Guide to Registering a Joint Property in a New Building from a Contractor

What is Joint Property Registration and Why is it Important?

Registration of a joint property in a new building from a contractor is a vital legal process that defines the governance structure of the building, the rights and obligations of each resident, and the management of shared assets. When you purchase an apartment in a new building, you are not just buying the apartment itself — you become a partner in a shared property that includes stairwells, elevators, roofs, exterior walls, commercial units, and shared parking spaces. All of these require proper management, planned shared expenses, and clear rules.

In Israel, joint property registration is carried out at the office of the Israel Land Authority (ILA) and is represented by a Joint Property Order and Joint Property Regulations. The Order is the legal document that grants the building official legal status, while the Regulations detail the rules, rights, and obligations of each resident.

For new residents in a new building from a contractor, understanding this process and your rights within it is critical — to protect your investment, avoid unexpected costs, and ensure that the building is managed properly and under legal oversight.

Stages of the Joint Property Registration Process in a New Building

Stage 1: Preparation of Foundation Documents

Before the building can be registered as a joint property, legal and construction documents must be prepared. These include approved building plans, a certificate of construction completion from local authorities, a list of residential units (apartments, commercial units, parking spaces), and details of the project's financing. In new contractor buildings, the contractor or developer is usually responsible for collecting these documents in collaboration with an architect and engineering firm.

Stage 2: Preparation of Joint Property Regulations

The Regulations are the internal law of the building. They regulate how the building is managed, how decisions are made, what the rights of each resident are, what their obligations are, and how shared expenses are divided. In new buildings, the Regulations are typically prepared by the developer or contractor under the guidance of an attorney. It is important that new residents carefully review the Regulations — they determine, for example, whether residents pay for roof maintenance, how decisions are made regarding elevator replacement, and what happens if residents do not pay shared expenses.

Stage 3: Filing an Application for Registration with the ILA

When all documents are prepared, a formal application must be filed with the Israel Land Authority (ILA) for joint property registration. The application includes the Order, the Regulations, building plans, and engineering reports. In this process, the ILA examines all documents to ensure they comply with legal regulations.

Stage 4: ILA Approval and Issuance of Joint Property Order

After review, if all documents are in order, the ILA issues an official Joint Property Order. This Order is the legal document that grants the building official status as a "joint property" in the eyes of the law. The Order is registered in the Land Registry (the state register of land and buildings in Israel) and serves as legal evidence of the rights and obligations of each resident.

Stage 5: Establishment of a Management Body and Ongoing Management

After registration of the joint property, a management body (management committee) must be established, which is responsible for the day-to-day management of the building. The management body is responsible for collecting shared expenses, maintenance, building insurance, and making decisions regarding shared assets. In new buildings, during the first year the contractor or developer sometimes fulfills this role, but afterwards residents elect their own representatives.

Joint Building Order: What Is It and What Does It Contain?

A joint building order is the official legal document that grants a building the legal status of a "joint building" under Israeli law. The order is used by the Registrar of Buildings and is registered in the Land Registry (Taboo), meaning it is part of the official property registration.

The order contains critical information such as:

• Building identification: Address, land registry number, land area, number of residential units and shops.
• Division of units: A detailed list of each apartment, shop, parking space and common area, with its size and proportional share in the joint property.
• Rights and obligations: The order establishes that each resident owns their own unit (apartment) and holds a share in common property (stairs, elevator, roof, etc.).
• Common expenses: The order details how common expenses are divided among residents — usually on the basis of "proportional share" (that is, a larger apartment pays more than a smaller one).
• Management rules: The order refers to the joint building bylaws, which detail the specific management rules.

In new buildings from contractors, the order is typically prepared by the developer or contractor in consultation with an expert attorney, and then submitted to the Registrar of Buildings for approval. It is important that new residents receive a copy of the order and review it — it establishes your legal rights in the building.

Joint Building Bylaws: The Internal Rules of the Building

Joint building bylaws are a legal document that defines the internal rules of the building — how it is managed, what is permitted and what is forbidden, how decisions are made, and how common expenses are divided.

The bylaws typically include sections on:

• Residents' rights: The right to use your apartment, parking space, common areas (stairs, elevators, etc.).
• Residents' obligations: Payment of common expenses on time, maintenance of cleanliness in common areas, prevention of damage, maintenance of quiet.
• Common expenses: A list of expenses that each resident pays for (electricity for common areas, maintenance, cleaning, insurance, building manager salary, etc.).
• Decision-making process: How important decisions are made — whether by a vote of all residents, or only by the management body?
• Building management: Roles of the management body, how a building manager is chosen, what his authorities are.
• Repairs and improvements: How decisions are made on major repairs or improvements (for example, elevator replacement), and who pays for them.
• Sanctions: What happens if a resident does not pay common expenses or violates the rules.

In new buildings, the bylaws are typically prepared by the developer or contractor under the guidance of an attorney, and it is important that new residents receive a copy and review it carefully before signing the apartment purchase agreement. The bylaws establish the rules under which you will live for many years, so a good understanding of them is critical.

