Articles - Real estate
In this page you can review articles published by our office on issues concerning Real estate law in Israel. We will update this page and add more articles every once in a while. For further information on issues regarding Real estate law you are welcome to visit our submitted claims and suits page on Real estate law.
Please be aware that while we did translate the reviews, the actual articles are not yet translated. We will do our best to translate all the articles as soon as possible.
The guide for purchasing a residential house in Israel
In this article we'll specify to the reader the main subjects that have to be considered before and during a real estate transaction in Israel (residential apartment or a house). Purchase of the family house is usually one of the largest major transactions we will execute in our lives. Acquires invest most of the funds they saved and in addition they will undertake a long mortgage. Discretion, consulting with a legal expert and careful inspection will prevent unnecessary litigation between buyer to the seller and great financial losses.
This article will discuss the Agreement Memorandum with an emphasis on Memorandum for a residential house purchase. The subjects that we will discuss are tests to determine whether the Memorandum is binding, the intention of the parties to create binding legal relations, whether the agreement included all the details for this particular transaction. We will also discuss "the connection formula" - which is the relation between the memorandum and the actual agreement that should be signed between the parties in the future. We should emphasize that our recommendation is to avoid signing a memorandum whenever possible. The signature on a memorandum is usually obliging on one hand but on the other hand, usually both Parties undertake upon themselves obligations without fully realizing the complete picture.
Purchase Tax in Israel – Residential house
On this article we will discuss the purchase tax in Israel. Purchase tax is the tax imposed by the Real Estate Taxation law (improvement, Sale and purchase), 1963 (hereinafter: "Income Tax Law"). The acquires needs to submit a statement regarding the land purchase and pay the purchase tax based on self valuation or by the state real estate tax offices. This article applies primarily on tax imposed with the acquisition and purchases of residential apartment (or house).
Improvement tax in Israel – Residential house
This article will discuss the Improvement tax with an emphasis on tax imposed during purchasing of a residential apartment. Article 6 of the Real Estate Taxation law (improvement, Sale and purchase), 1963, states that land Improvement tax will be imposed on the sale of rights in land Praise. Betterment tax capital gain tax is imposed on the of a real estate right. This tax will be imposed on the real estate right sell if this right is not regarded as "Business inventory". It needs to be sad that this tax will only be imposed only if there was an improvement, When there is no improvement or there was a lost, the tax is not implemented. The law regulates the way of calculating the tax, the expenses allowed for deduction, provisions on the day of sale, the sale value. The law also regulates the tax exemptions granted to those entitled.
Improvement levy in Israel - Residential house
This article will examine some aspects arising from the betterment levy that is imposed by the municipal authority after approval of a plan granting building rights or permitting a different use of the property that raise the land value. To remove any confusion this levy is, as stated, imposed by the municipal authority and not by the state tax offices as the Improvement tax.
