Real Estate Law

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Real Estate Law

To have a roof over one’s head is a basic human requirement, but not everyone knows how to buy a house, how to purchase land, what you should pay for and what you shouldn’t.

Land law is a large and complex body of law including contracts of sale, planning and construction, expropriation of land, contracts of land or property purchase, and many other issues.

So you should consult an expert before starting the process in order to ask all the important questions.

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Here is a list of practical terms to know in real estate law

In order to build, construct, alter or destroy an apartment, house, building or other real estate, you must first obtain approval from the Planning and Construction Committee. To obtain a building permit the applicant must provide a full description of the intended building work, detailing all relevant information such as the name of the architect, the engineer, proof of ownership, construction plans, and so on.

Co-ownership is the organization of a building or other structure in which there are two or more apartments, each with their own owner, and with each recorded in the Registry of Co-ownership. Although each apartment has a different owner, there are also various common areas such as the staircase, the garden, corridors, elevator, and roof. Usually there is a housing committee whose role it is to ensure that every apartment owner pays his share of the monthly expenses of the building.

Sheltered housing is a type of residential building complex designed specifically for the elderly, which provides a variety of services on site, such as health care, food and recreation. Generally in these centres each person has their own small self-contained apartment comprising of a living room, bedroom, kitchen and bathroom. Sometimes these apartments are furnished. Within the centre there is usually a dining room, a gym, a café, and medical staff to provide help if needed, plus psychological and social assistance, social and cultural activities and catering, but the residents are still essentially independent, not relying on others for their basic needs. To live in sheltered housing requires an initial fee and monthly maintenance fees.

The guarantee is a commitment by a person to be a guarantee for the payment of the debt of another person. For example, when renting an apartment one must bring guarantors who sign their commitment to pay if the tenant does not pay. This means that one or more guarantors will guarantee its debt to the owner. A promissory note is a document such as a check with the amount the tenant agrees to pay the owner if he has not have fulfilled his obligations with regard to the rented apartment.

The Israel Land Authority, called the Israel Lands Administration until 2013, is the entity responsible for 98% of all the land in the country, it is she who looks after and develops it. It is his obligation to allocate land for various purposes, such as housing, agriculture, etc., always safeguarding the land in the public interest and for future generations, preserving the rights of landowners and other. The Authority is divided into three section: the service, transactions and business, and safeguarding the land.

The squat is the illegal occupation of a site by a person or persons without legal agreement on the place. This happens when a person or persons will occupy land or a building left unused for residential purposes without paying neither rent nor lease or purchase. In most cases this derives from poverty and it happens more and more. The squat is a crime, but is also seen as a civil dispute between invaders and owners. In some cases, the invaders even managed to get legal possession of the property.

The process to buy an apartment is long and full of obstacles, which is why it is best to consult an expert in the field to facilitate the process and ensure that everything is done in a professional, secure and legal way. There are many things to do such as checking the apartment and its surroundings, the examination of the property, the assessment of the property, the existing mortgage check with local authorities for land registration. Therefore, professional help is not only recommended but really necessary and can only facilitate the process for both the buyer and the seller.

The taboo is the Office of the Land Registration where owners of real estate assets register their property in the country. When a person buys a property, it only becomes legal after it has been registered in the land registry.

Zoning is the control and use of the land and rezoning means changing the purpose of use of a property or an area under a lease agreement with the zoning administration. This occurs when the urban office or a property owner wants to change the use of his land, his building or any other real estate asset, for example changing an office building into a residential building or change a farmland to building or urban land.

This is the body of law relating to life on a kibbutz,a moshav, within the agricultural sector and in co-operative organisations. It covers housing, internal policy, rights for descendants, the rights and obligations of members, farmland, industry, livestock, privatisation, water quotas, arbitration issues for member and for management, and more.

This is a mandatory fee which must be paid by a landowner in order to obtain approval from the local municipality for changes to a building which will increase its value. The property owner must pay the tax on the day he receives the approval.

A rental agreement or lease is a legal document governing the rights and obligations of the tenant and landlord of a property. This contract is signed by the landlord and the tenant in the presence of witnesses. The agreement includes the rental period, the rental price, the rental conditions and any additional commitments by either party. An unprotected tenancy agreement is a contract whereby the tenant has no special privileges, such as the right to occupy the property for life, etc.

