Glossary – Real Estate

• Approval of principle: Initial and non-binding approval that gives an idea of the amount of the loan that can be 
• obtained.
• Insurance: A means of securing compensation by a body in the event of a disaster such as: loss of property due to theft / fire and loss of life. Insurance is made possible by depositing funds to the insurer, which is used to compensate the injured person during the disaster.
• Cancellation of housing: The Bank’s notification to the Neighborhood Registrar of the deletion of the borrower’s rights of the property, after the borrower has met all of its obligations to the bank and cleared the loan, or registered a mortgage at the Land Registry.
• ownership: The right to own, use and execute any transaction or legal action permitted by law.
• Mortgage drag: Replacing the pledged property with the bank as collateral for a loan, with another asset to be pledged in favor of the bank.
• Key fees: One-time payment, which is a small part of the property price, paid when purchasing property rights.
• Pledge registration fee: Toll set by the Ministry of Justice to register the pledge in the neighborhood register.
• Mishkon message: Signed notice by the property owner, which the bank transfers to the neighborhood registrar, stating that the property owner is exercising his rights in the property specified in the notice and for the period specified in the notice, in favor of the creditor (the bank), And asks the registrar to register accordingly. This notice is signed as collateral for the loan and allows the bank the right to exercise the property if and when the borrower fails to meet its obligations.
• A standing loan: A loan that the borrower is not charged for payments in the garden for a predefined period.
• Mediation loan: A relatively short period loan (about two years), designed to bridge the gap between the date of receipts from the sale of an apartment and the date of payments for the purchase of a new apartment.
• Eligibility loan: A loan provided from the state budget funds, the terms of which are determined by the Ministry of Construction and Housing and the Ministry of Finance. The loan is granted according to a certificate of eligibility issued by the Ministry of Construction and Housing, detailing the scope of eligibility and its terms.
• Conversion of insurance: The lien of the borrower’s rights, which is insured not by the bank, for the benefit of the bank.
• Removing bondage: Deleting a listing that will work on a property, which was registered in favor of the bank, after the loan was settled for which the property was used as collateral.
• Warning note: Registration in the real estate books (see Taboo), which is intended to indicate that on a particular land or real estate (apartment, office, etc.) a real estate transaction was carried out that does not allow for further transactions, but with the consent of the initiator of the note registration.
• Memory of things: – A written focused agreement signed between parties to a real estate transaction until a detailed contract is signed between them, and as long as the contract is not signed it has a binding validity for everything and everything.
• Lease: Rent for a period of more than five years (see rental).
• Lease for generations: Rent for a period of more than twenty-five years (see rental).
• Taboo: The land registration bureau, which lists the land details in Israel and their rights.
• Form of NIS: A form by which parties to a real estate transaction are required to report the occupation to the real estate tax authorities within a period prescribed by law.
• Reimbursement capacity: The extent of a borrower’s ability to meet the monthly repayment amount of the loan, over time, as derived from the total of his vacancy and the estimate of his current expenses.
• Spitzer board: Straight line disposal board, which estimates the fixed monthly refund amount.
• Consumer Price Index: A measure that reflects the monthly changes in the rise in commodity prices and services, which is an average family consumption basket. The CPI is published at – 15 per month.
• Housing index: A index that reflects the price variability of the housing industry.
• Forex: Foreign currency, currency issued by a foreign country.
• Realization of property: Sale of pledged property in favor of the bank for repayment of the borrower’s debt.
• Sales tax: A tax levied on the sale of land right and calculated as a certain percentage of the transaction price. A residential apartment exempt from paying praise tax is also exempt from paying this tax.
• purchase tax: A tax imposed on the buyer of a right of land.
• Praise tax: Tax levied on capital gain grown from the increase in the value of the property between the date of purchase and the date of sale, and paid at the time of sale. (When the apartment is used for residence, this tax is exempt)
• “Peto fruit”: Means “equal rank”. The land lien for several creditors. Bondage can be done to varying degrees. If a first mortgage is registered to Bank A and a second-rate mortgage to Bank B –, Bank A will repay its debt from the realization of the property and only the MK will repay Bank B its debt from the remaining amount, If a mortgage is registered at an equivalent level to both banks – then both will repay the debt together from the realization of the property, depending on the amount of financing they have given.
• real estate: Ground, all built and planted on it and everything else connected to it is a connection of inseparable connected permanent .
• Mortgage: Liability of real estate property made by the landowner for the benefit of the bank, as collateral for a loan.
• interest: The financial payment paid by the borrower to the lender for providing the authority to use his money for a specified period of time.
• Effective interest: The annual interest rate, which also takes into account the interest rate added during the loan period.
• Interest interest: Accumulated interest, deferred interest over time and is not paid on a regular basis, but is attached to the original loan for the purpose of calculating the loan balance for that point in time.
• Prime interest: The interest rate set once a month by the Bank of Israel. This interest rate is the basic interest rate for unlinked credit.The Governor of the Bank of Israel announces the interest rate on the previous Monday for the last Thursday of the month, and only on Thursday did the change take effect.
• Registrar of Real Estate: In charge of the Land Registry Bureau of the Ministry of Justice, whose role is to maintain registration of rights, ownership, lease and liens in real estate, this information is available to the public.
• rent: A right conferred in exchange for holding and using land not permanently.
• Deed: A document attesting to the sale of a right of ownership in a property, signed by the parties to the transaction and used as a reference to register the rights of the new owner in the Land Registry.
• premium: Monthly / annual payment paid in exchange for insurance coverage anchored in the policy. Additional Interpretation – Amount of money or equivalent of money given as an addition to the par value of a share
  Additional Interpretation – Amount of money or equivalent of money given as an addition to the par value of a sample share if we have a share that yields a 2% return on its par value, The premium will be the monetary value of these two percent
• Promil: One per thousand, one thousand percent. The promil is used to help calculate the insurance payment (premium). For example – Today, the annual payment of property insurance is calculated according to 2.1 promil of the insurance amount (more or less), which means that if we take the insurance amount and multiply it by 0.0021 we will receive the annual payment
• Warning note: The concept of a warning note can be explained by its goals.
  A warning note has several purposes:
  One: To warn and inform the whole world of the particular land in which a warning note was recorded in the Land Register, there is already a commitment from the landowner to do (or avoid doing) a deal, such as: selling an apartment, Sell a lot, pledge to mortgage for a bank, etc. Therefore, anyone who wants to enter into a real estate transaction and finds that a warning note is registered, it would be good if they first ascertained the software by reviewing the document that served as the basis for the note.
  Second: Prevent a real estate owner who has pledged to do business with buyer A to do, then, A contradictory deal (the question of what a contradictory deal is is a question in itself that is not the place to discuss it) in the same real estate with buyer B. The record of a warning note in favor of buyer A gives him the assurance that the Land Registry will not approve a conflicting deal with another person without A’s positive consent, or without a court order.
  Third: protect the buyer from foreclosure, bankruptcy, or liquidation of the landowner (in the case of a corporation).
  In practice, there are a wide range of comments, some under the Land Act, and some under other laws, such as: Note on the need for third-party consent to make a transaction, a note on eligibility restriction, a note on revocation/Power of attorney, note of loyalty, and more.