Legal Mortgage in Geneva: Creditors, Deadlines, Protection and Removal

In Geneva, a legal mortgage lets someone you owe money to, an unpaid contractor, for example, encumber your property (register the amount owed in the land register: if it isn't paid, they can have your property sold at auction) without your consent. This right originates in the Swiss Civil Code (CC, art. 836 et seq.), not in a contract.

This article covers the nature of this lien, the creditors who can register it, the risk of paying twice for your work and how to prevent it, the deadline and procedure before the Geneva court, how to respond to an application, removal from the register and its cost, and then the cases of a purchase, condominium ownership (PPE), the State, the seller and the bank.

What is a legal mortgage?

A legal mortgage is a real estate lien the law grants to certain creditors without any contract with you (art. 836 and 837 CC).

Here, the term "mortgage" designates neither a loan nor a new debt: it secures a pre-existing claim. The Civil Code provides for two families. The first arises without registration in the land register, such as the lien securing the costs of preserving the building (art. 819 para. 1 CC). The second gives the right to demand registration, such as the contractors' legal mortgage (art. 837 CC).

An unpaid creditor can obtain the forced sale of the property and be paid out of its proceeds (art. 816 para. 1 CC).

Who can register a legal mortgage on a property?

Five main categories of creditors can register a legal mortgage on a property under the Civil Code, and the one that affects you most directly as an owner covers unpaid contractors and builders after construction work.

The table below details each category.

Creditor	Claim secured	Legal basis	Deadline to register
Contractors and builders, including subcontractors	Work supplied for the building	Art. 837 para. 1 no. 3 CC	4 months after completion (art. 839 para. 2 CC)
Seller	Unpaid sale price	Art. 837 para. 1 no. 1 CC	3 months after transfer (art. 838 CC)
Co-heirs and other joint owners	Claims arising from the division of jointly owned property	Art. 837 para. 1 no. 2 CC	3 months after transfer (art. 838 CC)
Community of condominium owners (PPE)	Charges from the last three years	Art. 712i para. 1 CC	No deadline set in art. 712i CC; its para. 3 refers by analogy to the rules for contractors for registration
Public authorities	Cantonal claims linked to the property	Art. 836 CC	Set by cantonal law; beyond CHF 1'000, registration within 4 months of the claim falling due (art. 836 para. 2 CC)

The contractors' legal mortgage secures construction work, demolition, scaffolding erection and excavation safety work (art. 837 para. 1 no. 3 CC), even for a subcontractor. A contractor hired by a tenant or an agricultural tenant only benefits from this right if you consented to the work (art. 837 para. 2 CC).

Why might you end up paying twice for construction work?

You risk paying twice for construction work because a subcontractor left unpaid by the general contractor can register a legal mortgage on your property, even after you have paid the invoice in full.

This happens in three stages.

1. You sign a contract with the general contractor, who subcontracts a package of work to a subcontractor.
2. You pay the general contractor, who does not pass on their share to the subcontractor.
3. The subcontractor, with no contract with you, applies to register the mortgage on your property (art. 837 para. 1 no. 3 CC).

As a fictional example: you pay CHF 100'000 to the general contractor, who then fails to settle the CHF 30'000 owed to the subcontracted electrician. In total, you pay CHF 130'000 to have the CHF 30'000 mortgage lifted.

This diagram shows who has a contract with whom in this example: the subcontractor has no contract with you, and yet it is your property, not the general contractor's assets, that the registration is entered against.

After reviewing postulate 19.4638, the Federal Council decided, on 13 August 2025, not to amend this regime, since none of the solutions examined would improve the law currently in force.

How can you avoid a legal mortgage before construction work?

To avoid a legal mortgage before construction work starts, make sure, before each payment, that the money paid to the builder reaches the subcontractors.

A contractor cannot waive this lien in advance (art. 837 para. 3 CC). According to the law firm Wilhelm Avocats, in a publication dated 30 September 2024, protection works through the contract and through payments. Six precautions protect you before construction work begins.

• Require the list of subcontractors when the contract is signed, along with the status of their payments: every potential creditor is then known.
• Include a clause for direct payment of unpaid subcontractors, deducted from the builder's price; how well this works depends on what the builder discloses about its unpaid invoices.
• Require the builder to provide a bank or insurance guarantee that can be called on as security if a subcontractor claims what it is owed; a builder that is already insolvent will not provide one.
• Request the subcontractors' receipts before each payment.
• Pay the funds through a trusted third party, such as the construction-loan bank paying on the architect's approval; this approval does not verify that the subcontractors have been paid.
• Pay each contractor directly, which requires a contract with each of them.

What is the deadline for registering a legal mortgage?

