Full legal guide

Evacuation Construction - The full legal guide

The "Evacuation-Construction" transaction is defined in the framework of the law as follows: "Contracts between an entrepreneur and the owners of apartments in a building for construction evacuation, according to which the apartment owners undertake to sell their rights in whole or in part for the purpose of demolishing the building and constructing a new building under it, "He said.

View a lecture by Adv. Eldar Adato, Urban Renewal Conference 2015, detailing how to get the most out of an eviction deal and what are the highlights that must be noticed
In the language of the people, the evacuation of construction is a common name for combination transactions, in which existing residential neighborhoods are vacated, in favor of the reconstruction of a new neighborhood in the same complex, while the existing tenants will receive their old apartment instead of their old apartment in a modern neighborhood with infrastructure A new and developed environment.
As part of the construction evacuation deal, the evacuee (tenant) receives a new apartment larger and larger than his existing apartment. Of course, the size of the apartment that the tenant will receive as part of a construction evacuation deal for his old apartment is determined in negotiations with the contractor. It will be noted that in such a case, considerations of the economic feasibility of the contractor play a major role.

It should be emphasized that within the framework of the law, there is a restriction on the tax benefit for the evacuees, which states that if the owner of a vacant property has another property in the same project of evacuation of construction, only one dwelling will be entitled to the tax benefit established by law.

Of all the above, it is clear that all the parties (the state, the municipality, the residents and the entrepreneur) have an interest in executing evacuation projects. The municipality itself improves the appearance of the city, the tenants receive an apartment at a higher level, in a larger area and certainly at a higher economic value, and thus the standard of living rises.

In order to approve a construction evacuation project, it was determined in the law that a special majority (not absolute) of the apartment owners is sufficient to make a decision to carry out a construction evacuation. The owner of an apartment, who refuses unreasonable refusal to transfer his rights for the execution of an evacuation evacuation construction, or gives his consent under unreasonable conditions, is liable in tort to the rest of the apartment owners in the same building, due to the damage caused to them due to the torpedo deal. This means that if the tenants want to make an evacuation deal in June, but you have a refusenik tenant, you have a cause of monetary damages against the tenant for his unreasonable refusal to join the evacuation deal.

However, in such a case, the question is what is unreasonable refusal?

The law comes to our aid and gives us a few examples of what will be considered reasonable in opposition to a construction evacuation deal and what is not. For example, if a construction evacuation transaction is not economically worthwhile, the refusal can not be unreasonable. Or if in the context of an evacuation-construction transaction, the owner of the apartment who refuses alternative residence for the period of construction of the new building or appropriate collateral, or alternatively when there are special personal circumstances, is not considered unreasonable.

What is a privileged majority according to the definition of the law?

The law states that in a condominium with more than five apartments: the owners of the apartments that own at least four-fifths of the apartments and at least three-quarters of the communal property. When there are six or more apartments, those who own more than 30 percent of the apartments will be considered one apartment. (The goal is to prevent the takeover of apartments in order to achieve a majority and to prevent situations where the majority required by a minority of owners).

In a condominium with four or five apartments: all the owners of the apartments except one, three-quarters of the joint property adjacent to their apartments, provided that two conditions are met: in the condominium more than two apartment owners; The owner of the apartment refuses only one apartment.

If you intend to purchase an apartment in a project of evacuation and construction, it is highly recommended to make a number of inquiries. The relationship between the entrepreneur and the tenants evicted from their apartments must be examined. In order to make the purchase without fear, you must ascertain who is the lending bank of the project and that the funds given by you enter into a trust account that has been opened for the specific project of clearing construction.

If you are a tenant who wants to put your building in the framework of the evacuation of construction, you are welcome to contact our office and receive legal advice on how to do this. We will accompany you from the beginning of the process, we will turn to the entrepreneurs in order to receive proposals and we will arrange to obtain for you the best possible deal as part of the evacuation of construction. If you are a tenant who wants to check the agreement that the developer offers you as part of a construction evacuation transaction, we will be happy if you contact our office. We will review the agreement, the full terms of the agreement and make sure that your property rights are well reserved and we will work to get you the maximum possible in return for your apartment and your consent to the project of evacuation and construction.

Advocate Eldar Adato explains about evacuation construction - "The Professionals" program on Channel 10 - Adv. Evacuation Construction:
Share by: