Who is liable in Swiss condominium ownership if a co-owner does not pay his shares in the service charges?

Liability in case of payment default

In condominium ownership, the assets of the Community are primarily liable for unpaid invoices to third parties. If this is not sufficient, the remaining co-owners must initially advance the shortfalls in accordance with their value ratio. However, in order to protect the community, the Civil Code (ZGB) provides for strong security instruments: The Community can register a legal lien on the share of the defaulting owner and thus secure its claims through foreclosure if necessary.

The liquidity trap: When the Community steps forward

If an owner does not pay his contributions, there is primarily a liquidity problem for the entire condominium owner community. Since contracts for electricity, water or insurance are usually concluded on behalf of the Community, this remains an obligation vis-à-vis service providers. In such a case, the administrator must ensure that the bills are paid, for example to prevent the heating from being switched off. This often means that the reserves are attacked or that the other owners are asked to pay a special contribution.

Although this temporary liability on the part of the co-owners is annoying, it is often the only legal way to maintain the operation of the property. This is a type of internal solidarity enforced by law. In the long term, the defaulting payer will of course remain liable to pay compensation to the Community, including interest on arrears and collection costs. However, this shows the downside of joint ownership: The insolvency of an individual becomes the burden of the group in the short term.

The legal lien as the sharpest weapon

Swiss law provides a powerful tool to prevent the community from permanently paying the costs: the statutory mortgage in accordance with Art. 712i ZGB. The Community has the right to register a lien in the land register for contributions due in the last three years. This happens on the specific share of the person who did not pay. This secures the Community's claim in rem, which means that it will be served as a matter of priority if the apartment is sold at a later date.

This tool is particularly effective in 2026, as it massively increases the pressure on the defaulting owner. Registration may even be ordered by the court superprovisionally, i.e. without prior hearing from the debtor, if there is imminent danger. Should the owner still not pay, the community can finally initiate the deposit recovery. At the end of this process, the apartment is auctioned off, from the proceeds of which the outstanding service charges, including all procedural costs, are settled.

The right of retention of movable property

In addition to the lien on the property itself, the community has a right of retention in accordance with Art. 712k ZGB. This allows the Community to retain movable property located in the defaulting owner's premises and part of their installation or use. In modern practice in 2026, although this right is used less frequently than the real estate lien, it offers additional security for rented units or when it is necessary to press quickly.

The retention right works in a similar way to the landlord's lien. It extends to furniture and furnishings that are in the apartment. The administrator can have a retention register drawn up with the assistance of the debt collection office. This is a clear signal to the debtor that the Community is prepared to pull out all legal registers. The threat of this measure is often enough to obtain a payment agreement or a partial payment.

The role of the manager and operation

The administrator plays a central role in payment defaults and has a high level of responsibility. He is required by law to protect the interests of the community and to claim the contributions due. If the administrator fails to take legal action in good time, such as debt collection or file a lien, he may be held liable to the community. Proactivity is the top priority here in order to minimize financial damage to the remaining owners.

In 2026, many administrations are using automated reminder systems that take effect after the first missed payment. If reminders remain fruitless, the route will invariably lead to the debt collection office. Initiation of debt collection or pledge recovery is the necessary formal step to officially establish the claim. It is essential for the community that such processes are carried out consistently in order to send a signal of discipline to all co-owners and to secure liquidity in the long term.

Conclusion: Protection through consistent action

Who is liable if a co-owner does not pay? In the short term, the community often through advance payments, but in the long term, the defaulting owner with all his assets and, above all, with his share of real estate. Swiss condominium law offers robust mechanisms to protect honest payers from financial ruin by neighbors.

In summary, the risk of total default is relatively low thanks to the legal lien, provided that the community and the administrator react quickly. Thorough owner due diligence also includes knowledge of these emergency legal anchors. A healthy community is characterized by the fact that it has clear rules for dealing with arrears and applies them without false shyness in an emergency in order to guarantee the value and solvency of the entire property.

glossary

• condominium ownership: A special form of joint ownership of a plot of land in which the owner enjoys special rights to certain parts of a building.
• Value ratio: A value expressed in fractions (usually thousandths), which determines the individual owner's share of the total value of the property and his share of costs.
• Renewal fund: A Community savings account for future major repairs, which, however, may only be used to a limited extent for ongoing loss of service charges.
• Statutory lien: A Community priority right entered in the land register to secure outstanding contribution claims from the last three years.
• Retention law: The Community's right to retain movable property in the debtor's apartment as security for outstanding claims.
• operation: The official Swiss procedure for foreclosure of monetary claims via the state debt collection office.
• custodians: The person or company elected by the owners' meeting who is responsible for the management and financial administration of the property.