Unauthorized construction and building violations are common in Israeli real estate and can significantly affect both the legality and value of an apartment. Discovering violations before purchase – or managing them as an owner – requires legal expertise.
What Constitutes a Building Violation?
A building violation is construction or modification done without the required building permits or contrary to approved plans. Common violations include: enclosed balconies, roof apartments built without permits, additional rooms or structures added without approval, and basements converted to habitable space without permits.
The Legal Consequences of Violations
Violations can result in: demolition orders requiring removal of unauthorized construction, fines imposed by the local authority, difficulties in obtaining mortgages on the property, inability to register the property in the Land Registry, and complications in future sale transactions.
Discovering Violations Before Purchase
Due diligence before purchasing a second-hand apartment must include a review of the building’s permit history. A licensed building inspector can compare the current state of the property with the approved plans and identify any deviations.
Discovering violations before signing allows the buyer to negotiate: price reduction, remediation by the seller, or cancellation if the violations are severe.
Managing Violations as an Owner
Owners who discover violations after purchase have options. Some violations can be retroactively permitted (legalized) through the planning authorities. Others require demolition. An attorney and building consultant can advise on which path is available for specific violations.
Disclosure Obligations
Sellers are legally required to disclose known material defects, including building violations. Failure to disclose known violations exposes sellers to liability for damages and potentially allows buyers to cancel contracts.
