Court Tests for Distinguishing between Real Estate and Movables
- Buying an apartment in Israel
- The Sales Contract
The court ruled as follows:
“To decide whether a particular object will be considered real estate or movable, it is appropriate to apply as a preliminary test as to the intention test, whether there was originally an intention for permanent connection.
In addition, the following tests are also used: the physical test or the screw test – whether the object can be detached without causing actual damage to the object or the property;
Economic test – whether the object will significantly lose its value as a result of its detachment; Test of the character and identity of the object – whether the object will lose its identity and nature as a result of its detachment; The test of the identity of the land and its economic value after the detachment of the object; The trial of common sense and the sense of expertise of the jurist.
According to these tests, air conditioning, electricity, and elevator systems in a five-star hotel are not systems that can be seen as “movables.”