Condominium ownership: rights, obligations and what you should check before buying

1. What is condominium ownership?

Condominium ownership is a special type of co-ownership. When you purchase a condominium, you acquire a share of the building and/or land at the same time. This share is recorded in the land register. It plays a central role in the distribution of costs between the individual condominium owners.

These are the criteria when Buying a condominium at a glance:

1. You acquire a share of the building and/or land.

2. This share is recorded in the land register.

3. The cost of communal services/spaces is usually determined on the basis of the proportion of the property that has been acquired (the so-called value share).

4. Together, the condominium owners form the homeowners’ association.

Owner-occupied flat or condominium: what’s the difference?

In everyday life, both terms mean the same thing. Legally, they differ: The Condominium is the apartment that you use alone. Condominium ownership is your share of the entire property, which includes the exclusive right to this apartment. So you are never just buying the apartment, but always also a share of the grounds, the roof and the stairwell.

What is the value share?

The value share indicates what proportion of the entire property you own. It is stated in the deed of establishment, usually in thousandths (Art. 712e CC). Your share of the common costs and your voting weight in important decisions are based on the value share – unless the regulations provide otherwise.

Example: Your apartment has a value share of 120/1000. If the roof renovation costs 300,000 francs and the renovation fund is not sufficient, you will be responsible for 36,000 francs.

2. Who owns what in condominium ownership?

Your own apartment and any rooms that belong to it, such as a cellar or an attic storage room, belong exclusively to you. This is referred to as special right in condominium ownership. With home contents insurance you protect yourself against damage to or loss of your belongings in these rooms.

Those parts of the building that help to «preserve the sound condition and good appearance of the building as a whole» are always in communal ownership:

• Land: Courtyards, gardens, outdoor car parking spaces, seating areas, green areas, etc.

• Essential building elements: Foundations, load-bearing walls, retaining and enclosing walls, load-bearing ceilings, roof, etc.

• Building elements that determine the external appearance of the building: External plasterwork, windows, window grilles, roller shutters, sun blinds, external balcony facings or railings, etc.

• Communal installations and equipment: Main entrance door, stairways, lifts, central heating, washing and drying rooms, communal rooms (e.g. hobby rooms), communal aerials, all supply and disposal pipes (up to the connection into the individual apartment), etc.

The homeowners’ association may draw up house rules that govern the management and use of these communal areas. Here you will find the legal basis for condominium ownership.

Who owns the balcony?

Balcony slab, parapet and exterior façade are common property because they support the building or determine its appearance. The interior surface area may be covered by your exclusive rights. The constitutive act and the allocation plans are decisive. You are therefore not allowed to decide on a new awning or a different colour on your own.

Who owns the garden? The right of exclusive use

As part of the land, the garden always belongs to the community. However, one party is often allowed to use it alone.

Would you like exclusive use of particular areas or rooms owned communally? If so, you can apply to the community of owners for a right of exclusive use apply for.

The relevant areas or rooms, such as a garden or roof terrace, remain the property of the community. But you have sole use of them. In return, you may be obliged, by way of a resolution, to be solely responsible for the upkeep. As a rule, a right of exclusive use is included in the regulations.

If you buy an apartment with a patio, the right of exclusive use is usually already set out in the regulations or in the deed of constitution. The community can only withdraw or change it with your consent (Art. 712g para. 4 CC).

3. How does the condominium owners’ association make decisions?

As a condominium owner, you can freely dispose of your own apartment and any ancillary rooms that belong to it, such as a cellar or attic storage room. Within the apartment you are also allowed to carry out alterations and even move walls, as long as these are not load-bearing elements.

The use of and changes to communal rooms and areas are decided by all co-owners jointly. They usually do this at a regular owners’ meeting.

The Condominium owners’ meeting takes place at least once a year. It approves the budget, the annual financial statements and the distribution of costs (Art. 712m CC). It also elects the management company and decides on building works.

What majority is required for building works?

A resolution of the meeting is required for alterations to common areas, such as replacing a front door, erecting an awning or installing a satellite dish on the balcony. The majority required depends on the type of measure:

4. What should you check before buying an owner-occupied apartment?

By making the purchase, you accept the regulations and all previous decisions of the community (Art. 649a CC). If the meeting has decided to renovate the façade, you will contribute to the cost as the new owner. You should therefore request and read these documents before signing:

Warning signs in the documents

• A renovation has been approved, but the costs have not yet been paid. Stipulate in the sale contract who will bear this share.

• The renovation fund is significantly below the benchmark, even though the building is more than 20 years old.

• Individual owners are in arrears with their contributions.

• The minutes show recurring disputes or ongoing legal proceedings.

5. What is the renovation fund?

The renovation fund is the joint reserve for major works on the roof, façade, lift or heating. It is not mandatory: the meeting decides whether to set up a fund (Art. 712m CC). However, most regulations provide for one.

If the homeowner association votes to go ahead with a particular remodelling, renovation or purchase project, all parties are obliged to contribute financially. The source of funding for remodelling and renovation work comes from the so-called renovation fund for condominium ownership. The annual contributions are determined by the condominium owners’ association.

How much should be in the fund?

As a guideline, an annual contribution of at least 0.4% of the building’s insured value, until the fund reaches around 6% of this value. Raiffeisen recommends 0.8% for long-term value retention. In practice, many homeowners’ associations set aside less: in the Lucerne metropolitan area, the average was 0.25%.

The building insurance value can be found in the building insurance policy. The property management company can provide it.