The only system of formal records is the recording at the District Land Registry of land dispositions, including sales, exchanges, leases exceeding three years and mortgages. There is a limited system of recording of documents before the Public Notary (power of attorney and pledges), and for registration of ships (transfers of ships and mortgages), registration of patents and designs, and registration of trade marks.
Private information between buyer and seller and lessor and lessee.
MALDAN Association of Real Estate Brokers
68 Ibn Givirol Street, Tel Aviv 64952 ISRAEL
011-972-695-7761/011-972-696-9052
Chamber of Real Estate Brokers (CREB)
43 A, Emek Refaim Street
Jerusalem
93141
Israel
Phone : +972 2 563 7420
Fax : +972 2 563 7425
e-mail : lishka@zahav.net.il
Web : www.realtors.co.il
The Real-Estate Agents Chamber in Jerusalem was established two years ago and consists of about 250 real-estate agents in more than one hundred and fifty real-estate offices spread city wide. The Real-Estate Agents Chamber was established in order to enable the population of buyers and sellers in Jerusalem to receive reliable professional real-estate intermediary services while selling or buying properties. All members of the Chamber are real-estate agents that have been licensed to practice by the Ministry of Justice, in accordance with the real-estate agents law of 1996.
Eminent domain exists in Israel, but compensation may be less than market.
Gov't - Escheat: Yes, if no heirs.
Gov't - Police Power: Zoning and planning, subdivision regulations.
Fee simple estates (freehold estates): Fee simple, unrestricted ownership and life estates.
Leasehold estates: Periodic and tenancy for years. Long-term leases above 5 years must be registered.
Statutory estates: Spousal laws exist
Under the "Basic Law - Land of Israel 1960," all the lands which belong to the State Development Authority or J.N.F. are considered as the lands of Israel, the ownership whereof cannot be assigned either by sale or by any other way. Land includes land, houses, buildings and all other appurtenances belonging thereto. Under the Land of Israel Law, 1960, several transactions in reference to these lands are exempted from the prohibition of transfer. There are seven permissible transactions wherein transfer of ownership of lands belonging to State of Israel can be effected. Special authorities were created in order to manage lands and to supervise execution of provisions of law.
Owner of land has right to claim possession against wrongful occupier. Joint tenancies may only be over an undivided whole. Any joint tenant may require dissolution of joint tenancy which may be carried out by agreement or by order of court. Court may order partition or sale.
Deeds: General Warranty and Nestzach Tavo.
Conveyance after death: By court order
Adverse possession: Typically when land is used for housing as opposed to commercial venue.
In order to register transaction in Land Registry, there must be filed in connection therewith certifications regarding Betterment Tax, Acquisition Tax, Property Tax (which latter tax applies only with regard to unimproved lands, but not including agricultural lands, cultivated and used as such) and authorization from Local Authority. Immovable property can only be transferred by execution of a deed which has to be signed either at competent Land Registry in Israel or before any lawyer in Israel who authenticates signatures on deed. Deed is executed before District Land Registrar, when appropriate fees must be paid. Transferee's title is entered on Register in substitution for title of transferor. All transfers of immovable property must now be reported for Betterment Tax purposes. Transfer and registration of settled land is effected under Torrens System, whereas unsettled land is registered under Deed of Title System.
Elements of a contract: As per common law except that consideration need not be a part.
Performance and discharge: Occurs
Breach - causes and remedies: Liquidated damages and specific performance.
Listing/sales contracts: Listings by brokers, sales by attorneys.
Property Taxes:
Ad valorem: Yes
Transfer: Yes
Other: VAT
As from 1/4/81 Property Tax is charged only on market value of unimproved land, but not agricultural lands designated as such or used as such by owner who owned land as of 1/1/1995. Valuation date is Oct. 1 of preceding year. As from 25/7/1995 temporary measures grant certain exemptions as incentive to rapid building of residential apartments.
Land Appreciation Tax. - Imposed on sales of land, real estate and rights in land (including lease of more than 25 years and also lease of shorter period when relating to state land). This tax is calculated on substantially same basis as Capital Gains Tax (see subhead Capital Gains Tax, supra). Sale of private dwellings exempted provided owner has either not owned simultaneously two residential properties in previous four years and not executed tax exempt disposition of residential property in previous 18 months; or not executed tax exempt disposition of residential property in previous four years. To qualify for exemption property must be used for residential purposes either 80% of period of time for which appreciation is computed, or for period of four years immediately preceding disposition. Purchase tax of up to 4.5% is imposed on purchase of real property. Regarding purchase of apartment and 4.5% there is progressive purchase tax starting from 0.5% to 4.5%.
Betterment Levy is payable in event there has been advantageous change in building rights which increase value of property, as result of official rezoning. Rate of levy is 50% of betterment. Levy is payable on issue of building permit or on disposition of property.
When buyer and seller reach a "meeting of the minds", a memorandum of understanding is written and signed and submitted to either parties attorney for preparation as contract. This agreement is negotiated between the parties until full agreement is reached. Execution of this contract is considered the closing and a part of the purchase price is paid. A "warning of sale" is recorded. "Profit" taxes (capital gain) must be calculated and paid. More purchase price is paid and more taxes are paid. Upon final payment, recordation occurs. The buyer receives a deed or Netzach Tavo. (...generations to come...") The whole process can take longer than six months.
Land Use & Control:
Public - Zoning: Yes
Public - Subdivision regulations: Yes
Private - Convenants: For religious reasons such as observing the Sabbath.
Private - Deed restrictions: Yes
Israel is the center of great antiquity and, as such, much consideration must be given by developers in regard to the historical importance of a land site. In addition, the government is very concerned about environmental issues.
Typical: Most of the time, two co-signers are required.
Debt Priorities: Government has senior priority, all others on first in line basis
Foreclosure: Foreclosures can be judicial.
Mortgages are available in amounts up to the equivalent of 60% of the value of the property.
Immovable property may be mortgaged to secure any debt or obligation. Mortgage of immovable property requires registration at District Registry in which land is situated. Mortgage on immovable property not registered is not valid. Mortgage on land is realized by order of court or of Execution Office. Any provision denying mortgagor right to repay loan at any time is invalid.
Loan Types: Terms are usually 50% LTV but all-cash is very common
Financing Sources: Banks, government, institutions and individuals
Administaror