What is it?

This is a security interest that allows the beneficiary to have the encumbered property sold at auction, following enforcement proceedings, to satisfy the claim if the owner fails to pay the debt as determined by the court.

The statutory mortgage for craftsmen and contractors is a real property security interest that allows craftsmen, contractors, and subcontractors to request registration in the Land Registry to secure payment for services they have provided in connection with the property. This is justified because these services are provided in advance and, upon completion, become an integral part of the property owned by the owner.

Who is considered a craftsman or an entrepreneur?

Any individual or legal entity that undertakes, on an independent basis and under a contract for services, to provide construction services on a building, such as demolition, scaffolding erection, securing an excavation site, and similar work. This includes, in particular, construction companies, painters, plasterers, masons, tilers, electricians, and plumbing and heating contractors.

What are the benefits?

Final registration confers absolute priority over holders of real rights registered subsequently, equal treatment with respect to other contractors benefiting from a statutory lien, and a privileged position relative to senior secured creditors.

Be aware of the deadline

A lien may be claimed upon the conclusion of the contract, but it must be recorded in the Land Registry—and not merely claimed before a judge—no later than four months after the completion of the work. This deadline is mandatory: it cannot be suspended or extended.

In practice, the mortgage is first registered through provisional measures—or even super-provisional measures in urgent cases—before being validated in a trial on the merits aimed at obtaining definitive registration and, often, concurrently, recognition of the debt. Since the timeline also depends on how long the judge takes, it is strongly advised not to wait until the last day. In the event of withdrawal from the construction project, the time limit begins upon termination of the contract.

When the work involves multiple buildings, a mortgage must be obtained on each of them in proportion to the work performed (Federal Supreme Court decision 5A_919/2018 of November 6, 2019).