Translation Notice — This is an English translation of a Hebrew law and may contain inaccuracies. In any dispute or legal matter, the original Hebrew text as published in Reshumot (ספר החוקים) is the sole authoritative and legally binding version.

Law

Land Law, 5729-1969

חוק המקרקעין

Section C: Management of the Condominium

By-Laws

61.

A jointly-owned house shall be managed in accordance with by-laws regulating the relations among apartment owners and their rights and obligations in connection with the jointly-owned house.

Agreed By-Laws

62.

[Amendment: 1992]

(a)Apartment owners may draw up by-laws and amend their provisions by a majority of apartment owners to whose apartments two-thirds of the common property is appurtenant; however, no rights of apartment owners may be established or altered in the by-laws, nor may obligations or payments of a type or at a rate not specified in this Law be imposed upon them, except with their consent, and no appurtenance of a specific part of the common property to a particular apartment may be established except with the consent of all apartment owners.

(a1)Where a specific part of the common property has been made appurtenant to a particular apartment, it may be transferred to another apartment in the building without the consent of the other apartment owners, provided that the provisions of Section 145 have been complied with.

(b)For the purposes of subsection (a), "apartment owner" – includes the lessor of an apartment leased under a perpetual lease and the sub-lessor of an apartment leased under a perpetual sub-lease.

(c)By-laws and any amendment thereto are registrable, and once registered, they are binding also upon a person who becomes an apartment owner thereafter.

By-Laws Drawn Up by an Individual

63.

By-laws may be registered even at a time when the jointly-owned house, together with all its apartments, is owned by a single person.

The Model By-Laws

64.

Where no by-laws have been registered pursuant to Section 62, and to the extent that the registered by-laws contain no provision on a matter, the model by-laws set out in the Schedule shall be deemed to have been registered by the apartment owners.

The Representative Committee of the Jointly-Owned House

65.

Every jointly-owned house shall have a representative committee for the purpose of managing the affairs of the jointly-owned house; the representative committee shall be established and shall operate in accordance with the provisions of the by-laws.

The First Representative Committee

66.

(a)Upon registration of the house in the Register of Jointly-Owned Houses, the Supervisor who issued the registration order shall appoint a temporary representative committee for that house until the first representative committee is established in accordance with the by-laws; the composition of the temporary representative committee shall be in accordance with the recommendation of the apartment owners who applied for registration; in the absence of such a recommendation, the Supervisor shall appoint a temporary representative committee at his discretion from among the apartment owners of the jointly-owned house or — if it was not practically possible to do so — from persons other than the apartment owners, and he may fix remuneration for it to be paid by the apartment owners.

(b)A representative committee appointed as stated in subsection (a) shall, for all purposes, have the same standing as a representative committee established in accordance with the provisions of the by-laws.

Procedure in the Absence of a Representative Committee

67.

(a)Where no representative committee has been established in a jointly-owned house in accordance with the provisions of the by-laws, or where the representative committee is not functioning, the Supervisor may appoint a representative committee for that house, and the provisions of Section 66 shall apply, with the necessary modifications, to the appointment of the representative committee, the fixing of its remuneration, and its standing.

(b)Where the by-laws of the jointly-owned house provide for the election of the representative committee at a general meeting, the Supervisor shall not exercise his authority under subsection (a) except after having convened the apartment owners for a general meeting for the election of the representative committee and the representative committee was not elected at the meeting, or after having determined that in the circumstances of the case convening the meeting would not be practicable.

Remuneration of the Representative Committee

68.

Remuneration fixed by the Supervisor for a representative committee appointed as stated in Section 66 or Section 67 shall be treated as an expense in which apartment owners are required to participate, as stated in Section 58.

The Representative Committee – Agent of the Apartment Owners

69.

The representative committee shall serve as the agent of all apartment owners in any matter relating to the proper upkeep and management of the jointly-owned house, and it is entitled in such matters to enter into contracts and to be a party in any legal proceeding and in any other negotiation on behalf of all apartment owners.

General Meeting

70.

[Amendment: 1992]

Where the by-laws of a jointly-owned house contain provisions regarding the holding of a general meeting of apartment owners and the meeting was not convened at the time prescribed in accordance with the provisions of the by-laws, the Supervisor may convene it and set its agenda, and the provisions of the by-laws concerning a general meeting shall apply as if it had been convened in accordance with those provisions.

Decisions of Apartment Owners

71.

[Amendment: 2002-2]

(a)A decision of the apartment owners that was adopted in accordance with the by-laws and recorded in the decisions book shall be binding upon every apartment owner, whether that person was an apartment owner at the time the decision was adopted or became an apartment owner thereafter; the decisions book shall be open for inspection at any reasonable time to every apartment owner.

