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Client updates /  Real Estate

Prenuptial Agreements - New Israeli Supreme Court Ruling
May 6, 2021 / Liat Keisary Yahalomi
Up until now, the Israel Tax Authority interpreted the Real Estate Taxation Law so that spouses who signed a prenuptial agreement and maintained separate property were considered a single family unit for the purposes of real estate tax. 
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Categories: Private Clients | Real Estate Taxation
A new Supreme Court ruling considers the municipal property taxes for common areas in malls and shopping centers
January 17, 2021 / Maya Zisser
The Tel Aviv Municipality sent the Ramat Aviv Mall a municipal property tax bill for its common areas. The mall’s management argued that shop tenants must pay municipal property tax payments for these areas, under their lease agreements with the mall.
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Categories: Real Estate
COVID-19 Does Not Justify a Breach of or Deviation from a Contract When Its Arrival in Israel Was Foreseeable
November 1, 2020 / Eldar Adato
An Israeli court recently rendered an interesting ruling on the impact of COVID-19. The case in question involved the lease agreement for the operation of a hotel. The lease agreement, executed in February 2020, provided payment of rental fees for the month of March, but payment for the months of April and May had not yet been arranged.  
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Categories: Real Estate
An Urban Renewal Project Agreement Is Not Transferrable
October 29, 2020 / Eldar Adato
In urban renewal projects, residents or owner’s rights holders select the company with whom they are willing to embark upon this long journey, based on relationship of trust and competence. The trust required leads both parties to execute a binding agreement. Understandably, residents expect the company which whom they have contracted with to remain unchanged and not for those rights not to be transferred to other parties.
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Categories: Real Estate | Urban Renewal
It Is Time to Come Back Home: Investors Can Now Enjoy a Reduced Purchase Tax
August 2, 2020 / Liat Keisary Yahalomi
Israeli Minister of Finance Israel Katz’s plan to reduce purchase tax for investors has gone into effect. Until now, under plans advanced by the previous Minister of Finance, Moshe Kahlon, for lowering housing prices and pushing investors out of the real estate market, the purchase tax for investors went up from 5% to 8% for an apartment that was not the purchaser's sole apartment.
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Categories: Private Clients | Private Clients Tax | Real Estate | Tax
Apartment Sale Delayed because of COVID-19? Home Upgraders Eligible for an Extension
July 23, 2020 / Maya Zisser
Apartment owners experiencing difficulty selling their old apartments are entitled to a seven-month extension in which to sell, and the Israel Tax Authority will not count this period for tax purposes.
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Categories: Real Estate
Does a Delay in the Delivery of an Apartment Due to the Coronavirus Constitute Grounds for Untimely Delivery without Compensation?
March 16, 2020 / Eldar Adato
What happens if a contractor’s workers do not come to work due to the spread of the coronavirus, and therefore cause delays in the delivery ? Will the buyer be entitled to compensation or will the delay be justifiable?
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Categories: Real Estate
Modifications to an Apartment at the Purchaser's Request Do Not Constitute Just Cause for Late Delivery of Possession
December 10, 2019 / Shenhav Cherhi
A recent judgment by the Hadera Magistrate's Court holds that modifications to an apartment made at a purchaser's request do not constitute just cause for late delivery and that the purchaser must be compensated for any delay.
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Categories: Real Estate | Real Estate Transactions
Assuring Apartment Purchasers' Money
November 7, 2019 / Barnea
Israeli's Ministry of Construction and Housing recently imposed a NIS 6.5 million financial sanction on the developer of a TAMA 38 project in Kiryat Bialik. The developer was fined after failing to produce a guarantee to purchasers of apartments in the project for funds they had paid toward the unit price, as required by the Assurance of Investments Law.
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Categories: Real Estate | Real Estate Transactions
An Additional Barrier in Performing TAMA 38 Projects
September 4, 2019 / Eldar Adato
In a precedential ruling, the Tel Aviv District Appeals Committee affirmed the Regional Planning and Construction Committee’s decision that in cases in which a new zoning plan provides more rights than those set in the TAMA 38 provisions, the consent of all residents is required.
