Asor & Co. – Attorneys at Law

Pinui Binui is an urban renewal project where residents of an old building complex vacate their apartments to allow demolition of the existing structure and construction of a new modern one. In return, each resident receives a new, larger apartment in the same complex, free of charge. The project requires consent of most residents and a complex legal-planning process including plan approval, building permit, and combination agreements.

TAMA 38 applies to a single building and includes strengthening (TAMA 38/1) or demolish-and-rebuild (TAMA 38/2). Pinui Binui is a complex-wide project covering multiple buildings, demolished and rebuilt under a new approved master plan. In Pinui Binui the rights are larger but so are the complexity and timeline.

Capital gains tax is imposed on profit from real estate sales. It is calculated as the difference between purchase and sale prices, less allowable expenses. Exemptions exist, such as for a single residential apartment under certain conditions. Reporting to the real estate tax authorities is required within 30 days of the transaction.

Purchase tax is paid by the buyer when acquiring real estate rights in Israel. The rate is graduated and depends on property value and purchase purpose - single apartment, additional apartment, or commercial. Reporting and payment are required within 60 days from agreement signing.

Check an updated land registry extract, absence of liens and cautionary notes, conformance between the building and the building permit, debts to the building committee and authorities, and unutilized building rights. A real estate lawyer will check all these, draft the agreement to protect your interests, and significantly reduce risks in the largest transaction in most families' lives.

A typical Pinui Binui project in Jerusalem takes between 7 and 12 years. The time is divided among signing phase, plan approval at the local planning committee (3-5 years), building permit (about a year), and demolition and construction (3-4 years).

A succession order is issued by the Inheritance Registrar when there is no will. A probate order is issued when a will exists, to validate it legally. Both require different documents, newspaper publication, and sometimes court approval. Legal representation saves time and reduces risk of refusal.

No-consideration transfer is gifting property, usually within the family. The advantage is reduced purchase tax (1/3 of standard) and sometimes exemption from capital gains tax. Particularly suitable for transfers to spouse, children, or parents, and when wishing to ensure asset distribution during life.

Continuing power of attorney is a legal document allowing a person to appoint a representative to handle their affairs if they lose legal capacity (e.g., due to illness or dementia). The document is signed before a specially authorized lawyer and registered with the General Administrator. It serves as a comprehensive alternative to guardianship.

Betterment levy is paid to the local authority for property value increase due to plan approval, exceptional permit, or non-conforming use. The levy is 50% of the betterment and is paid upon rights realization. It can be significantly reduced via a deciding appraiser and sometimes through urban renewal incentives.