Moving to Israel or investing in property here is exciting, but the terminology can be overwhelming. You will hear terms like “Tabu,” “Madad,” and “Tofes 4” thrown around casually by agents and lawyers.
We believe you should never sign a contract you don’t understand.
This glossary breaks down the essential Hebrew real estate terms into simple, plain English. Whether you are renting your first apartment in Tel Aviv or buying a luxury home in Jerusalem, this is your go-to dictionary.
1. Ownership & Legal Status
Tabu (Land Registry) The Israel Land Registry office. “Tabu” is the gold standard of ownership. A “Clean Tabu” means the property is fully registered in the seller’s name, with specific sub-parcel rights (like specific parking spots), and has no hidden liens or debts.
Nusach Tabu (Title Extract) The official document printed from the Tabu. It proves who owns the apartment, the exact size (in sqm), and details any mortgages or attachments to the property.
Hearat Azhara (Cautionary Note) A critical legal safeguard. Once you sign a contract, your lawyer registers this note in the Tabu. It prevents the seller from selling the apartment to anyone else or taking new loans against it while you are in the process of paying.
Minhal (Israel Land Authority – ILA) About 90% of land in Israel is state-owned. If a property is “Minhal” (or Rameen), you are technically acquiring a long-term lease (usually 49 or 99 years) rather than private ownership. This is very common and secure, but the bureaucratic process differs from Tabu.
Gush / Chelka (Block / Parcel) Every property in Israel has an ID number used for identification.
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Gush: The Block number (the neighborhood area).
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Chelka: The specific plot of land.
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Tat-Chelka: The specific apartment number within the building.
Mosh’a (Shared Ownership) A situation where land or a building hasn’t been legally subdivided yet. Instead of owning “Apartment 4,” you own “10% of the building.” This is common in older areas but makes getting a mortgage more complex.
Zichron Devarim (Memorandum of Understanding) A preliminary 1-page agreement often signed quickly to “secure” a deal. Warning: This is a legally binding contract with tax implications. We highly recommend skipping this and going straight to a full contract with a lawyer to avoid traps.
2. Money, Taxes & Mortgages
Mas Rechisha (Purchase Tax) A tiered government tax paid by the buyer. Rates vary based on residency status (Israeli vs. Foreigner) and whether this is your first or second home. New Immigrants (Olim) often receive a discounted tier.
Mas Shevach (Capital Gains Tax) Tax paid by the seller on the profit made from selling the property. There are various exemptions available (e.g., for a single residential apartment), but for investors, this is a key calculation.
Hetel Hashbacha (Betterment Tax) A municipal levy (paid to the city, not the state). If the city approved a new zoning plan that increased the potential value of your land (e.g., allowing for an extra floor to be built), you pay this tax when you sell the property, even if you never built the extra floor.
Mashkanta (Mortgage) The loan taken to purchase property. Israeli mortgages often split the loan into “tracks” (e.g., Prime rate, Fixed rate, Variable rate).
Ishur Ekroni (Mortgage Pre-Approval) A document from the bank confirming they agree in principle to lend you X amount of money. Always get this before signing a contract.
Shamai (Appraiser) A certified professional who evaluates the property’s value. The bank will send a Shamai to ensure the apartment is worth the price you are paying before releasing funds.
Madad (CPI – Consumer Price Index) An index that tracks inflation and the cost of living.
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In Mortgages: Some loan tracks are “linked to the Madad.” If inflation rises, your remaining principal rises.
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In New Construction: The outstanding balance you owe the developer is usually linked to the Building Input Index (Madad Tesumot HaBniya). If construction costs go up, your final price goes up.
Arnona (City Tax) Municipal tax paid by the occupant (whether owner or tenant). It is calculated based on the size of the apartment and the specific zone/neighborhood. Discounts are available for Olim (first year), students, seniors, and single parents.
Va’ad Bayit (Building Committee / HOA) Monthly fee paid for building upkeep: cleaning, electricity, elevator, and gardening. In luxury towers (“Migdalim”), this fee is significantly higher to cover doormen, gyms, and management companies.
3. Construction, Permits & Urban Renewal
Tofes 4 (Occupancy Permit) The “Form 4” is the finish line. It is the official certificate from the municipality that a new building is safe, connected to utilities (water/power), and fit for habitation. Never move into a new building without Tofes 4.
Tofes 2 The permit to start construction.
Heter Bniya (Building Permit) The license to build or renovate. You cannot legally close a balcony, build a pergola, or add a room without a Heter.
TAMA 38 A national program to strengthen older buildings against earthquakes.
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TAMA 38/1 (Strengthening): The developer adds reinforcement, an elevator, and Mamad rooms to existing apartments, and builds new penthouses on the roof for themselves.
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TAMA 38/2 (Demolition): The old building is knocked down, and a modern building is built in its place.
Pinui-Binui (Evacuation-Construction) Similar to TAMA 38/2 but on a massive scale. A developer demolishes a whole complex or street of old buildings to build high-rise towers. Owners usually receive a new apartment that is larger and more valuable than their old one.
Kablan (Contractor / Developer) The company building the project. When buying new, check the Kablan’s classification (Sivug) to ensure they are financially stable and experienced.
Bank Livui (Escrow Bank) When buying “on paper” (pre-construction), your money should go to a special project account managed by a bank, not directly to the developer. This guarantees your money is safe if the developer goes bankrupt.
4. The Apartment: Features & Specs
Mamad (Safe Room) Merchav Mugan Dirati. A reinforced concrete room mandatory in all buildings built after 1992. It protects against rocket attacks and earthquakes. It functions as a regular bedroom but has a heavy steel door and window.
Machsan (Storage) A private storage unit. In apartment listings, check if the Machsan is adjacent to the apartment or located in the basement garage.
Merpeset Shemesh (Sun Balcony) An open-air balcony (not enclosed with glass). In Israel, a large balcony is a major value driver.
Merpeset Sukkah A balcony that is “kosher” for the holiday of Sukkot. This means it is open to the sky (no other balcony directly overhangs it). These are highly sought after by religious buyers.
Kivunei Avir (Air Directions) Israelis value airflow. Properties are described by how many “directions” they have (North, South, East, West). An apartment with “3 directions” allows for cross-breeze and is worth more than one with “1 direction.”
Dud Shemesh (Solar Heater) A water tank connected to solar panels on the roof. It provides free hot water during the summer. Most apartments have them (except for very tall towers).
Yonkers (Gas Heater) A private gas system for heating water and radiators. It provides instant hot water 24/7, essential for winters in Jerusalem or the North.
Chaniya (Parking)
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Private (Tabu): A specific spot registered to your apartment.
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Shared: Parking is available for the building but spots are not assigned.
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Robotic: An automated stacker system (common in Tel Aviv).
5. Rental & Contract Terms
Arev (Guarantor) A third party (usually a family member or friend with a salary) who signs the lease. If the tenant stops paying rent, the landlord can collect from the Arev.
Shtar Chov (Promissory Note) A security document held by the landlord. It isn’t cashed immediately but can be used in court or execution offices if you damage the property or fail to pay rent.
Optzia (Option) A clause in a rental contract that allows the tenant to extend the lease for another year (usually at the same price or a pre-agreed minimal increase). This is crucial for stability.
Protokol Mesira (Handover Protocol) A document signed on move-in day. It lists the condition of the apartment, furniture, and meter readings (water/electric). It protects you from being blamed for pre-existing damage when you leave.
Diplomat Clause Common in leases for expats. It allows the tenant to break the lease early (with notice) if they are relocated out of Israel by their employer.
