No marriage certificate, but joint home ownership: when couples in Switzerland plan their future together, they should settle all the important financial and legal aspects of their future cohabitation before buying real estate – so that they can look to the future with peace of mind. We explain what needs to be considered.

Concubinage is the cohabitation of two persons who are not married to each other, of opposite sex or of the same sex. To acquire residential property as a couple without a marriage certificate, no separate cohabitation agreement is necessary. However, the law governing the purchase of residential property by this type of couple is very fragmented, so it’s advisable to settle some important points yourself before signing the purchase contract.

Unmarried couples generally have a choice of three forms of ownership when purchasing property. The pros and cons of these three options must be carefully weighed up before deciding on the best solution.

In the case of sole ownership, only one partner acts as the buyer of the property and is entered accordingly in the land register as the sole owner. This means that all rights and obligations rest with this person. They can therefore make all decisions concerning the residential property independently without consultation. The second partner, on the other hand, has no rights to the property. In theory, sole owners should even sign a rental agreement with their partner.

In the case of co-ownership, both cohabiting partners are owners of the property and can be listed in the land register according to their share in it. The ownership ratio can be defined individually. The proportions are given in the form of fractions, for example ⅔ to ⅓. As a rule, the division corresponds to the financial participation in the purchase. With this form of ownership, each partner can freely dispose of their share.

Co-ownership as a form of ownership is mandatory if mortgage borrowers decide to contribute part of their pension provision to the financing, i.e. sums from their second or third pillar, in other words from their pension fund or private pension provision. For some people, this measure is necessary to meet the 20 percent equity requirement for a mortgage. At least ten percent must comprise their own, privately saved funds. The remainder may generally come from the pension fund. If, for example, one partner makes an early withdrawal of pension fund assets, this must also be documented in the land register.

In the case of joint ownership, both cohabiting partners buy the property together. Both are entered in the land register as owners. In contrast to co-ownership, however, no pro-rata share is specified. The property automatically belongs equally to both partners, even if one cohabiting partner invests more equity.

With joint ownership, both owners can only make decisions regarding their residential property by mutual agreement, for example if a sale is up for discussion. However, in the case of joint ownership, it is not possible for an unmarried couple to withdraw pension funds to finance the purchase of the property.