Below is an expanded, fully renumbered list of 150 Essential Israeli Real Estate Terms and Definitions. The original terms have been corrected for numbering (removing duplicates) and supplemented with many additional concepts to give you a comprehensive glossary. Use the table of contents or simply scroll through to learn the fundamentals of real estate in Israel (and beyond).

Mortgage and Finance

1. Adjustable-Rate Mortgage (ARM)
   A mortgage with an interest rate that periodically changes based on market conditions.
2. Annual Percentage Rate (APR)
   The annual cost of borrowing money, including interest and fees, expressed as a percentage.
3. Arnona
   The annual municipal property tax in Israel, based on factors such as location, property size, and usage.
4. Assumable Mortgage
   A mortgage that can be transferred from the original borrower to a new buyer, who then takes over the remaining loan balance.
5. Basis Point
   A unit of measure commonly used by lenders. One basis point equals 0.01% (e.g., 50 basis points = 0.50%).
6. Buydown
   A financing technique where the interest rate is reduced temporarily (or permanently) through an upfront payment, often provided by a seller or developer as an incentive.
7. Buy-Rent Breakeven Horizon
   The point in time at which the cumulative costs of renting become higher than the costs of buying.
8. Broker (Mortgage Broker)
   A licensed intermediary who matches borrowers with lenders to secure financing, often comparing different loan products.
9. Conventional Loan
   A mortgage not backed or guaranteed by a governmental body (e.g., not FHA- or VA-insured in the U.S.). In Israel, this simply refers to a standard bank mortgage.
10. Debt-to-Income Ratio (DTI)
    The ratio of total monthly debt obligations to gross monthly income, used by lenders to gauge borrowing capacity.
11. Down Payment
    The initial cash payment made by a buyer when purchasing a property, reducing the loan amount needed.
12. Equity
    The portion of a property’s value that the owner actually owns, calculated as (Property Value – Outstanding Loan Balances).
13. Escalation Clause
    A clause in a purchase offer that automatically increases a buyer’s bid if there are competing higher offers, up to a set limit.
14. FICO Score
    A credit-scoring model that evaluates a borrower’s creditworthiness. In Israel, banks use similar scoring systems to assess risk.
15. Fixed-Rate Mortgage
    A mortgage with a constant interest rate throughout its entire term, offering predictable monthly payments.
16. Forbearance
    A temporary pause or reduction in mortgage payments, typically granted by the lender due to financial hardship.
17. Jumbo Loan
    A mortgage for an amount exceeding conforming loan limits set by regulators. In Israel, high-value loans may have stricter requirements.
18. Loan Estimate
    A document that lays out the loan’s key features—interest rate, monthly payment, closing costs—provided early in the mortgage application process.
19. Loan-to-Value (LTV)
    The ratio of the loan amount to the property’s appraised value (or purchase price). Higher LTVs typically mean higher lender risk.
20. Mortgage Banker
    An entity or individual who originates, funds, and sometimes services mortgage loans, often selling them to investors.
21. Mortgage Broker
    Similar to a mortgage banker but typically acts as an intermediary, not directly lending their own funds.
22. Mortgage Points
    Optional fees paid upfront to buy down (reduce) the mortgage interest rate. One point equals 1% of the loan amount.
23. Origination Fee
    The charge by a lender or broker for processing and preparing a mortgage loan.
24. Piggyback Loan
    A strategy using two mortgages (e.g., an 80% first mortgage and a 10% second mortgage) to avoid private mortgage insurance.
25. Pre-approval
    A detailed evaluation by a lender confirming the loan amount a buyer qualifies for, usually involving credit checks and income verification.
26. Pre-qualification
    A less formal estimate of borrowing power, often based on self-reported income and credit information.
27. Private Mortgage Insurance (PMI)
    Insurance to protect the lender if the borrower defaults on a loan with a lower down payment (under 20%).
28. Prime Rate
    The baseline interest rate offered to a lender’s most creditworthy customers. Other rates often follow the prime rate’s movements.
29. Refinancing
    Replacing an existing mortgage with a new one—often to obtain better interest rates, reduce payments, or tap home equity.
30. Reverse Mortgage
    A loan for senior homeowners that allows them to convert part of their home equity into cash without monthly payments (loan repaid upon sale or passing).
31. Underwriting
    The lender’s process of evaluating a borrower’s credit risk, verifying information, and deciding whether or not to approve the loan.

