Attached Storage vs. Common Storage – A Complete Legal Guide

Introduction: Why the Difference Between Attached Storage and Common Storage Matters

When you purchase an apartment in an urban renewal project (TAMA 38) or an apartment in a shared residential building, one of the important legal decisions is the type of storage allocated to you — attached storage or common storage. This decision affects your rights, your obligations toward the shared building, the value of your property, your percentage share in the building's assets, and the monthly maintenance expenses you will pay.

Many tenants and purchasers are unaware that the type of storage determines not only physical convenience, but also your legal status in the shared building and your financial obligations. At Mandelbaum, Gaur, Witzman-Gaur and Partners, with over 18 years of experience in real estate law, TAMA 38, and urban renewal, we assist tenants and purchasers in understanding these legal nuances and protecting their rights.

What is Attached Storage and How is it Legally Defined

Attached storage is a storage space directly connected to your apartment — typically located on your floor, at the front of the building, or in a space adjacent to your apartment entrance. From a legal perspective, attached storage is considered part of the apartment itself. That is, when you purchase an apartment with attached storage, the storage is registered in the land registry (property registry) as an integral part of your property, with defined area and direct or nearly direct access.

Your rights regarding attached storage:

• Full ownership: You are the sole owner of the storage. You can rent it out, lend it, use it freely for storing personal items, and without requiring consent from other tenants or the building committee.
• Land registry registration: The storage is registered on your apartment's land registry page as part of the property. This increases the apartment's value and grants you full legal security.
• Capital gains tax and acquisition tax: When you sell the apartment, the storage is included in the calculation of capital gains tax and the new buyer's acquisition tax.
• Percentage share: Attached storage typically does not affect your percentage share in the shared building's assets, as it is considered part of the apartment and not part of the common property.

What is Common Storage and How is it Legally Defined

Common storage is a storage space shared by several tenants or all building residents. It is typically located in a parking area, common ground floor, or shared storage room in the building. From a legal perspective, common storage is considered part of the shared building's assets, not private ownership.

Your rights regarding common storage:

• Right of use only: You are entitled to use part of the common storage in accordance with the allocation set forth in the building's charter or by committee decision, but you do not own it. Your right is a limited right of use.
• No land registry registration: Common storage is not registered on your apartment's land registry page as private property. It is registered as part of the shared building's assets.
• Common expenses: Maintenance, insurance, and other expenses of common storage are divided among all residents according to their percentage share in the building's assets.
• Collective decisions: Changes, repairs, or improvements to common storage require approval from the committee or a majority of residents.
• Impact on property value: Common storage may affect your percentage share in the building's assets, depending on the allocation method set forth in the building's charter.

Key Differences: Comparison Table

To clarify the differences between the two types of storage units, here is a detailed comparison:

Rights and Obligations as a Resident: Private Storage Unit

When you own a private storage unit, you have broad rights but also certain obligations:

• Right to Free Use: You can use the storage unit for any lawful purpose — storing personal items, tools, furniture, and the like. There are no restrictions from the common property as long as you do not disturb neighbors.
• Right to Lease or Sell: You can lease the storage unit to other residents or third parties, or sell it separately from the apartment (subject to certain legal conditions).
• Responsibility for Maintenance: You are responsible for maintenance, repairs, and insurance of your storage unit. You cannot impose these responsibilities on the common property.
• Obligation to Avoid Damage: You must refrain from causing damage to the storage unit, neighbors, or building property. If you cause damage, you may be sued by the building or other residents.
• Cooperation with the Committee: Although the storage unit is yours, you must comply with building regulations and committee decisions regarding the use of common spaces (such as stairways, corridors, etc.).

Rights and Obligations as a Resident: Common Storage Unit

When you use a common storage unit, your rights and obligations differ significantly:

• Limited Right of Use: You are entitled to use a portion of the common storage unit in accordance with the allocation specified in the building's regulations or the committee's decision. Your right is limited to the area allocated to you alone.
• Obligation to Share Costs: You must share the maintenance, insurance, and repair costs of the common storage unit in accordance with your relative share percentage of the building's common property. These costs are added to your monthly management fee payment.
• Obligation to Comply with Regulations: You must comply with the usage rules established by the committee or the building regulations. For example, you cannot use the storage unit for storing hazardous materials, operating noisy machinery, or for commercial purposes (unless permitted by the building regulations).
• No Right to Sell or Lease: You cannot lease or sell the storage unit separately from your apartment, as it is common property.
• Obligation to Participate in Decisions: You may (and in certain cases, must) participate in decisions concerning improvements, repairs, or modifications to the common storage unit.

