Co-ownership and Floor Ownership (PPE) in Switzerland
Floor ownership (PPE — propriété par étages) is a particularly widespread form of co-ownership in Switzerland. This legal regime allows several persons to own the same building, each having exclusive rights over a specific part of it. Governed by articles 712a to 712t of the Swiss Civil Code, the PPE is a popular solution for accessing property ownership in a country where the rate of homeownership remains relatively low compared to European standards. PBM Avocats advises co-owners, administrators and developers in Geneva and Lausanne.
Legal Foundations of Floor Ownership in Switzerland
According to article 712a SCC, floor ownership confers on each co-owner the right to exclusively use and fit out specific parts of a building. These parts, called units, generally include apartments or commercial premises. Each owner holds an exclusive right over their unit, while sharing ownership of the building's common parts with the other co-owners.
The PPE is characterised by three fundamental elements:
- A share quota of co-ownership over the whole building, expressed in thousandths
- An exclusive right over a specific part of the building
- Participation in the PPE organs (owners' assembly)
Creation of a PPE
A PPE can be created in several ways:
- By agreement between the co-owners of a building
- By declaration of a sole owner who wishes to divide their property
- By court judgment in the context of a partition action
The PPE constitutive deed must take authentic (notarial) form and be registered in the land register. This document precisely defines the private and common parts, as well as the share quota allocated to each unit.
Rights and Obligations of Co-owners
| Aspect | Private Unit | Common Parts |
|---|---|---|
| Use | Exclusive — without disturbing others | All co-owners — as per their purpose |
| Maintenance | By the co-owner | By the community (charged to all) |
| Works | Freely within the unit | By assembly decision (with appropriate majority) |
| Charges | Costs specific to the unit | Common costs proportional to share quota |
The PPE Administrator
The PPE community may appoint an administrator (art. 712q SCC) to manage common affairs. The administrator's powers include:
- Collecting common charges and maintaining the reserve fund
- Executing assembly decisions
- Managing common facilities and services
- Representing the community towards third parties
- Convening and conducting owners' assemblies
The administrator is appointed by the assembly and may be removed at any time. In the event of a dispute with the administrator, co-owners may apply to the court to replace them or order specific measures.