Condominium ownership in Switzerland – rights and obligations
Purchasing an apartment within a complex makes you a condominium owner, which comes with various rights and obligations. Here’s what you should know before buying.
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When you buy an apartment, you are not only purchasing your own four walls, but also a share of the plot of land and of the communal areas. We explain what you need to know about condominium ownership.
1. What is a condominium?
Condominium ownership is a special type of co-ownership. When you purchase an apartment, you acquire a share of the building and/or land at the same time. This share is recorded in the land register, and is important for determining how costs are distributed between the individual condominium owners.
These are the main points to note when buying an apartment:
You acquire a share of the building and/or land.
This share is recorded in the land register.
The cost of communal services/spaces is usually determined on the basis of the proportion of the property that has been acquired. This is referred to as the co-ownership share.
Together, the condominium owners form the homeowner association.
2. How does a condominium work?
As a condominium owner, you have free access to your own apartment and any rooms that belong to it, such as a cellar or attic storage room. You are also allowed to make alterations to the interior of the apartment and even move walls, as long as these are not load-bearing elements.
All co-owners decide jointly on the use of and changes to communal rooms and spaces. This is usually done at the regular homeowner association meeting.
Renovation fund for communal elements
The agreement of the majority of condominium owners is always required for any structural changes to communal elements of the building. This includes replacing a front door, erecting an awning or installing a satellite dish on the balcony, for example.
If the homeowner association votes to go ahead with a particular remodelling, renovation or purchase project, all parties are obliged to contribute financially. The money required for remodelling and renovation work comes from the renovation fund for the condominium property. Each owner contributes to the fund in the form of an annual amount decided by the homeowner association.
All pay for heating, lift and management
Owners must also jointly finance various services and ancillary costs in the condominium. This applies to operating costs and the maintenance of communal elements of the building, for example. It includes facilities such as the heating system or the lift, as well as professional management. On the plus side, certain investments in the property are tax-deductible.
3. Who owns what in the condominium?
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 an exclusive right under condominium ownership. Contents insurance protects you from 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, car parking spaces, outdoor seating areas, green areas, etc.
Structural elements of the building: 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, awnings, external balcony facings or railings, etc.
Shared facilities: front door, stairway, lift, central heating, washing and drying rooms, communal rooms (e.g. hobby rooms), communal aerials, all supply and waste pipes (up to connection leading into individual apartment), etc.
The homeowner association may draw up house rules that govern the management and use of these communal areas. This is where you'll find the legal basis for condominium ownership.
4. What is an exclusive right of use?
Would you like exclusive use of particular areas or rooms owned communally? If so, you can apply for an exclusive right of use from the homeowner association.
The relevant area or room, such as a garden or roof terrace, remain the property of the association, but you have sole use of it. In return, the association may decide that you must be solely responsible for the upkeep of that space. An exclusive right of use will generally be included in the regulations.
5. When is it worth buying a condominium?
Owing to a shortage of land, it’s now virtually impossible in many places to build detached, single-family dwellings. For many people looking to buy a home, a condominium is the only affordable alternative. Condominiums are created as newbuilds or through the conversion of older apartment buildings to create freehold units.
Think carefully about whether you want to go from being a tenant to an owner. Consider the pros and cons of buying in your personal situation.
6. What should I bear in mind when buying a condominium?
Always check what decisions have already been made by the condominium owners, the level of the renovation fund and how much you have to pay per month. New owners are automatically bound by these decisions and will have to contribute the agreed amount to the renovation fund.
A certain proportion of owners must vote in favour of structural changes for the work to go ahead. This proportion depends on the nature of this work, i.e. whether it is essential, useful or a luxury. The relevant provisions are set out in the homeowner association regulations. Study them carefully before you buy the apartment.
Regardless of whether you are buying a house or a condominium, get different quotes for your mortgage, so you can secure the best deal for you.
This article was first published on 16.11.2018