What is the value ratio for condominiums?
The value quota is a central and indispensable concept in Swiss condominium ownership. It represents the ideal share that an individual condominium unit (flat or business premises) has in the entire property and in the common parts of the property. The value quota must be entered in the land register and is expressed in fractions (e.g. 75/1000). It is inseparably linked to the respective condominium ownership.
What does the value ratio actually express?
The value ratio fulfils two essential functions in condominium ownership, making it the most important yardstick for the rights and obligations of individual condominium owners:
- Cost allocationIt determines the share that each owner bears of the common costs and charges. This includes the costs of maintenance, administration, repairs and renovation of the common parts (roof, façade, stairwell, garden, etc.).
- Voting rightsThe value quota generally serves as the basis for determining the voting rights at the meeting of condominium owners.
What role does the value ratio play in condominium ownership?
The value quota plays a fundamental role within the condominium owners' association (STWEG), as it determines the financial and legal weighting of each individual owner:
- Distribution of operating costs and refurbishment costsThe greatest influence lies in the distribution of the budget and the costs for the maintenance of the common property.
- Determination of the participation claimIt defines the share of the proceeds if the property is sold or expropriated.
- Assessment of contributions to the renewal fundThe payments into the renovation fund, which is used for future major renovations, are also based on the value ratio.
How is the value share calculated? Calculation of the value share for condominiums
The value ratio is usually determined by an architect or a property valuer as part of the condominium deed. Various relevant factors are taken into account in order to ensure the fairest possible ratio:
- Size of the special legal unitThis is the most important factor. The pure living or usable area of the unit is set in relation to the total area.
- Location and orientationMore attractive locations (e.g. higher floors, better views) can lead to a higher value ratio.
- Equipment and quality: Higher-quality equipment can also be included in the assessment.
- Side roomsThe value of cellar rooms, screeds or garage spaces that are subject to special rights is also taken into account, albeit often with less weighting.
The value quota is ultimately determined in the deed of foundation and becomes legally binding through its entry in the land register.
Value share and voting rights in condominium ownership
In most condominium owners' associations, voting rights are directly linked to the value share. This means that the votes are weighted according to the value share (head and value principle):
- An owner with a value quota of 100/1000 has ten times as much voting weight as an owner with 10/1000.
- This principle ensures that those owners who hold the largest financial stake in the property and therefore also bear the highest costs have a corresponding say.
- It should be noted, however, that the community can also make other arrangements in its regulations (e.g. pure head voting rights for certain decisions) as long as the minimum legal requirements are complied with.
The change in the value ratio of condominiums
A subsequent change to the value ratio is possible in principle, but is a complex legal and formal process. It may become necessary if the circumstances change significantly, for example as a result of
- Extensive extensions or additions that significantly change the size of the special legal unit (e.g. conversion of the attic into a flat).
- Merging or splitting of units.
As a rule, the consent of all condominium owners is required for a valid change. In addition, the change must be publicly notarised and entered in the land register in order to become legally effective.
What is the significance of the land register when buying a house?
The land register plays a central role for all property and ownership relationships in Switzerland. It provides public and legally binding information about:
- The ownership structure (who is the owner?).
- Any encumbrances and restrictions (e.g. easements, liens).
- In the case of condominium ownership: The exact definition of the special rights and common parts as well as the fixed value quota.
When purchasing a condominium, the land register entry of the value quota is the legal guarantee for the acquired share.
Sell your flat or have it valued
The value ratio is also important when selling and valuing a condominium unit. Although the market value is primarily determined by location, condition and demand, the value ratio serves as an important key figure for checking the appropriateness of the ideal share of the overall property. A professional property partner can help you to consider all relevant factors, including the value ratio, for a realistic market value estimate and to ensure that the sales process is legally compliant.
The value ratio is the basis of condominium ownership and precisely defines your rights, obligations and financial interests in the common property. A thorough understanding of this key figure is essential for sound decision-making when buying, selling or managing your condominium unit. If you are looking for competent and customised advice on the sale or valuation of your property, we invite you to take advantage of wenet ag's expertise and extensive network. Contact us for a non-binding initial consultation.
