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

Chapter VI1: Buildings Not Registered as Condominiums

Definitions

77a.

[Amendment: 1977]

In this Chapter –

"building" – a permanent structure containing at least two apartments, including the land upon which it was built, that is not registered as a common-property house;

"apartment" – a room or unit, or a suite of rooms or units, intended to serve as a complete and separate unit for residential, business, or any other purpose;

"apartment owner" – a person who, pursuant to a written agreement, is entitled to be registered as the owner of an apartment in a building, or who is registered or entitled pursuant to a written agreement to be registered as a long-term lessee or long-term sub-lessee; any person in possession of an apartment in a building shall be deemed, for the purposes of this Chapter, to be an apartment owner, unless such person proves otherwise;

"common property" – all parts of the building other than the apartments, including the land, roofs, external walls, foundations, stairwells, elevators, shelters, and heating or water installations and the like, intended to serve all or most of the apartment owners, even if located within the bounds of a specific apartment.

Application of Provisions

77b.

Sections 56, 57, 58, 59, 59a through 59c, 59e through 59j, 62(a), 65, 68 through 70, 71, 71a through 71d, and 72 through 77, as well as Section 1a of the Real Property Law (Replacement of a Gas Supplier Supplying Gas through a Central Gas System), 5751–1991, and the Schedule to that Law, shall apply to a building under this Chapter, with the necessary modifications.

Memorandum of Association

77c.

[Amendment: 1977]

A building shall be managed in accordance with the model articles contained in the Schedule.

First Representative Committee

77d.

[Amendment: 1977]

(a)The Supervisor may appoint a temporary representative committee for a building until the first representative committee is constituted in accordance with the articles; the composition of the temporary representative committee shall be in accordance with the recommendation of the owners of half of the apartments; in the absence of such a recommendation, the Supervisor shall appoint a temporary representative committee at his discretion from among the apartment owners in the building, or – if there was no practical possibility of doing so – from persons other than the apartment owners, and he may determine the remuneration to be paid to it by the apartment owners.

(b)A representative committee appointed as provided in sub-section (a) shall have, in all respects, the same legal status as a representative committee constituted in accordance with the provisions of the articles.

Procedure in the Absence of a Representative Committee

77e.

[Amendment: 1977]

If no representative committee has been constituted in a building in accordance with the provisions of the articles, or if the representative committee is not functioning, the Supervisor may appoint a representative committee for that building, and the provisions of Section 77d shall apply, with the necessary modifications, to the appointment of the representative committee, the determination of its remuneration, and its status.

Legal Status of a Registered Building

77f.

[Amendment: 1977]

Where a building has been registered in the Register of Common-Property Houses after having been managed under this Chapter, the following provisions shall apply:

(1)any right or obligation vested in the representative committee of the building on the eve of registration shall vest in the representative committee of the common-property house constituted after its registration;

(2)legal proceedings arising from a dispute as referred to in Section 72 that were commenced on the eve of registration shall be continued and shall be deemed, with the necessary modifications, as if they had been filed pursuant to Division D of Chapter VI.

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Chapter VII: Rights in the Real Property of Others

Section A: Lease

Lease of a Specific Part of Real Property

78.

Notwithstanding the provisions of Section 13, a specific part of Real Property may be leased.

Legal Status of a Short-Term Lease

79.

(a)Notwithstanding the provisions of Sections 7 and 8, a lease for a period not exceeding five years does not require registration, and an undertaking to enter into such a transaction does not require a written document.

(b)The provisions of sub-section (a) shall not apply to a lease that includes an option to extend its period to a total period exceeding five years, nor to a lease whose period, in whole or in part, commences more than five years after the conclusion of the lease Contract.

(c)Nothing in the provisions of this Section shall prevent the registration of a lease that does not require registration, if the parties so request.

Conflicting Short-Term Lease

80.

Where Real Property has been leased under a lease not requiring registration and has not been registered, and before the property was delivered to the lessee the lessor again leased it to another person under a lease not requiring registration that conflicts with the first lease, the right of the first lessee shall prevail; however, if the second person leased and took possession of the Real Property in good faith — his right shall prevail.

Encumbrance of a Lease by Mortgage or Easement

81.

(a)Where a lease has been registered, the lessee may, subject to what has been agreed in the terms of the lease, encumber it by way of mortgage without the consent of the lessor, and the provisions of Division B shall apply, with the necessary modifications.

(b)Where a lease has been registered, the lessee may, subject to what has been agreed in the terms of the lease, encumber it by way of easement without the consent of the lessor, and the provisions of Division C shall apply, with the necessary modifications.

