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Real estate law

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Looking to buy or sell real estate?
Have you decided to rent an apartment, house, office?
Not sure what tax you need to pay on a real estate transaction?

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+972 54-457-5343

Hovelle, Tsaitel & Co. Law Firm is a team of experienced lawyers specializing in various aspects of real estate law. With their years of expertise, they offer comprehensive legal services covering a wide range of real estate matters. Whether it’s commercial real estate transactions, lease agreements, property inheritance, or involvement in complex real estate projects like TAMA 38 and PINUI Binui, the firm provides diligent legal support to their clients. Additionally, they assist individuals and families with drafting contracts, transferring property rights, and representing their interests in real estate transactions. Overall, Hovelle, Tsaitel & Co. Law Firm is dedicated to ensuring their clients navigate the intricacies of real estate law with confidence and success.

Here’s a summary of the services they provide:

  1. Purchase/Sale Agreements for Commercial Real Estate and Land Plots: Drafting legally binding contracts for the purchase or sale of commercial properties and land plots.
  2. Registration of Lease Agreements: Assisting clients in registering lease agreements to ensure legality and protection of rights.
  3. Registration of Donations for Real Estate: Handling the legal aspects of transferring real estate through donation, ensuring proper registration and compliance with relevant laws.
  4. Registration of Inherited Real Estate: Managing the legal procedures involved in inheriting real estate, including registration of rights and compliance with inheritance laws.
  5. Legal Support for TAMA 38 and PINUI Binui Projects: Providing legal guidance and representation for residents involved in TAMA 38 (National Master Plan 38) and PINUI Binui (demolition and reconstruction) projects, ensuring their rights are protected throughout the process.
  6. Full Legal Support for Various Real Estate Matters: Offering comprehensive legal support for a variety of real estate transactions and processes, including drafting contracts for rent, purchase, and sale of apartments, as well as transferring real estate to family members.
  7. Representation of Interests in Real Estate Transactions: Acting as legal representatives for clients in real estate transactions, whether they are buyers or sellers, to ensure their interests are protected during contract negotiations and execution.

Our office will provide you with full legal support on all matters related to real estate: drafting contracts for rent, purchase and sale of a apartment, transfer of real estate to children or other family members, registration of rights to inherited real estate.

We will represent Your interests as a buyer or seller when concluding contracts for the purchase and sale of real estate.

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Frequently asked questions

Renting an apartment is a significant milestone and often a first step towards independence for many individuals, marking the transition from childhood to adulthood. In Israel, where renting is prevalent among the population, it’s crucial to approach the process with diligence and caution to avoid potential pitfalls.

It’s common for people to attempt to save money by downloading rental contracts from the internet, bypassing legal assistance. However, this can lead to unfavorable outcomes, particularly for tenants, if important details are overlooked or misunderstood.

Seeking legal support when renting an apartment is essential because a lawyer can thoroughly review all aspects of the rental agreement and ensure that your rights and interests are protected. This includes examining the terms and conditions of the lease, verifying the landlord’s credentials and ownership status, checking for any outstanding debts or legal issues associated with the property, and confirming that all necessary utilities and resources are available for habitation.

By enlisting the services of a lawyer experienced in real estate law, tenants can have peace of mind knowing that they have expert guidance throughout the rental process and are less likely to encounter unforeseen complications or disputes. Investing in legal support upfront can ultimately save tenants time, money, and stress in the long run, making it a prudent decision for anyone entering the rental market.

The excerpt provided outlines key provisions of the fair rental law, which aims to protect the rights and interests of both landlords and tenants in the rental market. Here’s a breakdown of what the law includes:

  1. Standards for Rentable Apartments: The law specifies conditions under which an apartment is considered rentable, including requirements such as functional electricity and wiring, working water and sewage systems, proper ventilation for fresh air, and absence of hazards to tenant safety or health.
  2. Prohibition of Exclusive Payment Responsibility: Landlords are prohibited from shifting the entire burden of real estate service payments onto tenants.
  3. Landlord Responsibility for Apartment Maintenance: Landlords are obligated to address any apartment issues caused by careless or unusual use, ensuring that the property remains in a habitable condition.
  4. Limit on Security Deposit: The law sets a maximum limit for security deposits, which cannot exceed one-third of the total rent for the entire lease term or the equivalent of three months’ rent, whichever is lower.
  5. Transfer of Property to Tenant: Landlords must transfer all specified property listed in the rental agreement to the tenant and cannot include terms in the contract that absolve them of liability for apartment defects.
  6. Prohibition of Apartment Insurance Requirement: Landlords are not permitted to require tenants to pay for apartment insurance.
  7. Notification of Contract Termination: The law mandates that landlords must provide tenants with a minimum of 90 days’ notice before terminating the rental agreement, while tenants have the right to give landlords 60 days’ notice in advance.
  8. Reasonable Grounds for Refusal: Landlords reserve the right to refuse renting to third parties, but such refusal must be based on reasonable grounds.

