חוק פינוי ובינוי (פיצויים) (תיקון מס' 6), התשע"ח-2018Evacuation and Rehabilitation (Compensation) Law (Amendment No. 6), 2018 · automatic translation · suggest a correction

Official summary of the law (Knesset)

As part of this amendment to the Evacuation and Reconstruction (Compensation) Law (Amendment No. 6), a number of provisions were established intended to resolve the problem of objectors to evacuation and reconstruction transactions, among which tools can be found that will enable the court to deal with this phenomenon. It was determined that when there is a qualified majority of apartment owners in the jointly owned building who have agreed to the evacuation and reconstruction transaction, and the court finds that a particular apartment owner is unreasonably refusing to agree to transfer his rights for the purpose of carrying out the transaction, or is conditioning his consent on unreasonable terms, the court may rule that that refusing apartment owner will be liable in tort towards the other apartment owners for the damage caused to them as a result of the non-execution of the transaction. In addition, the court may appoint a lawyer or accountant who is not an apartment owner party to that evacuation and reconstruction transaction, who will be authorized, in accordance with the court's instructions, to enter into the transaction on behalf of the refusing owner. If the court indeed imposed tort liability on the refuser towards the other apartment owners, he will bear only part of the apartment owners' damage, and the court will weigh considerations related to the amount of the damage, the refuser's ability to pay, and the circumstances of the transaction. It was further determined that if the apartment owner who refuses to carry out the transaction is an elderly person residing in the apartment, his refusal will not be considered unreasonable refusal if several cumulative conditions are met. First, giving the elderly person the option to choose one of the following options: moving to a retirement home with balancing payments, of a value similar to the capitalized value of a replacement apartment; purchasing an alternative apartment whose value is similar to the capitalized value of a replacement apartment, to be provided to the elderly person by the date of vacating the apartment, as close as possible to the elderly person's apartment; receiving a sum of money equal to the capitalized value of a replacement apartment, for the purpose of purchasing an alternative apartment by the elderly person with the said amount. Second, receiving two apartments whose combined value is similar to the value of a replacement apartment. Third, a replacement apartment whose area is smaller than the area of the replacement apartment the elderly person was supposed to receive under the evacuation and reconstruction transaction, together with balancing payments equal to the value of the replacement apartment. In addition, the elderly person's refusal will not be considered unreasonable refusal if he resides in an apartment and, at the date of signing the transaction, he was 80 years old and was not offered one of the above alternatives, in addition to the option of receiving a replacement apartment. Additional provisions established in this amendment relate to the manner of executing the transaction. It was determined that before signing the agreement for the first time, the developer will hold a gathering of the apartment owners at which he will present to the other apartment owners the type of transaction proposed with him. In addition, no later than two weeks before signing the agreement, the developer will deliver to the apartment owners a document with the main points of the proposal, detailing the principles for determining the compensation he proposes, the guarantees he offers the apartment owners, and details of his professional experience. When the transaction is signed, the developer will give notice of this to the other apartment owners and will deliver to the apartment owner with whom the transaction was signed the transaction documents or a certified copy. If the developer did not fulfill his obligations to hold the gathering and deliver the relevant documents, a majority of the apartment owners in the jointly owned building may decide to cancel transactions, as long as 40% of the apartment owners in the jointly owned building have not signed the transactions, and they will not be regarded as having breached a commitment to a developer.

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