Checking Building Rights Before Purchase — The Complete Legal Guide
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Why is checking building rights critical when purchasing real estate?
Buying an apartment or land is one of the most important financial decisions in life. However, many buyers ignore a thorough examination of building rights — which can lead to severe consequences: inability to rent, prohibition on expansion or renovation, claims from planners, tax updates, or even forced partial evacuation of the property. In recent times, with urban renewal and Tama 38 in full swing, the importance of such examination has increased even further.
As attorneys specializing in tort law, real estate law, and real estate since 2008, we have seen many cases of buyers encountering legal problems due to inadequate examination. In this guide, we will explain clearly and in depth what building rights are, how to check them, and what the visible and hidden risks are.
What exactly are building rights?
Building rights are the legal authorization to build on a specific parcel of land in accordance with an approved building plan, local plans, and building regulations. These rights determine:
- Maximum building height — how many stories are permitted to be built
- Maximum building area (building coefficient) — how many square meters can be built relative to the land area
- Land use — for residential, commercial, office, industrial purposes, and the like
- Building lines — minimum distance from the street and other limitations
- Additional building requirements — parking, green spaces, disabled access, safety systems, etc.
These building rights are determined in a detailed plan (approved building plan) and may change over the years due to new Tama (district outline plan), updated local plans, or decisions by the municipal council.
Are your building rights still valid?
Building rights are not static. They may change or even be revoked due to:
- Tama 38 or new local plans — updating of regulated building plans
- Changes in urban planning — changes in land use (for example, residential to industrial)
- Special directives from the Ministry of Interior or competent authorities — restrictions on construction due to nature conservation, heritage, or safety
- Expropriations or state development plans — in rare cases, the land may be expropriated for the public good
In any case, checking up-to-date building rights is a must.
How to check building rights — practical steps
Checking building rights includes several steps, each of which is critical:
1. Checking at the Registration Office (Tabu and Tabu Extract)
The Tabu is the official registration of the land at the Land Registry Office. In the Tabu extract, you can find basic information about the property, owners, mortgages, and liens. However, the Tabu does not contain complete information about building rights — it is only a first step.
2. Checking at the local municipality office
The municipality holds the approved building plans, Tama, and all regulations related to the property. To check building rights, you should contact the planning department at the municipality and request:
- Updated detailed building plan — the official document describing the building rights
- Certification of non-violation of plans — whether the property complies with existing building regulations
- Report on future changes — new Tama, local plans in process, planned expropriations
- Property identification certificate — a document identifying the property in the plan
3. Checking at the Land Registry Office (Issuing Certificates)
The Land Registry Office issues certificates that confirm building rights in accordance with the approved plan. This certificate is essential if you intend to rent the property or sell it in the future.
4. In-depth legal examination of the plan
Often, the approved plan contains complex provisions and exceptions. A thorough legal analysis is needed to understand:
- Whether the property meets all conditions for building or expansion
- Whether there are restrictions on use (for example, residential only, mortgage prohibited, etc.)
- Whether there are special conditions related to Tama 38 or urban renewal
The main risks when purchasing without checking building rights
Comparative Table: Building Rights Scenarios
Below is a table presenting various scenarios and their implications:
| Scenario | Property Status | Risk | Recommended Action |
|---|---|---|---|
| Valid and Clear Building Rights | Property complies with the approved plan, no deviations | Low | Proceed with purchase with confidence |
| Minor Deviations (e.g., Missing Parking) | Property complies with the plan but missing one parking space | Medium | Check possibility of arrangement with municipality or legal insurance |
| Unauthorized Construction (Additional Floor) | Additional floor built without approval | Very High | Check possibility of legal settlement or significant price reduction |
| Land in Urban Renewal Plan | Property is in a TAMA 38 plan | Medium to High | Obtain legal advice on financial implications and procedures |
| Land Expropriated or in Expropriation Plan | Government or local authority planning expropriation | Critical | Do not purchase or seek legal compensation |
Note: Each case is unique, and this table is merely a general guide. In-depth legal review is essential before any purchase.
Tama 38 and Urban Renewal — Implications for Building Rights
In recent times, Tama 38 (District Outline Plan for infill development) is dramatically changing building rights in the city. If you are purchasing an apartment in an urban renewal project, you need to understand the implications:
- Increased building rights — In Tama 38 projects, owners of existing apartments gain increased building rights (for example, additional floors). However, this also means that your property will become part of a new and larger construction plan.
- Renewal expenses — Apartment owners in the project must pay renewal expenses (infill evacuation, infrastructure, etc.). This is a significant cost that you need to plan for.
- Temporary restrictions — During the renewal period, it may be prohibited to rent out the apartment or rent it under certain conditions.
- Government compensation — In addition to your expenses, the government may grant compensation to apartment owners based on the new building area.
If you are purchasing an apartment in a Tama 38 project, check with the municipality and the project management to clarify exactly what your building rights are, what the expected expenses are, and what the timeline is.
In-Depth Legal Review — What You Need to Know
A legal review of building rights is not a simple task. It requires experience, familiarity with plans, and knowledge of planning laws and property rights. Here are some important points:
- In-depth plan analysis — It is not enough to look at the number of floors. You need to understand building lines, restricted areas, special conditions, and exceptions.
- Property history review — Has the property been involved in previous lawsuits? Is there a restraining order or directive from the municipality?
- Current Tama review — Is there a new Tama in process that could affect building rights?
- Review of special restrictions — Are there restrictions based on nature conservation, heritage, safety, or other considerations?
Often, property owners discovered issues with building rights only years later, when they tried to rent, sell, or expand the property. A thorough review at the time of purchase saves time, money, and legal troubles.
Frequently Asked Questions About Building Rights Review
How Mendelboim, Gor, Witzman-Gor Can Help You
Mendelboim, Gor, Witzman-Gor & Associates law office specializes in real estate and property law since 2008. We provide comprehensive legal advice at all stages of the purchase process, including full review of building rights.
When you meet us for a free initial consultation, we:
- Review the building plan — In-depth analysis of the approved plan, building rights, building lines, and any deviations
- Identify risks — Identify potential issues with building rights, TAMA 38, municipal orders, or other restrictions
- Advise on next steps — Advise whether to proceed with the purchase, request a discount, or seek an alternative
- Guide through the entire purchase process — Help with preparation of the sales contract, additional legal reviews, and property registration
We are located in Ramat Gan and Petach Tikva, and have extensive experience in real estate transactions, TAMA 38, urban renewal, and all types of building rights related matters. Our approach is personal, dedicated, and always aimed at protecting your interests.
If you are in the process of purchasing or considering it, we invite you to a free initial consultation meeting. In this meeting, we can understand your needs, review the property, and provide clear and direct legal advice.
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