Condominium ownership represents a distinct type of shared property ownership that brings numerous benefits. It satisfies the personal ambition of owning a home while addressing the issue of limited building land in Switzerland. In such arrangements, multiple individuals hold co-ownership of a property, each possessing specific parts. This setup grants each owner exclusive rights over their designated unit or, at times, additional spaces like shared lounges. These rights empower owners to customize their interiors, transfer ownership, or secure a mortgage. However, the unit must be self-contained and have independent access to qualify for exclusive rights.

In a condominium structure, there is a clear distinction between:

• privately-owned sections, exclusively used by the individual owner (including apartment interiors, non-structural internal walls, apartment entrance doors, and inner parts of balconies);
• common elements jointly owned by all co-owners (such as the building site, structural walls, roof, exterior façades, elevators, etc.).

One major benefit of this ownership model is the shared distribution of costs and liabilities among all co-owners.

The most prevalent configuration of this ownership is the “horizontal ownership” model, where an apartment complex is segmented into individual floors or even smaller units. Conversely, configurations involving several terraced apartment buildings are uncommon.

The key points of the constitution of a condo

The legal foundation of condominium ownership is established through a memorandum of association, which enables the tiered ownership structure to come into legal effect. This document must be officially registered and legally authenticated—it cannot be formed by a simple verbal or informal agreement.

According to Article 712, section 2 of the Swiss Civil Code (CC), a valid deed of incorporation can arise either from a formal written agreement signed by all co-owners or from a unilateral declaration by the sole property owner.

Each unit within the structure receives a distinct entry and identification number in the land register, securing its independent legal identity and exclusive rights.

Frequently, this form of ownership is initially created by a single person who possesses the entire property and later divides and sells the units.

The legal underpinnings of condominium ownership are primarily found in articles 712 a–t of the Swiss Civil Code (CC). Additional guidelines come from articles 646–651 CC, dealing with general co-ownership principles, and, in certain cases, from the law on associations (articles 60–79 CC), which provide further clarification.

The share and its calculation

The “share” assigned to each unit denotes its proportional value in relation to the entire property. It also outlines the scope of each owner’s entitlements and responsibilities within the community framework.

This share is crucial because it serves as the basis for allocating joint expenses, including the upkeep and maintenance of communal areas.

Shares are typically calculated in hundredths or thousandths of the total property value. However, they do not influence the market value of a unit, which is instead determined by current demand, property condition, and location.

To ensure accurate determination of shares, seeking the expertise of a professional is strongly advised. Share calculations often rely on:

• The total floor space (in square meters) of the areas under exclusive ownership rights.
• The surface area of parts allocated for specific usage rights, such as parking spots.

After establishing the correct share, it is formally recorded in the land register. Changes to this share can only occur under two circumstances:

• Unanimous agreement among all owners followed by an update to the land register.
• A formal request by an owner to amend the share due to a miscalculation or a significant structural change to the property.

Administration and management

In most instances, a property administrator is appointed when a condominium is formed, usually through election by the co-owners’ assembly.

This administrator acts as the representative of all co-owners, handling tasks such as coordinating requests, arranging general meetings, conducting property inspections, overseeing repairs, and ensuring that all parties fulfill their responsibilities—particularly concerning the upkeep of shared areas. They also manage the financial records and monitor budget adherence as approved by the co-owners.

The administrator’s remuneration is typically predetermined and depends on the complexity and scope of their responsibilities.

The renovation fund

The purpose of a renovation fund is to finance significant maintenance or upgrades required over time. In newly established condominiums, this fund is sometimes delayed since the structure is still under warranty.

Owners collectively decide how much to allocate to this fund. A common approach is to contribute a small percentage of the property’s value—for instance, 2.5 per thousand on CHF 3 million.

Access to the renovation fund account is typically limited to the administrator and/or designated members of the condominium committee.

In summary, purchasing a unit in a condominium is a practical route to homeownership. For further guidance, Cardis Sotheby’s International Realty professionals are ready to assist.

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