In This Edition
- Welcome
- Featured Article – Purchasing Groups – Pros and Cons
- Legal Vocabulary – 'Choze Chachira Mehuvan'
- Tip of the Month – Save on Purchase Tax
- 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.
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Purchasing Groups – Pros and Cons
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In the past few years we have been witness to a new trend in Israeli Real Estate projects - purchasing groups. It is estimated that about a third of the apartments currently being constructed in central Israel are being constructed by purchasing groups. The current economic crisis has brought in its wake stricter bank controls over construction companies with respect to the financing of projects. This in turn has caused many a construction company to delay or even abandon planned projects. In addition, the much publicized demise of the Israeli construction company, “Hefziba”, has deterred many purchasers from purchasing apartments from construction companies while still at the construction stage.
All of this has lead to a search for new ways to purchase apartments that are still being constructed, without doing so directly from a construction company. This is where purchasing groups enter center stage. Until the issues of financial backing and general insecurity with construction companies are resolved, experts predict that purchasing groups will become increasingly popular.
What is a purchasing group? How is it different from purchasing an apartment from a construction company at the preconstruction or construction stages? Do purchasing groups really save the purchasers money? What are the dangers, if any, of...
Read the complete article on our website.
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Legal Vocabulary
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'Choze Chachira Mehuvan'
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As I have explained in a past newsletter, most of the land in Israel is owned by the government. A purchaser receives a long term lease (choze chachira) for 49 years. When the lease is paid in advance for the whole 49 years it is called a "choze chachira mehuvan".
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Tip of the Month
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Save on Purchase Tax - If the apartment you are buying includes a significant amount of furniture and appliances, you can make a separate sales agreement for these items, thereby lowering the price of the property in the contract. This will then lower the Purchase Tax you will have to pay.
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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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