THIS LAW: Absentees' Property (Compensation) Law (passed by the Knesset June 27, 1973).
ITS AMENDMENTS: (6.29.76)(7.26.82)

	(No. 60)
	ABSENTEES' PROPERTY (COMPENSATION) LAW, 5733—1973*
Definitions.	1. In this law-- "Custodian" and "absentee" have the same respective meanings as in the Absentees' Property Law, 5710-1950(1); "property" means immovable property which became absentees' property and on the date of the coming into force of this Law is vested in the Custodian or before that date was transferred from him to the Development Authority established under the Development Authority (Transfer of Property) Law, 5710-1950(2), or was validly expropriated from him, but does not include property - (1) consideration or a substitute for which has been released to the person who immediately before the vesting was the owner thereof or to his legal representative ; (2) for which the person who was the owner thereof immediately before the vesting or his legal representative has received compensation from the Custodian or his legal representative or from the State or its legal representative ; "agricultural property" means property on which on the determining date rural property tax was leviable under the Rural Property Tax Ordinance, 1942(3); "urban property" means property on which on the determining date urban property tax was leviable under the Urban Property Tax Ordinance, 1940(4); "easement" has the same meaning as in the Land Law 5729-1965(5); "the determining date" means the 16th Kislev, 5708 (29th November, 1947).
Right to claim compensation.	2. A person entitled to claim compensation for property (hereinafter referred to as a "claimant") is a person who is an Israel resident on the date of the coming into force of this Law or becomes an Israel resident thereafter and who before the property was vested in the Custodian was one of the following: (1) the owner of the property, including the person who would have been his heir had the property not been vested ; (2) in the case of urban property - an absentee who was the tenant thereof, including his wife who lived with him at that time; (3) the lessee (hokher)** of the property; (4) the holder of an easement over the property.
Payment of compensation.	3. Compensation shall be paid to the claimant out of the Treasury after deduction of debts incurred before the vesting which have been paid by the Custodian under section 20 of the Absentees' Property Law, 5710-1950.
Time for filing of claims.	4. A claim for compensation shall be filed on behalf of the claimant in the manner and form prescribed by regulations, with the person appointed by the Minister of Finance for that purpose (hereinafter referred to as "the officer-in-charge"), not later than the expiration of three years from the date of the coming into force of this Law, or, if the claimant became a resident after the coming into force of this Law, not later than the expiration of two years from the day on which he became a resident, whichever is later. Notice of the appointment of the officer-in-charge shall be published in Reshumot.
Advisory committees.	5. (a) The Minister of Finance shall establish advisory committees to clarify the claimant's rights in the property in respect of which he demands compensation or to concern itself with the amount of the compensation, as well as for the purpose of determining the annual value of property in accordance with the Schedule. The chairman of the committee shall be a Judge of a Magistrates' Court or a person qualified to be a Judge of a Magistrates' Court. (b) An advisory committee shall have the powers of a commission of inquiry under sections 7 to 11 of the Commissions of Inquiry Law, 5729-1968(6). (c) Notice of the appointment of an advisory committee shall be published in Reshumot.
Amount of compensation to owner of property.	6. Compensation to a claimant who was the owner of the property shall be calculated in accordance with the Schedule.
Amount of compensation to other claimants.	7. (a) The amount of compensation to a claimant who was a tenant of the property shall be fifteen per cent of the amount fixed under section 6 in respect of the property he occupied, unless before the coming into force of this Law he received payment for surrendering possession of the property; and if he occupied part of the property, the compensation shall be fifteen per cent of an amount which bears to the amount fixed under section 6 in respect of the whole property the same proportion as the area he occupied bears to the total area of the property. For the purpose of calculating the compensation, a right to additional building as referred to in section 2 of Chapter One of the Schedule shall not be taken into account. (b) Compensation to a lessee (hokher) or the holder of an easement shall be part of the amount due to the owner of the property under section 6 and shall be fixed by the officer-in-charge on the basis of an evaluation of the right in question.
