Shared Property Dispute — How to Resolve It Legally

What is a Shared Property Dispute and When Does It Arise?

A shared property dispute is a disagreement between residents in a multi-unit building regarding resources, uses, maintenance, expenses, or rights relating to the common areas of the property — such as gardens, stairwells, parking spaces, roofs, shared balconies, ventilation systems, or utility systems. Such disputes may arise due to different building management regulations, disagreement over maintenance, disputes regarding the allocation of shared costs, or conflicts over the use of shared spaces.

Neighbor disputes concerning shared property are among the most common in Israel, particularly in residential apartment buildings with multiple units. They can affect your quality of life, the value of your property, and relationships within the neighborhood community. A clear understanding of your legal rights and the procedures available for resolving the dispute can save considerable time, money, and stress.

The Legal Basis: What Does the Law Say About Shared Property?

In Israel, the rights and obligations relating to shared property in multi-unit residential buildings are regulated by specific laws and regulations. Applicable law clearly defines what constitutes shared property, who is responsible for maintenance, how costs are allocated, and what powers the building committee possesses.

The Property Law (Rights in Multi-Unit Buildings) establishes that residents in shared multi-unit buildings hold joint rights in the common areas of the property. This right cannot be separated from the private apartment and cannot be waived. Each resident must contribute to the costs of maintenance, repairs, and improvements to the common areas in accordance with their proportional share in the building (typically based on the size of the apartment or number of units).

The building committee is the authorized body to manage the shared property, collect common fees, perform maintenance and repairs, and litigate on behalf of residents against any party that violates shared property rights. The building committee's powers derive from the law and the building's bylaws.

Common Types of Shared Property Disputes

• Disputes over the allocation of shared expenses: When a resident refuses to contribute to common fees, or when there is disagreement over the justification of an expense. Questions may arise as to whether a particular expense should be shared or whether it is a legal obligation.
• Disagreements over the use of common areas: Such as the use of shared parking spaces, balconies, gardens, or stairwells. Residents may dispute the right of use, ownership, or the manner of use.
• Claims regarding maintenance and repairs: When a resident claims the building committee is not performing adequate maintenance, or when there is disagreement over the necessity of a particular repair.
• Disputes regarding improvements and alterations: Such as updating ventilation systems, installing an elevator, upgrading electrical systems, or changing the design of common areas.
• Violations of building bylaws: When a resident uses common areas in a manner that violates the bylaws, or when there is noise, disturbance, or nuisance caused by another resident.

Methods for Resolving Shared Property Disputes

There are several ways to resolve a shared property dispute, ranging from direct negotiations between the parties to formal legal proceedings. The choice of the appropriate method depends on the severity of the dispute, the parties' willingness to reach an agreement, and the costs associated with each approach.

1. Direct Negotiation Between Parties

At the initial stage, attempting to resolve the dispute through direct conversation between the residents involved is often the simplest and most economical approach. If both parties are interested in reaching a resolution, an agreement can be reached quickly and without legal costs. However, in many cases direct negotiation does not lead to a result, particularly when there is mistrust or when the dispute has existed for a long time.

2. Referral to the Building Committee

The building committee is the first body to which a complaint concerning a shared property dispute should be directed. The building committee can attempt to mediate between the parties, enforce the bylaws, demand that a resident who is in violation cease the violation, or even file a lawsuit on behalf of all residents against the violating resident. It is important to document the complaint in writing and keep copies of all correspondence with the building committee.

3. Arbitration

Arbitration is an alternative dispute resolution method in which a neutral third party (arbitrator) hears the claims of both parties and issues a binding decision. Arbitration can be faster than regular legal proceedings and is typically less expensive. However, arbitration requires the consent of both parties, and not every dispute can be resolved through it.

4. Mediation

Mediation is a process in which a neutral third party (mediator) helps the two parties reach a mutually agreeable resolution. Unlike arbitration, the mediator does not issue a decision but instead helps the parties understand each other and find common ground. Mediation can be particularly effective when the parties still wish to maintain a good relationship, or when the dispute arises from misunderstanding or lack of communication.

5. Legal Proceedings in Court

If all alternative methods have failed, or if the dispute is serious and requires a legal decision, a lawsuit may be filed in court. A lawsuit concerning shared property may be filed by a single resident against another resident, by the building committee against a resident, or by a group of residents against the building committee or another resident. Legal proceedings can be lengthy and expensive, but they provide a final and legally binding decision.

Legal Process in Resolving Shared Property Disputes

When deciding to file a legal claim regarding a shared property dispute, it is important to understand the stages of the procedure, the expected timelines, and the costs involved. A full legal procedure can last months or even years, depending on the complexity of the dispute and the court's workload.

First Stage: Preparation and Filing of the Claim

Before filing the claim, all relevant documents must be collected: the apartment purchase agreement, building bylaws, building committee decisions, engineer's report, invoices, correspondence with other parties, and any other evidence supporting your claim. An attorney will help you formulate the claim in the correct legal manner, define the nature of the claim (whether it is a claim for damages compensation, cessation of breach, or issuance of an order), and file it with the competent court.

Second Stage: Filing of Response and Pre-Trial Proceedings

After filing the claim, the defendant is given time to respond. Upon receipt of the response, the court may conduct pre-trial hearings in order to attempt mediation between the parties or update the timeline. At this stage, both parties may submit settlement proposals, and they may reach an agreement outside of court.

