Condominium Ownership (PPE) in Switzerland: Complete Legal Guide

What Is Condominium Ownership (PPE)?

Condominium ownership (PPE -- propriete par etages) is a special form of co-ownership governed by articles 712a to 712t of the Swiss Civil Code (CC). It grants each co-owner an exclusive right to use and fit out certain parts of a building (their unit), while sharing ownership of the common parts. PPE is the most common form of property ownership for apartments in Switzerland.

Constitution of PPE (Art. 712d CC)

PPE is constituted by the entry of a constitutive deed in the land register. This deed may result from:

1. A contract between co-owners (notarial deed required)
2. A declaration by the sole owner (e.g. a developer)
3. A partition judgment

The deed must determine the share quotas of each unit (expressed in thousandths or hundredths), corresponding to the relative value of each unit in relation to the whole building (art. 712e CC).

Private Parts and Common Parts

The distinction between private and common parts is fundamental:

1. Private parts (exclusive right): the apartment itself, including interior finishes, sanitary equipment and installations specific to the unit.
2. Mandatory common parts: the land, the structural shell, the roof, facades, staircase, elevator, main conduits.
3. Common parts for exclusive use: balconies, terraces, gardens, parking spaces assigned to a co-owner by the regulations.

The PPE Regulations

The use and management regulations are adopted by the co-owners' meeting (art. 712g CC). They set out the rules of communal living: use of common parts, allocation of charges, use restrictions (pets, noise, commercial activities), decision-making procedures and powers of the administrator. The regulations may be annotated in the land register to be enforceable against third parties.

Co-Owners' Meeting

The meeting is the supreme body of the PPE community (art. 712m CC). It decides by different majorities depending on the subject:

1. Simple majority of those present: ordinary administration acts, election of the administrator.
2. Qualified majority (majority of co-owners representing more than half the share quotas): useful works, amendment of regulations.
3. Unanimity: change of the building's purpose, luxury works, modification of share quotas (art. 712e para. 2 CC).

Charges and Renovation Fund

Common charges are allocated according to share quotas, unless otherwise provided in the regulations (art. 712h CC). They include routine maintenance, insurance, administration and repairs. The establishment of a renovation fund is strongly recommended (generally 0.5% to 1% of the building's insurance value per year) to finance future major works.

Rights and Obligations of Co-Owners

Each co-owner has the right to freely use and fit out their private parts, within the limits of the regulations and neighbourhood law (art. 712a para. 2 CC). They are obliged to contribute to common charges, maintain their private parts and not infringe the rights of other co-owners. The statutory lien of art. 712i CC guarantees the community a statutory mortgage on each unit for unpaid contributions.