Notification by officer- in-charge.	8. When the advisory committee has concluded its clarification of the claim, the officer-in-charge shall notify his decision to the claimant in writing, assigning reasons; and if he decides that compensation shall be paid, he shall specify the property for which it is to be paid and the amount due to the claimant.
Dispute as to compensation.	9. (a) Any dispute concerning the decision of the officer-in-charge as to the right to or amount of compensation shall, on application on behalf of the claimant or the Attorney-General, be determined by the District Court of Jerusalem or the District Court in whose area of jurisdiction the property is situated. (b) The court shall not entertain an action as to compensation for any particular property filed later than six months from the day on which a notification under section 8 in respect of that property was delivered to the claimant. (c) A proceeding under this Law is exempt from court fees.
Time for payment to owner of property.	10. Compensation finally fixed for the owner of any property and not exceeding 10,000 pounds shall be paid to him in cash not later than the 22nd Tammuz, 5735 (1st July, 1975) or within sixty days from the date on which it was finally fixed, whichever is later. Where the compensation exceeds the said amount, the excess shall be paid in bonds issued under section 15, which shall be delivered to the claimant within six months from the day on which the compensation was fixed.
Time for payment to other claimants.	11. Compensation finally fixed under section 7 shall be paid fully, in cash, not later than the 22nd Tammuz, 5735 (1st July, 1975) or within sixty days from the day on which it was finally fixed, whichever is later.
Time for payment to claimants whose claims were delayed.	12. Claimants who file their claims after the 22nd Tammuz, 5735 (1st July, 1975) or whose compensation is finally fixed after that date shall be paid the amount payable in cash under section 10 or 11 upon the expiration of thirty days after the amount due to them is finally fixed, and the amount payable in bonds shall be paid six months after being so fixed.
Compensation to several claimants.	13. (a) Compensation under this Law due to several claimants jointly in respect of the same property shall be apportioned among them in the manner they may have agreed upon or, in the absence of agreement, as the may prescribe under section 9. (b) Where a proceeding for the apportionment of compensation has been instituted, the State shall deposit the cash and bonds intended for the payment thereof with the court in which the proceeding has been instituted, and the court shall transfer or pay the same to the person entitled after termination of the proceeding.
Second claim after hearing of first claim.	14. (a) Where after compensation has been paid to a claimant in respect of any property another person claims the same compensation or part thereof in respect of the same property or part thereof, the second claimant shall file his claim in the District Court of Jerusalem against the person to whom the compensation has been paid. (b) Where a second claim is filed in respect of property the rights in which or the amount of compensation in respect of which have or has already been determined by the court in proceedings under section 9, every person who was a party to those proceedings shall be joined to the proceedings under subsection (a). (c) A second claimant whose claim under subsection (a) has been allowed may, in the manner and within the time indicated in section 4, file a claim for additional compensation in respect of the property in question if he contends that no appropriate compensation has been paid for it.
Payment in bonds.	15. (a) For the purpose of the payment of compensation, the Government is hereby authorized to issue bonds in the name of the State. (b) The Bank of Israel (hereinafter referred to as "the administration") shall manage the affairs of the bonds. (c) The bonds shall be made out in the name of a specific person. (d) From the 17th Tammuz, 5740 (1st April, 1980), the bonds shall be transferable by delivery as if they were bearer bonds. (e) The bonds shall be redeemed in fifteen equal annual instalments, plus interest due at the time of payment of each instalment, on the 1st October of every year, beginning 1975 ; but the Minister of Finance may, according to criteria prescribed by him by regulations with the approval of the Finance Committee of the Knesset, direct that some particular bonds shall be redeemed at an earlier date if he is satisfied that such is necessary for the rehabilitation or housing of the claimant. (f) The bonds shall bear interest at the rate of 4 per cent p.a. from the date of issue. The interest shall be exempt from tax. (g) The principal and interest of the bonds shall be linked to the cost-of-living index. If at the time of any payment under subsection (e) it appears that the new index exceeds the basic index, the amount of that payment shall be increased in the proportion of the excess of the new index over the basic index. (h) For the purposes of subsection (g) - (1) "cost-of-living index" has the same meaning as in the Defence Loan Law, 5717-1956(7); (2) "basic index" means the cost-of-living index published immediately before the coming into force of this Law; (3) "new index", in relation to a particular part of the amount of compensation, means the index published for the month of December last preceding the date of payment of that part. (i) The Administration shall maintain a register in which the names and addresses of the holders of the bonds and the face-value of the bonds issued to each of them shall be entered. (j) The bonds shall be exempt from stamp duty. (k) The bonds shall bear the facsimile signatures of the Minister of Finance and the Accountant-General.
