Dictionary of real estate concepts

Payment of the tax imposed in respect of an increase in the value of a real property in light of plan approval, Providing relief or allowing extraordinary use that originates from the decision of the local authority.

This is a unique tax payment, Because while payments of purchase tax or appreciation tax are transferred directly to the state treasury, After all, the improvement levy is paid to the local authority in whose area the property is located.

The meaning is in fact that the improvement levy is not derived as a result of the increase in real estate prices in Israel or the development of the neighborhood or renovations, But only as a result of the approval of rights and building plans originating from the decision of the local authority.

In order to calculate the amount of the improvement levy, A revaluation of the purchase price of the property and the date of exercise of the rights is required, That is, the sale of the real estate rights in it, Or alternatively, getting a building permit.

Appreciation tax is a real estate tax imposed on capital gains resulting from the sale of any type of property (residential or commercial). This tax actually examines the profit in the gap that exists between the price at which a person purchased the property and the final sale price as part of a real estate transaction, Subject to the changing tax rates.

The tax is not levied on the entire profit amount, since it is possible to offset various expenses from it, such as fees for a lawyer at the time of purchase and/or sale, Agency Fees, Costs of renovation and improvement of the property, etc.

In some cases, it is also possible to receive entitlements from the payment of appreciation tax, For example, a person who owns only one apartment, or an exemption obtained in light of an inherited or gifted property.

A necessary document whose role is to examine the feasibility of the investment in the execution of a project for every real estate developer. The zero report embodies all the expenses and variables that the developer must take into account before the actual implementation of the project.

Among the variables included in the report are various financing options (including banks or non-bank entities, The details of the property and its legal status with all authorities, Model and existing planning status, A description of the environment and the requested plot, including a wide variety of considerations designed to provide the best indication for the purpose of formulating the decision regarding the feasibility of the project.

It is important for the fleet that the preparation of a zero report is a professional action that must be prepared carefully, going down to the smallest details.

Additionally, The report is a means for the various funding bodies that sometimes require it as a condition for receiving funding for the project.

Formal legal registration at the Land Office made subject to the section 126 of the Land Law (5779, 1969). This is a mechanism that allows both parties taking part in a real estate transaction of any kind to trust each other, through a guarantee mentioned in writing with full commitment of both parties to it.

Through the warning note, the selling party is prevented from signing a conflicting agreement with any other potential buyer or conducting any kind of conduct with a third party without consent.

A warning note actually gives security and peace of mind to the buyer, Because as long as it is not removed, It protects him from various risks that may be involved in the condition of the property, including foreclosures, Bankruptcies, etc.

Municipal tax, which is a mandatory payment paid directly to the local authority for the purpose of establishing municipal infrastructure of any kind (for example: paving roads and sidewalks, Open public spaces, infrastructure for water or sewage pipes and more) which are collected according to the need by virtue of the municipal by-laws.

It should be noted that development levies are paid only once throughout the life of the property, However, they do not include additional costs for construction additions of any kind.

The development levy rate varies between local authorities, When these are required for the property owners' participation in the necessary expenses intertwined with the existing property. Yet, It is appropriate to examine the possibility of receiving an exemption, Discount or entitlement to a convenient spread of payments of the surcharges subject to the law.

A general name for the process of reviving and redeveloping a built complex using the existing infrastructure, Either at the initiative of the local authority or at the initiative of the tenants. The ultimate goal is to create a quality and pleasant living environment, which immeasurably improves the character of the residence, Including reference to improving the safety of buildings and providing an optimal response to public needs.

The planning authorities in Israel encourage urban renewal procedures with the informed goal of providing an adequate response to the expected population growth in Israel in the coming decades, In combination with sustainability and environmental values ​​and in accordance with the needs of residents and local authorities.

Urban renewal procedures are currently carried out subject to the Law of the Governmental Authority for Urban Renewal (996, 2016) which is intended to exhaust urban renewal activity throughout the country and accelerate projects of this type in order to increase the supply of housing in the built urban fabric.

The area of ​​a property is one of the most important variables in the world of real estate. It is therefore a measurable element through which it is possible to obtain a financial assessment in relation to a certain property. as a result of it, The potential customers can win an estimate in relation to its price.

