Agriculture - Agreement | Buy a Piece of Israel

Agriculture – Agreement

Purchase Development and Management Agreement

This agreement is between

B’Ahavat Yisrael Investments Ltd. (AKA Buy a Piece of Israel),

Address: P.O. Box 3102 Afula, 18130 Israel

hereby known as ‘Management’,

and (Name)________________________   

Passport Country and Number _________________or Social Security/Social Insurance Number _______________

Address: ______________________________________________________________________________

Phone Number: _____________________________ Cellphone Number: ______________________________

Email Address ________________________________________________

hereby known as ‘Purchaser’.

1) The Purchaser is purchasing the following size of land (private land) and olive tree development packages (s):

A) 27.777 meters (1/36th of dunam) x ______________ unit(s) x $1,800 per unit.   Total $__________
B) 500 meters (1/2 dunam)                x ______________ unit(s) x $13,000 per unit. Total $__________
C) 1,000 meters (1 dunam)                 x ______________ unit(s) x $25,000 per unit. Total $__________

2) All purchasers will be registered with the Israeli Government Land Authority.

3) All purchasers are purchasing a stipulated amount of meters within a larger parcel.  For example, if a parcel is 10,000 meters in total (10 dunam) and a purchaser purchases 500 meters (1/2 dunam), he/she will be registered as an owner of 500/10,000 meaning 500 meters of 10,000 the specified parcel.  This type of purchase is commonly known internationally as Tenancy in Common.

4) The purchase price includes: price of property, purchase taxes, registration fees, attorney’s fees, and 4 years of development and management fees.  Once the purchase is complete, the purchaser is not expected to make any more investment for the purchase and development of the parcel into an olive orchard. 

5) Complete registration can take between 3 and 18 months depending how much land has been sold of the parcel and how quickly.

6) Responsibilities of Management:

-Attorney registration of land purchase.

-Upon taking possession of the land, Management will develop the land and manage it without taking any more payments from the buyer beyond the above initial Start-up and Management term which is for four (4) years.

– The four (4) year Start up and management services include the following:

-Implementing the agreement on behalf of the new owners.

-Plowing and clearing the land.

-Removing a section of fruit trees on the property which are no longer productive (only where necessary).

-Purchasing and planting of oil producing Olive trees.

-Installing water lines and irrigation system and purchasing all necessary parts.

-Payment of property taxes.

-Payment and management of water use.

-Treatments against infestations.

-Regular fertilization.

-Replacing damaged or destroyed trees during the first four (4) years.

-Installation and purchase of individual tree protective shields.

-Pruning of trees.

-And whatever else is necessary to achieve the highest quality product.

7) It is understood that for the first four (4) years there is no expected income from olives produced by olive trees.  After the four (4) year period, olives will be harvested every late autumn season.  Those olives will be brought to an olive press and made into high quality cold pressed oil.  The freshly pressed oil will be stored in large containers for a few months to allow unnecessary sediments to settle and then the oil will be bottled in different sizes and sold to quality conscious consumers by Management.  Management will continue to do all that is necessary and pay all expenses and labor to ensure the best possible annual results.

8) Distribution of Income: Management will be responsible for 100% of maintenance expenses, labor, and marketing of the final product.  In return, Management will receive 75% of gross sales and the buyer(s) [owners] will receive 25% of gross sales.

This management part of the contract will automatically renew at the end of each four (4) year period. There will be no additional Start up fees after the initial (4) four-year period.  Should the buyer(s) decide to terminate this contract by a consensus of at least 51% ownership of the property, Management will continue to manage the property until the end of that harvest season.

If Management chooses to cease managing the property, it must find a suitable replacement to manage the property at the same price rates or less.

 

This agreement is signed as a binding agreement between the parties.

Size of Purchase ______________________________________________

Total cost including VAT ________________________________________

Deposit ____________________________________________________

Balance Due After Legally Witnessed and Stamped  ______________________

____________________                                       _______________________

Management                                                                     Buyer