The caution is a written warning commitment in the land register where the owner of a property states that he will or will not make a real estate transaction. This note informs and warns anyone interested in the property in question that there is another earlier commitment from the landowner for the same good. This warning also prevents the owner to make a deal with a buyer and then make a second one with another buyer.

Expropriation is the term for the forced taking by a public agency of a property, it is made in accordance with the law and only for public purposes. Generally, when landowners are expropriated from their land or housing they will receive full compensation for their property and a small part of the new construction.

Everyone who is the owner of real estate property such as an apartment, house, building, land, etc. has to pay taxes. It is the same for any changes or additions made to existing assets as well as for the construction of new properties.

This is a tax that every buyer has to pay when buying real estate, be it a building, an apartment, an office, land or anything otherwise. The amount of the fee depends on the size and cost of the asset in question.

The capital gains tax is a tax imposed on all property owners for the capital gains they make as a result of their real estate transactions.

Urban renewal is actually an evolution of the city, an urban renewal. This occurs when the authorities want to renovate or transform residential apartments, so the tenants move into new apartments or neighborhoods to improve the quality of life of the citizens and the city and allow urban renewal. Residents leave their old apartment and get a new one in a better neighborhood with a better developed and more modern infrastructure.

All real estate assets have a certain number of square meters and when an owner wants to add a room, a floor, a terrace, warehouse etc. it first must be approved by the Office of building additions. Final approval for any addition is provided solely by the Israel Lands Autority.

There are several planning and construction organizations in the country: the National Council for Planning and Construction, National Infrastructure committees, district planning, urban planning, protection of coastal environment, safety facilities and more. Each operates in a different purpose, but all for planning and construction.

The national program Tama 38 aims to encourage property owners to enhance existing buildings so that they are more resistant in the event of an earthquake. The purpose of these regulations is to reduce the level of risks arising from earthquakes for older buildings or the ones built before current safety standards. This includes strengthening the buildings, add to the buildings, sealing and filling of empty space to make new apartments, construct new floors, adding elevator, adding protected areas, existing housing expansion and more.

Building permits

In order to build, construct, alter or destroy an apartment, house, building or other real estate, you must first obtain approval from the Planning and Construction Committee. To obtain a building permit the applicant must provide a full description of the intended building work, detailing all relevant information such as the name of the architect, the engineer, proof of ownership, construction plans, and so on.

Co-ownership

Co-ownership is the organization of a building or other structure in which there are two or more apartments, each with their own owner, and with each recorded in the Registry of Co-ownership. Although each apartment has a different owner, there are also various common areas such as the staircase, the garden, corridors, elevator, and roof. Usually there is a housing committee whose role it is to ensure that every apartment owner pays his share of the monthly expenses of the building.

Sheltered Housing

Sheltered housing is a type of residential building complex designed specifically for the elderly, which provides a variety of services on site, such as health care, food and recreation. Generally in these centres each person has their own small self-contained apartment comprising of a living room, bedroom, kitchen and bathroom. Sometimes these apartments are furnished. Within the centre there is usually a dining room, a gym, a café, and medical staff to provide help if needed, plus psychological and social assistance, social and cultural activities and catering, but the residents are still essentially independent, not relying on others for their basic needs. To live in sheltered housing requires an initial fee and monthly maintenance fees.

Guarantee and promissory note

The guarantee is a commitment by a person to be a guarantee for the payment of the debt of another person. For example, when renting an apartment one must bring guarantors who sign their commitment to pay if the tenant does not pay. This means that one or more guarantors will guarantee its debt to the owner. A promissory note is a document such as a check with the amount the tenant agrees to pay the owner if he has not have fulfilled his obligations with regard to the rented apartment.

Israel Lands Authority

The Israel Land Authority, called the Israel Lands Administration until 2013, is the entity responsible for 98% of all the land in the country, it is she who looks after and develops it. It is his obligation to allocate land for various purposes, such as housing, agriculture, etc., always safeguarding the land in the public interest and for future generations, preserving the rights of landowners and other. The Authority is divided into three section: the service, transactions and business, and safeguarding the land.