The deadline for registering a contractor's or builder's legal mortgage is four months after completion of the work (art. 839 para. 2 CC).

What the law says (art. 839 para. 2 CC): "Registration must be obtained no later than four months after completion of the work."

This time limit cannot be suspended or interrupted (published ruling of the Federal Supreme Court, ATF 126 III 462): a contractor who lets these four months go by loses the right to the lien, and you are then released from it. At least a provisional registration must be entered in the land register before the deadline; simply filing an application is not enough. A contractor can obtain it as soon as they have committed to carrying out the work (art. 839 para. 1 CC).

For a contractor, the deadline starts running once their contract has been fully performed. Touch-up work or the correction of defects does not push it back (ATF 102 II 206), but minor work that is nonetheless essential to the structure does extend it (ATF 125 III 113). An unpaid seller (someone who sold the property without receiving the full price because the buyer pays part of it later) has, for their part, three months from the transfer of ownership (art. 838 CC).

How does the registration procedure work in Geneva?

The registration procedure in Geneva takes place before the Court of First Instance (art. 86 of the Geneva Judicial Organisation Act, LOJ), under summary proceedings, a fast-track procedure (art. 249 let. d no. 5 of the Swiss Civil Procedure Code, CPC) in which the judge only needs to be satisfied that the right is plausible (art. 961 para. 3 CC).

This timeline places the five steps on a time scale: the provisional registration must appear in the land register before the end of the fourth month following completion of the work, after which the judge sets a deadline to bring the substantive claim, leading to final registration or removal from the register.

It has five steps.

1. The contractor files an application for provisional registration with the court where the property is located (art. 29 CPC), early enough for the registration to be entered in the land register before the four-month deadline.
2. The judge orders the provisional registration without hearing you if there is particular urgency (art. 265 CPC). In a case decided by the Geneva Court of Justice on 17 June 2025, the judge had ruled on the very day of the application.
3. The land register records the lien on the judge's order (art. 961 para. 2 CC), the next day in that case.
4. The judge hears you, confirms or refuses the registration (art. 265 para. 2 CPC), and sets a deadline for the contractor to bring the substantive claim, that is, to sue on the debt itself (art. 961 para. 3 CC).
5. The court orders final registration by judgment, unless you acknowledge the debt (art. 839 para. 3 CC). If no action is brought within the deadline, the provisional registration lapses (art. 263 CPC).

What should you do about an application for provisional registration?

Faced with an application for provisional registration, first check the claim and the statutory deadline, then respond to the judge within the time limit you are given.

The judge will only refuse the registration if the contractor's right appears excluded or highly implausible (Federal Supreme Court ruling 5A_658/2023 of 17 January 2024). You have four options.

• Dispute the deadline: registration must take place within four months of completion of the work (art. 839 para. 2 CC).
• Dispute the claim: the objection targets work not carried out or overbilled.
• Provide sufficient security: this prevents registration, or has an existing one removed, if it covers the claim and ten years of default interest (art. 839 para. 3 CC); a bank guarantee that expires too soon is not enough (ATF 142 III 738).
• Pay the subcontractor: if you pay to free your property, you are subrogated to the subcontractor's claim: you can then take action against the general contractor (art. 110 no. 1 of the Code of Obligations, CO).

This decision tree sets out the three questions to be answered in order: the four-month deadline, whether the claim is well-founded, and then whether you can provide security covering the claim and ten years of default interest; failing that, the remaining option is paying the subcontractor.

A construction law lawyer can help you choose between these options.

How do you remove a legal mortgage from the register?

To remove a legal mortgage from the register, submit a title of removal to the land register: either the paid creditor's written declaration or a judge's decision.

Four routes lead to removal from the register.

• Payment of the claim: the creditor signs the written declaration of removal required by art. 964 para. 1 CC.
• Sufficient security: you provide it during the proceedings and submit the judge's decision ordering removal (art. 839 para. 3 CC).
• Deadline to act expired: the provisional registration lapses if no substantive action is brought within the deadline set by the judge (art. 961 para. 3 CC and art. 263 CPC); you submit the order that set this deadline.
• Claim dismissed: you submit the enforceable judgment that dismisses the contractor's claim.

The Geneva land register removes the entry after checking the title and the applicant's right to request it (art. 965 CC).

How much does a legal mortgage cost?

A legal mortgage first costs court fees of CHF 150 to 10'000, depending on the value of the claim: the contractor advances them, and the losing party then bears them (art. 106 para. 1 CPC).

Four items make up this cost.

