In a pinui-binui project the developer speaks for itself, and its lawyers represent it. The people who speak for the apartment owners day to day are the owners’ committee: a small group of owners from the building or the compound, chosen to manage the relationship with the lawyer, the developer and the other residents.
What does the committee do?
- Brings the owners together, calls meetings and keeps everyone informed.
- Together with the owners, chooses a lawyer and sometimes an engineering supervisor and an appraiser who represent the residents. See a lawyer for the apartment owners.
- Manages, with the lawyer, the choice of developer and the negotiation of the agreement. See how to choose a developer.
- Passes on information, offers and draft agreements to the owners, so that each owner can decide for themselves.
What the committee cannot do
The committee does not sign the agreement with the developer on behalf of the owners. Each owner decides and signs personally, after receiving an explanation. The committee should also not receive benefits from the developer or an organizer. A member who receives a personal benefit has a conflict of interest, which can damage the trust of the whole building and the project itself.
How to choose a committee
- At an open meeting to which all owners were invited, with minutes.
- A small, balanced number of members, with a representative from each building or entrance, and ideally from different groups of residents: older owners, young families and investors.
- A declaration by each member that they have no connection to the developer or an organizer and will receive no personal benefit.
- Written working rules: how decisions are made, how residents are updated, and when a member can be replaced.
Common mistakes
- A committee that was in practice chosen by an organizer or developer, before the residents chose a lawyer. See organizers and early agreements.
- A committee that decides material issues alone, without presenting them to all owners.
- No records: no minutes and no written updates, which later leads to disputes about what was agreed.
The committee and owners who object
A good committee also listens to those who object and tries to solve real problems before they turn into disputes, for example the needs of older owners or a mortgage on the apartment. On the required majority and holdout owners see the required majority in pinui-binui.
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.