At the end of the day, the only relevant question is whether the appellant can legally hold the land for a period exceeding 25 years. Insofar as there is no potential on the legal level whereby the appellant will be able to hold the land for a period exceeding 25 years, then the obvious conclusion is that this is not a matter of purchasing a "lease" right under the Real Estate Taxation Law, even if the "lease" contract states that the lease period is 98 years.
- I also did not find any substance in the respondent's argument that the sanction for a violation of the non-sale of "Buyer's Price" apartments to eligible purchasers is only a monetary sanction, and therefore the restriction on the period of possession of the land should not be regarded as one that nullifies the existence of a "right in real estate" within the meaning of the law.
First, on the purely factual level, the argument is incorrect, because the Special Conditions Appendix explicitly states which breaches of the building contract constitute fundamental breaches that grant the state the right of cancellation, and one of the fundamental breaches is the breach of the condition of the sale of the "Buyer's Price" apartments. In any case, wherever the monetary sanctions were determined, which constitute agreed compensation, they were determined without derogating from any other remedy available to the State by law – see clause 10 of the Kiryat Ono tender, for example.
Second, It is clear that according to the law, even if it were not explicitly stated in the contractual framework that the provisions regarding the sale of the "Buyer's Price" apartments to eligible buyers in accordance with the timetable set by the State, are provisions that constitute fundamental conditions in the agreement, in light of the nature of the "Buyer's Price" project, this is a fundamental condition, which in accordance with the Section 15(b) The Contracts Law (Remedies for Breach of Contract) 5731-1970, despite the agreed compensation, does not detract from the state's entitlement to demand the cancellation of an agreement.