In order to calculate the gross area of ​​a property, It should be noted that it is required to refer to the surface area of ​​the apartment in its entirety, including walls and covered balconies (if any). Yet, This calculation does not take into account open balconies, Parking, Stair areas or additional spaces associated with it, such as warehouses or elevators.

Warning: sometimes there are substantial differences between the advertised gross area in relation to the property, compared to the net area which may be significantly reduced. It is recommended to make sure that the measurement process is carried out by professional parties only.

Taboo is synonymous with the authority for registering and settling real estate rights in the Ministry of Justice. This is a government institution within which a formal activity is conducted that includes the collection of certificates and documents that serve as a basis for registering rights.

It should be noted that the Land Registry Bureau (TABO) operates through 9 Registration offices spread throughout the country. They are responsible for issuing taboo texts, used as a condition for completing real estate transactions (sale/lease agreements), as well as for additional actions such as recording warning notes, Getting mortgages, Inheritance and more.

It is now possible to carry out a series of operations in Tabu online through the website of the land registrar.

In order to make sure that the registration in the tabu is indeed done in a thorough manner, It is recommended to use an experienced real estate lawyer who will be able to accompany you throughout the process until its impeccable completion.

A detailed document that meticulously compiles all the actions and steps necessary to renovate the property. The bill of quantities is produced in the vast majority of cases by the executing contractor and is also used as an estimate of project costs, for the planned schedules as well as for its management at the financial level.

Use of a bill of quantities is done comprehensively as an integral part of an agreement with an entrepreneurial or executive company. The purpose of this document is, at the end of the day, to reflect to the client the way of working in an accessible way in the best possible way.

A bill of quantities is a binding appendix to a sales contract. Through it you can examine the activities of the executing contractor in a convenient way and one that is not interpreted in two ways.

Occupancy confirmation form (form 4) is a guarantee for the completion of the construction process of the property. in practice, This is the final stage after which the authorities allow tenants to live there, After the infrastructure works are fully completed.

The main idea behind a form 4 It originates from the safety of the building, while meeting clear parameters. In order to receive this form, the contractor or the entrepreneurial company is required to believe in the construction process, Among other things, Approval from the city engineer or the local authority in whose area the property is located, Examining the residential protected area (MMD) that exists in it, Resistance to natural or time damage and more.

It should be noted that Form 4 is an essential criterion and an integral part of the construction process, When in fact without it there is no possibility of living in the property.

Signing a mortgage deed is an essential step that is an integral part of the process of obtaining a mortgage. After reaching an agreement with the bank regarding the terms of the mortgage and the way the payments are spread, He is responsible for producing a mortgage deed on his behalf, which is a kind of written guarantee agreement. This deed will be used later for the registration of the designated property in the offices of the land registrar (TABO).

The details of the owners of the property and the mortgage will appear on the deed, as well as the details of the property and the nature of the transaction.

It should be noted that a mortgage deed is a document with binding legal status. It means a commitment on the part of the buyers to pay the mortgage payments in full subject to the conditions defined with the bank, without any delays or delays whatsoever.

A real estate transaction entails for a significant part of the customers a need for financial financing, intended for the full completion of obligations in the absence of financial liquidity.

In favor of realizing the transaction and receiving the relevant financing, There is a possibility of using an escort, Including banking institutions or non-banking entities that are able to provide various types of financing solutions, including loans with variable conditions and customized according to need.

Simultaneously, A lender in real estate transactions may also be a lawyer who is entrusted with the legal issues, while providing a comprehensive response and striving to achieve the interests of his clients.

Past experience shows that a professional escort is of utmost importance, which has indefatigable abilities, with the aim of leading to the completion of the transaction under the most attractive conditions.

Inflation is the rate at which the general price levels of goods and services rise over time.
In the context of real estate, Inflation is a force that can significantly affect real estate prices and can lead to significant financial gain or loss.
We will discuss the factors that contribute to inflation in the real estate market, How to identify inflationary trends and strategies to protect your investment in the face of the changing economic landscape.

