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Will Two Tenants be able to Cancel an Urban Renewal Project? The Verdict that’s Shaken the Industry

In an unusual step and contrary to the trend in rulings, the court ruled that the refusal of a pair of tenants to sign an eviction-construction agreement is reasonable, “and not for extortionate reasons”. The reasons: the age of the tenants, their health and the renovation they carried out • The ruling may be used by quite a few individual tenants and thwart similar projects • Experts analyze the difficulties and anomalies of the decision.

Attorney Yoav Zahavi, a partner in the Real Estate and Urban Renewal department at the Epstein Rosenblum (ERM) law firm, says that the outcome of the verdict is unlikely. “A ruling should also include what it agrees to. What solution, and not just a statement that this is a legitimate refusal. This is not a sufficient statement. Housing prices will not decrease until we increase the supply. This is a point that hurts the supply in the end”.

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