A pinui-binui agreement is a long, complex document that governs the relationship between owners and developer for many years. It must be tailored to the project and the building, not copied from another project. These are the main topics to check.
Consideration and specification
An accurate description of the new apartment: area and how it is measured, safe room, balcony, parking, storage and a binding specification. See what owners get.
Milestones and conditions
The agreement sets dates for the main stages: submitting and approving the plan, building permit, start of construction and handover. If the developer misses a milestone, the owners should have the right to cancel the agreement. Without such a clause, the building may be tied to the developer for years.
Securities
A Sale Law guarantee for the value of the new apartment, a guarantee for rent and other securities as needed. See guarantees in pinui-binui.
Rent and moving
Amount, indexation, advance payment and moving. See rent during construction.
Delay compensation
Agreed compensation for each month of delay, in addition to rent, without overly broad “force majeure” exclusions.
Taxes and costs
All non-exempt taxes and levies borne by the developer. See taxes in pinui-binui.
Owners’ special situations
A mortgage, an unregistered inherited apartment, elderly owners, tenants. See mortgages in pinui-binui and elderly owners.
Registration and warranty
Registration of the condominium and rights at the Land Registry by a set date, and warranty periods for the new building.
Fees and committee
Who bears the fees of the owners’ lawyer and supervisor, and how the committee operates. See a lawyer for apartment owners.
Next steps
Every pinui-binui project is different: the building, the developer, the plan and the owners themselves. At Paz Israel & Co. we represent apartment owners in urban renewal projects, review the offer and the agreement and support the owners’ committee throughout. See our pinui-binui and urban renewal page, or contact us to arrange a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information about Israeli law as of the time of writing and is not legal advice.