Rights and obligations: Condominium owners’ meeting

The condominium owners’ meeting is a decision-making body formed by the community of condominium owners. According to Article 647 of the Swiss Civil Code, this meeting is the only one capable of making important decisions regarding co-ownership, such as construction work. Its responsibilities and authority are defined in Article 712 of the Swiss Civil Code.

Any person who purchases a condominium in the building automatically becomes a member of the condominium owners’ meeting. The meeting’s decisions can be made by absolute majority, qualified majority, or unanimously, depending on the type of decision, as defined in Article 647 of the Swiss Civil Code.

The condominium owners’ meeting generally meets at least once a year. The frequency of the meetings, their convening, and their chair are determined by the management. However, extraordinary meetings may be called when a special reason so requires. Such an extraordinary condominium owners’ meeting is only possible if it is requested by at least one fifth of the co-owners.

One of the most important tasks of the condominium owners’ association is to decide on and carry out administrative acts. It is common for the condominium owners’ association to delegate the management of certain administrative tasks to an external property manager. There are various types of administrative acts for which the condominium owners’ association is responsible.

First, there are the “necessary administrative acts.” These are all transactions that must be carried out to ensure the property remains usable. These include, for example, the payment of mandatory insurance premiums. If no manager has been appointed, decisions on these necessary administrative acts must be made by an absolute majority.

Then follow the “urgent administrative acts.” These are administrative acts that require prompt action by the condominium owners’ association. This can happen, for example, after natural damage to the property. If no manager has been appointed, any member can decide to carry out the work without consulting the other owners.

The condominium owners’ meeting must also decide on “ordinary administrative acts.” These include, for example, the execution of minor repairs that require the involvement of a tradesman. Here, too, the following applies: If there is no administrator, a member can decide to carry out the work, provided the other members do not oppose it by an absolute majority.

Finally, there are the “most important administrative acts,” which are transactions that involve high or recurring costs. These can, for example, involve the employment of a gardener to maintain the property or a caretaker. The condominium owners’ meeting must decide on these acts by a qualified majority (by votes and quorum).

In addition to repairs that can be carried out within the condominium, construction work is sometimes necessary or beneficial. Article 647 of the Swiss Civil Code distinguishes three types of work that must be the subject of a condominium owners’ meeting, and whose decision-making procedures require different quorums. First, there are “necessary construction works.” These are works that maintain the value of the property, such as the renovation of the facade. Decisions related to necessary construction work must be passed by an absolute majority.

Next, there are “useful construction works.” This type of work is intended to increase the value of the property and thus provide members with an increase in value. Examples include the energy-efficient renovation of a building or the installation of an elevator. These decisions require a qualified majority or a quorum. Furthermore, they must not cause significant inconvenience to the co-owners.

Finally, “luxury construction work” must also be approved by the condominium owners’ meeting. Luxury construction work refers to work that is intended to increase the property’s value beyond the usual, i.e., significantly increase its profitability. This could include, for example, the construction of a swimming pool or the use of premium materials that are more expensive than conventional ones. These measures must be approved unanimously by the condominium owners’ meeting.

Ideally, all co-owners should attend the general meeting. However, it may happen that not all members are able or willing to attend. This does not mean that the meeting cannot take place as long as a quorum, i.e., a minimum number of people present, is maintained.

The condominium owners’ meeting requires a quorum of at least half of all members who share at least 50% of the property. Furthermore, this quorum must be at least two people. If there is no quorum, the condominium owners’ meeting must be adjourned, and a new meeting called. This meeting must take place no earlier than ten days after the first meeting. At this new meeting, a quorum is present if at least one-third of the members are present.

In addition to the quorum, decisions made by the condominium owners’ meeting must also comply with the rules of absolute majority, qualified majority, and unanimity. For example, unanimity is required for the following decisions: disposing of jointly owned property, determining voluntary common shares, or changing the right of disposal. For decisions concerning the determination of a quorum or more important administrative acts, unanimity is not required; instead, a qualified majority is required.