Legal Updates

A developer may make commercial use of facilities that were excluded from the joint property

July 7, 2019

Purchasers of vacation apartments in a prestigious that included a pool, sauna and a gym discovered that the developer listed these as its property and not part of the common property, operates a Country Club project and insists on charging them entrance fees.
The Court rejected the claim and held that the territories belonged to the developer. Israeli law regarding condominiums only recognizes two types of property in a condominium: apartments and common property. The definition of the term "apartment" has a broad meaning and also includes units that have separate systems of rooms that are framed by the floor, roof and walls and have a clear, defined and separate purpose. During the negotiations, the developer presented to the purchasers, whether in marketing leaflets or in sales calls, that these areas exist but the areas were initially intended for business use of the developer and were not included in the common property. Therefore, the rights to the areas remain the exclusive property of the developer, which may operate in such a Country Club that is open for paying customers, even if the apartment sales agreements did not explicitly do so (but instead the areas were marked as a parking).