82.

[Amendment: 1971]

[(Repealed).]

Loan for Use

83.

[Amendment: 1971]

The provisions of this Chapter shall apply, with the necessary modifications, to the right to possess and use Real Property other than permanently, which has been granted without consideration.

Laws of Lease and Tenant Protection Laws

84.

(a)Subject to the provisions of this Chapter, the general laws of lease shall apply to the lease of Real Property.

(b)The provisions of this Law shall not derogate from the provisions of the laws concerning tenant protection, including the Key Money Law, 5718–1958.

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Section B: Mortgage

Rights of the Mortgagor in the Mortgaged Real Property

85.

(a)A mortgage does not derogate from the right of the owner of the Real Property to possess it, use it, and carry out any transaction therein, all subject to what has been agreed upon in the terms of the mortgage.

(b)A transaction carried out by the owner of the Real Property after it has been mortgaged shall not derogate from the right of the mortgagee to realize the mortgage, and such a transaction shall have no effect against a person who acquired the Real Property through enforcement of the mortgage.

Vacated Priority Ranking

86.

Where Real Property has been mortgaged by mortgages of different priority rankings and one of them has been redeemed, the owner of the Real Property may bring in its place another mortgage of the same ranking, if such a right has been stipulated in the terms of the subsequent mortgage.

Transfer of Mortgage

87.

(a)Subject to what has been agreed upon in the terms of the mortgage, the mortgagee may transfer the mortgage, or any part thereof, to another person, together with the secured debt, in whole or in part, without the consent of the owner of the Real Property.

(b)Where the mortgage has been transferred and the debtor has not been notified of the transfer, the debtor is discharged by payment of the debt to the previous mortgagee.

Redemption of Mortgage Before the Date for Performance of the Debt

88.

The terms of the mortgage shall not have the effect of derogating from the right to redeem the mortgaged Real Property before the date for performance of the debt, in accordance with the provisions of Section 13(b) of the Pledge Law, 5727–1967; the provisions of this Section shall not prejudice a condition stipulated before the commencement of this Law.

Deposit of Repayment with the Registry

89.

Where the owner of the Real Property wishes to repay what is owed by him under the mortgage but the mortgagee has not accepted it, the owner of the Real Property may deposit the amount owed by him, in whole or in part, with the Registrar and request that the Registrar discharge the mortgage to the extent that it has been redeemed; the Minister of Justice may enact Regulations with respect to this Section.

Realization of Mortgage

90.

Realization of a mortgage shall be effected pursuant to a Judgment / Ruling of a court or pursuant to an Order of the Head of the Enforcement Office, and in the manner set forth in Section 18 of the Pledge Law, 5727–1967.

Application of the Pledge Law

91.

Subject to the provisions of this Chapter, the provisions of the Pledge Law, 5727–1967 shall apply to a mortgage; however, Real Property or a registered lease of Real Property may not be pledged except by way of a mortgage.

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Section C: Easement

Beneficiaries

92.

An easement may be created for the benefit of Real Property (hereinafter – "benefited land") or for the benefit of a specific person, for the benefit of a class of persons, or for the benefit of the public.

Forms of Easement

93.

[Amendment: 1992]

(a)An easement may provide –

(1)that the owner of the dominant land or the person for whose benefit the easement was granted is entitled to a specific use of the servient land;

(2)that the owner of the servient land is obligated to refrain from performing a specific act on that land.

(b)An easement for the benefit of land may also provide that the owner of the servient land is obligated to perform a specific act thereon, or that the owner of the servient land shall not be entitled to prevent the performance of a specific act on the dominant land.

(c)Notwithstanding the provisions of Section 13, an easement may apply to a specific part of land.

Easement by Prescription

94.

(a)A person who has exercised a right capable of constituting an easement for a continuous period of thirty years has acquired the easement and is entitled to demand its registration.

(b)Written notice by the owner of the Real Property to the person exercising such right, including a notice to the public, that the owner objects to the exercise of the right, shall terminate the period referred to in sub-section (a).

Transfer of Easement

95.

In the case of an easement for the benefit of a person or a class of persons, the holders of the easement are not entitled to transfer their right except with the consent of the owner of the servient land, unless otherwise provided in the terms of the easement.

Duration and Conditions of Easement

96.

