By Benjamin Eckman
Mevo Modi’im (מְבוֹא מוֹדִיעִים) is centrally located in the heart of Israel. It is 30 minutes from Jerusalem and Tel Aviv, 5 minutes from Modi’in and 10 minutes from Ben Gurion International Airport.
After a fire devastated much of the area in May 2019, the Israel Land Authority developed a comprehensive plan for reconstruction and expansion. This plan includes 150 new homes. Our acquisition group will be entitled to 42 homes. These houses will be two-level semi-attached houses totaling 180 meters (nearly 2,000 square feet).
What Is an Acquisition Group?
An acquisition group (“kvutzat rechisha” in Hebrew) exists when individuals form an organized group, the purpose of which is to purchase a plot of land and build residential units for the group members. The group makes the decisions, hires professionals, and plays an extremely significant role in the project. This is in direct contrast when purchasing from a contractor (kablan).
Advantages of an Acquisition Group
Savings. There are several advantages when purchasing the land and orchestrating the actual construction through an acquisition group. One of the largest advantages is the savings to the group members. The funds paid are used to purchase the land and construct the building. There is no kablan selling many residential units in order to make a profit. Furthermore, marketing and advertising expenses are minimal.
Identity. When forming an acquisition group, the members of the group monitor the nature of the group and may choose to add members who will create a community with a common denominator.
Safeguards and Protections. Since the group owns the land, they decide who the contractor is. The contractor is a hired contractor who is paid only after completion of each stage. If the initial contractor declares bankruptcy or the group is not satisfied with the contractor’s performance, the group may hire an alternate contractor. In this respect the group is protected. Contrast this with a regular kablan deal, if the contractor goes bankrupt, it is often difficult for the buyer to enforce his guarantees under the law.
Comprehensive Participation Agreement. This document is signed by all members and serves as the operating agreement during the process. It details the rights and obligations of the group members, provides a mechanism to resolve disputes between the members, and handles contingencies in the event a member wishes to sell his share or can’t meet his financial obligations.
If you are interested in pricing or any other information, please call Benjamin Eckman at 908-347-6863 or email him at Beneckman.email@example.com.
Disclaimer: The above is intended for informational purposes and is not intended to serve as legal advice for any purpose.