Legal Compass Switzerland: Real Estate

1. What is this about?

Condominium ownership was incorporated into the Swiss Civil Code (SCC) in 1965 and has since become a cornerstone of homeownership in Switzerland. In essence, condominium owners have the exclusive right to use specific parts of a building and to fit out and modify the interior of those units. Condominium ownership is also a well-established and popular form of co-ownership in neighbouring countries such as Germany, Austria, France and Italy.

After more than 60 years of practical experience, it has become clear that the legal framework requires updating. At its meeting on 13 May 2026, the Swiss Federal Council adopted a legislative proposal aimed at modernising condominium ownership law while preserving its fundamental structure. We have summarised the key proposed changes below.

2. The changes

2.1 Presumption regarding common parts

Until now, there was a presumption that parts not expressly designated as common property formed part of the exclusive ownership rights. In the future, this presumption will be reversed: parts that have not been allocated will be deemed to constitute common property.

For existing condominium ownership structures, the law provides for a transitional provision: building parts that were not designated as common property before the entry into force of the amendment will continue to be deemed part of the exclusive ownership rights.

As before, the presumption remains rebuttable. This new rule is to be welcomed and reflects the practice that has already been established.

2.2 Exclusive usage rights over common parts

In practice, exclusive usage rights over common parts – such as a garden patio or a parking space – are widespread, but have so far been only minimally regulated by law. Under the proposed reform, such rights will be expressly recognized: exclusive usage rights over individual common parts may be allocated in the constitutive act, in the condominium owners’ regulations (the Regulations), or by resolution of the condominium owners’ meeting (the Condominium Owners’ Meeting).

Unless the Regulations provide otherwise, such usage rights may only be granted, amended, transferred or revoked by a majority of the condominium owners representing more than half of the ownership shares.

Given the practical importance of exclusive usage rights over common parts, the introduction of an explicit statutory framework is welcome. It would, however, be desirable to introduce a rule allowing the exchange of equivalent exclusive usage rights – such as parking spaces – without requiring the consent of the other condominium owners. A review of the Regulations in this regard is therefore recommended.

2.3 Mandatory allocation plan

In the future, an allocation plan must be submitted to the land registry office whenever condominium ownership is established. The plan must clearly distinguish between the parts subject to exclusive ownership rights and the common parts. Although the Land Register Ordinance previously required an allocation plan only in certain cases, such plans were already routinely submitted with land registry applications in practice. As a result, the proposed change is unlikely to have a significant impact in practice.

2.4 Extension of building rights possible without unanimous consent

It is not uncommon for condominium property (strata ownership) to be built on a land subject to a building right, which may be granted for a maximum term of 100 years. In practice, however, shorter terms are often agreed upon. Under a building right arrangement, ownership of the land and ownership of the building may belong to different parties.

Until now, extending a building right required unanimous consent from the condominium owners’ association as the holder of the building right. This meant that a single condominium owner could, by refusing consent, cause the termination of the entire condominium ownership structure. This has repeatedly led to difficulties, particularly in larger associations.

Under the new rules, only a majority of the condominium owners will be required to approve the extension of the building right. Owners who do not consent will leave the association upon expiry of the original building right term. Unless otherwise agreed, the departing owners’ shares will transfer to the remaining condominium owners as ordinary co-ownership, in proportion to their value shares.

The former condominium owners will be entitled to compensation. This compensation corresponds to the so-called reversion compensation, i.e. the compensation that the departing condominium owners would have received from the landowner had the building right not been extended.

2.5 Renewal fund can be enforced through the courts

A general statutory requirement for renewal funds is not being introduced. However, individual condominium owners will now be able to apply to the court for the establishment or adjustment of a renewal fund for necessary maintenance, restoration, and renewal works if the owners’ association rejects the creation of such a fund or refuses to amend an existing one. To prevent vexatious or abusive litigation, claims in associations with more than four condominium owners must be brought by at least two members.

