Updated: November 2026 · e-land editorial team
Disclaimer: The information in this article is general, correct as of the update date, and is intended to explain terms briefly. It does not constitute legal, appraisal, tax or investment advice. Before making decisions, you should consult an appropriate professional.
The real estate world speaks a language of its own – especially in Israel, where many key terms have Hebrew names: taba, musha, partzelatzia, he'arat azhara. Those who understand the terms also understand what they are really being offered, and know which questions to ask. We have gathered here the most important terms, arranged by topic and alphabetically, with a short, precise explanation of each and the Hebrew term in parentheses.
Contents: Planning and building · Registration and ownership · Taxes and levies · Transactions and financing · Urban renewal
Planning and building
Building lines (kav binyan)
The minimum distance set by the plan between the building and the plot boundary or the road. Building beyond the building line is prohibited, except with an approved relief.
Building permit (heter bniya)
The local committee's approval to build or alter a structure according to an approved plan. Building without a permit, or contrary to it, is an offense and may end in a demolition order.
Building rights (zchuyot bniya)
How much may be built on a plot under the plan: area, number of housing units, number of floors and height. They are sometimes expressed as a percentage of the plot area ("building percentages") and sometimes in square meters.
Certificate of completion (teudat gmar)
The local committee's confirmation that construction has been completed in accordance with the building permit.
Designation / land use (yiud karka)
The use the plan sets for the land: residential, commercial, employment, agriculture, public area and more. The designation – not what is built on the land today – determines what may be done with it, and it is the main factor in its value.
Detailed plan (tochnit meforetet)
A plan that sets precise provisions at plot level; only under it can a building permit be obtained. For land awaiting rezoning, approval of the detailed plan is one of the last and most significant stages.
District committee (vaada mechozit)
The planning institution at district level. It approves plans larger than those within the authority of the local committee, such as the rezoning of extensive areas.
Expropriation (hafka'a)
The taking of private land by the State or the local authority for public purposes, such as roads, parks and educational institutions. Under a plan, up to 40% of a plot may be expropriated without compensation, subject to the conditions set by law.
Form 4 (tofes 4)
The local committee's approval to connect a new building to electricity and water; in effect, it allows the building to be occupied. In a purchase from a developer, handover of the apartment is usually conditional on Form 4.
Local committee (vaada mekomit)
The planning institution of the local authority. It issues building permits, approves certain plans, and is also the body that collects the betterment levy.
Main area (shetach ikari)
The area used for the main purpose of the building, such as the rooms of the apartment. The plan determines how much main area may be built.
Non-conforming use (shimush choreg)
Use of a property other than according to its designation, for example an office in a residential apartment. A permit can be obtained for a limited period, in a process that includes publication and objections.
Outline plan – national, district, local (tochnit mitar)
Plans that set general policy: where cities, roads, open spaces and employment areas will be. A national outline plan is called a TAMA, and a district plan a TAMAM. A building permit usually cannot yet be obtained on the basis of an outline plan.
Parcellation (partzelatzia)
The division of a registered parcel into several plots (or the merging of several parcels into one), and the registration of the new division in the Land Registry. It is carried out according to a plan prepared by a licensed surveyor and approved by the local committee, and only afterwards does each plot have separate registration.
Public building plot (shabatz)
A plot designated by the plan for schools, kindergartens, clinics and other public buildings. It is usually taken from the landowners by expropriation.
Public open space (shatzap)
Gardens, parks and green areas that the plan allocates to the public. It too is usually taken by expropriation.
Registration plan (tatzar)
A map prepared by a licensed surveyor after a plan is approved, in order to register the new plots in the Land Registry. Until the tatzar is registered, the plots exist only in the plan, and the Land Registry still shows the old parcels.
Relief (hakla)
A limited deviation from the plan's provisions that the local committee may approve without changing the plan itself – for example a change in the building line or an additional floor. The process includes publication and a right of objection for neighbors, and may give rise to a betterment levy.
Reparcellation (ichud vechaluka)
A process in which several existing parcels are merged into one area and redivided into plots according to a new plan. Each owner receives a plot, or a share in a plot, whose value is proportional to the value of what they had before. The division is set out in an "allocation and balancing table", and can be made with or without the owners' consent.
Rezoning (hafshara)
A change in the designation of agricultural land to residential, employment or commercial use, in a plan approved by the planning institutions. The process goes through several stages, usually takes many years, and there is no certainty that it will be completed.
