As a rule, yes, if expenses are divided according to the proportionate share. The question is whether the calculation is correct and whether the by-laws provide otherwise.
House committee fees for a penthouse: how your share is calculated
In brief: Each apartment's share of the condominium's expenses is determined by its proportionate share of the common property, which derives from its floor area and is recorded in the condominium registration order, unless the registered by-laws provide otherwise. The condominium's representative committee cannot set a different calculation method on its own. In a case we handled, the representative committee undertook to charge the penthouse apartments according to the correct proportionate share.
What happened in the case?
Two owners of penthouse apartments in a building in Tel Aviv were charged house committee fees according to the committee's own calculation, which was higher than their apartments' proportionate share of the common property. They came to us after years of dispute and demand letters about "debts".
We filed a claim with the Superintendent of Land Registration. At the hearing, the condominium's representative committee declared and undertook that it would charge our clients according to the proportionate shares set out in the statement of claim, 4.94% and 4.98%, from December 2020 onwards. The declaration was given the force of a judgment.
The Superintendent also expressly held that our clients, like every apartment owner, are entitled to inspect all of the representative committee's books, to copy them and to receive the bank statements of the building's account, within 10 working days of their request.
How is each apartment's share of the expenses determined?
Under the Land Law (section 57(a)), each apartment's share of the common property is determined by the ratio between its floor area and the floor area of all the apartments, unless the by-laws provide otherwise. Each apartment owner contributes to the expenses of the proper upkeep and management of the common property in the same ratio (section 58(a)). In a registered building, the proportionate share appears in the condominium registration order and in the Land Registry extract.
Can the condominium's representative committee decide on a different division?
Not on its own. Changing the division of expenses requires an amendment to the registered by-laws, by the majority the Law prescribes. A decision of the representative committee, or a practice followed for years, does not replace the by-laws. On the other hand, the agreed by-laws of a particular building may provide for a different division, for example an equal one, so the starting point is always a review of the registered by-laws.
What about roof areas and terraces?
Whether an attached roof terrace is included in the calculation depends on how the building was registered and on its by-laws. This is one of the most common disputes involving penthouses, so it is worth checking the registration order and the by-laws before arguing with the representative committee.
How do you inspect the house committee's books?
- Send the representative committee or the management company a written request to inspect the books and bank statements.
- State the period and the documents requested.
- If there is no response, apply to the Superintendent of Land Registration. The right of inspection is laid down in section 16(c) of the standard by-laws in the Schedule to the Land Law.
When should you consult a lawyer?
Do you think you are paying the committee more than your share? Send us the Land Registry extract and the payment demands, and we will check the calculation.
To arrange a call: 052-5927592, or on WhatsApp using the button on the website.
About the author
Amos Ilan is an advocate (Israel Bar no. 35320) and a notary (licence no. 214444). The office is at 17 Tzahal Street, Ness Ziona, and handles real estate transactions, construction defects, condominium disputes and civil litigation.
Disclaimer. This article describes a concluded case and is provided for general information only. It does not constitute legal advice and does not promise a similar outcome. Every case depends on its own facts and documents, so it is advisable to consult a lawyer before taking any step.
Questions and answers
I pay more because I have a large apartment. Is that lawful?
The committee is demanding a debt going back years. What should I do?
First check the calculation method and the books. A debt calculated by the wrong method can be corrected, sometimes even retroactively.
Where is a claim against the house committee filed?
With the Superintendent of Land Registration, who has jurisdiction to hear disputes in a condominium.
Need a lawyer or a notary?
A short initial consultation call, to understand whether and how we can help.