Condominium ownership (PPE) is a special form of co-ownership in which each buyer owns a part of the building.
The rights of a condominium owner are twofold: he or she has exclusive rights to his or her private areas (apartment, workshop, etc.) and collective rights to the so-called common areas (e.g. roof, elevator, load-bearing walls, facade cladding, etc.).
Find out more in this article about the advantages and disadvantages of condominium ownership.
Condominium ownership (PPE): Definition
Condominium ownership is a form of co-ownership in which several people own a fraction of the residential units in a residential building. Each unit is held by an individual owner, while the common areas, such as corridors, green spaces and facilities, are managed collectively by the owners.
Each owner has an exclusive right to his or her unit. As a result, owners can develop their property or sell it if they wish.
The unique features of condominium ownership
1. Rigorous management
In Switzerland, the management of condominiums is a very serious matter. There are strict rules and specific laws governing the management of condominiums.
We can mention :
- article 712 of the Civil Code: The co-owner has the authority to manage, use and develop his or her space, provided that this does not restrict the rights of the other co-owners, does not cause damage to the common areas, structures and equipment of the building, does not disturb their use, and does not alter their external appearance.
- articles 646-651: Each co-owner individually owns a portion of a whole. Co-ownership arises solely from a contractual agreement. The shares are determined by agreement, i.e. by the contract establishing co-ownership between the parties concerned. Otherwise, they are considered equivalent. The owner of his share is free to use it as he wishes.
- the law governing associations (articles 60-79): Associations are governed by the provisions of articles 60 to 79 of the Swiss Civil Code (CCS) of 10 December 1907. It is defined as an agreement by which several individuals permanently combine their skills or actions for a purpose other than the simple pursuit of profit.
Owners are required to respect these rules in order to maintain order and harmony within the co-ownership.
2. General Meetings
General meetings of co-ownership owners represent the important decisions taken collectively for the co-ownership. These include decisions on budgets, renovations and repairs to common areas.
3. Financial responsibility
The owners of the co-ownership are financially responsible for the management of their building. This means that they must contribute financially to ongoing expenses and repairs. Costs are apportioned according to the size of each unit.
The advantages of floor-ownership
1. Shared costs
One of the main advantages of floor ownership is cost-sharing. Owners share the costs of maintenance, repairs and management. This considerably reduces monthly charges compared with individual ownership.
2. Comprehensive management
Many condominiums hire property managers to look after the building. This guarantees efficient and professional management of the common areas.
3. Legal certainty
Switzerland offers a solid legal framework for condominium ownership. The rights and duties of owners are clearly defined by law, providing legal certainty for owners.
The disadvantages of terraced property
1. High co-ownership charges
Co-ownership fees can be relatively high because of the quality standards and services involved in managing co-ownership properties.
2. Collective decision-making
Taking collective decisions can sometimes be complex, as owners need to agree on important issues. This can lead to delays in implementing projects or renovations.
Condominium ownership offers many advantages, including shared costs, professional management and legal certainty. However, it can also be associated with high co-ownership charges and sometimes complex collective decisions. Before you invest in a condominium, it’s essential that you speak to a customer adviser to understand the specific features involved and invest with peace of mind.
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