Squat

The squat is the illegal occupation of a site by a person or persons without legal agreement on the place. This happens when a person or persons will occupy land or a building left unused for residential purposes without paying neither rent nor lease or purchase. In most cases this derives from poverty and it happens more and more. The squat is a crime, but is also seen as a civil dispute between invaders and owners. In some cases, the invaders even managed to get legal possession of the property.

Buy an apartment

The process to buy an apartment is long and full of obstacles, which is why it is best to consult an expert in the field to facilitate the process and ensure that everything is done in a professional, secure and legal way. There are many things to do such as checking the apartment and its surroundings, the examination of the property, the assessment of the property, the existing mortgage check with local authorities for land registration. Therefore, professional help is not only recommended but really necessary and can only facilitate the process for both the buyer and the seller.

Registration in the Land Registry

The taboo is the Office of the Land Registration where owners of real estate assets register their property in the country. When a person buys a property, it only becomes legal after it has been registered in the land registry.

Re-zoning

Zoning is the control and use of the land and rezoning means changing the purpose of use of a property or an area under a lease agreement with the zoning administration. This occurs when the urban office or a property owner wants to change the use of his land, his building or any other real estate asset, for example changing an office building into a residential building or change a farmland to building or urban land.

Kibbutzim and moshavim law

This is the body of law relating to life on a kibbutz,a moshav, within the agricultural sector and in co-operative organisations. It covers housing, internal policy, rights for descendants, the rights and obligations of members, farmland, industry, livestock, privatisation, water quotas, arbitration issues for member and for management, and more.

Betterment Tax

This is a mandatory fee which must be paid by a landowner in order to obtain approval from the local municipality for changes to a building which will increase its value. The property owner must pay the tax on the day he receives the approval.

Rental agreement

A rental agreement or lease is a legal document governing the rights and obligations of the tenant and landlord of a property. This contract is signed by the landlord and the tenant in the presence of witnesses. The agreement includes the rental period, the rental price, the rental conditions and any additional commitments by either party. An unprotected tenancy agreement is a contract whereby the tenant has no special privileges, such as the right to occupy the property for life, etc.

Caution

The caution is a written warning commitment in the land register where the owner of a property states that he will or will not make a real estate transaction. This note informs and warns anyone interested in the property in question that there is another earlier commitment from the landowner for the same good. This warning also prevents the owner to make a deal with a buyer and then make a second one with another buyer.

Expropriation

Expropriation is the term for the forced taking by a public agency of a property, it is made in accordance with the law and only for public purposes. Generally, when landowners are expropriated from their land or housing they will receive full compensation for their property and a small part of the new construction.

Real estate taxation

Everyone who is the owner of real estate property such as an apartment, house, building, land, etc. has to pay taxes. It is the same for any changes or additions made to existing assets as well as for the construction of new properties.

Purchase tax

This is a tax that every buyer has to pay when buying real estate, be it a building, an apartment, an office, land or anything otherwise. The amount of the fee depends on the size and cost of the asset in question.

Capital gains tax

The capital gains tax is a tax imposed on all property owners for the capital gains they make as a result of their real estate transactions.

Urban renewal

Urban renewal is actually an evolution of the city, an urban renewal. This occurs when the authorities want to renovate or transform residential apartments, so the tenants move into new apartments or neighborhoods to improve the quality of life of the citizens and the city and allow urban renewal. Residents leave their old apartment and get a new one in a better neighborhood with a better developed and more modern infrastructure.

Building Addition

All real estate assets have a certain number of square meters and when an owner wants to add a room, a floor, a terrace, warehouse etc. it first must be approved by the Office of building additions. Final approval for any addition is provided solely by the Israel Lands Autority.

Planning and Construction

There are several planning and construction organizations in the country: the National Council for Planning and Construction, National Infrastructure committees, district planning, urban planning, protection of coastal environment, safety facilities and more. Each operates in a different purpose, but all for planning and construction.

Tama 38

The national program Tama 38 aims to encourage property owners to enhance existing buildings so that they are more resistant in the event of an earthquake. The purpose of these regulations is to reduce the level of risks arising from earthquakes for older buildings or the ones built before current safety standards. This includes strengthening the buildings, add to the buildings, sealing and filling of empty space to make new apartments, construct new floors, adding elevator, adding protected areas, existing housing expansion and more.