appraisal aspects: improvement levies and compensations for plan (lesson 7) Flashcards
What is compensation for a plan / פיצויים בגין תכנית ? (5 points and examples)
Compensation for a plan is:
- Damage as a result of a plan, but not by direct expropriation, but by damage to areas within the plan.
- The person entitled to compensation = must be the landowner / have land rights on the day the plan was approved
- The subject of compensation = the Local Committee for Planning and Construction.
- The rate of compensation = the decrease in the value of the land.
- File must be claimed within 3 years from the effective date of the program.
Examples:
- Violation of privacy rights
- Violation of solar rights
- Violation due to noise
Who provides compensation in an event of “compensation for a plan” / פיצויים בגין תכנית ? From what fund do they pay?
The Local Committee should give the compensation.
They pay from the the fund of the improvement levies, which also funds the development of that plan
How does the Local Council pay for compensation for a plan, and how much is the rate of compensation?
- Sometimes she will have to pay the compensation out of pocket
- Sometimes she will authorize the entrepreneur to carry out a plan and oblige him to sign that he will pay the compensation if she is sued (she will transfer the compensation money but will not pay herself)
- The rate of compensation is the rate of decrease in the value of the real estate (determined by the appraisers)
How does one claim compensation for a plan / פיצויים בגין תכנית ? (5 (5 steps)
If you want to claim compensation from the plan:
- Submit a claim to the Local Council with an appraisal from a real estate appraiser
- The Local Council will have to give an answer within 90 days (if no answer, you move on)
- The council adopts opinion of a consultant appraiser
- After 90 days, the council makes a decision, if there is a dispute, it is possible to go to a decisive appraiser (with powers like a judge) within 45 days
- If after the consultant appraiser, the owner of the property does accept it or thinks that he does not deserve to pay at all, he will go straight to the Compensation Appeal Committee which will discuss whether or not he deserves to pay.
What is an improvement levy/tax / היטל השבחה ?
(4 points)
Improvement levy/tax -
- All properties in the country have a certain property value.
- The policy of the state is to improve the assets of the local committee.
- The private person is sometimes harmed by this so he will receive compensation for a claim for the decrease in the value of the property
- Sometimes he wins because of this and therefore he will have to repay the state and therefore he will pay the improvement levy.
When do we have to pay an improvement levy/tax? (2 cases)
- Case of relief/easement (הקלה): Cases where we requested a relief/easement (10 floors were allowed and we requested an easement/הקלה for another 2 floors for which we will have to pay an improvement levy to the authority).
- For non-conformant use (שימוש חורג): Ex. an event hall in an industrial area, we praised the property because more profits can be made from it, we will have to pay for that.
We will pay on the day we receive the permit for relief/non-conformant use
How much do you pay improvement levy/tax if you sell a property?
- As soon as you sell a property, you pay the same levies for the number of years you have owned the property
- Charge rate will always be 50% of the increase in the value of the real estate, not the market value.
- Even in the situation of two adjacent buildings, there can be a situation where each will pay a different improvement levy/receive a different compensation because the environmental data for each is completely different.
