Facts
The Geneva law on the demolition, transformation and renovation of residential buildings (LDTR) provides that the alienation of rental apartments is subject to prior authorization from the Department of Spatial Planning, Equipment and Housing (DAEL). In the case of compulsory sale of condominium apartments, the LDTR and the implementing law of the Federal Debt Enforcement and Bankruptcy Act (LALP) require the debt collection office to sell the apartments in a block and to request prior authorization. The Federal Supreme Court has upheld the appeals against these cantonal provisions, finding them incompatible with federal debt enforcement and bankruptcy law.Considerations
The Federal Supreme Court considers that the requirement of prior authorization from the DAEL and the obligation to sell condominium apartments in a block are contrary to the essential principles of federal debt enforcement law. Compulsory realization must aim to obtain the most advantageous conditions, in the interest of creditors and debtors. The debt collection office must be able to freely choose between block sale and individualized sale, depending on what appears most advantageous. The obligation to resell in the same form as the acquisition also hinders the search for the best conditions.
The Federal Supreme Court rejects the argument that…