Our firm used several levers to lower our client’s acquisition fees.
Knee and lower back injury from a collision with a low speed truck, our client had to undergo physiotherapy sessions and the knee injury caused an aggravation of an existing knee injury requiring outpatient surgery. Following this accident, our client was forced to quit his job and accept early retirement. We have been with our client from start to finish.
An acquisition fee, occasionally built into a price, is charged by a lessor to cover the expenses, usually of the administrative variety.
Acquisition fees may also attribute to charges and commissions paid for the acquisition or purchase of real property. In Israel, from 28.7.2020, acquisition fee is 5% of the price of the acquisition.
At intervals, acquisition fees may be hidden in the purchase or lease price, which can add significantly to the acquisition price for the inexperienced buyer or lessee. The buyer or lessee should, therefore, insist on a clear explanation and breakdown of the acquisition fee.
A borrower should commonly pay any acquisition fee owed upfront and separately rather than including it in the loan amount since this can result in consequently higher interest expenses over the term of the loan.
You have to know that law project has decided to raise acquisition Fees in Real Estate Investments to 8% in Israel.
SINCE 15.11.2021, from For the acquisition of a 2nd real estate property :
- From the 1st Sh up to the amount of 5,300,000 Sh – An acquisition tax of 8%.
- From 5,300,000 Sh and beyond – An acquisition tax of 10%.
It’s critical, for example with an apartment for one and a half million :
1,500,000 * 8% = 120,000₪
But today, 1,500,000 * 5% = 75,000₪
