How to analyse a land deal properly

When clients approach us for assistance with a real estate transaction, we make a point of emphasising the importance of gathering relevant information and building a comprehensive, accurate picture of the property and the deal. This is especially crucial when it comes to information about the block (gush) and parcel (helka), which serves as a decisive source of data on the land. While these concepts are well known in Israel, it is important to understand what these details mean, how land is positioned within blocks, and how this helps in analysing a prospective real estate transaction. In the remainder of this article, we will delve into these details.

What does block/parcel mean?

In the field of real estate, the division of land is represented by the block and parcel numbers assigned in the Tabu. In essence, the Tabu serves as the land registry office authorised by the Ministry of Justice to record an individual’s ownership rights in a specific property. The block and parcel numbers are used to provide precise identification of the property in question. The block number indicates the specific group of structures that make up the property, while the parcel number indicates the particular building. In cases where there are several apartments within a building, a sub-parcel is used to identify the apartment number, although this is not always the case.

Why is it important to locate the block and parcel?

Our aim is to locate the exact position of the block/parcel, primarily in order to read the information from the Tabu extract and to understand, first-hand, the current status of the property. By using the block and parcel, we can access important data, such as:

• What the registered boundaries of the property are.
• One crucial aspect to consider when evaluating a property is whether there are any liens or mortgages that could affect its sale or the transfer of its ownership.
• Whether there are problems with the registration in the Tabu.
• Whether there are any deviations in the current construction.
• Whether a Form 4 (occupancy permit) exists.
• Whether there is any imminent construction development within the area of the property being examined.
• Plans involving infrastructure, such as power lines or cellular antennas.

By using the block and parcel location, it is possible to delve into the previous transactions carried out on the property, including the declared amount of the transaction. These tools offer a more comprehensive view of the property, allowing for a better understanding and confirmation of its current status, as well as its expected future. A proper feasibility check of the transaction ensures that you are not buying a property that does not meet your expectations.

How can you locate a block and parcel?

Having established the significance of locating the block and parcel of a potential property, it is now essential to explore the process of how to obtain this information in practice. By obtaining the property’s block and parcel number, you can access a wealth of valuable data.

• If you are interested in a property, finding the location of a plot of land by its address should be one of the easiest tasks. Fortunately, there are several ways to do this. One option is to visit the website of the Survey of Israel or the government maps website and enter the address in order to find the corresponding block and parcel. Another option is to go to the engineering-department pages on the local authorities’ websites, where you can also locate the desired land block.
• If the property’s address is not available, it is still possible to locate the block and land on an interactive map found on the government maps website. To begin the search, go to the “Layers” column, where you can specify the “block” and “parcels” data and then centre the map on the desired location. The map will display the relevant block and parcel numbers for reference.

Once the block and parcel have been located, what should be the next course of action?

You have found the block and parcel – excellent. The next crucial step ahead of us: what kind of questions can you ask yourself using the block and parcel? Here are a few suggestions to start with:

• For a fee of ₪16 (as of November 2022), you can view the property’s online Tabu extract by logging in to the Ministry of Justice website and selecting the relevant block and parcel. This extract contains valuable information about the ownership of the property, as well as any sale rights, liens and notes on the property.
• Obtaining details from the Tax Authority’s “Real Estate Information Database” is possible through the Tax Authority’s website, specifically on the “Real Estate Information Database” page. The general public can access information on the sale of a right in real estate, including the exact amount paid by the buyer. This is an essential resource for assessing the feasibility of a given transaction.
• The Madlan website is an exceptional resource that presents a wealth of information in a simple and easily understandable way. This site offers a range of important insights, including transactions carried out recently in the area, educational institutions, social indicators, and the opinions and ratings of local residents.

Examining the transaction price – is it right for me?

When carrying out a real estate transaction, it is crucial to make an informed decision. This means locating and thoroughly examining all the relevant information. Once you have completed the initial stage of basic screening by gathering information and asking important questions, as described at the outset, it is time to move on to more advanced tools. Fortunately, official and reliable databases are easily accessible, especially through the internet. This allows you to use various advanced tools to locate and examine more relevant transaction information in greater depth.

