Buying an agricultural holding in the moshav is considered by many to be a unique real estate opportunity – large space, building potential and an opportunity for improvement. In practice, however, it is one of the most complex transactions in Israel, combining rights with RHI, the cooperative association and real estate planning.
Before entering into such a transaction, it is important to understand in depth the preliminary tests, as also detailed in the guidePreliminary Tests in a Real Estate Deal
Unlike a regular apartment, agricultural holding is not always fully owned. In most cases, it is a lease rights vis-à-vis the Israel Land Authority (ILA). Check whether there are any conditions, limitations or obligations that apply to the land.
Many assume that building rights can be freely built in agricultural holding, but in practice building rights are limited. The zoning, possibility of fragmentation and whether building exceptions exist.
The Cooperative Association holds significant power. At times, acceptance as a member is required, and at times there are restrictions on the transfer of rights.
Beyond the price of agricultural holding, a purchase tax, an agreement fee should be taken into account for the ILA, and an betterment levies.
This type of transaction requires professional legal guidance ofAdvocate for Agricultural Holdings in moshavimAlready in the early stages.
Purchasing agricultural holding can be an excellent opportunity – but only if all the tests are done in advance. A full legal and planning understanding is key to a successful transaction.
In acquisition of agricultural holding, the biggest mistake is to assume that if there is a commercial agreement, the rest of the system will work out later. In agricultural holding, one must understand in advance rights, Israel Land Authority (ILA), an association, taxation and the feasibility of the transaction as a whole.
If your case concerns this issue, it is correct to start with a pagePurchasing an Agricultural Holding in a MoshavOr move to the domain pageAgricultural holdings, agricultural moshavim and farms, to see all services, articles and course of action in one place.
An article provides a framework. A sound decision requires reviewing the facts, documents and specific risks before moving forward.
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