Shared Building Registration — Complete Legal Guide to Steps and Documents

What is Shared Building Registration and How Does It Affect Your Rights?

Shared building registration is a vital legal process designed to establish a clear legal structure for ownership of apartments and apportionment of shared spaces in multi-unit construction. It is not merely a bureaucratic formality, but rather a critical step that protects your rights as a homeowner, regulates maintenance responsibilities and shared expenses, and grants you the legal right to freely conduct business with your property.

When construction is completed and residential units are sold, buyers and sellers must ensure that the apartment is registered as part of a legally valid "shared building." Without this registration, serious legal issues can arise: doubts regarding ownership rights, lack of clarity in apportionment of maintenance costs, disputes between residents, and negative impact on future sale or mortgage of the property.

Mandelboim, Gor, Witzman-Gor and Associates, Attorneys at Law, represents apartment owners, contractors and developers throughout the complete registration process from beginning to end. With over 18 years of experience in real estate and property law representation, we guide you through every step, from preparation of the shared building order through final registration with the Land Registry and the Registration Office.

Why is Shared Building Registration Important to You as an Apartment Owner or Buyer?

• Legal Protection — Proper registration grants you legal ownership rights to your apartment and a share in common spaces (stairwell, roof, courtyard, shared storage, etc.).
• Clarity in Cost Apportionment — A shared building bylaw clearly establishes each resident's responsibility for maintenance, insurance, committee fees and management of shared property.
• Prevented Disputes — A clear legal structure reduces disputes between residents and enables routine resolution of issues.
• Future Sale and Financing — A potential buyer of your apartment will check the registration status; proper registration increases property value and facilitates bank mortgage.
• Property Insurance — Insurance companies often require proof of shared building registration as a prerequisite for a homeowners insurance claim.

Steps for Registering a Condominium — A Step-by-Step Guide

The process of registering a condominium is divided into clear stages, each with important legal and bureaucratic significance. Below is a detailed description of each stage, the statutory requirements, and your role as an apartment owner or contractor.

Stage 1: Preparation of Building Plans and Condominium Regulations

First and foremost, an accurate building plan and condominium regulations must be prepared. These regulations serve as the "constitution" of the building — a legal document that defines the rights and obligations of each resident, the structure of the committee, the decision-making process, the division of shared expenses, and the procedures for handling future updates. The regulations must comply with legal requirements (such as the Building Law and the Land Law) and must be approved by all residents or initial owners (typically the contractor or developer).

Stage 2: Submission of a Request for a Condominium Order to the Court

After preparing the regulations, a request for a condominium order must be submitted to the relevant district court. This order is a formal judicial decision that recognizes the existence of a condominium and approves the regulations. The request includes:

• A copy of the proposed regulations.
• An accurate building plan with marking of each housing unit and common areas.
• A document evidencing the agreement of all owners (or a majority, as required by law).
• An official submission form to the court.

Typically, the court examines the request and, within weeks or months, issues a condominium order. This order serves as the legal basis for registration at the Land Registry and the Registration Office.

Stage 3: Land Registry Registration — Primary Real Estate Registration

After receiving a condominium order from the court, an application must be submitted for registration with the Land Registry (the National Registration Office). Land Registry registration is the official registration of the property with the government authority, and it is the accepted registration system in Israel for the transfer of real estate rights. At this stage:

• An official application for Land Registry registration is submitted with copies of the condominium order, an updated building plan, and official forms.
• The Registration Office examines the documents, verifies that there are no disputes regarding rights, and registers the property as a "condominium" in the Land Registry.
• Each housing unit is registered separately, with a note that it is part of a condominium.
• Common areas are registered as "common areas" with percentage divisions according to each unit.

Stage 4: Establishment of a Condominium Management Committee

After Land Registry registration, a committee for managing the condominium must be established. This committee is responsible for the day-to-day management of the property, including:

• Maintenance of common areas.
• Insurance of the shared property.
• Determination of an annual budget and division of costs among residents.
• Resolution of disputes between residents.
• Management of accounts and collection of committee fees.

The committee typically consists of 3 to 5 members, who are elected by the residents through voting. The condominium regulations set forth the election procedures and the committee's powers.