Property and Market Terms

32. Appraised Value
    The value assigned to a property by a licensed appraiser, based on market data and condition.
33. Assessed Value
    The value assigned by a local authority for property tax purposes, which can differ from market value.
34. Buyer’s Market
    A situation in which housing supply exceeds demand, giving buyers more negotiating power and often lowering prices.
35. Seller’s Market
    A market condition with high demand and limited supply, often driving up property prices and favoring sellers.
36. Comparative Market Analysis (CMA)
    An estimate of a property’s value based on recent sales of similar properties (comps) in the same area.
37. Comps
    Recently sold, similar properties used to gauge the fair market value of a home.
38. Days on Market (DOM)
    The number of days a property remains listed before receiving an accepted offer.
39. Foreclosure
    A legal process in which a lender takes possession of a property after the owner defaults on mortgage payments.
40. Real Estate Owned (REO)
    Property owned by a lender (e.g., bank) after an unsuccessful foreclosure auction.
41. Short Sale
    Selling a property for less than the balance remaining on its mortgage, subject to lender approval.
42. Underwater (Upside-down)
    A scenario where the property’s market value is lower than the outstanding mortgage balance.
43. Zoning
    Local government regulations dictating how land can be used (e.g., residential, commercial, industrial).

Legal and Contractual Terms

44. Tabu (Land Registry)
    Israel’s official land registry, where details of property ownership, liens, and rights are recorded.
45. Deed
    A legal document that transfers property ownership from the seller to the buyer.
46. Due Diligence
    An investigation or audit of a property—covering legal, financial, and structural aspects—before finalizing a purchase.
47. Earnest Money
    A deposit made by a buyer to demonstrate serious intent to purchase; may be forfeited if the buyer breaches the contract.
48. Lien
    A legal claim on a property, often used as collateral for a debt. The lien must typically be settled before selling.
49. Title Insurance
    An insurance policy that protects property buyers and mortgage lenders against disputes over property ownership.
50. Contingencies
    Contract clauses that allow a party to cancel or renegotiate if certain conditions are not met (e.g., financing contingency).
51. Closing Costs
    Expenses associated with finalizing a real estate transaction (e.g., loan fees, legal fees, taxes).
52. Walkthrough
    A final inspection by the buyer (or buyer’s agent) just before closing to ensure the property’s condition hasn’t changed.

Israel-Specific Terms and Regulations

53. Israel Land Authority (ILA / Minhal)
    The governmental body overseeing Israel’s public lands (a large percentage of the country’s land is state-owned or managed).
54. Leasehold
    A property arrangement where you lease the land from the state (via ILA) for a long period, rather than owning it outright.
55. Freehold
    Private land ownership, meaning you own both the land and the structure indefinitely, without a state lease.
56. TAMA 38
    A national urban-renewal plan primarily aimed at strengthening older buildings against earthquakes, often adding new floors or units.
57. Pinui-Binui
    Urban renewal that involves demolishing older apartment buildings and reconstructing new, modern ones—often with more units.
58. Ishur Zchuyot
    An interim ownership certificate issued before official registration (Tabu) is completed.
59. Chevrat Meshakenet
    A housing/management company that may hold interim title or manage registrations on behalf of owners during construction.
60. Mas Rechisha
    Israel’s purchase tax, calculated on a sliding scale based on the property’s price and the buyer’s particular status (e.g., first-time buyer).
61. Mas Shevach
    Capital gains tax on real estate profits in Israel, applicable when selling property.