Administrative lands are areas, mostly undeveloped, Under government management that can be put up for sale or development.
Over the years, the Israeli government included such lands in plans to expand cities and their infrastructure.
We will discuss what administrative lands are, their potential benefits, the challenges in their acquisition and development and the various opportunities associated with this type of investment.
This issue is critical, Especially for those who are considering investing in real estate projects alongside other issues such as permit fees and land expropriation, which we will discuss in the following sections.

Shared house, commonly referred to as an apartment, Represents private living spaces within a shared building or community.
Condo apartments are gaining great popularity among property owners in Israel.
This section will discuss the advantages and disadvantages of owning a condominium, in the legal and financial responsibility associated with such ownership, and tips for making informed decisions when buying an apartment.
with the right knowledge, Potential buyers can choose the condominium that best suits their budget, to their preferences and lifestyle.

Moving a mortgage refers to transferring your mortgage from one lender to another, Often to take advantage of better interest rates or more favorable payment terms.
This process requires thorough planning and careful consideration to ensure a smooth transition.
Various factors such as legal implications and financial obligations associated with foreclosing on a mortgage need to be weighed against the potential benefits..
As mentioned earlier, Reducing your brokerage fees can also lead to significant savings, Therefore, be sure to estimate the costs involved in transferring your mortgage.

Brokerage fees are a sum of money paid to a broker in exchange for his services.
In the context of real estate, The brokerage fee is the amount paid to the real estate agent to enable the purchase or sale of a property.
We will discuss what a brokerage fee is, How is it calculated?, Some examples of different commission structures and how to reduce the cost of brokerage fees. This can help you make informed decisions when working with real estate professionals, As discussed later in the section on 'Gramushka'.

Gramoshka is an essential document in the process of purchasing a property in Israel.
It is a legal document used to transfer ownership of a property from the seller to the buyer.
We will discuss what a gramushka is, The meaning of Gramushka in the process of purchasing property, What it should include and some important things to consider when signing a Gramushka.
Stay on top of this vital part of the transaction process to protect your interests and ensure a smooth property transfer.

The transfer of rights is done by the administration on the condition that the seller has no obligations towards the administration and on the condition that all documents have been presented and after consent fees have been paid.
The amount of the consent fee is determined according to the lease contract and the decisions of the Israel Lands Council. The administration will issue for the lessee a special voucher for the payment of consent fees, which can be paid at all banks.
A buyer or tenant entrepreneur who applies to the bank for a loan can ask the administration for a copy to the bank. For more information on (obligation to register her mortgage).
When the rights are transferred, the property can be capitalized and then the lessee is exempt from consent fees. Due to the quantity and quality of the agents and their specialization in the different types of real estate, If the seller has paid an agreement fee and the buyer wants to capitalize, He must contact the administration within 90 a day, and a completion for capitalization will be made, in accordance with administrative procedures.

The permit fee is a fee charged by local or state authorities for issuing a permit to carry out a construction project in a certain area.
It is intended to cover the cost of processing the permit application and providing the necessary approvals. We will discuss what the permit fee is, How is it calculated?, Some of the different types of permit fees, and strategies for reducing the cost of obtaining a permit when investing in Israeli real estate.

Land expropriation is the process by which the state acquires privately owned land for public use through a legal process. This is a practice that has been controversial over the years, And some argue that this is an oppressive practice that unfairly targets specific groups. In Israel land expropriation is used to allow the expansion of cities and the development of essential infrastructure.

Understanding the legal process of real estate expropriation in Israel is important for property owners, Because it can have significant financial consequences. The process usually involves compensation to the landowner, But the specifics can change depending on the circumstances. so, It is very important that property owners are aware of their rights and seek professional advice if they believe that their property may be at risk of expropriation.

as a rule, The issue of land expropriation remains a controversial issue as it raises questions about property rights and the balance between personal interests and the public good as a whole. By keeping information, Property owners can protect their interests and engage in constructive discussions on this important issue in the Israeli real estate landscape.

The girls' memo, Also known as the Girls Memorandum, is a signed agreement that expresses the intention of two parties to cooperate in a project or work for a common goal. in the field of real estate, The Memorandum of Understanding may be used to express the buyer's intention to purchase a property or outline the terms of the buyer's due diligence process.
We will discuss what a memorandum is and its use in real estate, Its main features and some strategies for creating an effective MOU.