Glossary of Israeli Legal Terms: Real Estate and Civil Law

Short explanations of terms that come up in the firm's practice areas. Each term links to the relevant practice page.

Appeal (ir'ur)

A request to a higher court to set aside or change a judgment. As a rule, it is filed within 60 days. Civil Litigation

Arbitration (borerut)

A process in which the parties agree that an arbitrator, rather than a court, will decide the dispute between them. It is usually based on an arbitration clause in a contract. Civil Litigation

Betterment levy (heitel hashbacha)

A payment to the local planning committee at a rate of 50% of the increase in the value of the property resulting from a plan, a variance or a nonconforming use. Planning and Betterment Levy

Caveat (he'arat azhara)

A registration at the Land Registry (Tabu) in favor of a person who has received an undertaking for a transaction in a property, such as an apartment buyer. The caveat prevents a conflicting transaction in the property without that person's consent, which is why it is registered immediately after signing. Real Estate Transactions

Combination deal (iskat kombinatzia)

A deal in which a landowner transfers part of the rights in the land to a developer and, in return, receives apartments or floor space in the building the developer constructs, instead of a cash payment. Real Estate Development

Condominium registration (rishum bayit meshutaf)

Registration of the building in the Condominium Register, so that each apartment is registered as a separate sub-parcel. Real Estate Development

Deciding appraiser (shamai machria)

An appraiser appointed to decide a dispute over value, for example over the amount of a betterment levy. Planning and Betterment Levy

Default judgment (psak din be'he'eder hagana)

A judgment that the court gives when the defendant has not filed a statement of defense on time. It is sometimes possible to apply to have it set aside. Civil Litigation

Designated successor (ben mamshich)

The person whom the owners of a moshav farm have appointed to receive the farm after them. The appointment requires the approval of the cooperative society and of the Israel Land Authority. Cooperatives and Moshavim

Dissolution of joint ownership (piruk shituf)

A proceeding in which the court ends joint ownership of a property, either by dividing the property in kind or by selling it and dividing the proceeds. Real Estate Disputes

Enduring power of attorney (yipui koach mitmashech)

A document in which a person appoints in advance who will make decisions on their behalf in property, health or personal matters if they are unable to do so themselves. Wills and Inheritance

Evacuation and reconstruction (pinui binui)

A project in which one or more old buildings are demolished and new buildings are constructed in their place under a plan. The apartment owners receive new apartments. Urban Renewal

Housing company (chevra meshakenet)

A company that records the rights in the apartments of a project until the building is registered as a condominium at the Land Registry (Tabu). Real Estate Transactions

Injunction (tzav meni'a)

An order that prohibits a party from taking an action, for example selling a property or building, until the court reaches a decision. Civil Litigation

Inspection period (tkufat bedek)

The period that begins on delivery of the apartment, during which the contractor must repair nonconformities that are discovered, unless the contractor proves that they were caused by the buyer. It ranges from one year to seven years, depending on the type of defect. Buyers vs. Developers

Israel Land Authority (Rashut Mekarkei Yisrael)

The body that manages state land and the land of the Jewish National Fund (Keren Kayemeth LeIsrael) and the Development Authority. Rights in many apartments are registered with the ILA rather than at the Land Registry (Tabu). Real Estate Transactions

Land Registry extract (nesach tabu)

A document from the Land Registry Office showing who the registered owners of a property are and which mortgages, attachments and notes are registered against it. Real Estate Transactions

Mediation (gishur)

A process in which a neutral mediator helps the parties reach an agreement. The mediator does not decide the dispute. Civil Litigation

National Outline Plan 38 (TAMA 38)

The national outline plan for reinforcing existing buildings against earthquakes, under which additional building rights were granted in return for the reinforcement. Urban Renewal

Nonconforming use (shimush chorig)

Use of a property for a purpose that the plan or the permit does not allow, such as an office in a residential apartment. It requires a permit from the committee. Planning and Betterment Levy

Pre-dismissal hearing (shimua)

An employee's opportunity to hear the allegations against them and respond to them before the employer decides whether to dismiss them. Employment Law

Pretrial hearing (kdam mishpat)

An early court hearing, held before the evidence is heard, at which the issues in dispute are defined, motions are discussed and the possibility of a settlement is explored. Civil Litigation

Probate order (tzav kiyum tzava'a)

An order that approves a will, so that the estate can be divided according to it. Wills and Inheritance

Purchase tax (mas rechisha)

A tax paid by the purchaser of a right in real estate, according to brackets. The rate depends mainly on whether this is the purchaser's only residential apartment. Real Estate Transactions

Real estate capital gains tax (mas shevach)

A tax on the gain from the sale of a right in real estate, meaning the difference between the sale price and the purchase price, after deductions. The seller pays it, and there are exemptions for residential apartments under the conditions set out in the law. Real Estate Transactions

Road Accident Victims Compensation Law (chok hapitzuim)

The Road Accident Victims Compensation Law, 5735-1975 entitles a person injured in a road accident to compensation for bodily injury, in most cases without having to prove who was at fault for the accident. Torts and Insurance

Sale Law guarantee (arvut chok mecher)

A guarantee that a contractor provides to an apartment buyer for the money the buyer has paid, under the Sale (Apartments) (Assurance of Investments of Persons Acquiring Apartments) Law, 5735-1974. It protects the money if the contractor does not deliver the apartment. Buyers vs. Developers

Severance pay (pitzuei piturim)

A payment to an employee who is dismissed after at least one year of employment: as a rule, one month's salary for each year of employment, based on the last salary. Employment Law

Statement of defense (ktav hagana)

The document in which a defendant responds to the allegations in the statement of claim. As a rule, it is filed within 60 days, and in a small claim within 15 days. Civil Litigation

Succession order (tzav yerusha)

An order of the Registrar of Inheritance Affairs or of the court that determines who the heirs are when there is no will, under the Succession Law, 5725-1965. Wills and Inheritance

Temporary attachment (ikul zmani)

An order that freezes the defendant's assets or funds until the end of the proceeding, so that there will be something to collect from if the claim is accepted. Civil Litigation

Variance (hakala)

Approval from the local planning committee to deviate from a provision of a plan, for example on a building line or height, without changing the plan itself. Planning and Betterment Levy

Warranty period (tkufat achrayut)

The three years after the end of the inspection period, during which the contractor is liable for a defect if the buyer proves that it originates in the design, the workmanship or the materials. Buyers vs. Developers