What is a Shared Building in Petah Tikva?

Legal Definition of a Shared Building

A shared building is a structure containing more than one residential unit, where each apartment or housing unit serves as a residence or other use, and common areas exist that serve all residents — such as staircases, entrance, courtyard, roof, electrical and water systems, parking, and gardens. In Israel, a shared building is defined under the Shared Buildings Law and its regulations, and is subject to the supervision of the Land Registry and Taboo Authority.

In Petah Tikva, as in every city in Israel, a shared building must be registered in the Taboo (land registry) under the name of a mortgage company or the residents constituting the managing body. This registration is essential for legal protection of residents' rights and obligations related to maintenance and management.

What is the Difference Between a Shared Building and a Private House?

In a private house, a single owner is responsible for all expenses and maintenance. In a shared building, this responsibility is divided among all residents, typically according to the percentage of ownership (share) in the property. Each resident in a shared building holds ownership rights in their portion of the building and also in their share of the common areas. Maintenance expenses, insurance, lighting, cleaning, and upkeep of shared facilities are divided among all residents according to their ownership share.

When is a Shared Building Created?

A shared building is typically created when someone constructs a building with multiple residential units. Recently, shared buildings are also being established as part of urban renewal projects in Petah Tikva, where old houses are replaced by new buildings with multiple apartments. In any case, the building must be registered in the Taboo as a "shared building" to be legal and lawful.

Legal Structure and Management of a Shared Building in Petah Tikva

A shared building is managed by a legal entity called a "Housing Company" or "Residents' Committee" (depending on the type of land registry registration). The Housing Company is the body responsible for managing the common areas, collecting maintenance fees, performing repairs, insuring the building, and operating shared systems.

Rights of Residents in a Shared Building

• Right of Ownership in Their Apartment: Each resident has ownership rights to their private apartment and may sell, rent, or bequeath their apartment.
• Right to Common Areas: Each resident owns a proportional share in the common areas of the building (stairways, entrance, roof, etc.), according to their ownership percentage.
• Right to Participate in Decisions: Residents are entitled to participate in voting on important decisions regarding maintenance, repairs, alterations, or significant expenses.
• Right to Information on Expenses: Each resident is entitled to receive transparent information about maintenance costs, insurance, and any other expenses arising from building management.
• Right to Repair and Maintenance: The Housing Company (or Residents' Committee) is required to perform regular maintenance of the common areas to keep the building in good condition.

Obligations of Residents in a Shared Building

• Payment of Maintenance Fees: Each resident must pay their proportional share of maintenance, insurance, and building operating expenses, typically based on their ownership percentage.
• Compliance with Building Regulations: Each resident must adhere to the shared building regulations, which may include restrictions on noise, use of common areas, parking, and apartment maintenance.
• Notification of Changes: A resident making significant alterations to their apartment (such as changes to electrical or water systems) must notify the Housing Company or the Residents' Committee.
• Preservation of the Property: Each resident is responsible for maintaining their apartment in good condition to prevent damage to common areas or harm to other residents.

Registration Process for Condominium in the Land Registry

Registration of a condominium in the Land Registry is a critical step that creates official legal state authorization for the existence of the building as a condominium. In Petah Tikva, as elsewhere in Israel, this registration is conducted at the Land Registry Office (usually at the central office in Tel Aviv or at a local branch).

Registration Steps

1. Document Preparation: An approved construction plan, building completion certificate, ownership documents, and an application form for condominium registration must be prepared.
2. Submission of Registration Application: The documents are submitted to the Land Registry Office, typically by an attorney or authorized real estate agent.
3. Legal Review: The Land Registry Office examines the documents and verifies that all legal requirements are met.
4. Land Registry Publication: Following approval, the condominium is registered in the Land Registry, and each tenant receives a Land Registry extract indicating their ownership percentage in the common areas.
5. Establishment of Management Company: Following registration, a management company or residents' committee exists and is managed by tenants or their representatives.

Why is Land Registry Registration Important?

Land Registry registration provides legal proof of the distribution of ownership in a condominium. It protects the rights of each tenant, enables sale or lease of the apartment, and clearly establishes each tenant's ownership percentage in the common areas. Without this registration, legal disputes may arise regarding ownership rights and allocation of expenses.

Frequently Asked Questions About Shared Housing in Petah Tikva

How much does it cost to register a shared house?

Registration costs include land registry fees, legal costs if an attorney is required, and commissions if agents or brokers are involved. Government fees vary according to the property value but typically amount to several hundred shekels. Legal costs depend on the complexity of the case; however, our office offers a free initial consultation to assess the expenses in your project.

Am I required to pay maintenance fees in a shared house?

Yes, every resident in a shared house must pay their proportional share of maintenance fees. These fees are used for maintenance of common areas (stairs, entrance, parking), building insurance, lighting, and waste management. Maintenance fees are typically divided according to each resident's percentage of ownership in the common areas. If a resident fails to pay, they may accumulate interest and linkage charges, and the managing company may file a legal claim.

What can I do if other residents do not pay maintenance fees?

If other residents fail to pay maintenance fees, it affects all residents as additional expenses are distributed among everyone. The first step is to notify the residents' committee or the managing company. If the problem persists, you can file a legal claim against the resident in debt. Our office can assist you in this process.

Can I sell my apartment in a shared house?

Yes, you can sell your apartment in a shared house just like any other property. However, you must ensure that all your maintenance fees are paid and that the current apartment owner does not owe any amount to the managing company. When you sell, the new apartment owner will inherit all tenant rights and obligations, including the obligation to pay future maintenance fees.

What is a shared house bylaw?

A shared house bylaw is a legal document that defines the rules and regulations for managing the house, residents' rights and obligations, use of common areas, parking, storage, and all other matters related to living in the building. The bylaw is typically established when the shared house is created and is registered with the land registry. Every resident must comply with the bylaw, and any violation may result in penalties or legal claims.

What is a residents' committee and how is it elected?

A residents' committee is a body elected by residents to manage the shared house. The committee is responsible for collecting maintenance fees, performing repairs, making decisions on significant expenses, and contracting with contractors and suppliers. The committee typically includes a chairperson, treasurer, and additional members. Elections are held by voting among residents, usually once a year or every two years.

Can I make changes to my apartment in a shared house?

You can make internal changes to your apartment, but modifications that affect the building's structure or shared systems (such as electricity or water) require prior approval from the residents' committee or the managing company. Such changes may affect other residents, therefore legal authorization is required. If you make changes without approval, you may be required to restore them or pay compensation.

What are additional management fees or one-time costs in a shared house?

Sometimes, the managing company or residents' committee needs to raise maintenance fees or collect one-time costs to cover major repairs, renovations, or replacement of systems (such as a new roof or electrical system). These costs are distributed among all residents according to their ownership percentage. Before collecting additional costs, there is typically a vote among residents. If you believe the costs are unjustified, you can challenge them in court.

What happens if a shared house wants to undergo urban renewal?

In Petah Tikva, older shared houses may be candidates for urban renewal projects (Tama 38 or evacuation-reconstruction). In this process, the old building is replaced with a new building containing more apartments. Existing residents are entitled to a new apartment in the new building, typically of similar or larger size. The process involves complex legal agreements, laws, and contracts. Our office guides residents through these processes to protect their rights.