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Minor compensation can turn into millions: what do you do when land is confiscated from you?

In many cases where authorities make private land public, landowners are left with a very small amount in return.

Gilad Hameiri, economist, lawyer and real estate appraiser, explains the three steps that must be taken in order not to miss out

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• Gilad Hameiri

• Ehud Hameiri & Co.

• Compensation

• Land expropriation

• Real Estate Center

In collaboration with the Real Estate Center

Sunday, 24 January 2021, 16:04

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You have probably also heard to this day about cases in which the authorities expropriated land from private individuals and in return, gave them low and ridiculous compensation, if any.

But that really does not have to be the case and proper conduct can be worth millions of shekels in compensation to landowners.

How do you do that?

Gilad Hameiri, economist, lawyer and real estate appraiser, explains the three stages of the procedures that must be carried out, so that you do not miss any component of compensation that you deserve:

1) In order to expropriate land, the authorities must approve a city building plan. Specifications to the public.This of course does not happen overnight.Once such a plan is approved, you as the landowners must file a claim under section 197 of the Planning and Building Act, due to the damage and decrease in land value, damage that occurs immediately, long before that land is actually expropriated.

Please note - you must file the claim up to three years from the date of approval of the plan that harms the property, otherwise, the authority will not offer you any compensation.

By law, the authority is also not required to notify you personally that such an infringing plan has been approved and therefore, if you have not followed the process and have not filed the claim in time, you are liable to a loss of tens of percent of the compensation you are entitled to.

2) After the authority has changed the designation of the land, the property phase begins.

The authority publishes the expropriation order and registers it in the registry office - this is the proprietary stage in the expropriation.

It does not yet have to offer compensation, but the date of publication of the expropriation order is also the determining date for calculating the compensation, since it will be offered to you in the future, when the authorities will actually step on the ground.

Or in other words: the value values ​​of future compensation are calculated according to the market price at the time of publication of the expropriation order.

3) The authority rises above the ground and takes a strong hold on the actual territory.

At this point, it is already obligated to send a personal message to each landowner and offer some compensation.

What do you do when the land is expropriated?

(Photo: ShutterStock)

Important to know: Already in the second stage, when only the expropriation order is published and the authority has not yet seized possession of the land, the property owner can contact her and demand that she seize immediate possession, so that she pays him the compensation immediately, and not just in a few years.

This allows the landowner to negotiate with the authority, without time pressure.

Of course, any compensation offer from the authority to the landowner can be appealed through an objections committee, an appeals committee or a court, through a real estate appraiser and a lawyer.

And can an authority expropriate up to 40 percent of the land without paying compensation at all?

With regard to compensation for impairment under section 197, as written in the first stage, there is no reduction in compensation and it is paid in full, regardless of the percentage of expropriation and therefore it is important to sue the authority in time.

Regarding expropriation compensation in the following stages, this mainly depends on two factors:

1) the date of publication of the expropriation order

2) Did the value of the remaining land not expropriated increase despite the offending plan and the expropriation order?

For example, due to improved access to it or building rights added to it

if the balance of land remaining after the expropriation has not been improved and if the expropriation order was published after May 24, 2018, the landowner is entitled to compensation from the first expropriated meter, without any reduction, but this requires voluntary application. Given automatically.

In addition, separating the compensation into different stages also has meaning in terms of taxation and in order for you to have more money in your pocket at the end of the process, proper tax planning is also required.

Therefore, expropriation and impairment compensation is a complex matter, requiring consultation with professionals, so that you do not miss any stage or component of the compensation you deserve.

And most importantly - wake up on time, before it's too late.

Have you heard that your property is about to be expropriated or have you received a notification from the authorities?

Want to check the issue, because taking the right actions, at the right time, can turn meager compensation into compensation of millions.

To the Ehud Hameiri & Co. website - economists and real estate appraisers

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