(b)(1) The apartment owners may determine, by by-laws or by a decision adopted by a majority of apartment owners to whose apartments two-thirds of the common property is appurtenant, that the management and proper maintenance of the common property, in whole or in the greater part, shall be carried out by a person with whom the apartment owners shall enter into a contract for that purpose (in this Law – a "maintenance contractor").

(2)A decision concerning the engagement of a particular maintenance contractor or the replacement thereof shall be adopted by apartment owners to whose apartments more than half of the common property is appurtenant.

(c)The remuneration of the maintenance contractor shall have the same status as an expense in which apartment owners are obligated to participate, as provided in Section 58(a).

(d)The obligations imposed upon a treasurer under Section 16 of the model by-laws set out in the Schedule shall apply to the maintenance contractor with respect to the management and approval of accounts and the provision of information to apartment owners.

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Section C1: Alterations to Common Property and Building Rights

Definitions

71a.

[Amendment: 1995-2, 2008, 2021]

In this Division:

"Planning and Building Law" – [(deleted);]

"building rights" – rights to build in a condominium pursuant to a valid plan within the meaning of Chapter III of the Planning and Building Law;

"extension" – an enlargement of the area of an existing apartment in the condominium for which a building permit may be obtained pursuant to a valid plan;

"protected space" – a shelter as defined in Section 11 of the Civil Defense Law, 5711–1951, in the form of a space built within the building envelope, intended to protect those sheltering therein from attack and designed in accordance with directives issued under that Law;

"apartment protected space" – a protected space located within the bounds of an apartment and intended to serve the occupants of that apartment only;

"floor protected space" – a protected space intended to serve several apartments and whose entrance is accessible from the common property on the floor.

Alterations to Common Property and Building Rights

71b.

[Amendment: 1995-2, 2008, 2024]

(a)(1) Notwithstanding the provisions of Section 62(a) in fine, or Section 12(b) of the Model Bylaws set out in the Schedule, those who own three-quarters of the apartments and two-thirds of the common property attached to their apartments may resolve to exclude certain parts from the common property and attach them to a particular apartment, for the purpose of construction aimed at expanding that apartment, and likewise to resolve on the allocation of building rights required for that purpose; however, where the subject of such resolution is the expansion of one or more particular apartments for the purpose of constructing a residential protected space or a floor-level protected space, those who own sixty percent of the apartments may resolve thereon.

(2)For the purpose of expanding an apartment in order to construct a residential protected space or a floor-level protected space as referred to in paragraph (1), a wing or structure in a compound building within the meaning of Section 59 shall be regarded as a condominium building, provided that the expansion of the apartment as aforesaid does not require the performance of any construction act in another wing or structure of the compound building.

(3)Nothing in the provisions of paragraph (2) shall derogate from the rights of an apartment owner in another wing or structure of the compound building, pursuant to sub-sections (b) through (g) and Section 71c.

(a1)In a condominium building in which it is not possible to construct a residential protected space or a floor-level protected space, the provisions of this Division dealing with construction expansion for the purpose of establishing a residential protected space or a floor-level protected space shall also apply to the construction of protection improvements in accordance with the instructions of the competent authority within the meaning of the Civil Defense Law, 5711–1951.

(b)A resolution as referred to in sub-section (a) shall not be adopted if it would impair the proportional building rights of any apartment owner to expand under this Division.

(c)An apartment owner whose apartment has been expanded shall be deemed to have consented to a similar expansion of any other apartment in the same building.

(d)Where a resolution as referred to in sub-section (a) has been adopted, an apartment owner whose apartment is eligible for expansion at a proportional rate exceeding his share in the common property and who wishes to expand it shall be required to pay, at the time of the expansion resolution, equalization payments to an apartment owner whose apartment is not eligible for expansion or whose expansion is less than his proportional share in the common property.

(e)If the apartment owners have not reached agreement as to the amount of the equalization payments, the payments shall be determined by a real property appraiser appointed by mutual agreement.

(f)The costs of the appraisal shall be borne by the apartment owners in accordance with their proportional share in the common property, prior to the expansion resolution.

(g)An expansion resolution shall not be adopted if it would prevent an apartment owner from being able to erect a sukkah, if he was accustomed to doing so prior to the resolution.

Filing a Claim with the Supervisor

71c.

[Amendment: 1995-2]

(a)An apartment owner who objects to a resolution adopted as referred to in Section 71b(a) and claims substantial prejudice to that owner's rights, an apartment owner who seeks the appointment of a real property appraiser in the absence of agreement, or an apartment owner who disputes the appraiser's determination, may apply to the Supervisor with a claim.

