Dissolution of Co-ownership in Real Estate – Not an Inevitable Fate

Lawsuit for dissolution of co-ownership dismissed due to a 50-year-old partnership agreement and ongoing planning procedures on the property.

The Tel Aviv Magistrate’s Court rejected a lawsuit for dissolution of co-ownership in real estate, despite the well-known rule in real estate partnership law that a partner in real estate, regardless of their share, is entitled to demand the dissolution of the partnership in the shared property at any time.

The defendants (some of whom were represented by our firm) argued that the dissolution of co-ownership in real estate is not inevitable. In this case, the landowners signed a partnership agreement about fifty years ago, agreeing to work together to change the zoning of the plot and registered it in the land registry, but to this day have not managed to effect the zoning change.

The court dismissed the lawsuit for dissolution of co-ownership, in light of information brought to its attention by the parties after the conclusion of presenting evidence, regarding the advancement of planning procedures on the plot. The judge decided to enforce the partnership agreement signed about fifty years ago and allow them to continue working towards changing the zoning and enjoy the fruits of their investment.

This case is one of the rare instances where the court rejected a lawsuit for dissolution of co-ownership in real estate.

(Civil Case 41956-06-20 Tamam v. Bar et al).

Attorney Eli Wolecki represented defendants who argued against the dissolution of co-ownership.