Buying a new property in Geneva is often the project of a lifetime. However, behind the promise of a smooth handover lies a little-known legal and financial risk: the legal mortgage of artisans and contractors.
As a buyer, it is crucial to understand this mechanism to avoid paying twice for the same work. The legal mortgage of artisans is a lien right provided by the Swiss Civil Code that allows companies involved in the construction of your building to guarantee the payment of their invoices.
If the general contractor (GC) or the developer fails to pay their subcontractors, the latter can request the registration of a mortgage on your own apartment or villa, even if you have already paid the full purchase price. The Federal Council confirmed in August 2025 that this mechanism remains an essential protection for artisans, despite the risks it poses to property owners.
How does this risk work for the buyer?
When an artisan is not paid by the general contractor, they have a period of four months after the completion of the work to have a provisional legal mortgage registered in the land register. If this registration is validated, your property becomes the guarantee for the contractor's debt.
In the worst-case scenario, you could be forced to pay the artisan's unpaid invoice to avoid the forced sale of your property. This risk is particularly significant in general contractor arrangements, where the financial flow between the project owner, the GC, and the subcontractors sometimes lacks transparency.
Points of vigilance before signing
To limit this risk, several precautionary measures are necessary:
- Demand proof of payment: Regularly ask your developer or general contractor for payment receipts from subcontractors.
- Check contractual clauses: Ensure that the contract provides for retention money or direct payment mechanisms to companies.
- Rigorous monitoring of stages: The handover of the work is a key stage.
Since January 1, 2026, the reform of construction law has strengthened the rights of buyers, particularly with a mandatory right to free rectification. However, this does not exempt you from vigilance regarding payments upstream.
The importance of independent support
The complexity of Swiss construction law and the financial stakes linked to legal mortgages make the assistance of a professional essential. At KERLINE SA, we act exclusively on behalf of the buyer.
Our role is to verify the financial stability of the parties involved, monitor payment flows, and ensure that the necessary guarantees are in place before each disbursement.
Protect your investment with KERLINE SA
As a Project Management Assistance (AMO) firm in Geneva, KERLINE SA supports you at every stage of your project. Founded by Marc-Antoine Robbe, a member of SwissEngineering, our firm puts its technical and legal expertise at the service of your peace of mind.
We never represent developers or companies, thus guaranteeing total independence. Do not let a third-party financial failure compromise your property: contact KERLINE SA to secure your real estate purchase today.