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What are the most important documents to check before buying a condominium property?
What does the sale in condominium ownership mean?
PPE is the abbreviation for condominium ownership (in French). You buy a share in the condominium, i.e. the building. The condominium unit is listed in the apportionment booklet and gives you the sole right to the flat or business premises. The common parts of the building are not subject to the exclusive rights of the individual condominium owners. When you buy a property with condominium ownership, you are registered in the land register as the owner of the condominium unit. Read also our article with video: Condominium ownership - legal structure in Switzerland
Documents you should study
The following documents should be studied by every buyer and are usually to be presented to the financial institution when you apply for a mortgage loan:
The sales documents
This is the first document you should study. It contains at least the most important information such as the description of the property, plans and photos. Each seller or agent can compile their sales documents as they see fit. In principle, the sales documentation is not a contractual document and all information is non-binding and can be changed at any time.
The apportionment booklet
The apportionment booklet, which is prepared by an official surveyor, is kept at the Land Registry and the Cadastral Office. The geoinformation law sets out the qualitative and technical requirements for official cadastral surveying.
It contains, among other things, the parcel number of the building with a site plan, a plan of the building height, a room division plan, a room division table with the numbered floor units, the areas and the co-ownership shares of each floor unit, e.g. 44/1000.
Extracts from the land register
The property with established condominium ownership and each condominium share receive their own sheet and number in the general ledger.On the land register extracts you will find:
1. ownership and rights in rem such as easements (e.g. a right to use a parking space, a right to use a garden in a ground floor flat), land charges and liens (e.g. promissory notes).
2. priority notices such as personal rights (e.g. a right of first refusal) and such as rights to restrict alienation (e.g. in the event of foreclosure).
3. notes such as the regulations of the condominium owners' association, possibly the administrator of the condominium owners' association (registered at his request, at the request of the meeting of the condominium owners or at the request of the judge).Read also my article with video: The land register - what is it for?
Minutes of the last condominium owners' meetings
The minutes provide information about living together in the condominium owners' association, technical problems, important work to be done, legal disputes, etc. Read the last three minutes carefully.
Last statements
Ask for the last three statements of condominium costs and heating costs. Check whether there is a renovation fund and what amount has been accumulated in it.
The condominium regulations
Here you will find all the important information about condominium ownership. The Management and Use Regulations (in French RAU) provide information about the rights and obligations of the condominium owners, the condominium owners' association, the manager, the board of directors, etc. Read them carefully to ensure that you have the correct information. Read it carefully to understand how condominium ownership works.
Purchase off plan
If you are buying a property off plan, ask for a detailed building specification and any draft contracts to sign with the general contractor and check their credit rating.
To minimise the risk of embezzling down payments, you have three negotiating options:
1. obtain a financing confirmation and a statement from the seller's bank that all deposits paid into a specific account will be used exclusively for the planned construction and that payments can only be made as construction progresses.
2. it may be possible to require the seller to provide a bank guarantee in which the bank undertakes to discharge any statutory mortgages held by tradesmen and builders.
3. you may also propose the deposit of the down payments in a blocked account.
The draft purchase contract
The draft purchase contract is drawn up by the notary in legal language. Take the time to study it at your leisure before making an appointment with the notary to sign it legally. Depending on what you are buying, it may be useful to check other documents (e.g. rental agreement if you are buying a rented property).
More information with video that may be of interest to you
Condominium ownership - legal structure in Switzerland
Legal regimes for property in Switzerland
Buying a flat in the canton of Geneva - good to know
The land register - what is it for?
The seller's guarantee for a property in Switzerland
Real estate sales in Switzerland - good to know
Set of rules governing administration and use of a condominium
© Written by Esther Lauber, Real Estate Trustee with Advanced Federal Diploma of Professional Education and Training, real estate agent, property broker and manager in Carouge Geneva, translated with www.DeepL.com/Translator (free version)
