AI Summary Box
- 50+ terms covering legal, financial, construction, and municipal domains
- Format: Hebrew | Transliteration | English | Legal Context
- Critical for: Contract review, developer negotiations, lawyer communication
- Source: Israeli Land Law, Planning & Building Law, Sales Law (Chuk Mecher)
How to Use This Glossary
Terms are grouped by domain. Each entry includes: Hebrew script | Transliteration | English | Legal Significance. Terms marked ** are contract-critical — never sign without understanding.
1. Ownership & Registration (Tabu)
| Hebrew | Transliteration | English | Legal Significance |
|---|
| טאבו | Tabu | Land Registry | Official government registry of property rights. All transactions must register here. ** |
| נסח טאבו | Nesach Tabu | Tabu Extract | Official ownership certificate. Always request before signing. ** |
| רשות מקרקעי ישראל | Reshut Mekarka'ei Yisrael | Israel Land Authority (ILA) | Manages 93% of state land. Leases (not sells) via long-term contracts (49+49 years). |
| חכירה | Chachira | Leasehold | Long-term lease from ILA (typically 98 years). Functionally similar to freehold. |
| בעלות | Ba'alut | Freehold Ownership | Private land ownership (7% of land). Full rights, no lease renewal needed. ** |
| הערת אזהרה | He'arat Azhara | Warning Note/Caveat | Registered claim on property. First buyer to register gets priority. ** |
| משכנתא | Mashkanta | Mortgage | Registered charge on property. Bank registers He'arat Azhara then Mashkanta. |
2. Purchase Process & Contracts
| Hebrew | Transliteration | English | Legal Significance |
|---|
| חוק המכר (דירות) | Chuk HaMecher (Dirot) | Sales Law (Apartments) | Primary consumer protection law. Mandates bank guarantees, payment vouchers, late-delivery penalties. ** |
| ערבות בנקאית | Arvut Bankait | Bank Guarantee | Mandatory for every payment over 7% of price. Issued by project's accompanying bank. ** |
| שובר תשלום | Shovar Tashlum | Payment Voucher | Official bank form. Only valid payment method for off-plan purchases. Never pay directly to developer. ** |
| בנק מלווה | Bank Melave | Accompanying Bank | Bank supervising project finances. Issues guarantees, controls construction account. |
| זכרון דברים | Zichron Devarim | Memorandum of Understanding | Binding preliminary agreement. Can constitute full contract if detailed. Avoid signing without lawyer. ** |
| ייפוי כוח | Yipui Koach | Power of Attorney | Allows remote signing. Must be notarized + apostilled/consularized for foreign signatories. ** |
| מס רכישה | Mas Rechisha | Purchase Tax | Progressive tax on buyer. Non-residents: 8-10%. Olim: 0.5-8%. Paid within 50 days. ** |
| מס שבח | Mas Shevach | Capital Gains Tax | On seller. 25% on real gain (non-residents). Exemptions for primary residence, Olim. |
3. Construction & Delivery
| Hebrew | Transliteration | English | Legal Significance |
|---|
| היתר בנייה | Heter Bniya | Building Permit | Mandatory before construction. Verify exists and matches sales brochure. ** |
| טופס 4 | Tofes 4 | Occupancy Permit (Form 4) | Legal completion certificate. Building connected to utilities, safe for habitation. Keys only after Tofes 4. ** |
| טופס 5 | Tofes 5 | Completion Certificate | Final certificate after all common areas finished. Triggers final payment. |
| תקופת בדק | Tkufat Bedek | Defect Liability Period | Statutory warranty periods: 1-7 years depending on element. Developer must fix. ** |
| בדק בית | Bedek Bayit | Pre-Handover Inspection | Professional engineer inspection before taking possession. Do not skip. ** |
| מ"מד / ממ"ד | Mamad / Memad | Protected Space (Bomb Shelter) | Mandatory in all new apartments since 1992. Minimum 9m², blast-resistant. |
| מעלית שבת | Ma'alit Shabbat | Shabbat Elevator | Stops automatically on every floor Friday sunset to Saturday night. Standard in religious areas. |
| הצמדה למדד | Hatzmada LaMadad | Indexation Clause | Unpaid balance linked to Madad Tsumot HaBniya (Construction Cost Index). Negotiable cap. ** |
| מדד תשומות הבנייה | Madad Tsumot HaBniya | Construction Inputs Index | Monthly CBS index (concrete, steel, labor). Drives price escalation on unpaid balance. |
4. Planning & Zoning
| Hebrew | Transliteration | English | Legal Significance |
|---|
| תב"ע | Taba | Local Master Plan | Zoning plan: permitted uses, building rights, height limits. Check before buying. |
| תמא 38 | Tama 38 | National Outline Plan 38 | Earthquake strengthening. Tama 38/1 = reinforce existing. Tama 38/2 = demolish & rebuild. |
