Selling a rented property: what are the legal rules?

Selling a rented property: what are the legal rules to follow?

Selling a dwelling occupied by a tenant is not prohibited, but it is subject to very specific rules. In Switzerland, the law ensures that tenants' rights are protected while allowing the owner to dispose of their property freely.

Between notice periods, transfer of the lease and termination conditions, here are the essentials to know before putting an already rented property on the market.

Published on 11.13.2025

The basic principle: the lease continues despite the sale

According to the Code of Obligations (art. 261 CO), the sale of a dwelling does not cancel the existing lease. In other words, the new owner automatically takes over the rental contract on the same terms: duration, rent, deposits, and so on.

The tenant therefore cannot be forced to leave the dwelling at the time of the sale. The lease simply continues with a new counterparty: the buyer becomes the new landlord.

Example: if an apartment is sold in May while the lease runs until December, the buyer must respect that deadline; they cannot demand the tenant's immediate departure.

Selling to an investor: a simple case

If the buyer wishes to keep the dwelling as a rental, the procedure is simple:

- The lease continues unchanged.

The lease continues unchanged.

- The tenant receives a notification informing them of the change of owner.

The tenant receives a notification informing them of the change of owner.

- The security deposit is transferred to the buyer, who becomes responsible for its future return.

The security deposit is transferred to the buyer, who becomes responsible for its future return.

This situation is common in sales of rental buildings or dwellings intended for investment. The tenant suffers no direct consequence, apart from the change of counterparty

Selling for personal use: a special case

If the new buyer wishes to live in the dwelling themselves or reserve it for a close relative, they may terminate the lease, but under certain strict conditions.

According to art. 261 para. 2 CO, they must:

- Respect the legal termination deadlines (generally 3 months for apartments, 6 months for single-family houses, depending on cantonal practices);

Respect the legal termination deadlines (generally 3 months for apartments, 6 months for single-family houses, depending on cantonal practices);

- Justify an urgent and genuine personal need (personal occupancy, settling a child or parent, etc.);

Justify an urgent and genuine personal need (personal occupancy, settling a child or parent, etc.);

- Send the termination in writing and with stated reasons.

Send the termination in writing and with stated reasons.

The tenant has the right to contest the notice if they consider it abusive or unjustified. In the event of a dispute, it is the canton's conciliation authority that decides.

💡 Example: a buyer who already owns another dwelling or who does not intend to occupy the property within a reasonable time risks having their request rejected.

The seller's obligations before the transaction

The seller has a duty to clearly inform the buyer that the property is rented and to provide a copy of the lease. This information must appear in the notarized deed of sale.

It is also recommended to:

- Communicate the amount of the rent, the tenant's move-in date and the duration of the lease;

Communicate the amount of the rent, the tenant's move-in date and the duration of the lease;

- Mention any arrears, security deposits or ongoing disputes;

Mention any arrears, security deposits or ongoing disputes;

- Notify the tenant of the listing and of any upcoming viewings (with reasonable notice).

Notify the tenant of the listing and of any upcoming viewings (with reasonable notice).

⚠️ Note: the tenant does not have the right to refuse viewings, but these must be limited, arranged in advance and respectful of their privacy.

In practice: how to manage the transition well

For a smooth sale, it is advisable to:

- Inform the tenant from the start of the project to avoid any mistrust.

Inform the tenant from the start of the project to avoid any mistrust.

- Choose the right time to sell (ideally at the end of the lease, if possible).

Choose the right time to sell (ideally at the end of the lease, if possible).

- Work with a notary to ensure the legal transfer of the lease and the security deposit.

Work with a notary to ensure the legal transfer of the lease and the security deposit.

- Prepare a complete file to hand over to the buyer (lease, inspection report, payment history).

Prepare a complete file to hand over to the buyer (lease, inspection report, payment history).

Transparent communication between all parties often makes it possible to avoid tension and to ensure a smooth transaction.

In short

Selling a rented property requires a good command of the legal framework and of tenants' rights. The key to success lies in transparency, planning and respecting the legal deadlines. Whether it is a sale to an investor or to a private individual wishing to occupy the property, good preparation protects the seller, the buyer and the tenant alike.

- The lease continues after the sale.

- Termination is only possible for a justified personal need.

- Legal clarity remains the best guarantee of a successful transaction.

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