Everything you need to know about condominiums in Switzerland
With a condominium, you can independently manage your own apartment, but you are also responsible for various matters. We’ll show you what you need to consider and what rights and obligations you have.
What is condominium?
When you buy an apartment, you’re not purchasing the apartment itself, but rather a share of the property. For your apartment and all associated rooms, you have exclusive usage rights, known as special rights.
This means that, strictly speaking, you are not the sole owner of your apartment, but rather a co-owner of the entire property. Your specific share of the property is called the ownership share, which is recorded in the land register.
Good to know: You can sell or inherit your share of the property and the usage rights for your apartment just like regular properties.
💡 Details about the ownership share
The ownership share represents the proportion that individual condominium owners hold in the entire property. Typically, this share is determined when the condominium ownership is established, and the ownership share is calculated based on various criteria. Factors such as the size of the apartment and qualitative aspects, like the view, play a role in this calculation.
The ownership share is used to divide the costs for operating and maintaining the building among all owners. The rule is: the larger the ownership share, the greater the share of the costs.
The special right for your apartment
The purchase of condominium is always inseparably linked to a special right. This right defines which areas and rooms you are allowed to use exclusively. You can redesign or rent these areas as you see fit.
The special right applies to your apartment in all cases. It typically also includes associated spaces such as the cellar or attic. However, according to the law, the special right can only be granted for parts of the building that are self-contained – for example, a garden terrace is never included in the special right.
Good to know: The balcony is a special case and can therefore often lead to disputes. In practice, usually only the interior part of the balcony is included in the special right. Anything visible from the outside, such as the railing, is not included.
Common areas
All building parts that are not assigned to the exclusive right of a condominium owner are considered common areas.
These include, for example:
- Green spaces on the property
- Facade and windows
- Roof and masonry
- Heating system
- Staircase and elevator
- Common rooms
- Outdoor and underground parking spaces
All owners are responsible for the common areas, meaning that the costs for maintenance, repairs, and replacements are divided according to the ownership share. For example, if someone owns multiple apartments in the property, they will contribute more to these costs.
Any structural changes to the common areas must be approved by the owners at an owners' meeting.
💡 Details about the owner's meeting
- The owner's meeting is the key decision-making body in condominium ownership and is held at least once a year by the property management.
- The management or individual owners can submit agenda items in advance, which all attendees will vote on democratically during the meeting.
- For many decisions, a simple majority of votes is sufficient, based on the principle of 'one owner, one vote.' This means that every owner has one vote, regardless of how many units they own.
- For certain decisions, a qualified majority may be required, meaning both the majority of votes and the majority of ownership shares, or even unanimity. The cases in which this applies are outlined in the owners' regulations.
What is the special usage right?
The special usage right grants exclusive usage rights for common areas, such as a garden terrace or a rooftop terrace. The rights and the allocation of maintenance costs are clearly defined in the condominium regulations.
Important: Unlike areas covered by the exclusive right, you are not allowed to make structural changes to areas with a special usage right on your own. They remain common areas, so you must always obtain the consent of the condominium association.
What can I remodel in a condominium on my own?
Renovations and refurbishments in condominiums often lead to conflicts. The big question is: What can you decide on your own, and when is the consent of the condominium association required?
As a general rule: Wherever you have a special right, you can decide what and how you want to remodel. However, you must be considerate of your neighbours, ensuring that your renovations do not negatively affect their quality of life. For example: If you want to replace carpet flooring with parquet, you must ensure that the new floor does not cause more noise for your neighbours.
It’s different with the common areas. This is especially true for parts of your apartment that are visible from the outside. In these cases, you typically need the consent of the other parties. It’s best to inform them early about your plans. This way, you can avoid disputes and any potential need for undoing changes later.
In the table below, we provide some examples of what you can remodel on your own and what requires consent from the homeowners' meeting:
On your own decision
- Paint bedroom walls a different colour
- Lay new tiles in the bathroom
- Install a built-in wardrobe in the apartment
Only with consent from the owner's meeting
- Paint the exterior of the front door in a different colour
- Install a satellite dish on the balcony
- Install a railing in the hallway in front of your apartment colour
The regulations – here are your rights and obligations in condominium ownership
In condominium ownership, it is essential that the coexistence of the owners' association runs smoothly and without conflict. Therefore, the most important agreements, as well as the rights and obligations of all owners, are usually documented in a set of regulations.
Key points that should be included in the regulations are:
- Description of exclusive and special usage rights
- Cost allocation and rules for the use of the reserve fund
- Building regulations (quiet hours, pet regulations)
- Information about the process of the owner's meeting
- Rules for making decisions at owner's meetings
- Duties of the property management
In addition, the regulations in condominium ownership may contain further, potentially very detailed provisions.
Renovation fund – a special feature of condominium ownership
Whether for necessary facade renovations or the installation of a modern, energy-efficient heating system – at some point, all owners will need to invest in the maintenance or modernization of the property. To ensure that the owners can make these investments, a renovation fund is a useful tool. All owners contribute to the fund proportionally based on their ownership share.
It’s important that the amount is high enough to build reserves for large and essential repairs or renovations (contributing at least 0.4% of the building’s insured value to the fund each year is recommended) It usually makes sense to transfer the amount monthly via a standing order, rather than paying the entire sum for the year in one go.
If the funds are insufficient for an upcoming renovation, the outstanding costs must be paid proportionally according to the ownership share.
What you need to know before buying a condominium
If you’re considering purchasing condominium ownership, you should be able to answer two fundamental questions:
- How much is the apartment really worth? The value of condominiums can be difficult to assess from the outside. You should, for example, also consider the condition of the reserve fund. It’s best to have a thorough property valuation conducted.
- Can I afford the apartment? Once you know the property’s value, it’s crucial to calculate the affordability of the mortgage. This ensures that the apartment is within your financial means.
The most important documents for purchasing condominium ownership
To check all the important aspects before making your purchase and assess whether the condominium is right for you, it’s advisable to study the key documents. These documents include:
- The owner’s regulations
- The house rules
- The founding deed, which outlines the exact allocation of ownership shares
- All resolutions from past meetings
- Documentation on the condition of the renovation fund
- Information on completed and upcoming renovations or major maintenance work
- Information on the property management
