A pinui-binui project lasts years, so it is worth understanding the main stages, what happens in each and the owners’ role.
1. Organising and electing a committee
Owners meet, elect a committee and decide to explore the option. Be careful about signing documents with any particular party at this stage. See organizers and early agreements.
2. Choosing a lawyer and supervisor for the owners
The committee chooses a lawyer, and sometimes an engineering supervisor and appraiser, to represent the owners. See a lawyer for apartment owners.
3. Choosing a developer
Usually through a tender and comparison of offers. See how to choose a developer.
4. Negotiating and signing the agreement
Drafting, explaining to owners and signing. See key clauses.
5. Planning and approval
The developer prepares a plan and submits it to the planning committees. This is usually the longest stage and depends on the authorities.
6. Building permit and securities
After the plan is approved, a permit application is filed. Before vacating, the developer delivers the securities. See guarantees.
7. Vacating and construction
Owners move to alternative apartments and the developer pays rent. See rent during construction.
8. Handover and registration
Receiving the new apartments, a handover protocol, repairing defects and registering the condominium and rights at the Land Registry.
How long does it take?
There is no single answer. It depends on the complexity of the compound, the authorities, owners’ consent and the developer’s strength. What owners can do is ensure the agreement includes milestones and a way out if the developer does not meet them.
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.