In This Edition
- Welcome
- Featured Article – The Falling Dollar: New Trends in Israeli
Real Estate Contracts
- Tip of the Month – Betterment Tax and the Seller
- Legal Vocabulary – 'Heter Benia' (Building Permit)
- Subscription Information
- For Further Information
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Welcome to Israel Real Estate Law Insights
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Welcome to the latest issue of the Israel Real Estate Law Insights, published by
Nicole Levin Law Offices, experts in all aspects of real estate law in Israel.
You are receiving this newsletter because you signed up for it on our website or
because you filled out a form at a housing fair. Our newsletter focuses on the
legal aspects of buying, selling and renting property in Israel.
We wish all our clients and friends a
Chag Pessach Kasher V'Sameach.
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The Falling Dollar: New Trends in
Israeli Real Estate Contracts
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As the Israeli shekel strengthens against the US dollar, real estate transactions in Israel are now frequently quoted in Israeli shekels rather than in US dollars, as used to be the case.
How does this trend affect Israeli real estate contracts?
When the US dollar was on the rise, rather than the shekel, contracts were usually quoted in US dollars and sellers would get more shekels for their apartments as the dollar rose. Foreign purchasers did not lose out as long as they converted their dollars on the day of payment. The only losers were those purchasers who were holding Israeli currency. As the dollar exchange rate rose, they needed to find more shekels to make their payments.
Needless to say, this situation caused an enormous amount of tension between the parties to real estate transactions...
Read the complete article in our articles section.
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Tip of the Month
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Before selling a second hand apartment your real estate attorney should check with the local municipality to see if there has been a change in the zoning since you purchased the apartment. If there was, then you may incur a Betterment Tax (Hetel Hashbacha) for the sale. A change in the zoning which gives the property more building rights enhances the worth of the apartment and the Betterment Tax comes to 50% of the added value to the property as a result of this enhancement. If there is Betterment Tax you can negotiate with the purchaser that the tax or at least part of it be paid by him.
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Legal Vocabulary
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'Heter Benia' (Building Permit) –
This is permission given by the local municipality to build an addition to the property. The building permit is given in accordance with the town plan. Should you wish to build beyond what the town plan allows then you must apply for a change in zoning. If you are granted this then you will pay a Betterment Tax either when you sell the apartment or build the addition whichever comes first.
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Subscription Information
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For Further Information
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Additional information can be found at:
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Further interesting articles can be found at:
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