Stage 5: Updates and Handling of Future Changes

After final registration, changes to the condominium may occur: addition of housing units, major renovations, amendments to the regulations. Each change requires:

• The agreement of a majority of residents (or a specific percentage as defined in the regulations).
• An update of the condominium regulations in court.
• An update in the Land Registry with the Registration Office.

This process is similar to the initial registration process, but is typically shorter.

Required Documents for Condominium Registration — Complete List

To successfully complete the condominium registration process, you must prepare and create several legal and administrative documents. Below is a detailed list of all required documents:

Basic Documents

• Condominium Bylaws — A legal document that defines the building structure, tenant rights and obligations, committee structure, cost allocation, and building management rules. These bylaws must be detailed, clear, and compliant with the law.
• Accurate Building Plan — An engineering plan that displays all residential units, common areas, location of entrance doors, precise dimensions, and allocation percentages of common areas.
• Owner Consent Document — Signature of all apartment owners (or majority) on the bylaws and consent for condominium registration. In the case of a contractor or developer, contractor consent only may be provided in the initial stage.
• Condominium Order Request Form — An official form for submission to the court, containing details about the property, tenants, and bylaws.

Court Documents

• Copy of Condominium Order from the Court — Following submission of the request, the court issues an official order confirming the establishment of a condominium. This order must be signed by a judge and bearing the court seal.
• Attorney Certificate — If an attorney represents you (as Mandelbaum, Gur, Witzman-Gur & Partners does), a legal certificate of the representing attorney is required.

Land Registry Documents

• Request for Land Registry Registration — An official form submitted to the registration office, requesting registration of the property as a "condominium".
• Copy of Condominium Order — An approved copy of the court order, which is the legal basis for registration.
• Updated Building Plan — An engineering plan approved by the Land Registry, displaying each unit separately.
• Owner Identification Document — Identity documents or identification papers of all apartment owners (typically ID number and signature).
• Proof of Report Submission — In some cases, proof of property report submission to tax authorities (municipal data) is required.

Financial and Security Documents

• Property Rights Examination — A legal review verifying that there are no legal liens, mortgages, or claims against the property.
• Insurance Certificate — Confirmation that the property is insured as required by a recognized insurance company.
• Capital Gains Tax Approval — Generally, condominium registration involves payment of capital gains tax (on property value increase). This tax calculation and approval from the tax authority is required.

Additional Documents (As Applicable)

• Construction Agreement or Contracting Agreement — If the property is still under construction, an agreement between the contractor and owners is required.
• Building Safety Certificate — Confirmation that the property complies with building safety regulations and various building codes.
• Bank Loan Documents — If purchasing an apartment with a bank loan, the bank may require additional documents in order to grant the loan.

Each of these documents is important and contributes to the registration process. The law firm of Mandelbaum, Gur, Witzman-Gur & Partners handles the preparation of all documents, verifies their accuracy, and represents you at every stage of registration with the court and the Land Registry.

Costs of Registering a Shared Building — What Do You Need to Spend?

Registration of a shared building involves various costs, some of which are fixed and others that vary according to the specific condition of the property. Below is a general overview of typical costs:

Legal Fees

Legal representation by an attorney: This cost varies according to case complexity. Typically, law offices charge fees based on working hours or a fixed fee for the entire process. Mandelbaum, Gor, Witzman-Gor and Partners law office offers a first consultation meeting at no cost, and subsequently discusses various pricing options with the client.

Court Fees

Filing a petition for a shared building order in court involves payment of a court fee. This fee varies according to the district and type of petition, but typically falls within a certain range set by the court.

Land Registry Registration Costs

The Land Registry charges a fee for registration of a shared building in the registry. This fee is typically relatively small (several dozen shekels), but additional costs may accumulate if updates or corrections to the building plan are necessary.

Capital Gains Tax Costs

Registration of a shared building may increase the property's value in the eyes of the tax authority, which could result in capital gains tax payment. Capital gains tax is a tax on the increase in property value, and its calculation is complex and dependent on various factors (purchase price, current value, location, etc.). Professional tax consultation is required to calculate the tax accurately.

Engineering and Technical Costs

Preparation or updating of an accurate building plan by an engineer or architect may be required. This cost varies according to the size of the property and the complexity of the plan.

