Under Israeli property law, any partner may file for the dissolution of a real estate partnership in Israel at any time.
Israeli law governing real estate partnerships is an old law based mostly on the British Mandate and Ottoman Empire.
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 findDissolving Real estate property in Israel 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 conflicts of interest, and heirs often disagree over an inheritance. It is not uncommon for inherited property to be put into a forced sale.
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 aka joint community.
If a couple decides to divorce, the divorce itself is handled according to Jewish law by the RBC 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 your divorce handled by the Rabbinate. Most Ultra-Orthodox Israelis choose to have the Rabbinate decide on both; most secular Israelis choose to have the family Court handle their property partnership dissolution.
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 offer equalization payments if necessary. Dissolution by registration of a condominium is a specific case of a distribution in kind.
Real estate partnerships require a competent law firm with years of experience and a full understanding of Israeli real estate law, Israeli tax law, and Israel’s notorious bureaucracy. We have our fingers on the pulse of the Israel real estate industry. If you have any real estate or estate 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 firm to schedule a free consultation