An easement is for an unlimited period, unless a specific period has been determined in the terms of the easement; however, the court may, upon application by an interested party or the Attorney General, cancel the easement or modify its terms, if it sees fit to do so by reason of non-exercise of the easement or by reason of a change in the circumstances of its use or in the condition of the benefited or servient land; and the court may award compensation to any person who has suffered damage as a result of the cancellation or modification.

Partition of Real Property

97.

Where the benefited or servient land has been partitioned, the easement shall attach to the parcel in whose favour or against which the easement existed, as the case may be.

Easement Between Parcels of One Owner

98.

(a)An owner of two parcels of Real Property may encumber one of them with an easement for the benefit of the other.

(b)Where ownership of the benefited land and the servient land has merged in one person, the easement shall not be extinguished by that fact alone.

(c)Where the benefited land and the servient land have been consolidated into a single parcel, the easement is extinguished.

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Section D: Right of Pre-emption

Contractual Right of First Refusal

99.

(a)An owner of Real Property, or an owner of an undivided share in jointly held Real Property, may register a right of first refusal with respect to the Real Property, or with respect to his share therein, in favor of a named person; and having done so, he shall not be entitled to transfer it to another, unless he has first offered it to the holder of the right of first refusal.

(b)The provisions of Sections 102–105 shall apply to a right of first refusal under this Section, subject to what has been agreed upon in the terms of the right.

Right of First Refusal Among Heirs

100.

(a)Real Property that constitutes an agricultural holding within the meaning of Section 114 of the Inheritance Law, 5725–1965, and that has passed by Inheritance, whether by operation of law or under a Will / Testament, to several heirs jointly, shall not entitle an heir to transfer his share therein to another, unless he has first offered it to the heir holding the right of first refusal.

(b)During the first two years following the issuance of an order of Inheritance or an order confirming the Will / Testament, every heir shall be deemed to hold a right of first refusal with respect to the share of any other heir; thereafter, only an heir who, within the first two years, has registered a right of first refusal in his own favor with respect to the share of another heir shall be deemed to hold such a right of first refusal.

Right of First Refusal Between Spouses

101.

Real Property that is in the joint ownership of spouses, and that constitutes an agricultural holding or a business operated by them jointly, or a dwelling used by them as a residence, shall not entitle a spouse to transfer his or her share to another, unless he or she has first offered it to the other spouse.

Acquisition Under Right of First Refusal

102.

(a)An offer to the holder of a right of first refusal shall be made in writing, sent by registered mail, and shall state the price required for the Real Property being offered; a copy of the offer shall be sent to the Registrar.

(b)Within thirty days of receipt of the offer, the holder of the right of first refusal may pay the required price, together with any tax or other mandatory payment due from him in connection with the acquisition, or deposit them with the Registrar; and having done so, the parties shall be deemed to have entered into a Contract for the transfer of the Real Property at the price stated in the offer; if the price has been deposited, it shall be paid to the offeror upon completion of the transaction.

(c)A holder of a right of first refusal who has not paid or deposited the amounts referred to in sub-section (b) within the period prescribed in that sub-section shall, upon expiry of that period, be regarded as having refused to acquire the Real Property.

(d)Where there are two or more holders of a right of first refusal, the offer shall be sent to all of them; if all or some of them agree to acquire the Real Property being offered, they shall proceed as provided in sub-section (b) in accordance with each one's share in the right of first refusal; if one of them refuses to acquire, his share shall enure to the benefit of the remaining holders.

Transfer of the Real Property

103.

(a)If the holder of a right of first refusal has refused to acquire the Real Property offered to him at the required price, the offeror shall be entitled, within six months from the date of the refusal, to transfer it as he sees fit, provided that he does not transfer it at a price lower than the price stated in the offer.

(b)If the offeror transfers the Real Property within the six-month period referred to in sub-section (a), the right of first refusal shall be extinguished, and if it was registered — it shall be cancelled; if he has not transferred it within that period, he shall not be entitled to transfer it except after offering it again to the holder of the right of first refusal.

Non-Application to Gifts

104.

The obligation to offer Real Property to the holder of a right of first refusal as provided in this Chapter shall not apply to a transfer without consideration; however, the right of first refusal shall not be extinguished and shall apply with respect to one who acquired the Real Property without consideration.

Non-Registration of Transfers

105.

A transfer of Real Property in respect of which a right of first refusal exists shall not be registered, except after the Registrar has satisfied himself that the provisions of this Chapter have been fulfilled.

Right of First Refusal Regarding Long-Term Leases

106.

The provisions of this Division concerning the transfer of ownership shall apply, to the extent relevant, also to the transfer of a long-term lease.

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