dissolve property in israel
Under Israeli real estate law, owners own the condominium units and the common areas are communally owned

Israeli Real Estate Partnerships can be dissolved by any partner at any time.

Under Israeli law, any partner may file for dissolution of a real estate partnership in Israel at any time. That is why it is vital to create a satisfactory exit strategy when drawing up your initial real estate partnership agreement. Any exit strategy that is satisfactory to all partners ensures that the venture will continue if one of the partners wants to be bought out or dies and his/her heirs wants to sell out.

Israeli law governing real estate partnerships has some very unique features:

— The entire parcel of land is owned equally by all the partners.

— Any partner may use the land in any way he/she sees fit - provided that the partner’s activities do not infringe on the rights of the other partners.

— Any partner may take any action to maintain the viability of the land, without being required to inform the other partners beforehand if time is of the essence.

— And finally, any partner can file to dissolve a real estate partnership at any time. The Court will try to divide the property equally among the partners. Dissolution will be in kind. If the property cannot be divided into fair and equitable parts, the Court can require a partner/s to make compensatory payments.

But if the partners cannot agree with the

farmland in israel
Under Israeli law, any partner may dissolve a partnership at any time

Court’s settlement, the Court may require that the entire parcel be sold, and each partner is compensated according to his/her share. This is not always the ideal solution, and you always want to avoid getting into that situation, if you possibly can, by having a satisfactory exit strategy in place going in.

Israeli law governing real estate partnerships is highly complex. See the entire law here (in Hebrew):


There are a number of situations where people can find themselves partners in a piece of real estate due to other circumstances. The most common of these are inheritance and marriage. Or it can occur after land reapportionment.

In the case of inheritance, people often find they are suddenly in a real estate partnership with a variety of individuals or entities, including siblings, other relatives, a corporation or business, or even a charity/non-profit. Since there was no way to create an exit strategy beforehand, there are often problems, and heirs often fight over an inheritance. It is not uncommon for an inherited property to be put into a forced sale, which is not always the best thing for everyone.

Note: The type of will you have may influence the outcome of your probate issue. In Israel, there are several different types of will which are accepted by the Court, including written wills and oral wills. Read more about the different types of will acceptable under Israeli law here:

In the case of marriage, Israeli law holds that any assets or real estate which belonged to each spouse at the time of the marriage remains the property of that spouse for the duration of the marriage; any property acquired after the marriage belongs to the couple jointly and equally.

If a couple decides to divorce, the divorce itself is handled according to Jewish law by the Rabbinate; the division of the couple’s jointly-held real estate will be handled by the Family Court. You can also choose to have the property partnership aspect of yiur divirce handled by the Rabbinate. Most Ultra-Orthodox Israelis choose to have the Rabbinate decide on both; most secular Israelis choose to have the Court handle their property partnership dissolution.

dissolution of property in israel
All partners in Israeli real estate own all the land together

A condominium is treated differently to undeveloped land. Each partner owns a specific number of units and the public areas are owned communally by all the partners. A jointly-owned property may be registered as a condominium. In the case of a dispute between the partners, the Court may order the dissolution of the partnership by way of registration of a condominium. Partners receive distribution of the property according to their share. The Court may impose equalization payments if necessary. Dissolution by registration of a condominium is a specific case of a distribution in kind, and is usually a preferable route to take rather a forced liquidation by sale.

Real estate partnerships require a competent law firm with years of experience and a full understanding of Israeli law and Israel’s notorious bureaucracy. We work constantly with buyers and sellers of real estate in Israel, and we have our fingers on the pulse of the Israel real estate industry. If you have real estate interests in Israel, or if you are looking to invest in Israeli real estate, or if you are looking for information about the formation or dissolution of real estate partnerships in Israel, please call our law offices to schedule a free consultation.