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Categories: Real Estate | Urban Renewal
Initiative to Increase Population Density in Residences
September 2, 2019 / Alon Wolner
The National Committee for Planning and Construction has approved the Planning Administration’s initiative to amend the provisions of TAMA 35. The planned amendment will update the calculation method for the level of population density, from the number of residential units per square kilometer to the number of persons per square kilometer.
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Categories: Real Estate | Urban Renewal
Dramatic Decision on the Taxation of Trusts in Israel
July 31, 2019 / Harel Perlmutter
The Tel Aviv District Court handed down a decision a few days ago rejecting the Israel Tax Authority’s (ITA) position on the conveyance of real estate properties to trusts. This decision dramatically changes the taxation of trusts in Israel.
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Categories: Private Clients | Real Estate | Tax
Canceling Expropriation for Public Use – When?
July 24, 2019 / Maya Zisser
The Supreme Court recently heard a case on the cancellation of expropriation and ruled that public interest prevails over the damage caused to landowners.
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Categories: Real Estate
Scope of Land Supervisor's Powers
March 25, 2019 / Eldar Adato
A judgment by the Supreme Court recently established the scope of instructions the Land Supervisor is authorized to issue in regard to the common property of a condominium defined as a "complex building."
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Categories: Real Estate
Main Aspects of Plan for Tel Aviv 3rd Quarter Will Enable Construction of 8,000 New Apartments through TAMA 38
February 5, 2018 / Eldar Adato
The Tel Aviv District Committee for Planning and Construction recently gave final approval for the Tel Aviv 3rd Quarter Plan, making possible the construction of 8,000 new residential units. The road to the plan's final approval, a plan prepared in accordance with section 23 of TAMA 38, was long and filled with obstacles.
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Categories: Real Estate | Urban Renewal
City of Givatayim to Freeze All Future TAMA 38 Projects in East Givatayim for Two Years
February 15, 2018 / Eldar Adato
Givatayim intends to transform the city's east with a series of "Pinui-Binui" projects to be built along Ben-Gurion Street on the city lines between Givatayim and Ramat Gan. In order to advance the plan, the Tel Aviv District Committee for Planning and Construction approved Givatayim’s request to prohibit the issuance of permits for TAMA 38 in the same area for a period of two years.
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Categories: Real Estate | Urban Renewal
The National Committee for Planning and Construction for Areas Prioritized for Residences Approves Urban Renewal Plan
February 8, 2018 / Eldar Adato
The National Committed decided, for the first time, to submit an urban renewal plan for the residential neighborhood of Kiryat Moshe in Rehovot.
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Categories: Real Estate | Urban Renewal
Failed Attempt by Owners of Tel Aviv Building’s Basement to Convert Office Space into Apartments
February 19, 2018 / Eldar Adato
The Tel Aviv District Appeals Committee recently set aside a building permit granted by the city of Tel Aviv to the owner of office space in a building designated for demolition under TAMA 38 who sought to convert the space to residential use.
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Categories: Real Estate | Urban Renewal
Family Members Are Not Necessarily One Economic Unit for the Purposes of Betterment Tax Payments
December 25, 2018 / Eldar Adato
The Appeals Committee for Planning and Building, Compensations and Betterment Tax in the District of Jerusalem held that family members who are not one economic unit are not a single family unit for the purposes of exemption from betterment tax in the expansion of an apartment of no more than 140 square meters.
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Categories: Real Estate | Urban Renewal
New Amendment to the Sales Law - A Developer May Not Deposit a Value Added Tax (VAT) Guarantee
April 10, 2017 / Eldar Adato
The Knesset passed a new amendment (Amendment 9) to the Sales Law (Apartments), whereby developers who build apartments for sale are permitted not to deposit sureties for the VAT component of the transaction, thus decreasing the sum deposited by them.
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Categories: Real Estate
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