Here are some important and accessible tools you can use:

• One crucial aspect to consider when carrying out any transaction is the price. It is essential to examine the transaction price carefully in order to determine its feasibility and value. Is the price reasonable and worthwhile? This is a question that requires careful consideration and analysis.
• Determining a property’s price can be made easier by examining the prices of previous transactions carried out on the property. To perform this task, you can go to the Tax Authority website and navigate to the “Real Estate Information Database” section. Here, the public can access information regarding the sale of rights in real estate. By entering the relevant block and parcel details, alongside the “property type” and “transaction type”, you can search for all the transactions carried out on the property within the selected time frame. Although these transaction records are generally reliable, since they are reported to the tax authorities in accordance with the sale agreement, it is important to note that errors can still occur. It is therefore best to exercise extra caution when relying on this data alone.

Supply and demand

When it comes to the property market, the cost of an area is determined by the interplay between supply and demand. This relationship is crucial in assessing the value of real estate.

In the field of real estate transactions, understanding the location-based dynamics of the market is of paramount importance. To this end, it is advisable to carry out searches of the surrounding area using well-known online platforms such as the Yad2 website or the Madlan website. Our attention should be directed towards obtaining answers to the following questions:

• What is the asking price for similar real estate options?
• How long have the properties in the area been on the market?
• What supplementary data about the area can be found? This includes details about its geography, the characteristics of its neighbourhoods, the socio-economic status of its residents, and its infrastructure and educational resources.

If you are looking for an informative and user-friendly website, we highly recommend the Madlan website. This site offers a wealth of information, including transactions carried out recently in the area, educational institutions, social indicators, and the ratings and opinions of local residents. Its accessibility makes it an ideal choice for anyone looking to gather comprehensive information about the area.

General information about the property’s surroundings

In order to provide a comprehensive understanding of a property’s location, it is essential to present general and distinctive information about the surroundings. This includes an overview of the neighbourhood and its services, as well as any landmarks or distinct natural features found nearby. By incorporating these elements, potential buyers or tenants can gain a fuller picture of what the property has to offer in terms of its location.

To complement the specific details you obtained about the property on the previous sites, we suggest carrying out a broader investigation on Google. All you have to do is enter the name of the neighbourhood in which the property is located, and you will discover various resources, such as articles about the area, updates on local events through Facebook, and a review of plans or notices on the municipality’s website. This investigation can reveal new insights you may not have considered before, which can be relevant to your decision-making process and allow you to get a better sense of the atmosphere in the neighbourhood.

Planning check – what is the planning status of the land?

Before carrying out an inspection, it is essential to ascertain the planning status of the land. This information will allow a thorough and accurate assessment of the property, while taking all the necessary precautions and considerations into account.

When trying to gather information about a property, one essential step is to check the applicable plans. The websites of the Israel Land Authority and the Planning Administration serve as useful resources on this matter. However, it is worth noting that these sources may not always be up to date. Despite this, they provide a reliable basis for your search. By searching on the basis of the property’s block and parcel, you can determine which plans are relevant. Depending on the nature of the transaction, it is essential to thoroughly assess various factors, including:

• What is the total number of building rights associated with the property?
• Have some of the building rights not been fully utilised?
• What is the current designation of the land?
• When it comes to a transaction involving construction development, one may wonder whether obtaining a building permit is part of the process.
• You can then also arrange a meeting with the municipality’s engineering department by contacting them and setting up an appointment.

A tour of the property’s area

Examine the property first-hand with a field tour. Discover the property by walking through it, which allows you to become closely acquainted with the area and its features.

Once you have completed an extensive virtual search, it is extremely important that you visit the property in person and explore its surroundings. You can investigate the presence of any nearby parks, educational institutions and commercial districts, the general tranquillity and charm of the neighbourhood, as well as its accessibility to major transport routes. It is also advisable to take into account the demographics of the area’s residents and any other factor that could affect the quality of life in the area.

If you are considering purchasing real estate, why not turn to us for our professional advice? We are here to help you! Our team is here to provide professional guidance and to assist you in making informed decisions. If you need further information, the experts at Connection Group will be glad to help you!