Tabu , Minhal & What`s In Between…

During the past few months home owners of houses at the Nofei Aviv project have received letters from the developing company, Aviv, notifying them that the procedure of registering their houses in the Israel Land Registry (“TABU”) is about to commence. The letter specifies and explains the course of action that one must take. This led to a lot of confusion among the home owners who were uncertain as to what that procedure meant.

In this article I hope to clarify some of the questions raised and explain the terms and definitions regarding the TABU registration procedure.

Let’s start with the basics: Israel is divided into blocks (Gush) each with its own number. Each section is divided into parcels (Helka). If the property is an individual home then usually it is registered as Gush Helka, if it’s a flat/apartment or a semi-detached house then each unit usually has its own identifying number as well (Tat Helka – sub parcel).

All properties in Israel are registered with various government offices, some in more than one.

1. Tabu is the Land Registry Office (לשכת רישום מקרקעין). Its offices are situated in various cities throughout Israel. Each office serves for the registration in a certain area. The Jerusalem office, for example serves the city of Beit Shemesh as well as Jerusalem and its vicinity. All privately owned properties are registered in Tabu and it is the simplest form of ownership to clarify. The Tabu reveals the status of rights relating to each property.

The identification of the property is by way of the Gush, Helka only. These records are public and for a small fee anyone can order an extract containing all the information registered. The information includes the owner of the land, its registered size and all pledges, mortgages, rights of use and/or passage relating to the land that have been registered in Tabu. Most of the properties in Israel are owned by the State of Israel and not by private ownership, and in these cases the "owner" is registered as a long term lessee (see below). Although, there is now a tendency to grant full ownership to the property holder.

2. Israel Lands Authority- מינהל מקרקעי ישראל (“Minhal”)- this is the holding company for most of the land and properties in Israel. The government leases (not sells), the land for a period of 49 years, with an automatic option to extend the lease for an extended period, usually 49 or 99 years (in most but not all cases). In addition, at the time of a sale of such a property, one would be required to receive the consent and approval of the Minhal. There is an annual rental fee for this lease period. In most new constructions, the fee is capitalized and paid for at the beginning of the lease period. These leaseholds eventually should be registered in Tabu, until they do though, they are in the hands of the housing company which is usually the company which built the project.

3. Hevra Meshakenet- חברה משכנת- this is a housing company or an attorney’s office which usually deals with relatively new projects that are registered in their books and acts as a "small Tabu" until the entire project is registered in the Tabu. Usually the more recent the project the more likely the rights are not yet registered with Tabu but with the housing company and the Minhal. It takes a while, usually several years, until the housing company registers the rights with Tabu. The company will most likely charge a fee from the owner for this registration, as stated the original purchasing contract.

At the moment, most of the properties in Bet Shemesh are registered in the Minhal and in the Hevra HaMeshakenet. The goal is to push them into being registered in Tabu. Letters from the Hevra Meshakenet stating that this is now in the pipeline is a good sign and should be taken seriously.

The registration procedure usually includes payment and signing on official forms. Sometimes if the property was obtained through a mortgage, the Hevra Meshakenet will require an official document from the bank stating the exact amount of the loan for it too needs to be registered in Tabu. Once registered in the Tabu there would be no need to contact the Hevra Meshakenet if you wish to sell or mortgage your property but the Minhal may still be required to give its consent to a transfer of rights. Consulting a real estate attorney in these matters is the only option to avoid confusion and mistakes in these situations.