The most important legal principles of condominium ownership

Condominium ownership is a condominium on a piece of land or in a building with multiple apartments. It’s a type of co-ownership, but a special one: Condominium owners have co-ownership of the common areas of the building, but also exclusive special rights for their own apartment – ​​which only they may dispose of.

Condominium ownership is defined as follows in Article 712a, Paragraph 1 of the Swiss Civil Code:

“Condominium ownership is the co-ownership share in a property that grants the co-owner the special right to exclusively use and develop certain parts of a building.”

In condominium ownership, the right of use is therefore divided into two areas:

• Special right for sole use: Interior spaces of one’s own apartment, ancillary rooms, sometimes also a basement compartment, a garden compartment, individual garages, or parking spaces.
• Co-ownership: Everything that is permanently part of the house and land, but is not part of the apartment. This includes, among other things, the facade of the house, balconies, front doors, and other components that define the building’s exterior. The stairwell, garden, and grounds and paths also fall into this category. It is irrelevant whether a condominium owner actually uses these areas: communal laundry rooms, storage rooms, and even playgrounds are considered co-ownership (see Article 712b, Paragraph 2 of the Swiss Civil Code).

The term “condominium,” often used in everyday language, is not strictly speaking entirely accurate. Despite the exclusive right to use the apartment, condominium ownership is merely a form of joint ownership. The apartment is ultimately firmly connected to the rest of the property and cannot be sold separately. For the sake of simplicity, we will nevertheless use the term “condominium” in this article.

The legal basis for condominium ownership is given an entire section in the Swiss Civil Code. The third section, starting with Article 712a of the Swiss Civil Code, contains all the general conditions, including the rights and obligations of persons with condominium ownership. This special right extends to either individual floors or parts of floors. In principle, a condominium owner may do whatever they wish with their apartment. They may use it for business or other purposes, live there themselves, or rent it out.

The condominium association, and especially the condominium owners’ meeting, are also described in more detail in the law (see Articles 712m et seq. of the Swiss Civil Code). This association is responsible for certain administrative and other tasks; among other things, it can also draft condominium regulations that facilitate coexistence within the community. Regarding condominium associations, the legal texts on associations (see Articles 60 et seq. of the Swiss Civil Code) can also be consulted. Since condominium ownership is joint ownership, the relevant paragraphs also apply. Details are set out in the Swiss Civil Code from Articles 646 ff.

The condominium association, and especially the condominium owners’ meeting, is also described in more detail in the law (see Articles 712m et seq. of the Swiss Civil Code). It is responsible for certain administrative and other tasks; among other things, it can also draft condominium regulations that facilitate community life. Regarding condominium associations, the legal texts on associations (see Articles 60 et seq. of the Swiss Civil Code) can also be consulted. Since condominium ownership is joint ownership, the relevant paragraphs also apply. Details are set out in the Swiss Civil Code starting with Articles 646 et seq.

While special rights and special use rights sound similar, they are two different things.

The special right describes what the condominium actually means. The areas subject to the special right must be separated from the others and self-contained, for example, by walls and a separate entrance. Ancillary rooms may also be included, but these must also be enclosed. According to Article 712b, Paragraph 2 of the Swiss Civil Code, the following items can never be considered special rights:

• The land of the property
• The building rights associated with the land or property
• Components and structures that are essential for the functionality and safety of the building or that define the building’s external appearance
• Structures and areas that the other condominium owners need to use their property

The special use right, on the other hand, can be granted for individual components of the property that actually belong to the common areas. This must be approved by the entire condominium association. Then, for example, a condominium owner can use part of a garden alone or be granted exclusive rights to use a parking space.

In principle, the condominium owner owns the apartment and can therefore do whatever they wish with it. They can live there themselves or rent it out to third parties. Alterations are also possible. All of this is permitted, provided the property is treated with care. In any case, the condition and appearance of the building must not be negatively impacted. Condominium owners may also not, under any circumstances, influence the building in such a way that it is damaged in any way. For example, a load-bearing wall that endangers the stability of the building cannot simply be removed – and condominium owners must also be considerate of their neighbors (see Article 712a, paragraph 2 et seq. of the Swiss Civil Code).

However, condominium owners must not only provide for and pay for their personal property shares, but also for the common property. This primarily involves maintenance and operating costs, which can affect, for example, the roof, facade, or garden. Article 712h of the Swiss Civil Code specifies in detail which costs condominium owners are responsible for:

• Ongoing maintenance costs, repairs, and renovations of common areas
• Administrative costs (including the manager’s compensation)
• Due contributions and taxes
• Any interest and amortization payments to mortgage holders

The amount of these costs can vary even within the same building. This depends on the cost share, which is calculated based on the value ratio. A condominium owner with a larger apartment in a better location would therefore pay more than another with a smaller one.

The typical path to becoming a condominium owner involves purchasing one or more condominiums in a multi-unit building. This grants the buyer special rights to the apartment – ​​the condominium owner may use it exclusively and no one else. In addition, they also acquire co-ownership of the entire property. The value ratio essentially indicates how much value a condominium owner has compared to the entire property.

The purchase of a condominium is usually sealed with a purchase agreement. The details for establishing condominium ownership are laid down in Article 712d of the Swiss Civil Code (ZGB). This states that the condominium is only officially owned by the condominium owner once it has been registered in the land register. For registration, a valid contract or a declaration by the property owner must be submitted to the land registry office. A valid deed, certified by a notary, is required for this to be valid.