Agriculture - Agreement (Example) | Buy a Piece of Israel

Agriculture – Agreement (Example)

Purchase Development and Management Agreement

This agreement is between B’Ahavat Yisrael Investments Ltd.-השקעות באהבת ישראל בע”מ (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 ___________________________or

Teudat Zehut 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) in _______________,  Israel.

A) 27.777 sq. meters (1/36th of dunam) x ______________ unit(s) x $1,500 per unit.   Total $____________

B) 150 sq. meters                                   x______________  unit(s) x NIS 22,000 per unit Total NIS________

C) 250 sq. meters (1/4 dunam)             x______________units(s) x NIS 32,000 per unit Total NIS _________

D) 500 meters (1/2 dunam)                x ______________ unit(s) x NIS 55,000 per unit. Total NIS__________

E) 1,000 meters (1 dunam)              x ______________ unit(s) x NIS 95,000 per unit. Total NIS____________

 

2) The purchase will be registered with the Israeli Government Land Authority.

 

3) The purchaser is acquiring 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 in 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 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.  Please note that in Israel there are a few steps to complete registration.  In many cases, Management may have already planted the property by the time final registration has been finalized.

 

6) Responsibilities of Management:

-Attorney registration of land purchase including: title search, payment of purchase taxes, payment to sellers, registration with local authorities, National registration.

-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 including 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.

-Security fence purchase and installation

-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.  Management will do its best to maintain this 75%/25% split of gross income from oil sales with the Purchasers, but reserves the right to renegotiate these specific percentages in the future if circumstances change.  This management part of the contract will automatically renew at the end of each four (4) year period. There will be no additional management fees after the initial (4) four-year period.  Should the buyer(s) of a complete parcel 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.

 
 

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                                                                                 Purchaser