Glossary of Israeli Real Estate Terms
I find it important to walk non-Israelis through the maze of Israeli real estate. The differences from country to country are significant and a well educated buyer can make informed decisions. Today I’ll explain the term
“Bayit Meshutaf “ which means in free translation “shared housing” known in many countries as condominiums. A “Bayit Meshutaf” is one that has 2 apartments or more and is registered in the ledger of condominiums. An apartment purchase will include the apartment area as well as common areas in the building. The apartment owner shares financial responsibility for the maintenance and repair of these common areas.
“Hearat Azhara” (Cautionary Note) is filed with the Land Registry at the start of a real estate purchasing process regarding the Landowner’s intention to make a real estate transaction. The purpose is to secure and protect your rights as the apartment’s owner
“Heitel Hashbacha” is a property betterment tax that is paid by the owner to the Committee for Planning and Building and is assessed when property value increases due to the confirmation of building plans. The tax is applicable in the event of major home improvements, such as the addition of a room or enclosing a patio.
Local Planning and Construction Committee – is a legal entity operating within the local authority. It is the licensing authority in the construction area designated by the Minister of Interior. The committee consists of the local authority residents as well as local elected officials. Often local authority councilors are members of the local committee.
“Mas Rechisha” Purchase tax is a tax imposed on the purchaser of real estate rights on an apartment, private home or lot. The purchase tax is not fixed and varies from time to time. It is determined once a year by the Minister of Finance, and currently there is a purchase tax exemption on the purchase of a first apartment valued at 1.63 million NIS.
Urban Renewal (התחדשות עירונית) – Renovation or addition to old building in urban areas. Urban renewal is also known as “Tama 38” and “Pinuy Binuy“. The goal is to maximize usage of land which is typically done by adding new apartments to existing buildings, or temporarily evacuating residents of older apartments for the purpose of new building.