| פינוי בינוי | Pinui Binui | Evacuation-Reconstruction | Urban renewal: entire complex demolished, rebuilt at higher density. |
| שינוי ייעוד | Shinui Ya'ud | Change of Designation | Converting land use (e.g., agricultural → residential). Complex, uncertain. |
| אחוזי בנייה | Achuzay Bniya | Building Rights (%/FAR) | Floor Area Ratio. Determines max buildable area. Key value driver. |
| הקלה | Hakala | Variance/Relaxation | Permission to deviate from Taba (e.g., extra floors). Requires public hearing. |
| התנגדות | Hitnagdut | Objection | Public right to oppose planning decisions. Can delay projects years. |
5. Financial & Tax
| Hebrew | Transliteration | English | Legal Significance |
|---|
| מס רכישה | Mas Rechisha | Purchase Tax | See Section 2. Progressive brackets. File Form 7000 within 50 days. |
| מס שבח | Mas Shevach | Betterment/Capital Gains Tax | See Section 2. 25% on real gain. Many exemptions. |
| היטל השבחה | Hitel Hashbacha | Betterment Levy | Municipal tax on value increase from upzoning/approvals. Seller usually pays. |
| ארנונה | Arnona | Municipal Property Tax | Annual tax based on size, location, use. Owner pays (not tenant). |
| ועד בית | Va'ad Bayit | Building Committee / HOA | Monthly maintenance fee. Mandatory. Covers cleaning, elevator, insurance, reserves. |
| קרן חידוש | Keren Chidush | Renewal Fund | Mandatory reserve for major repairs (roof, facade, elevators). Part of Va'ad Bayit. |
| מע"מ | Ma'am | VAT (17%) | Applies on new apartments from developer. Included in quoted price usually. |
6. Professional Roles
| Hebrew | Transliteration | English | Legal Significance |
|---|
| עורך דין מקרקעין | Orech Din Mikrakei | Real Estate Lawyer | Your lawyer ≠ Developer's lawyer. Mandatory for foreign buyers. ** |
| שמאי מקרקעין | Shamai Mikrakei | Licensed Appraiser | Bank requires for mortgage. Also for tax assessments, disputes. |
| מהנדס בניין | Mehandes Bniya | Structural Engineer | Conducts Bedek Bayit. Must be licensed (Reshum). |
| מתווך | Metoach | Real Estate Agent | 2% + VAT standard commission. Must hold license (Reshum Metoachim). |
| נוטריון | Notaryon | Notary | Certifies translations, powers of attorney, document authenticity. |
7. Common Contract Clauses (What to Watch)
| Hebrew Phrase | Transliteration | Meaning | Red Flag If... |
|---|
| ללא ערבות בנקאית | Le'lo Arvut Bankait | Without bank guarantee | ILLEGAL for off-plan. Walk away. |
| תשלום ישיר לקבלן | Tashlum Yashir LaKablan | Direct payment to contractor | ILLEGAL under Chuk Mecher. Never do this. |
| הצמדה מלאה למדד | Hatzmada Mle'a LaMadad | Full indexation | Negotiate cap (e.g., max 2%/year or fixed after X%). |
| איחור במסירה עד 90 יום | Ichor BeMasira Ad 90 Yom | Delivery delay up to 90 days | Standard grace. Beyond = statutory penalties apply. |
| פיצוי מוסכם | Pitzuy Muscam | Agreed damages | Must be reasonable pre-estimate. Penalty clauses unenforceable. |
| ויתור על טענות | Vitur Al Taanot | Waiver of claims | Never sign blanket waiver before Bedek Bayit. |
Quick Reference: The 10 Terms You MUST Know Before Signing
- Tabu — Where ownership lives
- Chuk Mecher — Your legal shield
- Arvut Bankait — Your money's bodyguard
- Shovar Tashlum — The ONLY way to pay
- Tofes 4 — When you actually get keys
- Tkufat Bedek — Your warranty clock
- Mamad — Non-negotiable safety feature
- Madad Tsumot — The inflation ghost in your contract
- Hitel Hashbacha — The surprise municipal bill
- Yipui Koach — Your remote-control pen
- Orech Din — The only person on your side
Internal Links
FAQ Schema
Q: What is the most important Hebrew term for a foreign buyer?
A: Chuk Mecher (חוק המכר) — the Sales Law that mandates bank guarantees and protects off-plan buyers.
Q: What does "Shovar Tashlum" mean and why does it matter?
A: Payment Voucher. It's the only legal way to pay a developer for off-plan property. Paying directly to the contractor is illegal and unprotected.
Q: What is "Madad Tsumot HaBniya" and should I worry?
A: Construction Costs Index. Your unpaid balance is linked to it. Negotiate a cap (e.g., max 1.5%/year or fixed after 24 months).
Q: Do I need a Notary for Power of Attorney from abroad?
A: Yes. Notarized + Apostille (or consular legalization) required for Israeli acceptance.
Q: What is "Tkufat Bedek" and how long is it?
A: Statutory defect liability period. 1 year for most items, 3 years for plumbing/electric, 7 years for structural/façade/waterproofing.