Buyer & Seller Terminology

62. Blind Offer
    An offer submitted without an in-person inspection or adequate property knowledge, often used in hot markets.
63. Backup Offer
    An offer accepted (or kept) in second position, becoming active if the first buyer backs out.
64. Seller Concessions
    Costs the seller agrees to pay on behalf of the buyer (e.g., closing costs), often used to incentivize the deal.
65. Seller Disclosure
    A document in which the seller must reveal known issues or defects about the property.
66. Listing Price
    The advertised asking price set by the seller or listing agent.
67. Multiple Listing Service (MLS)
    A shared database of real estate listings used by brokers and agents to cooperate and share information.
    (Note: Israel does not have a single unified MLS like in the U.S., but private listing databases and portals exist.)

Construction and Development Terms

68. Developer
    An individual or company that prepares raw land for construction or renovates existing structures, often selling units or homes.
69. Contractor
    A professional or company that undertakes construction or renovation work under a contractual agreement.
70. General Contractor
    A primary contractor responsible for overseeing a construction project, hiring subcontractors, and ensuring compliance with plans and regulations.
71. Building Permit
    An official approval issued by a local authority that allows construction or major remodeling projects to proceed.
72. Permit Fee
    The fee paid to obtain a building permit, covering administrative costs for reviewing plans and site inspections.
73. Construction Loan
    A short-term loan used to finance building costs, which is later replaced by a standard mortgage once construction is complete.
74. Shell Condition
    The stage of construction where the structural framework is complete, but the interior finishes are yet to be done.
75. Occupancy Permit
    A document confirming that a building is safe, compliant with codes, and ready for residents to occupy.
76. Infrastructure
    Essential services and systems like roads, water supply, sewage, and electricity that support buildings and communities.
77. Off-Plan Purchase
    Buying a property before or during its construction, often at a lower price, with the design and layout specified in advance.
78. Rezoning
    A legal process to change the approved land use of an area (e.g., from residential to commercial).
79. Land Survey
    A measurement of land boundaries and topographic details, typically performed by a licensed surveyor.
80. Building Code
    Standards set by governing bodies specifying minimum requirements for building design, construction, and maintenance.

Ownership and Investment Terms

81. Joint Tenancy
    A form of co-ownership in which each owner has an equal share, and ownership passes to surviving owners when one dies.
82. Tenancy in Common
    A form of co-ownership with no right of survivorship, allowing each owner to pass their share to heirs independently.
83. Sole Ownership
    Property owned entirely by one individual or entity, with no co-owners.
84. Real Estate Syndication
    A group investment structure where multiple investors pool funds to buy or develop a property, with a sponsor/manager overseeing operations.
85. REIT (Real Estate Investment Trust)
    A company that owns or finances income-producing properties and distributes profits to shareholders, traded like stocks.
86. Real Estate Fund
    A private or public fund that invests in real estate projects or properties, offering shares to investors.
87. ROI (Return on Investment)
    A measure of profitability, calculated as (Net Profit / Cost of Investment) × 100%.
88. Cap Rate (Capitalization Rate)
    A metric for evaluating investment properties, found by dividing net operating income by property value.
89. Cash Flow
    The net income after subtracting expenses from rents or other revenue streams each month or year.
90. Appreciation
    The increase in property value over time due to market growth, improvements, or inflation.
91. Leverage
    The use of borrowed capital (mortgages, loans) to amplify returns on a real estate investment.
92. Debt Service Coverage Ratio (DSCR)
    A ratio comparing net operating income to total debt service (principal + interest), indicating an investment property’s ability to cover loan payments.
93. 1031 Exchange
    A U.S.-specific tax-deferment strategy allowing investors to reinvest property sale proceeds into a similar property.
    (In Israel, different provisions govern “like-kind” property exchanges, but the concept is similar in principle.)

