Anyone wishing to divide a property and sell or finance individual units separately will almost certainly encounter the concept of condominium ownership. This special form of co-ownership allows one to own an apartment or commercial space as an independent unit registered in the land register – including special rights to specific parts of the building. However, the process is technically complex and requires careful planning. Below, we explain what is important when establishing condominium ownership.
Requirements for establishing condominium ownership
Not every building is automatically suitable for subdivision. The law sets clear requirements for the structural design and the legal structure of the property.
Structural and legal foundations
Each floor unit must be designed as a self-contained apartment or a self-contained room with its own access – a single room without its own access is insufficient. Additionally, a so-called deed of establishment is required, which is notarized and registered in the land register. This document specifies which parts of the building belong to the exclusive rights of the respective unit and which remain common property, such as the stairwell, roof, or facade. In practice, it is advisable to make this demarcation early and precisely, as subsequent adjustments involve additional effort.
The regulations and the explanatory act
In addition to the actual deed of establishment, a set of rules for use and administration is recommended. This governs the co-ownership of the condominium owners, the allocation of costs for maintenance and renovations, and voting rights at the owners' meeting. While such rules are not mandatory in every case, a well-thought-out document significantly improves clarity – especially in larger properties with many owners. Based on our experience with deed establishment procedures, we recommend drafting the rules together with the notary during the planning phase, rather than adding them later.
Procedure and costs of the justification
The actual implementation follows a multi-stage process that involves architecture, notary services, and the land registry.
From planning to registration in the land register
The first step is the technical division: A valuation plan determines the share of the property each unit receives, usually based on its size and location. The notary then draws up the official deed establishing the division, which, along with the regulations and the division plan, is submitted to the land registry. After review, the entry is made, and each unit receives its own land register entry. Depending on the canton and the complexity of the property, this process can take several weeks to months.
Several costs are involved: notary fees for the notarization, land registry fees for registration, and any costs for surveying and plan approval. Depending on the canton and the number of units, these ancillary costs usually range from the low to mid four-figure range – and can be higher for larger or more complex properties. Anyone planning financing should also be aware that banks require land registry registration as a prerequisite for separately mortgaging individual units.
Establishing condominium ownership is a project where thorough preparation pays off in the long run – both in the later sale of individual units and in the increase in the value of the entire property. With over 50 years of experience in real estate brokerage and consulting, we guide owners through the entire process, from the initial feasibility study to registration in the land register. If you are considering a division of your property, we would be happy to discuss your specific situation with you without obligation.
Conclusion
Establishing condominium ownership is not merely an administrative act, but a project with substance – those who properly establish the prerequisites, regulations, and land registry entry from the outset create the foundation for a smooth future sale or straightforward financing of individual units. Given the technical and legal intricacies, experienced guidance throughout the entire process is highly recommended.
