Building Rights are a Right in Real Estate
- Buying an apartment in Israel
- The Sales Contract
Nice to have
Construction percentages are an important, if not the most important, ‘parameter’ of real estate, to the point that they can be identified as real estate themselves in terms of their economic content.
The result is that even if building rights can be transferred and sold regardless of specific land – something that cannot yet be done under Israeli law – even then they will be considered a right to real estate subject to the Appreciation Tax Law, and even then, they do not constitute a property right under real estate law.
A tenant’s transaction in a shared house, which relates solely to this tenant’s share in the common property separately from the apartment itself, is invalid according to the provisions of section 55 (b) of the Real Estate Law, 5769-1969, according to which “there is no legal validity to a transaction in the common property separately from the apartment.”