Agriculture - Agreement | Buy a Piece of Israel

Agriculture – Agreement

Agriculture – Agreement

The following is a sample of a Set-up and Management Agreement for purchase of Agricultural Property in Galilee, pertaining to the aquisition of 10 units of 4 amot or larger parcels.  Individual 4 amot purchases receive a registered Israeli receipt and a certificate confirming the purchase.


Between B’Ahavat Yisrael Investments Ltd (Management)

P.O. Box 3102 Afula, 18130 Israel

And________________  US/Canadian Passport Number _____________



Phone Numbers: _____________________________________________

Email Address:   ______________________________________________

Whereas an agreement has been established regarding the purchase of 15.5 dunam (approximately slightly less than 4 acres) of agricultural land part of Plot (Gush) 13948,Lot(Helka) 107 inRosh Pina,Israel (The Land).


It is hereby agreed and stipulated between the parties as follows:


1) The buyer is purchasing dunams, a dunam, or a fraction of a dunam (dunam = approximately 1000 square meters or 1/4 acre) as tenant in common.  In addition to the base purchase price per dunam, the buyer will pay an additional 6% Purchase Tax and another 18% VAT (value added tax).

2) In addition to the base purchase price per dunam and the associated taxes mentioned above, the buyer will pay Management to develop and manage the land for optimum productivity.  There will be a one-time set up and management fee of NIS 28,000 per dunam (including VAT) that will be in effect for the first four (4) years of the agreement.

3) The purchase price, including all taxes and the start up and management fee, will be held in the Israeli attorney’s Trust Account in Yavne’el, Israel until sufficient funds are deposited to make a purchase and only then will funds be released to the seller and to the Management, with the following exception:

– Israeli tax law mandates that purchase taxes and VAT are due upon signing of a permanent agreement that is registered with the Israeli Land Authority.  In the unlikely event that the deal should fail, the taxes will be reimbursed.  Arrangements will be made by the Attorney to pay these taxes in interest free installments.

4) Responsibilities are as follows:

A) 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 fee which is for four (4) years.

B) 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 annual 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.

C) 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.

D) 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.


Purchase Options and Legal Expenses

For calculation purposes, all prices are based on Dunam(s) or fractions of a dunam.  All sizes are proportionately the same with the exception of legal and registration fees which are proportionately higher for very small purchases and proportionately lower for larger purchasers.


The following are the complete 4 year package prices:

1 Dunam base price (1,000 metres)                      41,500NIS

18% Value Added Tax                                                 7,470NIS

6% Purchase tax                                                          2,938NIS

2% Commission                                                               905NIS incl. VAT

Set up and Management (4 years)                        29,500 NIS incl. VAT

Legal, Notarization, Registration, Trust Account     4,250 NIS incl. VAT

Total:   86,563 NIS     for purchase of 1 dunam


1/2 Dunam base price (500 metres)                      20,750NIS

18% Value Added Tax                                                 3,735NIS

6% Purchase tax                                                          1,469NIS

2% Commission                                                               452NIS incl. VAT

Set up and Management (4 years) (incl. VAT)       15,350 NIS incl. VAT

Legal, Notarization, Registration, Trust Account     3,750 NIS incl. VAT

Total:   45,506 NIS     for purchase of 1/2 dunam


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