Building Rights in a Shared House are not Common Property
- Buying an apartment in Israel
- The Sales Contract
I want to expand a little and explain to whom those ‘building rights’ belong.
Unfortunately, even professionals who must understand this critical matter do not know it well enough.
Building rights in a shared house are not a “common property” as defined in the Real Estate Law but a right of economic value that belongs to all the apartment owners together.
Any valuable right that accompanies an apartment that does not fall within the area of the common property belongs to all the apartment owners together.
Unutilized construction percentages are undoubtedly a right that falls under this definition. That is, unused construction percentages have economic value to the apartment owners in the shared house, even though they should not be seen as part of the common property.
The owners of the apartments in the condominium can agree or accept the denial of building rights from them and the transfer of the ownership to one of the neighbors, whether according to Article C1 of the Real Estate Law through the condominium regulations or in contracts between the neighbors and the shared house.