• Court fees: CHF 150 to 10'000 for the provisional registration in summary proceedings (art. 26 of the Geneva Regulation on Civil Costs Tariffs, RTFMC); the court can require this to be paid in advance in full (art. 98 para. 2 let. c CPC).
• Land register: CHF 255 for the annotation (the provisional registration), including removal (art. 6 of the Geneva Regulation on Land Registry Fees, REmORFDIT).
• Lawyer: fees agreed with them; costs awarded, the compensation the losing party pays the winning party for their legal fees, follow a scale proportional to the amount in dispute (art. 84-85 RTFMC), reduced in summary proceedings (art. 88 RTFMC).
• Bank guarantee: a commission set by the bank.

In what other cases can a legal mortgage encumber a property?

A legal mortgage can encumber a property in four cases other than work you have commissioned yourself: buying a new or renovated property, unpaid charges in a condominium (PPE), claims by the State of Geneva, and an unpaid sale price.

These liens, imposed by law, are distinct from the contractual mortgage that you grant to your bank.

Can a property you buy be encumbered by a legal mortgage?

Yes, a property you buy can be encumbered by a legal mortgage after signing: an unpaid contractor of the seller's has four months from completion of the work to register it (art. 839 para. 2 CC).

The land register extract shows liens already registered, never a builder's claim that is still within its deadline. The lien encumbers the property itself, even though it is the seller who owes the invoice (art. 837 para. 1 no. 3 CC).

Three precautions protect you as the buyer of a recently built or renovated property.

• Ask for the completion date of the latest work so you can calculate the four-month deadline.
• Require the seller to provide proof of payment of the contractors' invoices.
• Have part of the price held in escrow with the notary until that deadline.

What can a condominium (PPE) do about unpaid charges?

A condominium (PPE) can secure unpaid charges with a legal mortgage on the co-owner's unit, for contributions from the last three years (art. 712i para. 1 CC).

These contributions correspond to the PPE charges allocated among the units (art. 712h CC). The administrator applies for the registration; if there is no administrator, a co-owner does so, authorised by a majority decision or by a judge (art. 712i para. 2 CC).

On the furnishings in the unit, the community of condominium owners has the same right of retention as a landlord, for the same period (art. 712k CC).

What legal mortgages can the State of Geneva enforce?

The legal mortgages that the State of Geneva can enforce are those securing three groups of claims, listed in article 147 of the Geneva Act on the Application of the Civil Code (LaCC), based on article 836 CC.

Three groups of Geneva claims benefit from this.

• Real estate taxes: tax on real estate profits and gains (IBGI), the supplementary property tax, and the share of income or profit tax due on the sale of a Geneva property (art. 41 of the Geneva Act on Tax Collection and Guarantees, LPGIP).
• Registration and inheritance duties: art. 147 para. 1 let. b and c LaCC.
• Claims arising from 16 cantonal laws: roads, water, construction, nursing homes, social assistance or waste management (art. 147 para. 1 let. d LaCC).

These mortgages arise without registration and rank ahead of any other lien (art. 147 para. 2 LaCC). For claims above CHF 1'000, the mortgage must be registered within 4 months of falling due, and at most 2 years after the claim arose, or it cannot be enforced against third parties acting in good faith (art. 836 para. 2 CC).

Can an unpaid seller register a legal mortgage?

Yes, an unpaid seller can register a legal mortgage on the property sold for the price owed (art. 837 para. 1 no. 1 CC), no later than three months after the transfer of ownership (art. 838 CC).

In Geneva, this remains rare because the notary ensures the price is paid at signing, for example into an account held by their practice.

Legal mortgage or contractual mortgage: what is the difference?

The difference between a legal mortgage and a contractual mortgage lies in their source: the law for the former, a contract executed before a notary (notarial deed) for the latter (art. 799 para. 2 CC).

These two fact sheets compare the legal mortgage and the contractual mortgage on five criteria: the source, the owner's consent, the claim secured, a typical example, and the ranking, which follows the registration date except for State mortgages.

Ranking is, in principle, determined by the registration date (art. 972 CC): a bank's mortgage note registered at the time of purchase ranks ahead of a contractor's mortgage registered after the work. Earlier creditors must compensate the harmed contractor, after deducting the value of the land, if they could have recognised this harm (art. 841 para. 1 CC). In practice, this claim is mainly directed at the bank providing real estate financing for a project through a construction loan.

The "judicial mortgage" is specific to French law (art. L531-1 of the French Code of Civil Enforcement Procedures, CPCE) and does not exist under Swiss law. The provisional registration ordered by the judge (art. 961 CC) only protects an alleged right in the property itself (a right in rem), such as a contractor's; an ordinary creditor instead uses an attachment order (art. 271 of the Federal Act on Debt Enforcement and Bankruptcy, LP), which creates no lien.