Warehouse Registration in the Land Registry: Legal Process

Warehouse registration in the land registry is a critical step in the apartment purchase process. The registration determines its legal status and your rights over it.

Registration of Attached Warehouse in the Land Registry

When you purchase an apartment with an attached warehouse, the warehouse must be registered in the land registry as part of the apartment. This means that on your apartment's land registry page, a description of the warehouse will appear — its dimensions, location, and physical description. This registration is essential to prove your ownership of it.

In the process of purchasing an apartment with an attached warehouse, the seller (or the developer in a Tama 38 project) must transfer you documents proving that the warehouse is registered as part of the apartment. If the registration is not done properly, you may be sued in the future regarding warehouse rights. At Mandelbaum Law Office, we examine all land registry registrations to ensure your warehouse is registered properly.

Registration of Shared Warehouse in the Land Registry

A shared warehouse is not registered in your apartment's land registry as personal property. Instead, it is registered as part of the common property of the building in the general building registry. This registration clarifies that the warehouse is shared and that all building residents are entitled to use it according to the division established.

In the process of purchasing an apartment with a shared warehouse, you must receive a copy of the building regulations document, which details the division of the shared warehouse among residents. This is essential to understand your actual rights.

Tama 38 and Urban Renewal: Impact on Warehouse Selection

In Tama 38 projects (urban renewal), the choice between an attached warehouse and a shared warehouse plays an important role in the purchase process. Developers and inspectors in these projects often decide on the type of warehouse based on building planning, construction costs, and resident requirements.

Under Tama 38 law, there are special rules regarding shared warehouse property and its division among residents. This is particularly important when an existing building undergoes renewal and new residents join existing ones. The building committee must decide on the division of shared warehouses fairly, in accordance with the division of apartments and areas.

At Mandelbaum Law Office, we help residents in Tama 38 projects understand and protect their rights against developers or building committees attempting to impose unfair conditions regarding shared warehouses.

Legal Disputes Regarding Warehouses: Common Scenarios

Disputes regarding warehouses are common in shared buildings. Here are some scenarios we frequently address:

• Removal of usage rights: Residents attempt to remove other residents' usage rights from the shared warehouse due to non-payment of management fees. This requires legal proceedings.
• Unfair division of expenses: Residents dispute the division of maintenance costs for the shared warehouse. If you are paying too much, you can sue the building or the committee.
• Unauthorized use: Residents use the shared warehouse for prohibited purposes (for example, storage for a business), or store hazardous materials. This can lead to disputes between residents.
• Damage to warehouse: Residents cause damage to the shared warehouse and refuse to pay for repairs. This can lead to a damages claim.
• Change in warehouse division: The committee decides to change the division of shared warehouses, which may reduce the rights of certain residents. This may lead to lawsuits against the committee.

How Mendelbaum, Gor, Witzman-Gor & Co. Assists with Storage Unit Matters

Mendelbaum, Gor, Witzman-Gor & Co., with over 18 years of experience in real estate law, TAMA 38 regulations, and urban renewal, assists tenants and buyers at every stage of the apartment purchase process or in disputes related to storage units.

Our Storage Unit Services:

• Legal Document Review: We examine the building specifications, purchase agreement, and land registry records to ensure the storage unit type is clearly defined and legally valid. We identify potential issues before you sign a contract.
• Consultation on Choosing Between Attached and Shared Storage Units: We help you understand the advantages and disadvantages of each storage unit type according to your specific circumstances, so you can make an informed decision.
• Representation in Disputes: If you are involved in a dispute with the condominium association, other tenants, or a developer regarding a storage unit, we represent you in legal proceedings and negotiations.
• Land Registry Record Corrections: If there is a problem with the storage unit registration in the land registry, we help correct it as soon as possible.
• TAMA 38 Consultation: In renovation projects, we help tenants understand their rights regarding shared and new storage units, and protect them against developers or building committees.

We believe in a personal and dedicated approach to every client. Each case is unique and requires a thorough examination of your specific circumstances. At Mendelbaum Law Office, we dedicate time to understanding your situation, explaining your rights, and helping you protect them.

Why It Is Important to Consult with an Attorney Regarding Storage Units

Purchasing an apartment or dealing with disputes regarding storage units can be legally complex. If you are not careful, you may lose important rights, pay unnecessary expenses, or face lawsuits in the future. Consulting with an experienced real estate attorney can save you time, money, and legal complications.

At Mendelbaum Law Office, we offer a free initial consultation so you can understand the matter and receive professional legal advice. We are located in Ramat Gan and are open to phone and Zoom consultations with clients throughout Israel.