Parking Rights and Storage Units in Shared Buildings — Legal Rights and Disputes

Introduction: Parking Rights and Storage Units in Shared Buildings

Parking and storage units in shared buildings are among the most complex legal issues in Israeli shared building law. Although it may seem like a simple matter—everyone needs a place for their vehicle and storage—the legal reality is far more complicated. Parking rights are not always included in the purchase, storage units can be a source of disputes with neighbors, and the allocation among residents is often unclear or unfair.

After approximately 18 years of experience in real estate law and shared building law, the Mandelbaum, Gor, Witzman-Gor and Partners law firm has handled dozens of cases in which residents fought for their parking rights or faced disputes with the building committee regarding storage units. This page provides you with in-depth legal explanation, including your rights, common disputes, resolution methods, and steps you should take if you are involved in such a dispute.

What is a Parking Right in a Shared Building?

A parking right in a shared building is a legal right concerning the use of parking located in the shared building's grounds. Under the Shared Buildings Law, this right can be defined in several ways:

• Parking owned exclusively by the resident — In some cases (often in new buildings or TAMA 38 projects), the parking is considered part of the apartment and creates an ownership right with no sharing with other residents.
• Right of use in shared parking — The parking belongs to the mortgaged company (the shared building), but the resident has the right to use it in exchange for building fees payment.
• Specific right to a particular parking space — The resident has the right to use only a specific parking space (for example, parking space no. 5 in the basement level parking lot).
• Alternative or conditional right — In some shared buildings, the parking right is subject to certain conditions, such as availability or priority according to registration order.

The distinction between these types of rights is legally critical, as it determines the legal consequences in case of a dispute, sale of the apartment, or building fees adjustment.

What is a Storage Unit in a Shared Building and How is it Legally Defined?

A storage unit in a shared building is a storage space located in the shared building's grounds, typically in a lower floor, parking lot, or designated room. A storage unit may be:

• Part of the apartment — A storage unit registered in the land registry as part of the apartment, in which case it is owned exclusively by the resident.
• Right of use in a shared space — A storage unit linked to the apartment, but owned by the shared building company.
• Undefined right of use — In some cases, residents have the right to use general storage spaces, but it is unclear to residents whether the storage unit is theirs or whose, and who is permitted to use it.

Disputes over storage units are common because it is often unclear to residents whether their storage unit is owned by them or only for their use, and what happens if the resident sells the apartment or if repairs are needed in the storage unit area.

Common Disputes Over Parking and Storage

In our experience, the most common disputes over parking and storage in shared residential buildings are:

1. Dispute Over Parking Rights Upon Purchase of an Apartment

Often, a buyer discovers that the seller claims the parking space has a separate owner or that parking rights are not included with the apartment. This can occur when a purchase and sale agreement was executed without thorough examination of the property deed, or when the deed itself is unclear regarding parking rights. In such scenarios, the buyer may be left without parking or with limited parking rights, which may lead to a claim against the seller or against the building committee.

2. Dispute Between Residents Over Use of Parking or Storage

When parking or storage is shared by two or more residents, or when one resident uses another resident's parking space, a dispute may arise. For example, Resident A parks their vehicle in Resident B's parking space, or both claim rights to the same parking space. Such disputes can lead to litigation in court, and the decision will depend on the property deed, the Condominium Law, and agreements between the residents.

3. Dispute with the Building Committee Over Distribution of Parking and Storage

The building committee of a shared residential building is responsible for allocating parking spaces and storage units. Often, this allocation is unfair or not based on clear criteria. A resident may object to the committee's decision to allocate parking to another resident, or may object to updates in building maintenance fees related to parking. In these scenarios, the resident can file a lawsuit in court against the building management company and/or the building committee.

4. Dispute Over Payment of Building Maintenance Fees for Parking and Storage

Frequently, residents dispute the cost of building maintenance fees related to parking or storage. They may claim they are paying too much, that the distribution is unfair, or that they should not pay at all. In these scenarios, the resident can object before the building committee or file a lawsuit in court.

5. Dispute Over Sale of an Apartment With or Without Parking/Storage

When selling an apartment, there may be a dispute over whether the parking space and storage unit are included in the sale. If the property deed is unclear, or if there was an agreement between the seller and buyer that was not properly documented, a legal dispute may arise. The buyer may sue the seller for misrepresentation or breach of contract, or may sue the building management company for failure to allocate parking or storage.

Tenant Rights Regarding Parking and Storage

Under the Shared Housing Law in Israel, a tenant has several rights concerning parking and storage:

Right to Use

A tenant has the right to use the parking space and storage unit allocated to him, in accordance with the allocation by the building committee or according to the property registry. This right includes the right to use the parking space and storage unit in routine fashion, without interference from other parties.

