Acquiring Ownership from the Israel Land Authority: From Lessee to Owner
Most apartments in Israel are not registered in the name of their occupants as owners, but as lessees of the Israel Land Authority. Acquiring ownership turns the lessee into the registered owner at the Land Registry, and frees him from having to seek the Authority's consent, and pay it, for every dealing in the property.
Under section 1 of Basic Law: Israel Lands, ownership of land of the State, of the Development Authority and of the Jewish National Fund (KKL) shall not be transferred, whether by sale or in any other manner, except in cases prescribed by law. Section 2(7) of the Israel Lands Law, 5720-1960, permits the transfer of ownership of State and Development Authority land that is urban land, and provides that for Jewish National Fund land the transfer may be made only with its approval. The practical rules are set out in sub-chapter 5.1 of the Compilation of Decisions of the Israel Land Council and in the Authority's Procedure 90.01B.
When this is relevant
- When the Land Registry extract shows the State of Israel, the Development Authority or the Jewish National Fund as owner, and you are registered as lessees.
- Before selling or buying a leasehold apartment or house, to find out whether the Authority's consent and a payment will be required.
- Before applying for a permit for a building addition, subdivision of a plot, change of designation or non-conforming use.
- When you have received notice from the Authority of its intention to transfer ownership to you free of charge.
- For a detached house on a plot larger than 280 sq m, where ownership involves a payment.
- When the lease period is approaching its end.
How the work proceeds
Checking the land and the contract
From the Land Registry extract or the confirmation of rights, we check who the registered owner is (the State, the Development Authority or the JNF), whether the lease is capitalised, whether the property is registered as a separate unit (parcellation or condominium), and what the transaction area is. Acquiring ownership under the procedure applies only to a capitalised lease agreement that is not in breach and contains no terms that prevent it.
Checking eligibility and the track
The type of property, its area and its location determine whether ownership will be granted free of charge, for payment, or whether only an "upgraded lease" is available. For a property that is not a separate registration unit, for example where a condominium has not yet been registered, an upgraded lease is usually granted, with the benefits of ownership but without registration as owner.
Filing the application or receiving the notice
In the free-of-charge track, the Authority usually acts collectively: it sends the lessee a notice, and the lessee has 60 days to object. An application can also be made by means of a deed of sale for Israel lands, accompanied by a Land Registry extract. In the paid track, an application form is submitted, with the mandatory documents, by registered post to the Authority's regional business office in which the property is located.
Payment and registration
In the paid track, after payment the Authority sends signed deeds of sale or a "letter of entitlement to ownership". Registration at the Land Registry Office is the lessee's responsibility, and can be done only after parcellation or the condominium has been registered. On registration, a note is recorded restricting the transfer of rights to a foreigner, as defined in the Israel Lands Law.
What to bring to the meeting
- An up-to-date Land Registry extract, or a confirmation of rights from the Authority or from the housing company.
- The lease agreement with the Authority and, if applicable, confirmation of payment of capitalisation fees.
- Any notice you have received from the Authority regarding the transfer of ownership.
- The plan or the condominium registration order, if the building is registered.
- For a detached house: the plot area according to the contract and according to the plan.
- Identity cards of all the registered lessees.
Timeline and cost
Timetable: a preliminary review of the extract and the lease agreement is usually completed within one to two business days of the enquiry. The time taken by the Authority is beyond the office's control. In the free-of-charge track, the lessee has 60 days to object from the date the notice is sent, and only then does the Authority proceed with registration. For a property not yet registered as a condominium, registration as owner will wait for the building to be registered.
Cost payable to the Authority: an apartment in a multi-unit building under a capitalised lease, and a detached house on a plot of up to 280 sq m, receive ownership free of charge. For a detached house outside a national priority area, the payment is 4.5% of the land value for a plot of 280 to 540 sq m, and 9% for a plot of 540 sq m up to one dunam. Above one dunam, the payment is set by an individual appraisal. In national priority areas, the terms are more favourable. The payment rates do not include VAT, taxes, past debts or other payments to the Authority, and above 16 dunams the Authority does not transfer ownership unless the Israel Land Council decides otherwise (section 4KA of the Israel Land Authority Law, 5720-1960). The figures are based on the summary table in Procedure 90.01B, as of October 2026, and the version in force on the date of the application should be checked.
Cost of the legal work: the fee is set in a written fee agreement, according to the state of the registration and the complexity of the property, and a quotation is provided after an initial conversation. Registration fees and payments to the Authority are not included in the fee.
The State, the Development Authority and the Jewish National Fund
| Subject | The State of Israel and the Development Authority | The Jewish National Fund (KKL) |
|---|---|---|
| Status of the land | Israel lands, managed by the Israel Land Authority | Israel lands, managed by the Israel Land Authority |
| Transfer of ownership under the law | Permitted for urban land (section 2(7) of the Israel Lands Law) | Only with the JNF's approval, and under the covenant between it and the State, by way of exchange |
| The benefits of ownership | Apply | Also apply to JNF lessees, under a uniform Authority policy |
| Registration of the lessee as owner | After the transfer of ownership | Only after an exchange transaction between the State and the JNF, which the Authority carries out collectively |
| Individual application for registration | Possible | Ownership transfer cannot be requested individually |
What you gain by becoming the owner
- Registration as owner at the Land Registry, instead of registration as lessee.
- No approval or consent from the Authority is needed for a transfer of rights or for a permit application for a building addition, subdivision of a plot, change of designation or non-conforming use.
- No payment to the Authority for these actions.
- Direct dealings with the Land Registry Office and the local committee, without going through the Authority.
- An owner has no lease period that expires and needs renewal.
Frequently asked questions
Is it compulsory to accept ownership?
No. The transfer of ownership is a right, not an obligation. A lessee may decline even when ownership is offered free of charge; he then remains a lessee and will continue to need the Authority's services for any dealings in the property.
What is the difference between ownership and an upgraded lease?
An upgraded lease gives the benefits of ownership, but without registration as owner and without the exemption from the Authority's approval for a transfer of rights. It is granted, for example, for a property not yet registered as a separate unit, or a property registered under a plan or as an undivided share in land.
My apartment is on JNF (KKL) land. Can I be registered as the owner?
Not individually. The benefits of ownership also apply to JNF lessees, but registration as owner is possible only after an exchange transaction between the State and the JNF. The Authority carries out such transactions and registers ownership collectively.
I am buying a leasehold apartment. What difference does it make to the transaction?
When the purchaser acquires a leasehold apartment, the transfer of rights goes through the Authority, and it must be checked in advance that the lease is capitalised, that there are no debts to the Authority and that there are no breaches of the lease agreement. If the apartment has already passed into ownership, the transaction is registered directly at the Land Registry.
What is the note about a "foreigner" registered in the extract?
When ownership is registered under the reform, a note is recorded in the land registers restricting the transfer of rights to a foreigner, as defined in the Israel Lands Law (Amendment No. 3), 5771-2011. A transfer to a foreigner requires the Authority's approval.
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Not sure the deal is safe? Let's start with a conversation
In an initial conversation we will go over the property, the other party and the payment schedule, and tell you what needs to be checked before you sign.