What is Parcelization in Ramat Gan?

Definition: What is Parcelization in Real Estate?

Parcelization is a legal-administrative process that enables the division of land or a single property into two or more units, each with its own independent land registry (taboo) identity. In other words, parcelization is the separation of one parcel into two separate parcels, each with its own taboo number and independent sales capacity.

In recent years, parcelization has become an important legal tool for property owners in Ramat Gan and central Israel, particularly in the context of urban renewal, land development, or transferring portions of a property to family members or partners.

When is Parcelization Required?

Parcelization is necessary in various situations:

• Sale of Part of the Property: When landowners want to sell part of their property and retain the remaining part, they must perform parcelization so that the sold portion has an independent legal identity.
• Division of Property Among Family Members: In the context of inheritance, divorce, or simply dividing jointly-owned property, parcelization allows each family member to hold their separate portion.
• Development and TMА 38 Implementation: In urban renewal projects, parcelization is a necessary step before vacate and rebuild or new construction.
• Reducing Property Size: When property owners want to reduce the size of their land (for example, to sell a portion to finance construction or development).
• Transactions with Contractors and Developers: Contractors and developers use parcelization to isolate land for the purpose of developing specific projects.

Each of these scenarios requires a deep understanding of the process, rights, and obligations associated with it.

Process Stages: How is Parcelization Conducted?

The parcelization process includes several legal and administrative stages that must be executed in a specific order. Each stage requires documentation, approvals, and professional handling.

Stage 1: Initial Examination and Feasibility Assessment

Before commencing the process, it is important to examine the existing property and determine whether parcelization is feasible at all. At this stage, a real estate attorney must examine:

• The existing registration plan of the property at the Land Registry Office.
• Planning and building regulations applicable to the property (planning district, detailed plan, building restrictions).
• Third-party rights (mortgages, liens, easements).
• Legal division of the property among owners (if there is co-ownership).

Stage 2: Preparation of Parcelization Plan

At this stage, a real estate attorney or licensed surveyor prepares a parcelization plan ("parcelization sheet") showing how the property will be divided. The plan must be accurate and display:

• Area of each new parcel.
• Boundaries of the new parcels.
• Access roads and infrastructure (electricity, water, sewage).
• Common rights (if applicable).

Stage 3: Planning Approval (Where Required)

In some cases, parcelization requires approval from the local planning authority (municipality of Ramat Gan, for example). This depends on the detailed plan applicable to the property and area ratios. If the parcelization results from TAMA 38 or an urban renewal project, planning approval is usually mandatory.

Stage 4: Submission to the Land Registry Office

After preparing the plan and examining all conditions, an application is submitted to the Land Registry Office (typically the Tel Aviv District Registry Office, which has jurisdiction over Ramat Gan). The application includes:

• Parcelization application form.
• Signed parcelization plan.
• Legal documents (agreement, court order, official approval, etc.).
• Planning approval (if required).
• Proof of fee payment.

Stage 5: Examination and Corrections

The Land Registry Office examines the application. Often, it requests clarifications or corrections. At this stage, an attorney must respond promptly and resolve any issues identified.

Stage 6: Registration of New Parcels

Following approval by the Land Registry Office, the new parcels are registered in the title registry (Tabu). Each parcel receives its own title number and independent capacity to be sold, leased, or encumbered.

Parcelization Costs: How Much Does It Cost?

Parcelization costs vary depending on the property size, process complexity, and property condition. Typically, these costs include:

Government Fees

The Land Registry charges fees for parcelization according to the property value or area. These fees change annually and depend on the property valuation assessment. Typically, these fees range from hundreds to thousands of shekels.

Legal Costs

Legal services of a real estate attorney include document preparation, coordination with the Land Registry, and problem resolution. These costs depend on the case complexity and the attorney's billing rate. Typically, legal costs for simple parcelization range from hundreds to thousands of shekels, depending on the attorney and circumstances.