Right to Compensation in Case of Breach

If another tenant uses your parking space or storage unit, or if the building committee breaches your rights, you have the right to receive legal compensation. The compensation may include damages for harm caused to you, such as inability to use your parking space or storage unit.

Right to Object to Building Committee Decisions

If you dispute a decision made by the building committee regarding parking or storage, you have the right to object before a court. The court will review the decision and determine whether it is fair and lawful.

Right to Clear Documentation

A tenant has the right to receive clear documentation regarding his rights to parking and storage. This includes a copy of the property registry, the property purchase agreement, and decisions of the building committee concerning parking and storage.

Right to Fair Housing Fees

A tenant has the right to pay fair housing fees regarding parking and storage. If other tenants pay less, or if the allocation is unfair, you have the right to object and demand a change in the allocation.

Tenant Obligations Regarding Parking and Storage

Alongside the rights, a tenant also has obligations concerning parking and storage:

Payment of Housing Fees

A tenant is obligated to pay his housing fees for the parking space and storage unit, in accordance with the building committee's decisions or in accordance with the Shared Housing Law.

Reasonable Use of Parking and Storage

A tenant must use the parking space and storage unit reasonably, without causing interference to other tenants. This includes not leaving waste, not parking in other tenants' parking spaces, and maintaining the parking space and storage unit.

Updating the Building Committee

A tenant is obligated to update the building committee of any change in the use of the parking space or storage unit, such as sale of the apartment or change in tenancy.

Comparative Table: Scenarios and Rights

The table above presents common scenarios. Each case is unique, and the guidelines are general only. For legal advice specific to your situation, consult an attorney experienced in real estate law.

Legal Process: What to Do If You're in a Dispute Over Parking or Storage

Step 1: Gather Information and Documents

The first step is to collect all relevant information. This includes:

• A copy of the Tabu (property registration certificate for the apartment and parking/storage)
• The purchase agreement you signed
• All correspondence with the seller, house committee, or the other party
• Photos of the parking space or storage unit
• House fee notices and invoices related to parking and storage
• Any court ruling or legal opinion you received previously

Step 2: Review the Tabu and the Contract

Carefully review the Tabu and purchase agreement. Check whether the parking and storage are clearly defined, who the owners or rights holders are, and how they are associated with the apartment. This will form the basis for any legal claim you make.

Step 3: Attempt Direct Negotiation

If the dispute is with another tenant, try to speak with them directly. Often, an open, direct discussion can lead to a quick settlement. If the dispute is with the house committee, ask to speak with the committee chairman or committee members.

Step 4: Contact the House Committee or Homeowners' Meeting

If direct negotiation doesn't help, contact the house committee in writing. Submit a formal request in which you describe the problem, present your evidence, and ask the committee to examine the matter. Some committees have internal procedures for handling disputes between tenants.

Step 5: Obtain Legal Advice

If you cannot reach a settlement through the above methods, it is advisable to consult with an attorney experienced in real estate and shared housing. An attorney can help you understand your rights, analyze your documents, and guide you through the legal process.

Step 6: Send a Legal Notice

Often, sending a legal notice (attorney's letter) to the other party can demonstrate the seriousness of the dispute and motivate the party to come to the negotiating table. A legal notice should be clear, precise, and based on strong legal grounds.

Step 7: File a Lawsuit

If all of the above methods do not help, you can file a lawsuit in court. In the lawsuit, you can present your evidence, raise your claims, and the court will render a legal decision. A court lawsuit is the most formal method, but it is also expensive and time-consuming.

Why You Should Consult a Lawyer Regarding Parking and Storage Disputes

Disputes over parking and storage in a shared building can be complex and require deep legal expertise. A lawyer experienced in real estate and shared housing can assist you in several ways:

• Examination of the Registry and Purchase Agreement — A lawyer can thoroughly review your registry documents and purchase agreement to understand your rights regarding parking and storage.
• Legal Analysis of the Dispute — A lawyer can analyze your dispute, understand the claims of the other party, and advise you on your chances of success.
• Negotiation with the Other Party — A lawyer can conduct negotiations on your behalf with the other party to attempt reaching a settlement without the need for litigation.
• Filing a Request with the Building Committee — A lawyer can help you submit a formal request to the building committee, with strong legal arguments.
• Filing a Lawsuit in Court — If necessary, a lawyer can file a lawsuit on your behalf in court and represent you throughout the entire process.
• Protection of Your Rights — A lawyer can protect your rights, present strong legal arguments, and demand compensation if required.

Mandelbaum, Gor, Witzman-Gor & Co. has over 18 years of experience in real estate law and shared housing disputes. We specialize in disputes between residents, disputes with shared building committees, and disputes concerning parking and storage rights. We provide personalized and dedicated legal advice, and offer a first consultation at no cost.