This rule served as the basis for the following words of Professor Aharon Namdar in his book Betterment Levy (2011), in relation to the provision of the law in our case:
"Cross gifts between relatives, when one relative gives a gift to another relative in exchange for another gift he will receive from that relative, will not be considered a transfer without consideration. This does not mean that a relative who has received a gift from his relative will never be able to give a gift to his relative, but rather that these gifts must be detached from one another and must not be conditional on each other, so that they will be considered to have been given without consideration" (p. 554). emphasis added).
From the general to the individual
- As stated above, in July 2017, the defendants signed a "contract for the dissolution of a partnership in real estate" (Appendix C to the statement of claim). The purpose of the agreement was described in it as follows: "The desire of the parties to dissolve their partnership in the property by way of a division in kind only of the rights in the property and the determination in this contract of the exclusive and exclusive rights of possession, enjoyment and use of each party in the property" (Name, the third paragraph of "And it was"). Accordingly, it was determined that the division in kind would be carried out in such a way that each of the defendants would receive "exclusive and unique ownership."" In one of the apartments (Name, section 2). Afterwards, each of the defendants will be able to renovate and build at his own expense in his apartment (Name, section 3), to own the apartment and use it exclusively, and to practice "a full and absolute owner's custom... without the need for the consent of the other party."Name, section 4).
A reading of the agreement, as well as from the letter of the defendants' counsel to the municipality dated November 1, 2017 (also Appendix C to the statement of claim), clearly indicates that this is a mutual transfer of rights. Mia's rights in one apartment are transferred toBen-Zion, her brother, simultaneously and in a combined manner with the transfer of Ben-Zion's rights in the second apartment to Mia. The additional letter to the municipality, dated November 24, 2022 (Appendix 5 to the statement of claim), also describes a mutual transfer "between brothers of rights received by inheritance/gift".
- So yes, The agreement between the brother and sister also created mutual and parallel obligations, with rights in one apartment being transferred against and as a condition for their transfer in the other apartment. The agreement embodied a clear advantage for the contractors, which is the realization of a clear economic interest - which is realized by the transition from a situation of joint ownership and submission to the provisions of Chapter E of the Real Estate Law, 5729-1969, to a situation of exclusive ownership and the possibility of each person to do as he sees fit in his apartment, without the need to no longer require the consent of his relative.
Even if the agreement is for the dissolution of partnership and the transfer of rights received as a gift or inheritance, even if it is intended to adjust the registration of ownership and possession of the land, and even if no balance payments were made within the framework of it - It is clear to all that the brother and sister have enriched themselves and enjoyed what is agreed upon in the financial sense, and the transfer of rights cannot be regarded as having been done "without consideration". The transfer of rights fits the definition of the term "exercise of rights" in the first section to the Third Addendum to the Planning and Building Law. The betterment levy must now be paid in accordance with the provisions of section 7 of the addendum.