Additional Costs

Title search by a search company, insurance approval, and legal review of existing documents — all of these may incur additional costs.

Total Amount: Generally, total registration costs range from several thousand shekels, depending on case complexity. However, each case is unique, and it is important to consult with an experienced attorney to obtain an accurate estimate.

Condominium Regulations — What Are They and What Should They Contain?

Condominium regulations are an essential legal document that defines the "constitution" of the building and the rules of conduct for all residents. It is a legally binding document that every resident must know and follow. Well-drafted and detailed regulations prevent disputes, clarify rights and obligations, and prevent legal issues in the future.

Key Elements That Must Be Included in Regulations

• Property Definition and Residential Units — An accurate description of the property, number of residential units, sizes, and the location of each unit on the plan.
• Ownership Rights — A clear definition of each apartment owner's rights in their apartment and in common areas. For example, an owner of an apartment on the third floor cannot claim rights to a stairwell on the first floor (unless this percentage is defined in the regulations).
• Allocation of Common Areas — A detailed list of common areas (stairwell, roof, courtyard, storage, parking, etc.) and the percentage of ownership of each resident in each area.
• Allocation of Costs — A clear definition of how maintenance costs, insurance, committee fees, etc. are divided. Typically, costs are divided according to the percentage of ownership in common areas, but different divisions are possible (for example, parking only for some residents).
• Committee Structure — Definition of the number of committee members, the method of their election, term of office, powers, and obligations.
• Decision-Making Procedures — How are decisions made in the committee? How many votes are required? Is a quorum necessary?
• Election Procedures and Democracy — How are committee elections held? What is the voting right of each resident? What majority is required for a decision?
• Property Conduct Rules — Rules for the use of common areas, prohibitions (for example, prohibition on excessive noise at certain times, prohibition on changing the building's facade), and civil housing rules.
• Maintenance and Insurance — Definition of the committee's responsibility for maintenance of common areas, insurance of the condominium property, and safety rules.
• Dispute Resolution Procedures — How are disputes between residents or between a resident and the committee handled? Is there arbitration or legal proceedings?
• Amendments to Regulations — How can the regulations be amended or updated in the future? How many votes are required?
• Emergency Expenses — What happens in case of an emergency (such as property damage)? Who funds the repairs, and how?

Example of a Clause in Regulations

"Allocation of Common Costs: Maintenance costs, insurance, and condominium management costs shall be divided among residents according to their percentage of ownership in common areas. This percentage is calculated based on the apartment area as part of the total property area. An owner of an apartment with an area of 100 sq.m. in a property with a total area of 1,000 sq.m. shall bear 10% of the common costs."

How Mendelbaum, Gor, and Witzman-Gor Assist with Regulations

Our office handles the preparation of detailed regulations that comply with the law and the property's timeline. We ensure that the regulations are clear, fair, and easy to understand for every resident. We also represent you in overcoming disagreements regarding the regulations and assist with future updates when necessary.

Why Choose Mandelboim, Gor, Witzman-Gor & Co. Law Firm for Condominium Registration?

Choosing a skilled attorney is essential for the successful completion of a condominium registration process. Mandelboim, Gor, Witzman-Gor & Co. Law Firm offers extensive experience, dedicated personal representation, and a free initial consultation. Here's why we are your best choice:

• Experience Since 2008 — Our firm was founded by Attorney Karen Mandelboim and has over 18 years of experience in real estate and property law. We are well-versed in all aspects of condominium registration in Israel.
• Representation of Plaintiffs Only in Tort Law — We specialize exclusively in representing plaintiffs, which means we focus on protecting our clients' rights without any conflicts of interest.
• Personal and Dedicated Approach — We believe in building a personal relationship with each client. Every case is handled with care and attention, and we ensure you understand every step of the process.
• Free Initial Consultation — We offer complimentary legal advice at your first meeting, during which we can assess your situation and propose tailored solutions.
• Comprehensive Coverage of Real Estate Matters — In addition to condominium registration, we handle sales and purchase transactions, TAMA 38 (urban renewal), urban renewal projects, subdivisions, and mortgage company matters.

If you need assistance with the condominium registration process, we are here to help. Contact our office in Ramat Gan or Petah Tikva, or leave your details in the contact form, and we will get back to you as soon as possible.