Glossary · Buy
Mortgage certificate (cédule hypothécaire)
A mortgage certificate (cédule hypothécaire) is an instrument that secures a claim by means of a charge on real property, within the meaning of Article 842 of the Swiss Civil Code. In practice, it serves as security provided to the bank when a mortgage loan is taken out: in the event of non-payment, the lender can enforce its right over the encumbered property.
It exists in two forms: the registered mortgage certificate, entered in the land register without any paper document, and the paper mortgage certificate, which takes the form of a physical document. The former is now the most common form in new transactions.
When a property is sold, the existing certificate may be taken over by the buyer if their bank accepts it, or repaid and replaced by a new certificate suited to the buyer’s financing.