Appraisal Costs

If a licensed appraiser is required to prepare a parcelization plan or property valuation, appraisal costs must be added. These costs vary depending on the property size and work scope.

Planning Costs (When Required)

If parcelization requires planning approval from the municipality, there may be additional costs for preparing a detailed plan or obtaining approval from a planner.

Overall, parcelization costs typically range from thousands to tens of thousands of shekels, depending on case complexity. However, each case is examined individually, and it is important to obtain an accurate estimate from an experienced real estate attorney.

Rights and Obligations in Parcelization

Property owners undergoing parcelization must be aware of their rights and obligations.

Property Owner's Rights

• Right to Parcelization: Any property owner with full legal capacity can parcelization their property, subject to legal and planning conditions.
• Right to Division: In partnership, each partner has the right to demand division of the property in a manner that is fair and lawful.
• Right to Independent Sale: After parcelization, each plot can be sold separately, regardless of other plots.
• Right to Lease: Each parcelized plot can be leased separately.

Property Owner's Obligations

• Obligation to Pay Fees: The property owner must pay all required government fees.
• Obligation to Obtain Approvals: If parcelization requires planning approval, the property owner must obtain this approval before registration.
• Obligation to Notify Creditors: If there is a mortgage or lien on the property, the property owner must notify creditors and obtain their consent (often, they will agree on condition that the debt is refinanced).
• Obligation to Avoid Violation of Planning Laws: Parcelization cannot violate planning laws or the detailed plan applicable to the property.

Subdivision in the Context of Tama 38 and Urban Renewal

In recent years, subdivision has become an important tool in Tama 38 projects (urban renewal) in Ramat Gan and other cities in central Israel. In this context, subdivision allows owners of shared land to divide their property and receive separate housing units in the new project.

How Does Subdivision Work in Tama 38?

In a Tama 38 project, subdivision typically occurs at an early stage of the project. This allows each property owner (or apartment owner in a cooperative housing) to obtain their own building rights. After subdivision, each property owner can enter into an agreement with the developer or contractor, separately from other owners.

The process typically includes:

• Obtaining consent from all property owners for the subdivision.
• Preparing a subdivision plan by a planner or appraiser.
• Obtaining planning approval from the municipality.
• Filing with the Land Registry and registration of the new parcels.

Advantages of Subdivision in Tama 38

• Flexibility: Each property owner can independently decide whether to consent to participate in the project.
• Rights Protection: Subdivision ensures that each property owner has clear building rights.
• Independent Decision-Making: Each property owner has control over their portion of the project.

However, subdivision in Tama 38 can be complex and must be carried out in close coordination with the developer, contractor, and planning authorities.

Comparative Table: Different Parcelization Scenarios

Note: Estimated durations are based on the specific circumstances of each case. Each case is reviewed individually, and factors such as workload at the Land Registry Office or legal issues can extend the process.

Why Choose Attorney Mandelbaum, Gor, and Witzman-Gor for Parcellation?

Our office in Ramat Gan (address: Donash 1, Ramat Gan) specializes in real estate and property law since 2008. We are recognized for our deep experience in parcellation processes, planning law, and complex real estate transactions.

Our Values:

• Over 18 Years of Experience: We stay abreast of changes in real estate and parcellation law, providing you with current and accurate legal counsel.
• Personal and Dedicated Approach: Every client matters to us. We dedicate time to understanding your situation and providing a comprehensive explanation of your rights and obligations.
• Representation of Claimants in Torts: In real estate and civil-commercial matters, we represent both claimants and defendants, as well as sellers and buyers.
• First Consultation Meeting at No Cost: We believe everyone is entitled to quality legal counsel. Therefore, your first meeting with us is at no cost.
• Full-Service Support: From initial consultation through handling matters at the Land Registry Office, we will guide you through every step of the process.

If you own a property in Ramat Gan or the surrounding area and are considering parcellation, we are here to help. Let's start with a free consultation meeting to discuss your plan and the benefits of parcellation for your situation.