Q&A: A Dispute Between Apartment Owners
A Dispute Between Apartment Owners
Question
Good week to the Rabbi,
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Thank you for your willingness to offer an opinion. Apparently I was misleading when I said we would go to a religious court. What I meant was to approach Rabbi Peretz (or probably someone he recommends, if he is no longer dealing with this for health reasons) in order to hear his view on the basis in Jewish law.
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Background
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This is a residential building about 15 years old that includes 8 apartments in Ra'anana. 5 of them are rented out, and in 3 live families who own the apartments, one of them being our daughter (we bought the apartment about a year ago).
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The original owner of the lot owns 4 rented apartments a0 14 a Jewish ba'al teshuvah (let's call him Mr. S.) who lives in the Jerusalem area. According to his own statement, the apartments are a pension investment for him, and his interest is purely business and financial, and according to him it is different from and even opposed to the interests of the apartment owners who actually live in the building. (He also openly describes himself as stingy.)
The owner of another apartment also rents it out and lives in Tel Aviv. He was recently persuaded by S. to give him power of attorney on the basis of their shared interest as landlords in investing as little as possible, after at first he strongly supported our renovation proposal.
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Description of the problem
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The maintenance of the building is very poor, and its condition has deteriorated over the years: lights are not working in the lobby and parking garage, some are hanging from electrical wires from the ceiling, outlets are exposed, the lobby is neglected, the intercom system does not work, mosaics that cover the exterior walls are falling into a garden apartment (a safety hazard), a fire-extinguishing pipe in the parking garage was damaged by a car and not repaired.
The building had no third-party liability insurance (we recently got insurance because of pressure from us, after Mr. S. admitted that this had been irresponsible on his part).
Mr. S. is effectively the building committee representative (there was never a meeting to elect a committee), and he also holds the bank account for the building maintenance fees. He handles problems remotely, at his own pace, without taking into account the harm to the residents, and using a patch-on-patch approach.
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When we joined the building, we proposed doing a renovation and getting the building back on track, and we volunteered to manage the project (my wife is very good at design and renovations). We defined the scope of work and brought 3 competing bids. The best proposal was for 80,000 NIS a0 14 10,000 NIS per apartment. (Meaning Mr. S. would have to pay 40,000 NIS.)
At a meeting held about two months ago, the proposal was accepted by everyone under two conditions set by Mr. S.: 1. that the receipts for the work be registered in his name (for purposes of recognition as expenses for income tax and ability to offset VAT a0 14 from his perspective the apartments are a business, legally somewhat questionable); 2. S. claimed that he had cash-flow constraints and could pay only 10,000 NIS (which he would take as a loan from a free-loan fund), and the rest in 10 monthly payments of 3,000 NIS.
The three apartment owners who live in the building agreed to his conditions, and it was agreed that each of us would finance him (lend him) 10,000 NIS, which he would repay over 10 months.
It was agreed that we would manage the project with full transparency, within budget, and on a short timetable.
After a handshake and getting started (we bought light fixtures and ordered floor tiles for the lobby), Mr. S. began demanding changes to the plan, reducing some of the scope, and even carrying it out in stages rather than continuously.
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We informed him that under those conditions we were not willing to handle the renovation.
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Meanwhile, because of the heavy pressure we exerted together with the owner of the garden apartment, into whose place tiles were falling practically "on her head," Mr. S. brought a proposal to deal with the problem by rappelling down the exterior wall, at a cost of 24,000 NIS. All the apartment owners paid immediately (in light of the safety issue, which by the way has already been ongoing for two years), with the understanding that Mr. S. would supervise the contractor he had brought. The work was done poorly, without supervision, and Mr. S. is evading responsibility and asking that the apartment owners present their complaints to the contractor, whom he will summon in about two weeks.
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The current situation is that Mr. S., on behalf of 5 apartments, claims that he is willing to advance treatment of the problems in stages and at the pace of his financing ability, and also to determine the scope of the work (from his perspective only the strictly necessary items), while the 3 apartment owners who live in the building want to carry out the renovation according to the agreed plan and continuously within a short time, with us (mainly Rachel, my wife) managing the project.
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Mr. S.'s position