Many buildings constructed in the 1960s and 1970s are now in need of major renovation. Most modern condominium Regulations already provide for a renewal fund. Rather than introducing a right to bring legal action, the legislature could also have imposed a statutory requirement to maintain a renewal fund, including rules on its minimum amount, voting thresholds for withdrawals, or an opt-out mechanism. Such an approach could have prevented, or at least reduced, costly court proceedings that often last for years. Furthermore, new condominium owners would have greater certainty that sufficient financial resources are available for necessary investments in the common property.

2.6 Warranty rights

In 2018, the Swiss Federal Supreme Court held (BGE 145 III 8) that a condominium owner may assert a claim for the rectification of defects affecting common parts of the property against the contractor not only in proportion to their ownership share, but in respect of all such defects. The new legislation seeks to expand this case law. A condominium owner who notifies the contractor of defects in common parts must inform the property manager or the owners’ association. A coordination meeting must then be held within three months in order to coordinate the assertion of warranty claims and prevent conflicting litigation strategies. Different requirements apply depending on whether rectification of the defects or a reduction in price is being sought. In addition, contractors’ defences will be restricted in situations where the construction contract significantly limits the warranty rights of the individual condominium owner.

Defects affecting common parts of condominium properties arise regularly in practice. The new rules provide a solid framework for coordinating and enforcing warranty rights within the condominium owners’ association.

2.7 Condominium Owners’ Meetings

a) (Virtual) Condominium Owners’ Meetings

The revised legislation expressly provides that resolutions of the condominium owners’ association must be recorded in minutes, including the date and signature. The legislator justifies this requirement on the grounds of traceability and its importance for future condominium owners. Notably, the minutes become legally valid only once they have been dated and signed. Given this strict formal requirement, the property manager or the chairperson of the meeting must ensure compliance with these formalities.

It is also regrettable that the revision does not contain any specific provisions regarding virtual Condominium Owners’ Meetings. Initial experience in this area could have been drawn from the legislation adopted during the COVID-19 pandemic. Nevertheless, the explanatory report confirms that the Regulations may permit virtual meetings, a point that had previously been disputed. It therefore remains up to the condominium owners to include an appropriate provision in their Regulations if they wish to allow virtual meetings. This is likely to be particularly useful for larger condominium owners’ associations.

b) Temporary suspension of voting rights as a new sanction

Where an owner systematically refuses to approve resolutions or repeatedly breaches their financial obligations, the association may temporarily suspend that owner’s voting rights until the next Condominium Owners’ Meeting (up to a maximum of three times). As a general rule, such a decision requires the unanimous consent of all other members. In associations with 30 or more members, however, a three-quarter majority is sufficient.

The precise meaning of “systematic refusal to approve resolutions” will need to be clarified by the courts. According to the explanatory report, the measure is primarily intended to exclude from voting those owners who consistently oppose resolutions without any plausible justification.

3. Assessment and recommendation

The proposed revision introduces practical improvements aimed at facilitating coexistence within condominium owners’ associations and enhancing legal certainty. At the same time, it creates new obligations and opportunities that should be considered at an early stage. In particular:

• Existing condominium owners’ associations should review their Regulations, as well as their constitutive and amendment deeds, especially with regard to the regulation of exclusive usage rights, the renewal fund, and the minute-taking practices for Condominium Owners’ Meetings.
• Owners of condominium property built on a building right should familiarise themselves with the new opportunities and risks associated with the extension of building rights.

The legislative proposal is subject to an optional referendum and has not yet entered into force. The date of entry into force will be determined by the Federal Council and is currently unknown. The proposal is presently before Parliament and is expected to be referred to the preparatory committees during the 2026 summer session. It is not yet possible to predict the duration of the parliamentary deliberations in the National Council and the Council of States.

We recommend familiarising yourself with the proposed changes at an early stage and have your existing agreements reviewed to determine whether any amendments may be required. We would be pleased to assist you in analysing your specific situation and preparing for the changes outlined above.