Service areas (shetchei sherut)
Ancillary areas that serve the building: safe room, storage room, stairwell, parking. The plan sets a quota for them separate from the main area.
Standard 22 (teken 22)
An appraisal standard for valuing land marketed to the public on the basis of an expected change in designation, mainly agricultural land. A marketer of such land must provide the buyer with an appraisal under the standard at least 7 days before signing. The appraisal details, among other things, the current designation, the chance of rezoning and the expected time until it happens, the current value, and the expected costs, taxes and levies.
Zoning plan (taba – tochnit binyan ir)
The common name for the plan that determines what may be built in an area: land designations, building rights, height, building lines and public areas. It is the first document to check before buying land.
Registration and ownership
Attachment (ikul)
An order of a court, the Execution Office or a competent authority that restricts transactions in a property, usually because of the owner's debt. An attachment appearing in the extract is a stop sign until it is removed.
Block (gush)
A defined area in the Land Registry map, divided into parcels. The block number is part of the "address" of every property.
Caution note (he'arat azhara)
A registration in the Land Registry warning that the owner has committed to a transaction in the property, for example to sell it. It protects the buyer against a conflicting transaction until ownership is transferred into their name, so it is registered immediately after signing.
Common property (rechush meshutaf)
The parts of a condominium that do not belong to a specific apartment: the stairwell, the roof, the shelter and the yard, unless they have been attached to an apartment.
Condominium (bayit meshutaf)
A building with at least two apartments registered in the Land Registry as a condominium, so that each apartment has its own sub-parcel.
Co-ownership agreement (heskem shituf)
An agreement between co-owners of land or a building that determines who uses which part, how decisions are made and what happens when a partner sells. For land sold in musha, this is one of the most important documents.
Easement (zikat hana'a)
A right of a person or of another property to use land that is not theirs in a certain way – for example a right of way along a path or for running pipes. A registered easement passes with the property even when it is sold.
Housing company (chevra meshakenet)
A company that built or marketed apartments, such as Amidar or Shikun & Binui, in whose books the rights are recorded as long as the building has not been registered in the Land Registry. In this case, a confirmation of rights is requested from the company instead of a Land Registry extract.
Irrevocable power of attorney (yipui ko'ach bilti chozer)
A power of attorney given by the seller in a transaction, usually to the attorneys, so that they can complete the registration of the property in the buyer's name. The seller cannot revoke it on their own initiative, so it protects the buyer.
Israel Land Authority (ILA / Rami)
The body that manages State land – about 93% of Israel's area. The ILA markets land in tenders, leases land and approves transactions in properties located on its land.
Land Registry (Tabu)
The national registry of rights in land and apartments in Israel, at the Ministry of Justice. Registration in the Land Registry is the strongest evidence of ownership.
Land Registry extract (nesach tabu)
An official document summarizing the registration status of a property: who the owners are, the area of the parcel, and which mortgages, attachments, caution notes and attachments of property are registered. It can be ordered on the gov.il website for a small fee.
Lien / registered mortgage (shi'abud)
A registration that gives the lender, usually a bank, the right to sell the property if the loan is not repaid. A lien is removed from the extract only after the debt has been repaid.
Long-term lease (chechira ledorot)
A lease for a period of more than 25 years. Most apartments on ILA land are leased to their owners in this way. In practice it is similar to ownership, but some actions, such as rezoning or additional rights, require approval and payment to the ILA.
Musha (undivided joint ownership)
Joint ownership of land in which each partner holds a percentage of the entire land rather than a specific plot. Many agricultural plots are sold this way to dozens of partners, and every future decision requires coordination among them.
Parcel (chelka)
A registered unit of land within a block. Block and parcel together identify a property in the Land Registry.
Plot (migrash)
A unit of land set in the plan for construction. A plot is not always identical to the registered parcel, and until a tatzar is registered it exists only in the plan.
Property attachment (hatzmada)
Part of the common property allocated to a specific apartment, such as parking, a storage room, a roof or a yard. A registered attachment appears in the Land Registry extract, and it is worth checking that what was promised in the contract is in fact registered.
Taxes and levies
Betterment levy (heitel hashbacha)
A payment to the local committee on an increase in value created by a planning decision, such as a new plan, a relief or a non-conforming use. The basic rate is 50% of the increase in value.
Capitalization (hivun)
A one-time advance payment of the lease fees to the ILA for the entire lease period. In many cases it exempts the lessee from future payments.
