Legal Updates

A formal registration of property which is attached to an apartment does not create property rights in it

March 7, 2024
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Published in Afik News 410 03.04.2024

In the addendum to a contract for the sale of an apartment, it was stipulated that the parking lots built by the company that sold the apartment shall be attached to the purchaser’s apartment by formal registration only, in exchange for a reduction in the price of the apartment.

The Court held that the purchaser has no property rights in the parking lots. Generally, a contract shall be interpreted according to its language. To the extent that the language is not clear, the contract shall be interpreted according to the parties’ intention as it is implied from the contract and the circumstances. Here, the provisions of the agreement according to which the purchaser was not granted any rights in the parking lots, and that the registration was done only formally, are clear. Therefore, the purchaser has no property rights in the parking lots.

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