For elderly owners, moving to temporary housing for several years and then to a new building is no simple matter. The law recognises this and provides special protections: the developer must offer them alternatives to the new apartment, and if it does not, their refusal may be considered reasonable.
Owners aged 70 and over
According to Kol Zchut, an owner aged 70 or over at signing who has lived in the apartment for at least two years is entitled to be offered, in addition to the new apartment, at least one of several alternatives chosen by the developer:
- A choice between funding for sheltered housing, an alternative apartment of similar value, or cash to buy one.
- Two smaller apartments with a combined value similar to the new apartment.
- A smaller new apartment plus a balancing payment.
Owners aged 75 and over, or terminally ill
For an owner aged 75 or over, or terminally ill, who has lived in the apartment for at least two years, the developer must offer, in addition to the new apartment, a choice between sheltered housing, an alternative apartment or cash. Here the choice is the owner’s.
What does this mean for refusal?
If the developer did not offer the required alternatives, an elderly owner’s refusal may be considered reasonable. See required majority and holdouts.
Questions to clarify in advance
- Is the temporary housing suitable for medical and accessibility needs?
- Will the new apartment be accessible, with a lift?
- How does the decision fit with inheritance planning and a will, and with a continuing power of attorney if there is one?
- Who accompanies the owner, and how is the family involved?
Sensitive support
We take time for personal conversations, explain the options clearly and involve family members as needed. We also assist with continuing powers of attorney.
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.