The Israel Land Aministration (ILA) has decided to allow a single bidder to buy more than one lot in land tenders in the central region. The decision does not apply to minority communities, which the ILA says suffer from a shortage of lots, and where bidders are restricted to purchasing only one lot. The new directive also does not apply to tender designated for local residents.
Under the decision, 10% of the minimum price for the lot, development costs, or the higher of the two, must be deposited. In vacate and build plans, the deposit is 10% of the sum of the land value and the cost of the project.
The ILA ruled that the minimum price for land would be at least NIS 5,000, in which case the deposit would be 10% of the development costs.
The ILA decided that if a tender winner retracts its bid, or fails to meet the future tender terms, the results of the tender will be voided. If the runner-up bidder asks for the lot within 30 days of the voiding of a tender, the tenders committee shall be entitled to consider the bid, and choose the runner-up as the winner.
If the committee approves the runner-up bid, the runner-up bidder will be asked to provide an index-linked bank guarantee or bank check within fourteen days of the bid’s selection.
Published by Globes [online] - www.globes.co.il - on May 23, 2004