Rights and obligations of a condominium association

A condominium association is the collective name of all condominium owners within a property or building. You don’t have to join the association separately – when you purchase condominium ownership, you automatically become a member. A condominium association exists from the moment two different people own a condominium in the same property.

As a condominium owner, you are always part of a community – whether you want to be or not. This is because when you purchase condominium ownership, you only acquire joint ownership with a special right. Because the common areas and structures can be used by all co-owners, the community must also jointly pay for their maintenance.

In general, a condominium association should strive for a positive and harmonious coexistence. Some rights and obligations are therefore already clearly defined by law – others are usually found in regulations, ordinances, and/or house rules.

If you buy a condominium, you are not strictly speaking buying a “condominium,” but rather a “co-ownership.” Condominium ownership is referred to as co-ownership—but with exclusive special rights for certain rooms.

The areas subject to special rights cannot exist in isolation. The common components and areas are also necessary for functionality. This includes even very basic structures, such as the roof or the facade. Theoretically, the areas of condominium properties can be divided into three categories:

• Special rights: your own apartment and ancillary rooms
• Special use rights: a specific part of the common area provided for exclusive use, e.g., a basement storage compartment
• Joint use: areas that may be used equally by all co-owners, e.g., a communal garden or roof terrace, but also structures such as the roof, facade, and walls

All condominium owners—the community—are responsible for the maintenance and upkeep of the common areas. For example, she must take care of the ongoing maintenance of gardens, but also initiate repair and renovation measures on the house.

The condominium association is not a legal entity per se, but nevertheless has the authority to act. It has the capacity to manage assets and act within its scope and may thus determine matters relating to the management of the property. It can acquire and assert rights. Furthermore, the association can sue and be sued by third parties (see Article 712l, Paragraph 2 of the Swiss Civil Code). The association is thus liable as a whole; individual condominium owners cannot be held accountable in these situations.

The law only contains a few provisions regarding condominium associations (e.g., the meeting of condominium owners in Article 712m of the Swiss Civil Code). To ensure clarity, many associations therefore introduce regulations. These are certified by a notary and recorded in the land register (see Article 712g, Paragraph 3 of the Swiss Civil Code). In addition, house rules can ensure that everyday life in a condominium is more pleasant.

The most important duty of the condominium association is to manage the property. It ensures that all common facilities and structures are maintained. This includes, among other things:

• Exterior facilities (garden, parking spaces, sidewalks)
• Structures and building components (walls, foundations)
• Exterior appearance of the building (doors, windows, facade)
• Facilities and systems for common use (staircase, heating system)

In addition to the upkeep and maintenance of the property, there are several other administrative tasks that are relevant in a condominium association:

• Drafting regulations
• Managing the renovation fund
• Preparing the renovation plan
• Taking out insurance for the building (e.g., fire and liability insurance)
• Organizing and holding the condominium association meeting
• Communication with the owners (distribution of statements and other documents)

However, the community is generally not solely responsible for managing the land and property: a manager is usually appointed to assist with this. Any tasks not handled by the manager are dealt with at the condominium owners’ meeting.

Many of these issues only arise when a new condominium is created, i.e., when a residential complex has just been built. In this case, the new condominium owners’ association is responsible for finding a suitable management company and deciding on the renewal fund. However, if you buy an apartment in a community that has already existed for some time, these tasks are already taken care of.

The condominium association is responsible for ensuring that the property is properly managed and maintained. It should therefore also maintain an overview of the individual condominium owners’ contributions. The association thus has a lien (see Article 712i of the Swiss Civil Code). It can exercise a lien against the condominium owners for outstanding contribution claims. Furthermore, the condominium association enjoys a right of retention (see Article 712k of the Swiss Civil Code). The association can therefore take the debtor’s movable property as collateral for contribution claims from the last three years.

The condominium owners’ meeting is the only legally mandated body (see Article 712m of the Swiss Civil Code). It normally takes place once a year and is convened and organized by the manager. The relevant legal text clarifies the condominium owners’ association’s responsibilities during the meeting:

• Selection and/or review of the manager
• Election of a committee or a representative to advise the manager
• Preparation of cost estimates, invoices, and approval of the distribution of costs among the owners
• Renovation fund
• Insurance (fire, liability) and any obligation for condominium owners with extraordinary construction expenses to pay additional premiums
• Important matters are voted on at the meeting. There are different types of majorities:
• Simple majority: The majority of the owners present at the meeting must agree.
• Qualified majority: Both a majority of the owners and a majority of the value quotas must be present.
• Unanimity: Every single co-owner in the community must agree.

The type of majority required depends on the matter to be decided. For necessary construction work, for example, a simple majority is sufficient, whereas luxury improvements to the property require unanimity. This is further specified in Article 647 of the Swiss Civil Code.

Saving in a renovation fund isn’t required by law, yet many condominium associations opt for it. Whether or not to establish such a fund is decided jointly by the association. The amount of the fund is also discussed and approved at the condominium owners’ meeting—all by majority vote. If a minority of owners oppose a renovation fund, they have no choice but to pay anyway.

The money saved in a renovation fund is used for renovations and major renovations. These “major” renovations, such as roof or facade renovations, are expected every 25 years. By making an annual contribution to the renovation fund, condominium owners can protect themselves from having to pay large sums in one go. A typical rate is between 0.2 and 0.5% of the value of the building’s insurance.