In a pinui-binui (evacuation and reconstruction) project each party has its own interests. The developer has lawyers, appraisers and consultants who represent it. The apartment owners, who hand over their most important asset for several years, need legal representation that stands only on their side.
Why isn’t the developer’s lawyer enough?
The developer’s lawyer owes duties to the developer. Even when professional and fair, they cannot advise owners how to improve their terms or warn them of risks the developer is taking on. A lawyer acting for the owners examines the offer and the agreement from their point of view and negotiates with the developer.
How do owners choose a lawyer?
- The choice should be the owners’. Usually an elected committee interviews several firms and brings a recommendation to the owners’ meeting.
- Urban renewal experience. Ask which projects the firm has handled, what stage they are at, and who will actually handle the file.
- No conflict of interest. Make sure the lawyer does not also represent the developer or a related party.
- Availability. A project with dozens of owners requires meetings, personal sessions and answers over several years.
Who pays the fee?
In most projects the developer bears the fee of the owners’ lawyer as part of the project costs. This should be set out in the agreement, while the engagement itself is between the lawyer and the owners, so everyone knows who the client is. Also check what happens to the fee if the project does not go ahead.
What does the lawyer do throughout the project?
- Supports the choice of developer, sometimes through a structured tender. See how to choose a developer.
- Negotiates the agreement: the new apartment, rent, securities and timetables.
- Checks the guarantees and securities before vacating.
- Explains the agreement to each owner, including special situations such as a mortgage, inheritance or elderly owners.
- Follows construction, handover of the apartments and registration at the Land Registry.
When should you get in touch?
As early as possible, ideally before owners sign any document, even one called a “letter of intent” or “memorandum of principles”. Early documents may tie the owners to a particular developer. See organizers and early agreements.
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.