(b)The claim shall be filed within 30 days of the date of adoption of the resolution, or, if the apartment owner was not present at the time the resolution was adopted, within 30 days of the date of delivery of the resolution; the Supervisor may extend the time for filing the claim for special reasons that shall be recorded.

(c)The provisions of Division D of this Chapter shall apply to proceedings before the Supervisor, with the necessary modifications.

(d)If the Supervisor finds that an apartment owner's right has been substantially prejudiced, or that the real property appraiser appointed as aforesaid erred, the Supervisor may order the cancellation of the resolution that was adopted, amend it, or make it subject to conditions, all as the Supervisor sees fit, whether by way of equalization payments or otherwise, and may also give directions regarding the arrangements for registration at the Land Registration Office.

(e)An application to the Supervisor shall not, in and of itself, constitute grounds for staying the execution of the extension, unless the Supervisor orders otherwise.

Application

71d.

[Amendment: 1995-2, 2024]

(a)The apartment owners in a condominium may stipulate, in agreed bylaws, that the provisions of this Division shall not apply to them, except for the provisions dealing with the construction of an apartment protected space or a floor protected space, or with the construction of protection improvements in accordance with the directives of the competent authority within the meaning of the Civil Defense Law, 5711–1951.

(b)Nothing in the provisions of this Division shall derogate from any special provision existing in agreed bylaws concerning the extension of an apartment or building rights.

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Section D: Settlement of Disputes between Apartment Owners

Jurisdiction to Adjudicate Disputes

72.

[Amendment: 5748, 5751, 5752, 5756, 5757, 5761, 5761-2, 5762-2, 5768-2, 5777, 5781, 5784-2]

(a)A dispute between apartment owners in a condominium concerning their rights or obligations under the by-laws or under Sections 58, 59, or 59a through 59c and 59e through 59j, under Section 1a of the Real Property Law (Replacement of a Gas Supplier Supplying Gas via a Central Gas System), 5751–1991, under the Real Property Law (Strengthening of Condominiums against Earthquakes), 5768–2008, or under Sections 6nt through 6sa, 21b, 21d, and 27c of the Telecommunications Law, 5742–1982, shall be adjudicated by the Supervisor.

(b)A dispute between apartment owners in a condominium concerning trespass by an apartment owner with respect to another apartment or with respect to the common property may be brought by the plaintiff, at the plaintiff's election, before a competent court or before the Supervisor.

(c)The provisions of sub-sections (a) and (b) shall also apply where the person holding the apartment on behalf of the apartment owner or the maintainer is a party to the dispute, and if the apartment was leased under a long-term lease or a long-term sublease — also where a party to the dispute is the long-term lessor or the long-term sub-lessor.

(d)Nothing in this Section shall derogate from the validity of an agreement to submit disputes as aforesaid to arbitration.

Right to Sue in a Dispute

73.

The following persons are entitled to bring a dispute before the Supervisor for adjudication:

(1)Any apartment owner or other party to the dispute as defined in Section 72;

(2)The representative body of the condominium.

Powers of the Supervisor

74.

A Supervisor adjudicating a dispute shall have all the powers vested in a judge of a Magistrate's Court adjudicating a civil claim.

Proceedings in a Dispute

75.

[Amendment: 5752]

(a)A Supervisor adjudicating a dispute may depart from the rules of evidence and rules of procedure applicable in courts, if satisfied that doing so will assist in the discovery of the truth and in the doing of justice; if the Supervisor decides to depart from the rules of evidence and rules of procedure applicable in courts, the Supervisor shall record the reasons that led to such decision.

(b)Where a Supervisor has commenced adjudicating a dispute and is unable to complete the proceedings, another Supervisor shall continue the proceedings from the stage reached by the predecessor, but may permit the re-adducing of all or part of the evidence already adduced.

(c)The Supervisor's decision shall be in writing, shall be reasoned, and shall be delivered to each of the parties.

Enforcement of Decisions and Orders

76.

A decision of the Supervisor in a dispute and an interim order issued by the Supervisor shall have, for the purposes of enforcement and execution and for the purposes of Section 6 of the Contempt of Court Ordinance, the same force as a judgment or interim order of a Magistrate's Court.

Appeal

77.

(a)Any party to a dispute who considers himself aggrieved by a decision of the Supervisor may, within the period prescribed by Regulations, appeal against it to the District Court within whose jurisdiction the condominium is situated.

(b)The filing of an appeal shall not stay execution of the decision, unless the Supervisor or the court before which the appeal was filed so orders.

(c)An appeal against a decision of the Supervisor under Section 72(b) shall be heard by the District Court before a panel of three judges.

(d)The judgment of the court on an appeal under sub-section (a) may be further appealed by leave, as provided in Section 19(b) of the Courts Law, 5717–1957.

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