Capital gains tax on real estate (mas shevach)
A tax on the profit from the sale of real property, paid by the seller. The basic rate is 25% of the real gain, and a seller of a single apartment is usually exempt, subject to conditions.
Deceased's exemption (ptor hamorish)
An exemption from capital gains tax on the sale of an inherited apartment, when certain conditions are met: the heir is the spouse or a descendant of the deceased, the deceased had only one apartment, and the deceased would have been exempt had they sold it.
Deciding appraiser (shamai machria)
A neutral appraiser appointed by the Ministry of Justice when there is a dispute over the amount of a betterment levy. The application must be made within a short time of receiving the assessment.
Permit fees (dmei heter)
A payment to the ILA for rezoning or for additional building rights on leased land.
Preferential linear calculation (chishuv lineari mutav)
A capital gains tax benefit for sellers of apartments purchased before 2014. The part of the profit attributed to the period up to the end of 2013 is exempt, and only the part attributed to the period afterwards is taxable.
Purchase tax (mas rechisha)
A tax paid by the buyer of real property, according to brackets. A buyer of a single apartment is exempt up to a certain amount, an investor pays 8% from the first shekel, and 6% is paid on land or commercial property.
Real gain (shevach re'ali)
The profit from the sale of a property after deducting recognized expenses and neutralizing inflation. Capital gains tax is calculated on it, not on the sale price.
Realization event (eru'a mimush)
The moment at which the betterment levy must be paid: an application for a building permit under the new rights, the sale of the property, or the start of use under a relief or a non-conforming use.
Self-assessment (shuma atzmit)
The declaration that the buyer and seller submit to the Tax Authority within 30 days of the transaction, with their calculation of the tax they believe they owe. The Tax Authority may accept it or issue its own assessment.
Single apartment (for tax purposes)
A status that determines the purchase tax brackets and the exemption from capital gains tax. Spouses and children under 18 are considered one unit. A small share in another apartment, such as up to one-third, or up to half of an inherited apartment, does not always negate the status.
Upgrader (meshaper diur)
Someone who buys a new apartment before selling the old one. They pay purchase tax as the owner of a single apartment, provided they sell the previous apartment within the time set by law. If they do not sell in time, they pay the difference plus interest.
Transactions and financing
Appraiser (shamai mekarke'in)
A licensed professional who assesses the value of a property. An appraiser on behalf of the buyer checks whether the price is reasonable, and the bank relies on its own appraiser when setting the mortgage amount.
Approval in principle (ishur ekroni)
A bank approval before signing the purchase contract, showing how much mortgage you can get and at what interest rate. It is not a final commitment, but it prevents surprises after you have already committed.
Bank accompaniment (livui banka'i)
Financing of a construction project by a bank that supervises the funds. Buyers pay with vouchers into the project account (a "voucher book"), and the bank releases money to the developer according to construction progress.
Combination deal (iskat kombinatzia)
A transaction in which a landowner transfers to a developer part of the land or the right to build on it, and in return receives apartments in the project, money, or a combination of both. This is also the mechanism behind most urban renewal deals.
Equity (hon atzmi)
The buyer's own money, beyond the mortgage. It must cover the part of the price the bank does not finance, as well as purchase tax, attorney's fees and related expenses.
Financing ratio (shi'ur mimun)
The part of the property's value that the bank may finance with a mortgage. The Bank of Israel limits it to 75% for a single apartment, 70% for upgraders and 50% for an investment apartment.
Memorandum of understanding (zichron dvarim)
A preliminary document signed before the full contract. If it contains the essential details of the transaction, a court may regard it as a binding contract. It is therefore inadvisable to sign it without an attorney.
Mortgage (mashkanta)
A loan for the purchase of a property, secured by the property itself. It is usually made up of several tracks (a "mix"), such as prime, fixed interest and variable interest.
Prime
The Bank of Israel interest rate plus 1.5%. The prime track of a mortgage changes every time the Bank of Israel changes its rate, and it can be repaid without an early repayment fee.
Purchasing group (kvutzat rechisha)
An association of private individuals who buy land together and build a building on it for themselves, so that they themselves are the developers. The price savings can be significant, but they usually lack the protections of the Sale Law.
Sale contract (chozeh mecher)
The binding agreement between buyer and seller, which sets the price, payment schedule, handover date, condition of the property and what happens in the event of a breach. Its payment and handover terms also affect when taxes are paid.
