Municipal certificate for the Land Registry: what it is, who signs it, and how to get it

What is the municipal certificate for the Land Registry?

It is a certificate that the local authority issues to the seller of a property, confirming that all debts owed to it in respect of the property have been paid, or that there are no such debts. Professionally it is also called a "certificate for the Land Registrar", a "transfer certificate" or a "certificate of no debts". The local planning and building committee signs the same certificate, confirming that the betterment levy has been paid or that security for its payment has been given.

The certificate is presented at the Land Registry Office, together with the deed of sale and the real estate taxation certificates for betterment tax and purchase tax. Without it the Registrar will not register the transfer of ownership.

Under which laws is it required?

• Section 324(a) of the Municipalities Ordinance [New Version]: a transfer of property will not be registered in the land registers unless a certificate is presented to the Registrar, signed by the mayor or a person authorised by the mayor, attesting that all debts owed to the municipality by the owner of the property in respect of that property, up to the date of the certificate, have been paid in full or that there are no such debts.
• Section 10(a) of the Third Schedule to the Planning and Building Law, 5725-1965: an action that is a realisation of rights in land, including a sale, will not be registered in the land registers until a certificate is presented to the Registrar, signed by the chairman of the local committee or a person authorised by the chairman, attesting that the betterment levy due at that time has been paid, or that security for its payment has been given.
• Section 10(b) of the Schedule, and the Planning and Building (Certificate of Payment of Levy) Regulations, 5741-1981: the law empowers the Minister of the Interior to provide by regulations for combining the local committee's certificate with the certificate the local authority gives for registration, and such regulations have been published. So in practice it is a single document bearing two signatures.

In local councils and regional councils, the council issues the certificate of no debts for registration. For a locality within a regional council, you usually apply to the regional council, not to the local village committee.

There are two important exceptions. Registering a mortgage does not require these certificates (section 324(d) of the Municipalities Ordinance and section 10(a1) of the Third Schedule). And the betterment levy is payable no later than the time the debtor realises the right in the land (section 7(a) of the Schedule).

One document, two signatures

The certificate is signed by two different bodies, and each checks something different:

• The local authority: a municipality, local council or regional council. It checks that there are no debts in respect of the property, such as municipal tax (arnona) and other debts to the authority.
• The local planning and building committee: it checks whether a betterment levy applies to the property, and if so, that it has been paid or that security for its payment has been given.

The two bodies are not always in the same place. In many cities the municipality has its own local committee. But many small authorities belong to a regional local committee that serves several authorities together. For example, the "Zmora" local committee serves Mazkeret Batya, Kiryat Ekron and Bnei Ayish. In such a case, the committee's signature is obtained at the offices of the regional committee, not at the authority where the property is located. The tool below finds both bodies by the name of the locality.

What to do with it: the steps

1. Apply to the local authority. Usually the seller's lawyer files the application, online in most authorities. Attach the property details, the details of the seller and the buyer, and the sale contract.
2. Pay the debts to the authority. The authority issues a payment demand for the debts in respect of the property up to the date of the certificate, and the seller pays it.
3. The local committee checks the betterment levy. If a levy applies, the committee sends an assessment. The seller can pay, give security, or check whether an exemption applies (section 19 of the Third Schedule). Anyone who disputes the assessment can appeal or submit their own assessment (section 14 of the Schedule).
4. Receive the signed certificate with both signatures, and check that the details of the property and the parties are correct.
5. Submit to the Land Registry Office the certificate, together with the deed of sale and the real estate taxation certificates. The registry office and the real estate taxation office can be found by block number.

Why it matters

For the buyer: without the certificate, the apartment will not be registered in the buyer's name. So the sale contract provides that the seller is responsible for obtaining the certificate, and part of the price is held in trust until it is received. On the payment mechanism and trust: cautionary note and payment mechanism.

For the seller: the debts to the authority and the betterment levy are a condition for receiving the certificate, and the betterment levy can be a significant amount. So it is worth finding it out before signing, and stating in the contract who bears it. More information on the selling an apartment page.

For both parties: in many cases the certificate is the last item holding up registration at the Land Registry. Applying early to the authority and the committee shortens the time between the final payment and registration.

Finding the authority and committee by the name of the locality

Type the name of the locality where the property is located, and the tool will show the local authority that confirms there are no debts, and the local planning and building committee that confirms the betterment levy.