What is realization for the purposes of the improvement levy
- Buying an apartment in Israel
- Improvement Levy
“The meaning of the word ‘realization’ or ‘realization of rights’ in the Planning and Building Law is one of two – the sale of real estate or obtaining a building permit.
Under section 1 of the Third Schedule, the date of conclusion of the contract of sale shall be deemed to be the date of exercise of the rights for the purposes of the improvement levy.
It, therefore, makes sense that this point should be the transition point between the seller’s duty in the improvement levy and the buyer’s duty.
I will emphasize that the determining date is not the date of completion of the transfer of rights in the apartment and its registration in the name of the buyer, or any other date other than the date of the conclusion of the agreement; the date when the parties signed the sale agreement.
Another realization date is when the improvement levy will apply is at the time of receipt of a building permit.
If this was not clear, then of course the determining date is the earlier of the dates of obtaining a building or sale permit.
See the comprehensive and analytical analysis of the Honorable Justice Amit.
There are other dates that will be considered ‘realization’ and I will not expand on them, such as granting relief or allowing excessive use, the beginning of the use of the real estate, etc.”