Sale Law (chok hamecher)
A law protecting buyers of apartments from developers. A developer may not receive more than 7% of the price from the buyer unless the money is secured by one of the securities set by law: a bank guarantee, an insurance policy, a mortgage in favor of the buyer, a caution note, or the transfer of ownership into the buyer's name.
Sale Law guarantee (arvut chok mecher)
The most common security under the Sale Law: a bank guarantee that returns the buyer's money if the developer does not meet its obligations.
Trust account (cheshbon ne'emanut)
A bank account, usually an attorney's, that holds money on behalf of another party until defined conditions are met, for example registration of a caution note. This ensures the money does not reach the seller before the buyer is protected.
Zero report (doch efes)
A financial report for a construction project that brings together all expected income and expenses and examines whether the project is viable. Banks rely on it when deciding whether to accompany a project.
Urban renewal
Compound (mitcham)
The area included in a Pinui Binui project, usually several adjacent buildings. The plan is prepared for the compound, and the majority of apartment owners required for the project is counted according to it.
Developer (yazam)
The person or company promoting a real estate project: locating land or a building, advancing planning, raising financing and bearing the risk. Sometimes the developer is also the contractor who builds, and sometimes it employs a contractor.
Governmental Authority for Urban Renewal
A government body that promotes and accompanies urban renewal projects, publishes information to the public, and helps apartment owners understand their rights.
Pinui Binui (evacuation and reconstruction)
A renewal track in which old buildings are demolished and replaced with new, taller buildings with more apartments. It is now the main urban renewal track in Israel.
Refusing tenant (dayar sarvan)
An apartment owner who refuses to join an urban renewal project when most residents have already signed. If the refusal is unreasonable, the law allows a claim against them for the damage caused to the other residents.
Replacement apartment (dirat tmura)
The new apartment an owner receives in an urban renewal project in place of the old one. It is usually larger, with a safe room, balcony and parking.
Shaked Alternative
The track that replaced the national TAMA 38, focusing mainly on the demolition and reconstruction of a single building. It allows additional building rights in a relatively fast track, subject to each city's policy.
Special majority (rov meyuchas)
The majority of apartment owners that allows action against a refusing tenant. In Pinui Binui, since an amendment approved in 2021, two-thirds of all apartments in the compound are required, at least 60% of the apartments in each building, and more than half of the common property in each building. Before the amendment, 80% was required.
TAMA 38
A national outline plan for strengthening buildings against earthquakes in return for additional building rights. It had two tracks: strengthening and adding floors (38/1), or demolition and reconstruction (38/2). The national plan has ended, and has been replaced by municipal plans and the Shaked Alternative.
Urban renewal (hitchadshut ironit)
An umbrella term for projects that renew old buildings and neighborhoods, by strengthening and expansion or by demolition and reconstruction. The developer receives additional building rights, and the sale of the new apartments finances the construction for the existing apartment owners.
The bottom line
Those who know the terms understand what is written in the contract, the Land Registry extract and the plan, and know how to ask the right questions before signing. For most of the terms here you will find a fuller explanation in our guides to capital gains tax, purchase tax, the betterment levy, agricultural land, Pinui Binui and purchasing groups.
Missing a term? Write to us and we will add it to the glossary.
Want updates on new articles and investment opportunities? Leave your details here and tick the box to receive updates.
Disclaimer: The information in this article is general, correct as of the update date, and is intended to explain terms briefly. It does not constitute legal, appraisal, tax or investment advice. Before making decisions, you should consult an appropriate professional.
Sources
-
Planning and Building Law, 5725-1965
-
Land Law, 5729-1969
-
Real Estate Taxation (Appreciation and Purchase) Law, 5723-1963
-
Sale (Apartments) (Assurance of Investments of Purchasers of Apartments) Law, 5735-1974
-
Evacuation and Reconstruction (Encouragement of Evacuation and Reconstruction Projects) Law, 5766-2006
-
Kol Zchut, "Providing security to a buyer of an apartment from a developer": Link (in Hebrew)
-
Kol Zchut, "A right in real property": Link (in Hebrew)
-
Kol Zchut, "Betterment levy": Link (in Hebrew)
-
Dira U'Mashkanta guides (Hon), on Standard 22 and agricultural land appraisal: Link (in Hebrew)
-
Nadlan Center, "Leasing in the real estate world": Link (in Hebrew)
-
Amir Klausner Law Office, "The majority required to carry out the project": Link (in Hebrew)
-
Additional sources are detailed in our full guides on the website
