Reform 2026: A New Framework for Real Estate and Construction in Switzerland!

January 1, 2026 marks a decisive milestone for real estate and construction in Switzerland. After several years of debate and consultation, a partial revision of the Swiss Code of Obligations (CO) and Civil Code (CC) will come into force. These new provisions bring long-awaited clarity and significantly strengthen the rights of buyers and property owners in the face of construction defects.

As a developer committed to long-term quality, OAKS GROUP fully supports this evolution. It better protects owners, holds all construction stakeholders accountable, and eliminates certain unbalanced contractual practices. It’s a healthy reform that rewards serious and transparent companies.

1. End of Liability Waivers: Restoring Contractual Fairness

Until now, real estate sales contracts could include clauses limiting or excluding developer liability in the event of defects. From 2026, this will no longer be permitted.

Article 368, paragraph 2bis CO introduces a binding obligation for free repairs of any defects identified within two years after handover of a new building.
 

Any attempt to limit or waive this right will be deemed null and void.

In practice:

• Buyers no longer have to fight for repairs.
• The developer or seller remains solely responsible.
• Serious developers are empowered: they can seek recourse from subcontractors if necessary.

Our view:

This is a long-overdue advancement that protects owners, enhances sector credibility, and restores long-lost contractual balance.

2. A Clear Notification Period: 60 Days Instead of “Immediately”

Previously, the CO required buyers to report a defect “immediately” after discovery—an ambiguous term that led to countless legal disputes.
 

As of 2026, Article 367, paragraph 1bis CO sets a clear 60-day period to report defects from the date of discovery. This also applies to hidden defects and cannot be shortened contractually.

Why this matters:

• Legal uncertainty is eliminated.
• Buyers have time to properly document issues.
• Legal security is improved for all parties.

Our commitment:

OAKS GROUP already applies rigorous traceability and quality control procedures. This new timeframe aligns perfectly with our post-handover service standards.

3. A Solidified Statute of Limitations: Irreducible 5 Years

The limitation period remains 5 years after acceptance of the building (Art. 371 CO). However, the reform now prohibits reducing this period to 2 or 3 years, as some contracts previously allowed.

This guarantees:

• Stable and transparent legal protection.
• A clear, non-negotiable timeframe that safeguards buyers.
• Possibility to extend this period with a voluntary contractual warranty.

4. Extended to Sales with Construction Obligations

Article 219a CO now applies these protections to sales with an obligation to build—notably the sale of new properties completed or under construction within two years prior to the transaction.

Direct consequence:

• Buyers of off-plan properties or new villas benefit from the same protections as traditional owners.
• Developers can no longer evade responsibility by using alternative contractual structures.
• In short, this ends a long-standing legal grey area.

5. Adaptation of SIA Standard 118

SIA Standard 118 previously required “immediate” notification of defects. It will now be revised to comply with the new 60-day legal deadline.
Any contractual clauses based on the outdated standard will become inoperative.

Positive impacts:

• Harmonization between legal and contractual practices.
• Simplified understanding and application of rights.
• A call for technical and legal offices to update their documents.

6. Legal Lien and Default Interest

Article 839, paragraph 3 CC has been revised: construction professionals’ legal liens will now also cover default interest, for a period of ten years.

Objective: to provide financial protection for contractors in case of payment delays or warranty disputes.

7. A Reform for Quality, Documented and Responsible Construction

Beyond legal articles, this reform carries symbolic weight: it establishes the right to traceable, well-documented, and accountable construction.

This implies:

• Rigorous documentation of all works.
• More structured project handover processes.
• Greater use of digital platforms to archive plans, reports, and communications.

8. Applicable Projects and Transition

The new rules apply only to contracts signed on or after January 1, 2026.
Earlier contracts remain subject to previous legislation, unless voluntarily adapted.

Practical recommendation:

• We recommend adjusting standard contracts and technical specifications now to prepare for the transition.

9. An Opportunity to Stand Out: Quality, Transparency, Trust

This reform sets a more demanding—but fairer—framework. For OAKS GROUP, it is an opportunity to reaffirm our commitment to excellence.

In concrete terms:

• Our sales and service contracts are already updated.
• Our after-sales service and site documentation are reinforced.
• Traceability and transparency guide each project from planning to delivery.

Conclusion: A Timely Turning Point for the Industry

The 2026 reform is not a constraint—it’s a leap toward a more mature, ethical, and secure real estate market.

It clarifies responsibilities, protects buyers, rebuilds trust, and encourages continuous improvement in industry practices.

At OAKS GROUP, we see this reform as a strategic opportunity to lead by example. Transparency, quality, and client service are the foundation of every project—today and for future generations.