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What To Check With Rami Before Buying Agricultural Estate

Before purchasing an agricultural farm, one should check what is registered in the IMI, what conditions apply to the transfer of rights and whether there are debts, uses or structures that may delay the transaction. A certificate of rights is a starting point, but it does not replace an inspection of the full case and the actual situation.
It is best to do the test withAccompanying Israel Land Authority and Cooperative Associations in Agricultural HoldingsIn the examination ofAgricultural holdings, agricultural moshavim and farmsThus, it is possible to understand before signing whether the rights are transferable and what should be settled in the contract.
The short answer
In checking with the Ministry of Finance, we find out what the source of the right is in the agricultural holding, who is registered as the owner of the rights, whether there are debts or payment requirements, and whether the uses and structures in the agricultural holding are compatible with the documents. In addition, we need to check what is required to obtain approval for the transfer of the rights to the buyer.
The mistake is to assume that the seller can transfer to the buyer everything that exists in the field. In the agricultural holding seat may be a residential home, agricultural buildings, additional units or an active business, but not all existing use is approved use.
Why is the test in front of the R.I. critical before signing
Purchasing agriculural holding is not an ordinary apartment transaction. In many cases, the rights are not registered as a full private ownership of the Israeli Land Registry, but rely on Israel Land Authority documents, a checker agreement, a certificate of rights and the cooperative association documents. Therefore, a contract between a seller and a buyer is not sufficient in itself.
For example, a seller may display a structure that is leased to a third party as part of the income of the agricultural holding. If the use is not permitted according to the Israel Land Authority documents or according to the planning and construction laws, the buyer may purchase along with the agricultural holding also the series requirement, payment or termination of use.
What documents are requested from the ISA
- Up-to-date rights approval, to check who is registered and what is the type of right in the agricultural farm.
- A square agreement or contract is relevant, where it applies to the agricultural holding and the cooperative association.
- Debt information, payment requirements, usage fees, or procedures not yet completed.
- Documents relating to previous transfers, inheritance, child sucessor or obligations previously granted.
- Information on conditions for obtaining permission to transfer the rights from the seller to the buyer.
- Documents relating to non-agricultural uses, existing structures or requests for settlement.
What compares to a situation in the field
Legal due diligence does not end with the read-through of the rights approval. The Israel Land Authority documents, the building portfolio and the actual situation should be compared. Checking residential homes, warehouses, sheds, agricultural structures, additions, housing units and business activities in agricultural holding.
If there are gaps, it is necessary to find out if they can be fixed, who will bear ownership and what happens if the Israel Land Authority or the local committee does not approve of the situation. The gap may affect the price, bank financing and the timetables of the transaction.
What Debts and Payments May Be Revealed
Before purchasing agriculural holding should check whether there are past debts, usage fees, settlement requirements or payments related to the transfer of rights. Not every payment necessarily applies to the buyer, but should know in advance who is responsible for it and give it explicit expression in the contract.
Even when there is no open demand at the time of the test, existing use can lead to a demand later on. That is why it is important to have documents, to ask targeted questions and not to settle for a general statement that there are no known debts.
What to Look for in the Cooperative Association
Alongside RAMI, the Cooperative Association documents should be reviewed. In some cases, the Association has information on the status of rights, duties, uses and procedure for obtaining the buyer. It is necessary to understand what approvals are required and what the expected timetable is.
It is not to be assumed that one party's approval replaces the rest of the tests. A document from the association does not replace the Rami case, and a certificate of rights does not prove that all buildings and uses of the territory have been regulated.
How to translate the test into a contract
The contract should determine what approvals the seller gives, what duties he removes, who handles the settlement and what will happen if the transfer of rights is not approved. When there is substantial uncertainty, a suspension condition or a trust amount may be considered.
It is worthwhile to perform the tests before signing up for a memory of things or delivering a significant advance. At this stage, it is still possible to adjust the price and conditions to the real picture, or to stop a transaction that is not suitable for the buyer.
Common Mistakes
A common mistake is to settle for an old rights approval. Another mistake is to check only who is registered, without ascertaining debts, uses and conditions for transfer. In agricultural holding, any of these issues can delay the transaction.
Another mistake is to rely on the fact that the agricultural holding is held in the same family for many years. Prolonged holding does not prove that any change, structure or use has been approved in front of the Israel Land Authority and the local committee.
When to seek counselling
It is worthwhile to conduct a rights check before purchase as early as the beginning of the negotiations, when the first documents are received from the seller. If there is a lack of up-to-date rights approval, if there are uses that are unclear or if conflicting answers are received, it is correct to stop and clarify the image before undertaking.
In such a situation, the lawyer coordinates the examinations with the relevant parties and formulates in the contract mechanisms that correspond to the actual risk found.
Related Legal Services
- Israel Land Authority and Cooperative Association MattersLegal support vis-à-vis Israel Land Authority (ILA) and Cooperative Association on agricultural holding, rights, permits, transfers, sale, registration and uses of agricultural farms.
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I contacted Karen just to figure out whether it was worth selling a piece of land we inherited or keeping it. She sat down with me and explained the whole picture – rights, taxation, what can be done in the future. She didn’t try to push in a certain direction, and that was the most important thing to me.
Karin Amsalem, a professional and thorough attorney of the highest level! Represented us in the process of selling a plot of land that we won in a tender. This is a complex process that includes registering lease rights in the Land Registry, payments to the Land Registry such as consent fees, refunding subsidies for housing and construction, as well as handling the appreciation tax, which includes many expenses. Karin managed the entire process with professionalism, accuracy and attention to detail, while fully protecting our interests as sellers. Throughout the entire process, we felt that we had someone to trust. Highly recommend her!
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