Third Stage: Evidence and Proof

If the dispute is not settled, the court will conduct hearings in which evidence will be presented. This may include testimony of witnesses (such as other residents, building managers, or engineers), written documents, photographs, or expert reports. Each party will be able to present its arguments and respond to the arguments of the other party.

Fourth Stage: Judgment

After hearing all the evidence, the judge will issue a judgment. The judgment will determine the rights and obligations of each party, and may include issuance of an order to cease the breach, compensation for damages, or legal costs. This judgment is final, but an appeal may be filed with a higher court under certain circumstances.

Rights and Obligations of Residents Regarding Shared Property

Every resident in a shared building must understand their rights and obligations with respect to shared property. These rights and obligations are defined by law and by the building bylaws.

Rights of Residents:

• Right to use the common parts of the property (stairs, parking, garden, etc.) in accordance with the bylaws.
• Right to be involved in decisions concerning shared property (through the building committee or general assembly).
• Right to require the building committee to perform proper maintenance of the shared property.
• Right to inspect the books and accounts of the building committee.
• Right to file a complaint against another resident who violates shared property rights.

Obligations of Residents:

• Obligation to contribute to common charges in accordance with their relative share in the building.
• Obligation to refrain from violating the building bylaws.
• Obligation not to use common parts in a manner that infringes on the rights of other residents.
• Obligation not to alter or destroy common parts without the consent of the building committee.
• Obligation to cooperate with the building committee regarding maintenance and repairs of the shared property.

Role of the Building Committee in Dispute Resolution

The building committee plays a vital role in managing the shared property and resolving disputes between residents. The building committee is responsible for managing the property in a fair, transparent, and efficient manner, and for protecting the rights of all residents.

When a dispute arises regarding shared property, the building committee may take the following steps: (1) attempt to mediate between the parties; (2) demand that a resident who violates the bylaws cease the violation; (3) prohibit a specific resident from using certain common parts (in extreme circumstances); (4) file a legal claim on behalf of all residents against the violating resident.

However, the building committee must act in good faith and with transparency. If the building committee acts in self-interest or with bias, a resident may file a claim against the building committee in court. It is important to maintain complete documentation of all building committee actions and to ensure that it acts in accordance with the law and bylaws.

Costs and Financial Implications of Shared Property Disputes

A shared property dispute can be very expensive, not only in legal fees but also in other financial consequences. It is important to understand the costs involved in a legal process and to consider whether the dispute is worth the investment.

Legal Fees: An attorney will charge a fee for consultation, document preparation, court representation, and case management. Attorney fees can be fixed (hourly or per project) or contingent on the outcome. Additionally, you must pay court fees, expert fees (if required), and legal insurance. All of these can amount to a significant cost.

Impact on Property Value: A shared property dispute can affect the value of your apartment, especially if the dispute concerns building maintenance or improvements. Potential buyers may be less interested in an apartment if they are aware of an ongoing legal dispute.

High Maintenance Costs: If the dispute concerns maintenance or repairs of the shared property, residents may encounter higher common area fees, especially if the homeowners' association decides to perform urgent repairs or improvements.

Emotional and Psychological Costs: A prolonged dispute with neighbors can be emotionally and psychologically exhausting and can affect your quality of life and well-being. It may lead to anxiety, depression, or sleep problems.

How to Avoid Shared Property Disputes?

The best way to handle a shared property dispute is to prevent it from starting. Here are some tips to avoid disputes:

• Read the Building Regulations Carefully: Familiarize yourself with your building's regulations, your rights and responsibilities, and the standards that apply to the use of common areas.
• Maintain Good Communication with Neighbors: Speak with your neighbors in a respectful and open manner. If there is a problem, try to resolve it through direct conversation before it becomes a legal dispute.
• Participate in General Assemblies: Participate in the decisions of the homeowners' association and keep an eye on the management of the shared property. This will help you understand the decisions and influence them.
• Pay Common Area Fees on Time: Ensure that you pay common area fees on time. Late payment may lead to interest and penalties and can escalate into a legal dispute.
• Report Issues Promptly: If you notice a problem in the maintenance or management of the shared property, report it to the homeowners' association as soon as possible. This will help fix the problem before it becomes more serious.
• Keep Detailed Records: Keep a record of all correspondence, decisions, and reports. This will help you if you need legal evidence later.

Why Choose Mandelboim, Gor, Witzman-Gor & Co. for Shared Property Disputes?

Mandelboim, Gor, Witzman-Gor & Co., Attorneys at Law, is a boutique family law firm specializing in tort law, real estate law, and civil-commercial law in Israel. With over 18 years of legal practice experience, we provide expert legal counsel and high-level representation in shared property disputes and all real estate-related matters.

We chose to focus on tort law (representing plaintiffs only), real estate law, and property law because we believe this is the field in which we can add the greatest value to our clients. In the real estate field in particular, we help tenants, buyers, and sellers understand their rights, protect themselves in disputes, and reach fair agreements.

Our team consists of attorneys with deep experience in real estate law, property law, and disputes between tenants. We provide each client with personalized and dedicated attention, and we take a practical and cost-effective approach to dispute resolution. We believe that mediation and arbitration are often the best way to resolve disputes, but we are also prepared to represent you in court if that is the only way.

Our firm's branch in Ramat Gan is conveniently located and close to the courts in Tel Aviv and Ramat Gan. We offer a free initial consultation meeting, so you can get to know us and hear our opinion on your dispute before committing to anything.