Lawyers
How do you register a shared house and why is it really important?
Condominium registration is a legal procedure (very bureaucratic) that is a significant condition for the recognition of a building as a condominium. Registration regulates the division of the common areas among the owners of the property.
By Igal Mor, Adv. & Notary
Accuracy in Legal Advice. Excellence in legal support.
"Shared house" - what is it?
In accordance with section 52 of the Land Law, 1969, the definitions section, “a condominium” refers to a house that has two or more apartments and is registered with the condominium register. Two-family houses can be included in the condominium register if all the owners consent. Although the apartments in the condominium and the parts listed as apartments are owned separately, other areas of the building have joint ownership (such as the lobby of the building, the shelter, the stairwells, exterior walls, etc).
What is the process for registering a condominium with the condominium register?
The purpose of registering a condominium in the register of condominiums is to ensure a clear division of benefits between the owners of private and public property. Upon completion of the process, all owners of apartments in one area will own all properties in the area Therefore, it is imperative that the shared house be registered as soon as possible.
Delaying (or worse, avoiding) the registration of a building as a condominium can cause financial and other damage to apartment owners who are not registered with the Land Registry. As the condominium is a necessary step for registering ownership of an apartment in the Tabu, the buyer already has a contractual right to the apartment before its registration. In this context, it is important to note that registering a warning note is not a solution, since the letter can do nothing to protect the property rights of apartment purchasers.
Moreover, in many instances, the registration of a condominium is sometimes necessary in order to obtain a mortgage from the bank, and its delay may discourage potential buyers in cases where the apartment owner wishes to sell it. It was noted in the judgment in Yehuda Sinai Investments Ltd v. Fishel under AA 532/83 that: A potential buyer may be discouraged by a real estate transaction that has not been registered in the seller’s name for so long. This may cause the buyer to fear that the seller’s rights have been compromised, and he may stop being interested in the apartment without researching the reason for the delay.”
Moreover, the failure to register the building in the condominium register, contrary to the requirement to do so, may also result in damage to buyers of second-hand apartments. In other words, those who have purchased an apartment from a seller who has not yet registered as the owner of the property. In the case TA 42781-01-12 Lazarev et al. v. Neot Hadassah Vizom Ltd., the court noted that As a result of the lack of registration of a condominium, not only are the people who purchased apartments from the defendant directly impacted, but also those who purchased apartments from the defendant’s apartment buyers impacted…. In registering the house as a condominium, ownership rights are registered, and they apply to all Alma residents. Hence, the substantial delay in registration. The shared house caused damage even to people who did not directly enter into a contract with the defendant.”
Who is responsible for registering the shared house?
According to the Sale (Apartments) Law, 1973 – 1973 and the terms of the sale agreement, the developer must register the building as a condominium. According to Section 6B(2) of the Sales Law (Apartments), whoever sells an apartment in a house that must be registered in the register of condominiumsmust register the house within one year following the date of registration in the land registers of the division and consolidation of the aforementioned land or the date of placing the apartment at the disposal of the buyer, whichever occurs later.
Previously, it was stated that damages could result from a delay in the registration of a condominium by the developer. Israel’s courts have previously awarded compensation to new apartment purchasers or second-hand apartment purchasers, who were unable to register the condominium on the due date, following the developers’ failure to comply with the registration requirement.
How does the condominium registration process work?
Registration of condominiums involves several steps and requires the applicant to prepare numerous documents. Applicants must complete a condominium registration application form, which can be found on the website of the Authority for Registration and Settlement of Rights in Real Estate, and attach, among other things, the following documents:
- Drawings depicting the building and its apartments prepared by a professional (an architect, a licensed surveyor, an engineer, etc.). In addition, a local planning and construction committee must approve the plan, and if there is a planning note recorded on the lot, the planning institution must approve the plan as well.
- House regulations that have been agreed upon by apartment owners themselves or those contained in the first appendix to the Land Law. All apartment owners must sign the regulations.
- A written confirmation of the apartment owners’ “temporary representation.”
- Registration order for a shared house that contains all the apartment details.
- An agreement signed by the apartment owners that confirms their knowledge and consent to begin the condominium registration process.
In regard to the registration order for a shared house:
In the condominium registration order, the following information is listed:
- The number of the plot and block on the house plan
- Regulations agreed upon (in cases where the apartment owners have drawn up an agreement regarding the management of the shared house) or, alternatively, the apartment owners have adopted the existing regulations (the legal default).
- Condominium number of apartments / units
- The total area of each apartment / unit (net) in square meters
- A number indicating the number of the apartment’s sub-plot (sub-plot)
- The number of the subplot (subplot) of the common property
- A portion of the common property adjacent to each apartment or unit
- As the term implies, “attachments” are areas that are removed from the common property and attached to apartments (if such are available).
- A list of the owners who have ownership rights to the apartments
It is also important to note that in order to submit an application for the registration of a condominium, the fee “Application for the registration of a house in the register of condominiums” must be paid using a postal voucher, on the website of the government payment service on the Internet, or at the payment stations at the Taboo office.
Moreover, it is necessary to note that in order to submit an application for registration of a condominium, a fee "Application for registration of a house in the register of condominiums" must be paid online, at the Taboo office's payment stations, or by postal voucher.
The registration of a condominium must be amended in the following situations:
A registration error has occurred
Construction changes have been made / additional construction is being undertaken
Structure changes are being made
Demolition has been done
In cases in which the building owners request that the condominium registration be canceled, all apartment owners must consent, and only then can the inspector cancel the registration.
Correcting the registration of a condominium is governed by section 145 of the Land Law and requires the involvement of a lawyer. Similarly to registering a condominium, a request to amend a condominium registration also requires the applicant to prepare several documents in accordance with the requested change.
In Conclusion
As you can see, condominium registration is a complex and bureaucratic process that involves contacting numerous parties during the registration process in order to secure ownership rights in real estate.
There are times when the registration of a condominium is done without all tenants’ consent or with objection, and some times when the registration is a legal solution to a dissolution of a partnership in real estate (dissolution of a partnership through the registration of a condominium). You should at least have a partner. Thus, you can avoid mistakes in the submission of documents and delays in the application process, and save valuable time and money.
