our specialists to carry out your property project in Geneva with peace of mind, whether you are buying, selling or renting.