Rental Terms

94. Lease Agreement
    A contract between landlord and tenant outlining rental terms, duration, payment schedule, and rules.
95. Security Deposit
    A refundable deposit paid by the tenant to cover potential damages or unpaid rent.
96. Guarantor
    A person who legally agrees to pay the rent or cover damages if the tenant defaults, commonly required in Israel.
97. Sublease
    An arrangement where the original tenant rents out the property to another tenant (the subtenant).
98. Vacancy Rate
    The percentage of unoccupied rental units in a building or market over a given time.
99. Rent Control
    Government regulations that set price caps or limit rent increases; in Israel, direct rent control is rare but can exist in certain regulated units.
100. Eviction
     The legal process by which a landlord removes a tenant from the property for breach of contract or nonpayment.
101. Pet Clause
     A section in a lease dealing with rules for pet ownership, breed restrictions, or additional fees.
102. Option to Renew
     A lease clause granting the tenant the right to extend the lease for an additional period under predetermined terms.
103. Key Money
     An upfront nonrefundable payment sometimes demanded by landlords for renting high-demand properties (less common nowadays, but still seen in some markets).
104. Monthly Maintenance Fees
     Ongoing fees for shared building expenses (e.g., common-area cleaning, elevator maintenance), often referred to as va’ad bayit in Israel.
105. Tenant Improvements
     Customizations or renovations (often in commercial leases) that a tenant makes to adapt the space to specific needs.
106. Landlord Insurance
     An insurance policy covering property damage, liability claims, and loss of rental income for property owners.

Property Management Terms

107. Property Manager
     A person or company hired by the property owner to handle day-to-day operations, maintenance, and tenant relations.
108. Management Fee
     The fee charged by a property manager, typically a percentage of monthly rent collected.
109. Rental Listing
     An advertisement for a property available for rent, placed on online portals, newspapers, or agency listings.
110. Tenant Screening
     The process of evaluating potential tenants—checking credit, references, employment, and rental history.
111. Routine Maintenance
     Regular upkeep tasks (e.g., landscaping, cleaning common areas, servicing HVAC systems) to preserve property condition.
112. Emergency Repairs
     Urgent fixes required to address immediate hazards or prevent further damage (e.g., burst pipes, gas leaks).
113. Property Inspection
     A periodic review of the property’s condition, often conducted by the landlord or manager to detect issues early.
114. Late Fee
     A penalty imposed on tenants for missing rent payments by the due date.
115. Lease Renewal
     The extension or renegotiation of an existing lease after the initial term expires.
116. Move-In Condition Report
     A documented assessment of the property’s state before a tenant occupies, used later to compare at move-out.
117. Move-Out Inspection
     An inspection at the end of the tenancy to check for damages beyond normal wear and tear.
118. Turnover
     The period between one tenant moving out and another moving in, often used for cleaning, repairs, and improvements.
119. Common Area Maintenance (CAM)
     Costs for maintaining shared spaces in multi-tenant properties, usually split among tenants.

Real Estate Tax and Fee Terms

120. Property Tax
     General term for local taxes levied on property owners. In Israel, this primarily refers to Arnona.
121. Stamp Duty
     A tax on certain legal documents (common in various countries). In Israel, some transactions may involve comparable registration fees.
122. Acquisition Tax
     Another term for the tax on buying property (similar to Mas Rechisha). Rates vary based on property value and buyer status.
123. Value Added Tax (VAT)
     A consumption tax applied to many goods and services in Israel. New residential construction may be subject to VAT.
124. Income Tax on Rentals
     The tax owed on rental income, which in Israel can follow various tracks (exemptions, reduced rates, or standard income tax).
125. Municipal Improvement Tax
     A local levy for funding infrastructure upgrades that increase property values (sometimes overlapping with Hetel Hashbacha).
126. Lawyer’s Fee
     The fee charged by an attorney for handling real estate transactions, contract drafting, and due diligence.
127. Notary Fee
     A fee for notarizing documents, ensuring identity verification and authenticity of signatures.
128. Surveyor Fee
     Payment to a licensed surveyor for establishing or confirming property boundaries and measurements.
129. Registration Fee
     A fee paid to the land registry (Tabu) for recording changes in property ownership or liens.
130. Brokerage Fee
     The commission charged by a real estate agent or broker—often 1–2% of the property sale price (negotiable).
131. Land Betterment Tax (Hetel Hashbacha)
     A levy on the increase in land value caused by rezoning or granting special building rights.
132. Escrow Fee
     The fee for third-party escrow services, which hold funds and documents until contractual conditions are met.

