The Swiss Code of Obligations is undergoing a historic transformation to finally offer property owners legal certainty that matches their investments.
Since January 1, 2026, the legal framework surrounding construction defects in Switzerland has undergone a major shift in favor of property owners. Gone are the days when failing to report a defect within seven days of its discovery led to the immediate forfeiture of your warranty rights. This unwritten rule of case law, which required a "prompt" notice of defects, has now been replaced by a statutory period of 60 days for all residential buildings. This major revision of the Code of Obligations (CO) does not just extend deadlines: it also locks in the right to repair, rendering void abusive contractual clauses that deprived buyers of condominiums (PPE) or villas off-plan of any direct recourse against the developer. For real estate professionals, brokers, and experts, this reform redefines the standards for building handovers and demands increased vigilance during inspections.
What is the major change for reporting a construction defect in 2026?
Since January 1, 2026, Article 367 CO grants owners a 60-day period to report a defect discovered in a residential building. This period replaces the former obligation for "immediate" reporting, thus protecting the client from the loss of warranty rights.
A 60-Day Grace Period: Ending Legal Uncertainty.
Historically, the legal regime of the construction contract (Art. 363 ff. CO) was particularly harsh for the uninformed property owner. Federal Court jurisprudence interpreted the obligation to inspect the work and notify the contractor (notice of defects) extremely restrictively. In practice, an owner who discovered a crack or a sealing issue and waited more than a week to send a formal notice risked having the work deemed "accepted," resulting in the loss of any claim for price reduction or repair.
The new version of Article 367 CO puts an end to this "race against time." For any real estate work intended for the owner's or their family's residence, the reporting deadline is now imperatively set at 60 days from the discovery of the defect. This measure allows for a more composed approach: the owner has time to consult an expert, quantify the damages, and draft a complete and legally sound notice of defects.
The Right to Repair Becomes Mandatory.
The other pillar of this reform concerns the right to repair (remediation of the defect). Until now, it was common for real estate developers to insert "assignment of warranty rights" clauses into purchase contracts for buildings to be constructed or into PPE regulations. In short, the developer discharged their responsibility onto contractors and subcontractors, forcing the final buyer to act directly against companies that were sometimes bankrupt or reluctant.
From now on, for new residential constructions, the right to repair becomes a mandatory protection rule. It is no longer possible to contractually exclude the seller/developer's liability for restoring the work, unless the costs of such repair prove disproportionate to the benefit for the owner.
| Feature | Old Regime (Pre-2026) | New Regime (Post-2026) |
|---|---|---|
| Defect notice period | "Immediate" (approx. 7 days) | 60 calendar days |
| Building type | All types | Residential (Owner + family) |
| Right to repair | Often excluded by contract | Mandatory (Inalienable and obligatory) |
Impact for Developers and PPE Buyers.
For buyers of condominium shares (PPE), this change significantly strengthens the buyer's position against large development groups. During the transfer of ownership, the reservations noted on the handover report are no longer the only lifelines. So-called "hidden" defects, which often appear during the first winter (thermal bridges, underfloor heating malfunctions), now have a realistic window for rectification.
On the developers' side, this law imposes a complete review of General Terms and Conditions and standard contracts. The obligation to guarantee direct repair means they must now ensure that their own contracts with general contractors (GC) or tradespeople are perfectly aligned with these new legal constraints.
Limitations of the Reform: Beware of Statute of Limitations.
Although the period for reporting a defect has been extended, the statute of limitations for the warranty action itself remains unchanged:
5 years for immovable constructions.
10 years in case of a defect intentionally concealed by the contractor.
It is crucial to note that the 60-day period only concerns the notification (notice of defects) to avoid tacit acceptance. Once the notice is sent, the owner must still ensure they do not let the legal action expire through the statute of limitations.
This legislative evolution gradually aligns with the standards of the SIA 118 norm, well known to architects, but which previously only applied in case of express contractual agreement. By integrating these principles directly into the Code of Obligations, the Swiss legislator offers universal protection, making the Swiss real estate market more transparent and fairer for individuals.