It’s important to note that while these provisions offer significant protection, each rental contract is unique, and specific questions or disputes may arise. Consulting with a lawyer experienced in real estate law can help both landlords and tenants navigate these complexities, ensuring that their rights are upheld and their interests are safeguarded within the framework of the law.

When purchasing an apartment in Israel, buyers are subject to a statutory tax known as “mas rehisha” (acquisition tax). Failure to pay this tax or obtain an exemption can prevent the buyer from registering their rights to the acquired real estate. The amount of tax payable depends on several factors, including whether the apartment is the buyer’s first and only property in Israel, as well as the buyer’s tax residency status (i.e., Israeli tax resident or foreigner).

Here’s a breakdown of how the “mas rehisha” tax is typically structured based on these factors:

  1. First and Only Apartment for Israeli Tax Residents:
    • Transactions below a certain threshold (e.g., 1,978,745 ₪ as of 2024) may be exempt from taxation.
    • Transactions exceeding the threshold are subject to a progressive tax rate, typically ranging from 3.5% to 10%, applied to the portion of the transaction value above the threshold.
  2. Second and Subsequent Apartments for Israeli Tax Residents:
    • Higher tax rates may apply compared to those for first-time buyers.
    • The tax rate structure may vary depending on the specific regulations in place at the time of purchase.
  3. Apartments Purchased by Foreigners:
    • Foreign buyers may be subject to different tax rates or regulations compared to Israeli tax residents.
    • Additional taxes or restrictions may apply to real estate transactions involving foreign buyers, aimed at regulating foreign ownership of property.

It’s important for buyers to consult with a qualified tax advisor or legal professional familiar with Israeli real estate laws and tax regulations to understand their specific tax obligations and potential exemptions based on their individual circumstances. This ensures compliance with the law and helps avoid any issues related to property registration or tax liabilities.

The real estate sale tax in Israel, commonly referred to as “Mas Shevah,” is imposed on the seller when selling a property if the selling price exceeds the original purchase price, resulting in a capital gain. Here’s how it generally works:

  1. Calculation of Capital Gain: The capital gain is calculated by subtracting the original purchase price of the property from the selling price. Using your example, if a property was purchased for 1,000,000 ₪ and sold for 1,500,000 ₪, the capital gain would be 500,000 ₪.
  2. Taxation of Capital Gain: The capital gain is considered the seller’s income and is subject to taxation at the applicable tax rate. The tax rate may vary depending on factors such as the seller’s tax residency status and the duration of ownership of the property.
  3. Exemptions and Deductions: Certain exemptions or deductions may apply, such as exemptions for primary residences or deductions for expenses related to the sale or improvement of the property. It’s important for sellers to consult with a tax advisor or legal professional to understand any applicable exemptions or deductions they may qualify for.
  4. Reporting and Payment: Sellers are typically required to report the capital gain and pay the corresponding tax to the tax authorities within a specified timeframe after the sale of the property.
  5. Compliance: Compliance with tax laws and regulations is essential to avoid penalties or legal issues. Sellers should ensure they accurately report their capital gains and fulfill their tax obligations in accordance with the law.

Overall, the “Mas Shevah” tax is designed to capture the increase in property value and levy taxes on the resulting capital gains. Sellers should seek professional advice to understand their tax liabilities and obligations when selling real estate in Israel.

OUR RECOMMENDATIONS

Specialists in this area

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Tomer Tsaitel
LAWYER AND NOTARY
Tomer Tsaitel is a founder and partner of the Firm.

Mr. Tsaitel is expert in Real Estate and Bankruptcy Law. He also provides services in field of Israeli Bank system, as well as providing assistance in transferring fund to Israel. Mr. Tsaitel knows from his own experience the internal features of government structures, as well as the subtleties of commercial activity.

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Mickey Hovelle
PERSONAL LAWYER
Mickey Hovelle is a founder and partner of the Firm.

Mr. Hovelle is expert in Civil Law, especially in Administrative Law. He knows from his own experience the internal features of government structures, as well as the subtleties of commercial activity.

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