Real Estate Transactions

133. Offer to Purchase
     A written proposal from a buyer to a seller, outlining price and terms.
134. Purchase Agreement
     A binding contract detailing the conditions, contingencies, and timeline for a property sale.
135. Option to Purchase
     A contract granting the buyer the right (but not obligation) to buy a property within a specified time and price.
136. Right of First Refusal
     A contractual right allowing an entity/person the first chance to buy a property before the owner sells to others.
137. Condition Precedent
     A clause stating certain conditions must be met (e.g., loan approval) before the contract becomes binding.
138. Completion Date
     The date when all contractual obligations are satisfied, and the transaction is considered complete (though not always the same as possession date).
139. Closing Date
     The day on which final paperwork is signed, funds are transferred, and the buyer takes title.
140. Escrow
     A neutral holding process or account for money and documents until all conditions in the contract are met.
141. Title Search
     A review of public records to confirm the seller’s right to transfer ownership and identify any liens or encumbrances.
142. Chain of Title
     The sequence of historical transfers of title to a property, used to verify clear ownership.
143. Grant Deed
     A deed that transfers ownership and includes certain guarantees about clear title. (In Israel, the Tabu record serves a similar purpose.)
144. Sheriff’s Sale
     A public auction of property repossessed to satisfy unpaid debts, often following court orders.
145. Judicial Foreclosure
     A foreclosure proceeding that goes through the court system, resulting in the property’s sale to repay the lender.

General Real Estate Add-Ons

146. Vaad Bayit (Homeowners’ Committee)
     In multi-unit buildings in Israel, this committee manages shared expenses, maintenance, and communal decisions.
147. TABA (Local Outline Plan)
     A municipal plan defining zoning, building rights, and future development for a specific area.
148. Memorandum of Understanding (MOU)
     A preliminary, nonbinding agreement outlining the main points of a potential deal before signing a formal contract.
149. Gentrification
     A process where urban neighborhoods attract more affluent residents, leading to rising property values and potential displacement of existing communities.
150. Mixed-Use Development
     A real estate project combining residential, commercial, and sometimes industrial uses in one integrated space.

Quick Tips for Israeli Real Estate

• Consult a specialized lawyer: Israeli real estate law involves unique regulations (e.g., long-term leasehold arrangements with the ILA).
• Budget beyond the listing price: Expect an additional 5–7% in closing costs (lawyer fees, purchase tax, agent commission, etc.).
• Understand local nuances: Terms like Arnona, Tabu, Mas Rechisha, and TAMA 38 are pivotal in navigating Israeli real estate.
• Stay updated: Laws and tax regulations may change, especially regarding urban renewal (TAMA 38, Pinui-Binui) and ownership structures.

TL;DR

1. Learn Israel-specific concepts like Tabu, Arnona, TAMA 38, and Mas Rechisha.
2. Check ownership type: many Israeli properties are leasehold (state-owned land) vs. freehold (privately owned).
3. Master basic financing: Know your mortgage options, from fixed-rate to prime-linked, and keep an eye on interest rate shifts.
4. Hire local professionals: An Israeli real estate attorney and an experienced agent or broker can protect your interests.
5. Be mindful of extra costs: Purchase tax, capital gains tax, and assorted fees can significantly increase your total outlay.

By familiarizing yourself with these 150 essential terms, you’ll be well on your way to navigating the Israeli real estate market with confidence. Good luck on your property journey!