Illegal Construction Bars Homeowners From Full Compensation in Tama 38 Project

The Registrar of Real Estate in Holon, Uri Shlomai, has rejected a claim by Bat Yam basement apartment owners seeking increased compensation in a Tama 38 urban renewal project. The ruling stated that the couple is not entitled to compensation for areas built without permits, which encroached on common property. They were ordered to sign project documents within two months and pay the developer approximately NIS 70,000 in legal expenses.

The dispute centered on a building on Herzl Street in Bat Yam, slated for demolition and reconstruction. The plaintiffs, who inherited their ground-floor and basement apartment, alleged the developer was unfairly compensating them compared to their neighbors. They argued their new apartment should be at least 88 square meters, based on their current 76 square meters plus a contractual 12 square meter addition, citing a 1973 building permit they claimed legitimized some unregistered areas.

Conversely, the developer and neighbors asserted the couple illegally expanded their apartment, encroaching on shared spaces. They also noted the couple's new apartment was relocated to the fourth floor from the first, offering improved ventilation. An expert appointed by the registrar found the couple's permitted area was only 62.5 square meters, with the actual 77 square meters resulting from unpermitted construction into common areas like the shelter and stairwell.

Registrar Shlomai emphasized that compensation cannot be based on illegally built areas or property belonging to others, stating, "No homeowner is entitled to demand equality based on an area built without a permit, or by encroaching on the property of others." He differentiated this from neighbors whose discrepancies stemmed from original, legally built balconies. The registrar dismissed the discrimination claim, deeming the couple's actions, which delayed the project for nearly three years, as acting in bad faith and an abuse of legal process.