These agreements included, inter alia, the sale agreement; the partnership agreement, which regulates the relationship between the group members, and between them and Greeny; the "Ordering Legal Services - Commitment to Pay Fees" (hereinafter: the representation agreement); the brokerage services agreement; irrevocable powers of attorney to the group's representatives and the group's attorneys, and more.
- In addition, Greeny provided a letter of undertaking to the members of the group (hereinafter: the Letter of Undertaking), the main part of which is its commitment to refund them if the cost of construction exceeds the estimate of the construction costs and related costs specifiedin the joining form (hereinafter: the estimate). The document also included an undertaking to pay the plaintiffs monthly rent for each month of delay in the delivery of the apartments. A delay is defined as the delivery of the apartments after 36 months from the date of receipt of the final building permit for the construction and the project.
In the letter of undertaking, Greeni also undertook to deposit 10% of the estimate, in relation to all the agreements of the group members, andsubject to the fulfillment of the conditions specified therein. The deposit was supposed to be in trust in the hands of the defendants, or in the hands of a trustee appointed by the bank financing the project, for the purpose of securing the aforementioned obligations.
- As part of the agreements, each member of the group is sold an unspecified portion of the land, and in the future, after the project is built and registered as a condominium, a specific apartment will be registered in his name, whose location in the building is specified in the joining form.
It was alsonoted that the joint plan for Lot 102 and Lot 104 will be promoted for construction on both lots. Paragraph 7.1 of the Sharing Agreement states as follows:
The parties are aware that the Group intends to enter into a cooperation agreement and/or a real estate sharing agreement with the 104 Group, in order to promote a unified plan, in the framework of which it will be possible to construct the project on the lot. The parties are aware that there is currently the possibility of building the project on the lot only [i.e., Lot 102 - my addendum], but the group aspires to change this planning situation in order to combine the construction together with Group 104 as aforesaid. The parties are also aware that the time required for the approval of a specific zoning plan and the planning of the lot and the issuance of a building permit will be extended, as is customary by the Ramat Gan Local Committee and the relevant authorities authorized to handle such requests [emphases added].
- At the time of the signing of the agreements, the possibility of building on Lot 102, in accordance with the plans in force, was limited. However, Greeni sold 57 conceptual housing units to the group members until around the end of 2012.
The agreements did not specify the number of housing units that will be built in the project, nor the maximum number of units that will be built in it. Thus, it happened that some of the members of the group purchased an apartment on a floor that had not yet been approved in accordance with the zoning plan that allows its construction (see, for example: Mr. Yehoshua Geva's joining form). The agreements also stated that they are contingent on the completion of the purchase of the land from the original owners, and on the approval of the planning authorities to change the zoning plan.