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| And I will bring again the captivity of my people of Israel, and they shall build the waste cities, and inhabit them; and they shall plant vineyards, and drink the wine thereof; they shall also make gardens,and eat the fruit of them. And I will plant them upon their land, and they shall no more be pulled up out of their land which I have given them, saith the LORD thy God. Amos 9:14-15 (Fulfilled: May 15, 1948) |
The overwhelming majority of land in Israel is owned by the State and only a small minority is under private
ownership. A negligible portion of land in Israel has not yet been categorized into either of these two areas.
Approximately 7% of the allocated land in Israel is privately owned. The rest, i.e. 93%, is owned by the State and is
known as "Israeli Land". Israel’s Basic Law on real estate states that Israel’s Land is jointly owned by the State
(69%), the Development Authority (12%), and the Jewish National Fund (12%). While the law expressly forbids
transferring of such land either by sale or other means, it does imply that a long term lease would be permitted.
State-owned land includes all land that was subject to the British Mandate prior to the foundation of the State of Israel
and was requisitioned by the government subsequent to its establishment. Development Authority-owned land
includes land that was confiscated in accordance with the Absentee Land Law and the Land Purchase Law. JNF-
owned land consists of land purchased before and after Israel's inception. The JNF's by-laws grant it a fiduciary role,
stipulating that land it owns shall be held for the benefit of and in trust for the Jewish people. This principal has so far
been respected and was solidified in a treaty entered into between the JNF and the State. A bill has recently been
submitted to the Knesset (Israel's parliament) with the interest of legislatively solidifying this principal and is likely to
be passed in the near future.
State owned land ("Israeli Land”) is administered by the Israel Land Administration (ILA). Being a government
orchestrated entity, the ILA exercises very limited powers, namely: the administration of State-owned land. The ILA is
required to remain faithful to the purpose for which it was established and may not deviate from its authority.
Furthermore, being a government entity, the ILA is subject to legislatively mandated modes of behavior, such as
equality in hiring standards and the proscription of discriminatory practices.
While there is no legislative mandate prescribing the objectives the ILA must advance, these have been established
through judicial precedent. A seminal ruling dictating these objectives can be found in the Israel Supreme Court case
of Adal Ka'adan v. the Israel Land Administration:
"…The objectives that comprise the core authority of the Israel Land Administration are the continuation of State
control of Israeli Land and the perpetuation of the administration and development of land in Israel under the
concentration of a singular government entity. This is to prevent the transfer of ownership to non-favorable entities, to
advance security issues and to authorize the operation of different national projects - such as: the absorption of new
immigrants, the proper distribution of the population and agricultural settlement…"
Now that I have clarified the different types of land prescribed under Israeli Law, I would like to discuss the
opportunities existing for their acquisition. In principle, land that is owned by the Jewish National Fund can be leased
to Jews only. The implication is that foreigners, as well as Israeli citizens and/or residents who are not Jewish, are
not entitled to lease this land. Nevertheless, the land that is owned by the Development Authority and by the State can
be leased to any citizen of Israel, whether he is Jewish or not. Foreigner's who are Jews and are entitled to immigrate
to Israel under the Law of Return may also lease this land.
It is our experience, though, that in spite of the aforementioned limitations, foreigners who are not Jews can also
lease land from the Israeli Land Administration, although this would be subject to approval by a specially convened
committee. Such approval, should it be granted, is subject to submission of a cogent and persuasive letter
demonstrating the potential contribution the applicant can make to Israel. Recommendations from several Israeli
sources attesting to this can also smooth the way to receipt of approval. Another option is to register a company
and/or a not for profit organization in Israel and ensure that this entity has a board primarily comprising Israeli citizens.
The 7% of privately owned land is much less restrictive. The owner of such land may transfer his ownership to any
other person, whether he is Jewish, non-Jewish, Israeli or non-Israeli.
Most of the privately owned land in the country is located in urban areas, chiefly in the large Israeli cities of Tel Aviv,
Jerusalem and Haifa. This is ascribed to the State not having requisitioned such land prior to its inception. This land,
due to its geographical location and owning to the relative dearth of privately owned land, is in great demand today.
Once again, there is no restriction on purchasing this land, irrespective of the potential buyer's religion or nationality.
As believers in the Bible from around the world, we can be assured that the value of all this land is only going to rise,
regardless of how the end-of-days sequences prophesized in the Bible will manifest themselves. No substitute can
be found for property situated in the vicinity of where the Third Temple shall be proclaimed.
Such property shall only increase in value upon the return to Zion of all the Jewish People from throughout the
Diaspora, as mentioned by Amos the prophet: And I will bring again the captivity of my people of Israel, and they shall
build the waste cities, and inhabit them; and they shall plant vineyards, and drink the wine thereof; they shall also
make gardens, and eat the fruit of them. And I will plant them upon their land, and they shall no more be pulled up out
of their land which I have given them, saith the Lord thy God.
Mike Decker is an associate intern at the Jerusalem Institute of Justice and a paralegal at the law offices of
Yehuda Raveh & Co. For legal advice regarding real estate and visa opportunities in Israel please contact Adv.
Calev Myers (myers@yraveh.co.il) and/or Mike Decker (decker@yraveh.co.il) at Yehuda Raveh & Co. Law Offices
(www.yraveh.co.il).
For permission to publish Mr. Decker's articles on your site please contact Mr. Decker personally at listed email.
Commentary: Tuesday, October 23, 2007
Real Estate Investments in the Land of the Bible
By: Mike Decker
(Continued)
Real Estate Investments in the Land of the Bible
By: Mike Decker
(Continued)