Comparison Table: Joint Building Registration Stages and Division of Responsibilities

Note: The above timeframes are typical and may vary depending on project complexity, number of TAMI comments, and document availability. For large or complex buildings, the process may take longer.

Rights and Obligations of Residents in a Multi-Unit Building

Primary Rights of Residents

Every resident in a multi-unit building is entitled to clear legal rights, as defined in the Condominium Order and Bylaws:

• Right of Ownership of the Unit: You are the full owner of your apartment and are entitled to rent it, sell it, or leave it as an inheritance.
• Right to a Share in Common Property: You own a share in the common property of the building (stairwells, elevators, roofs, external walls, shared shops, and common parking areas). Your share is defined in the Condominium Order.
• Right to Use Common Areas: You are entitled to use the common areas of the building in accordance with the Bylaws (stairwells, elevators, common parking, etc.).
• Right to Participate in Decisions: You are entitled to participate in votes on important decisions of the management body (for example, regarding elevator replacement, major improvements, or selection of a building manager).
• Right to Financial Reports: You are entitled to request transparent financial reports from the management body and learn how the building's funds are managed.
• Right to Remedy Issues: If the management body does not properly maintain the building, or if there is damage to common property, you are entitled to file a legal claim.

Primary Obligations of Residents

Just as there are rights, there are also legal obligations that every resident must fulfill:

• Payment of Common Expenses: You must pay your share of common expenses on time, as determined in the Bylaws. If you do not pay, the management body can file a legal claim against you.
• Maintenance of the Unit: You must maintain your apartment and refrain from causing damage to common property (for example, do not damage external walls or throw garbage out the window).
• Maintenance of Quiet and Order: You must maintain quiet during evening and night hours and not disturb neighbors. The Bylaws typically establish specific quiet hours.
• Maintenance of Cleanliness in Common Areas: You must maintain cleanliness in common areas (stairwells, elevators, etc.) and not leave garbage or objects in these areas.
• Compliance with Bylaws Rules: You must comply with the rules set out in the Bylaws — for example, if the Bylaws prohibit pets, you cannot keep a pet.
• Approval for Improvements: If you wish to make improvements or repairs to your apartment, you generally need to obtain approval from the management body to ensure that you do not cause damage to common property.

Common Risks and How to Protect Yourself

When purchasing an apartment in a new building from a developer, it is important to be aware of potential legal and financial risks:

Risk: High or Unexpected Common Expenses

Recently, in new buildings, common expenses sometimes increase unexpectedly — for example, due to urgent repairs (elevator failure) or due to underestimation of expenses initially. It is important to check the expected common expenses in the Bylaws and ask the building manager or management body about historical expenses if the building has existed for some time.

Risk: Disputes with Other Residents

Disputes between residents (for example, regarding noise, damage to common property, or division of expenses) are common in multi-unit buildings. If there is a dispute, you can attempt a bilateral resolution, but sometimes you need to file a legal claim. It is important to understand your legal rights in such circumstances.

Risk: Poor Building Management

If the management body does not manage the building properly (for example, if the elevator is not maintained, or if funds appear to be missing), this could lead to damage to the common property and a decrease in the value of your apartment. It is important to monitor the building's management and pressure the management body to maintain a high standard of maintenance.

Risk: Non-Compliance with Legal Obligations

If you do not pay common expenses on time, or if you violate the Bylaws (for example, due to noise or damage to common property), the management body can file a legal claim against you. In extreme circumstances, this could lead to foreclosure or forced sale of your apartment.

How Mandelboim, Gor, Witzman-Gor & Co. Can Help You

Our firm has specialized in real estate law and condominium law in Israel since 2008. If you are purchasing an apartment in a new building from a contractor, or if you have questions or disputes regarding condominium registration, common expenses, or rights in a shared building, we are here to help.

Our services include:

• Legal review of charter and bylaws: Before purchase, we can thoroughly review the charter and bylaws to ensure they are fair and protect your rights.
• Advice regarding rights and obligations: We will clearly explain what your rights are in a shared building and what your obligations are as residents.
• Representation in disputes: If you have a dispute with the management body or other residents, we can represent you in legal resolution.
• Legal claims: If you need to file a claim regarding common expenses, mismanagement, or breach of bylaws, we can represent you in court.
• Advice regarding sale or purchase: If you are selling or buying an apartment in a shared building, we can provide legal advice to ensure the transaction is secure and proper.

We believe in a personal and dedicated approach to each client. Our firm is small and close-knit, and we speak with each client on a personal basis to understand their needs and provide accurate and focused legal advice.

Free initial consultation meeting. If you have questions or concerns regarding condominium registration, condominium charter, bylaws, or rights in a shared building, we invite you to a free initial consultation meeting. At this meeting, we will hear the details of your situation, explain your legal rights, and provide you with a clear legal plan for resolution.