Is This Garden Mine or Not?
(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)
Having a garden attached to your apartment in Jerusalem is considered to have prime real estate value, especially in the prime areas of the city.
This can be a major selling point for many potential buyers or renters, as having a private outdoor space can be desirable, especially in light of the COVID-19 pandemic and the increased importance of outdoor spaces.
Gardens can add value to any type of apartment, whether it is a single-level, duplex, cottage, etc…
The importance of legally registered gardens
Gardens that are legally registered can increase the value of an apartment, and its value can be determined by a professional appraiser or a bank. The value of a garden may be approximately 40-50% of the value of the apartment per square meter.
For example, if an apartment is worth 70,000 shekel per square meter, the garden attached to it may be worth an additional 28,000-35,000 shekel per square meter.
It is important to note that the value of a garden can vary significantly depending on various factors such as size, location, and the overall value of real estate in the area.
In order for a garden to be considered a part of the property, it must be registered in the land registry.
However, there may be situations in which the ownership or use of a garden is evaluated differently.
Garden In Use
In Israel, the term "garden in use" refers to a situation where a garden is attached to an apartment but is not legally registered as part of the apartment's property in the land registry.
This can occur when a seller advertises their private garden as part of the apartment, but upon further investigation, it is discovered that the garden does not legally belong to the seller or is not registered to the apartment.
In some cases, a seller may disclose upfront that the garden is a "garden in use" and is only associated with the specific apartment.
It is important for potential buyers to carefully review the legal status of any garden or outdoor space that is advertised as part of a property, in order to fully understand the rights and responsibilities associated with its use.
Access is a key factor
Access to the garden is also a key factor to consider, as the owner of an apartment may be the only person with access to the garden even if it is not legally registered to their property. It is essential to carefully review any legal agreements and understand the specific circumstances surrounding the use of a garden in order to ensure that there are no issues or conflicts related to its use.
It is important to note that the term "garden in use" is not a legally recognized term and therefore does not confer any specific rights or protections.
This means that even if a garden has been in use by an owner for a long period of time, there is no guarantee that they will be able to continue using it indefinitely.
Additionally, if a TAMA 38 project or redevelopment occurs, the status of the garden may change and the owner may lose any rights or privileges associated with its use.
It is important to carefully review any legal agreements and understand the specific circumstances surrounding the use of a garden in order to ensure that there are no issues or conflicts related to its use.
Having a “garden in use” is definitely a perk, because it gives you outdoor space in a city where gardens are rare.
It should not be valued in the sale price of the apartment if it is not legally registered to the apartment, but it is not necessarily a red flag if the garden is not registered.
This is something you must be aware of and weigh up what it means to you. Your lawyer may have some additional thoughts or guidance for you on the matter.
All legal advice should be given by a licensed real estate lawyer, this is meant for informational purposes only.