Condominium Ownership (PPP): Necessary, Useful, and Luxury Construction Works

Anyone who lives in condominium ownership (proprietà per piani, PPP) knows this well: sooner or later, the question of construction works on the communal parts of the building arises. Yet not all works are equal, and Swiss law treats them very differently depending on their nature. Understanding this distinction is essential for making informed decisions at owners' meetings and safeguarding one's rights as a co-owner.

Three categories of construction works in condominium ownership

The Swiss Civil Code (Art. 712a et seq. CC) explicitly distinguishes between three types of construction works: necessary, useful, and luxury (serving mere embellishment or convenience). This tripartite classification is not an academic nicety. It has very concrete consequences for the majorities required at the owners' meeting and for the allocation of costs among co-owners.

Necessary works

These are interventions that are indispensable for the preservation of the building and its communal parts: replacing a leaking roof, substituting a compromised water pipe, restoring the facade for structural reasons. These are works which, if left undone, would lead to an actual deterioration of the property.

For necessary works, Art. 647c CC requires a simple majority of the co-owners present at the meeting. In urgent cases, the administrator may even order their execution without waiting for a formal resolution of the meeting. Every co-owner is obliged to contribute to the costs in proportion to his or her share of value.

Useful works

This category covers interventions that increase the value or improve the profitability of the property, without being strictly indispensable. A classic example: installing a lift in a building that lacks one, or fitting photovoltaic panels on the communal roof.

Art. 647d CC requires for these works the majority of all co-owners, which must at the same time represent the majority of the value shares. A particularly important aspect in practice: the co-owner who would be prejudiced by the planned work has a genuine right of veto. If the intervention significantly restricts his or her use of the common property or imposes a disproportionate sacrifice, that co-owner may object and obtain adequate compensation, or block the work altogether.

Luxury works

Here we enter the territory of works intended exclusively for embellishment or convenience: a swimming pool with a whirlpool, a communal sauna, the creation of an ornamental garden with a fountain. Such works can generate substantial costs, sometimes in the order of CHF 50'000 or more, and not all co-owners are willing or able to bear them.

For luxury works, Art. 647e CC requires the consent of all co-owners (unanimity). The legislator has, however, provided a flexibility mechanism: if the meeting resolves by qualified majority, the works may still be carried out, provided that the dissenting co-owners are not required to bear the costs. In this way, condominium law seeks to balance the democratic will of the meeting with the protection of minority co-owners.

Why the classification of the works is decisive

In practice, disputes between co-owners often arise precisely from the classification of a particular intervention. Is an energy renovation a necessary or a useful work? Does the modernisation of the entrance hall fall under useful or luxury works? The answer is not always obvious, and an incorrect classification can lead to the annulment of the meeting's resolution.

Hugo Haab and Roberto Haab regularly assist co-owners and property management companies in handling these situations. Seeking legal advice in advance allows the resolution to be properly framed, thus avoiding subsequent challenges and delays in carrying out the works.

Do you have questions about your condominium?

If your condominium is considering construction works and you are unsure about the correct procedure, or if you believe that a resolution of the owners' meeting was not passed in compliance with the majorities prescribed by law, Haab Legal in Lugano is at your disposal for a targeted consultation. You may contact us by telephone or by e-mail to arrange an appointment.

For a personal consultation: info@haablegal.ch | +41 91 913 30 70