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Buy Back Option Contract Template for Switzerland

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Key Requirements PROMPT example:

Buy Back Option Contract

"I need a Buy Back Option Contract for a commercial property in Zurich, where I want to retain the right to repurchase the property within 18 months until June 2025, with the buy-back price set at the original sale price plus a 5% premium."

Document background
The Buy Back Option Contract is a strategic legal instrument used in Switzerland when a party wishes to sell an asset while maintaining the possibility of reacquiring it in the future. This document type is commonly utilized in various scenarios, such as sale-and-leaseback arrangements, temporary financing solutions, or strategic asset management. The contract must comply with Swiss legal requirements, particularly the Swiss Code of Obligations and, for real estate transactions, the Swiss Civil Code. It includes essential elements such as the option period, exercise price, conditions for exercise, and completion mechanics. The document is particularly important in situations where companies need to improve their balance sheet while retaining strategic control over important assets, or when individuals need temporary liquidity but want to ensure they can reclaim their property in the future.
Suggested Sections

1. Parties: Identification of the parties: the original seller (option holder) and the current owner (option grantor)

2. Background: Context of the original sale and the agreement to grant a buy-back option

3. Definitions and Interpretation: Key terms used in the agreement, including Property, Option Period, Purchase Price, Exercise Notice

4. Grant of Option: Express grant of the buy-back option and its basic terms

5. Option Period: Duration of the option and any conditions affecting its term

6. Exercise Price: Specification of the buy-back price or pricing mechanism

7. Exercise Procedure: Process and formalities for exercising the option, including notice requirements

8. Completion: Obligations and procedures for completing the buy-back transaction once exercised

9. Property Maintenance: Obligations regarding maintenance and use of the property during the option period

10. Representations and Warranties: Standard representations about authority, ownership, and property condition

11. Taxes and Costs: Allocation of taxes, registration fees, and transaction costs

12. Notices: Communication procedures and contact details

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

Optional Sections

1. Security: Required if the option rights need to be secured through registration or other means

2. Third Party Rights: Needed if there are existing tenants or other third-party interests in the property

3. Regulatory Compliance: Required if Lex Koller or other regulatory requirements apply

4. Multiple Properties: Required if the option covers multiple properties with specific arrangements

5. Condition Precedents: Needed if exercise of the option is subject to specific conditions

6. Assignment: Required if transfer of option rights needs to be addressed

7. Break Rights: Optional provisions for early termination of the option

8. Force Majeure: May be included for long-term options to address unforeseen circumstances

Suggested Schedules

1. Property Description: Detailed description and/or plans of the property subject to the option

2. Form of Exercise Notice: Template notice for exercising the option

3. Pricing Mechanism: If applicable, detailed calculation method for the buy-back price

4. Completion Requirements: Checklist of documents and requirements for completion

5. Existing Encumbrances: List of existing charges, easements, or other encumbrances

6. Required Registrations: Details of any registrations required at land registry or commercial register

7. Form of Transfer Deed: Template transfer documentation for completion

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Real Estate

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Legal

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Relevant Roles

Legal Counsel

Corporate Lawyer

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Chief Financial Officer

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Industries








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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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