Urban Renewal Bill (Agreements for Organizing Transactions) (Amendment - Regulation of Attorney Work), 5784-2024

The bill seeks to regulate the work of attorneys representing tenants in urban renewal projects. Henceforth, an attorney representing apartment owners in an urban renewal project shall act in a customary manner and in good faith. The attorney shall not condition their engagement with the apartment owners on engagement with other professionals. The developer shall deposit, for the benefit of the attorney's legal fees, a sum of 10,000 new shekels per apartment into a separate escrow account. These funds shall be used solely for the apartment owners. The proposal is intended to improve the current situation, in which attorneys in the field charge high amounts. It allows tenants to receive proper and good service and provides economic certainty to the developer. The limitation on charging legal fees is intended to prevent excessive price increases for projects, as these costs are ultimately reflected in the price of the apartments for buyers. The proposal also allows the attorney to engage with other professionals, rather than only providing legal advice.

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