Advocate's fee.	16. (a) Notwithstanding anything contained in any agreement, the total fee of an advocate for handling a claim in which compensation is awarded shall not exceed - (1) where an amount not exceeding 10,000 pounds was awarded under section 8, 7 per cent or, if court proceedings are involved, 10 per cent; (2) where an amount exceeding 10,000 pounds is awarded, a fee as indicated in paragraph (1) for the first 10,000 pounds and 5 per cent or, if court proceedings are involved, 7 per cent for any amount in excess of the first 10,000 pounds. (b) Where no compensation is awarded, the fee shall be as agreed between the advocate and the claimant; but if the claimant contends that the fee or expenses agreed upon is or are unreasonable, he may apply to the Chamber of Advocates for a ruling. (c) The Minister of Justice may, by regulations, designate kinds of claims or handling in respect of which, notwithstanding anything contained in any agreement, the advocate's fee shall not exceed a lower percentage than that prescribed in subsection (a). (d) Notwithstanding anything contained in any agreement, a person shall not be required to pay for handling a claim, in addition to the fee referred to in subsection (a) or (b), any amount on account of inclusive expenses or miscellaneous expenses save in so far as such expenses are of any of the kinds designated by regulations and exceed the amount therein prescribed for that kind of expenses.
Payment of excessive fee.	17. (a) A person who for handling a claim pays a fee or expenses of an amount exceeding that prescribed in section 16(a) or fixed by the Chamber of Advocates under section 16(b) may recover the excess. (b) In hearing an action for recovery of a payment or part thereof, the court may, notwithstanding anything provided in any law, accept oral testimony as evidence in respect of the payment and be satisfied with the testimony of a single witness. (c) A person who in any manner whatsoever receives a fee or expenses in excess of the prescribed amount shall be liable to a fine of five times the amount of the excess. (d) The provisions of this section shall not affect the disciplinary liability of an advocate in respect of the collection of a fee or expenses in excess of the permitted amount.
Abrogation of right of claim against Custodian.	18. From the date of the coming into force of this Law, an absentee's claim for a right in property, or for the release of property under section 28 of the Absentees' Property Law, 5710-1950, including the release of property substituted under section 4(d) of that Law shall not be heard save in accordance with this Law.
Implementation and regulations.	19. (a) The Minister of Finance and the Minister of Justice are charged with the implementation of this Law and may make regulations as to its implementation. (b) The Minister of Justice may make regulations as to the practice in filing claims, the handling of claims and the procedure in proceedings for fixing the amount of compensation.
Grant of right to compensation.	20. The Government may by order, with the approval of the Finance Committee of the Knesset, designate categories of holders of a right in immovable property vested in the Custodian who shall be entitled to compensation under this Law although they are not claimants within the meaning of this Law. The procedure for the filing of claims under this section and the time when the right to file them shall expire shall be prescribed by the Government.
Commencement.	21. This Law shall come into force on the 1st Tammuz, 5733 (1st July, 1973).
	SCHEDULE (Section 6) CALCULATION OF COMPENSATION TO OWNER OF PROPERTY
	CHAPTER ONE: URBAN PROPERTY (Property on which on the determining date urban property tax was leviable under the Urban Property Tax Ordinance, 1940)
	1. The amount of compensation for any property shall be the net annual value last determined for the purposes of the Ordinance before the determining date or, if no such value was determined or the value so determined cannot be proved, the annual value which was likely to be determined, with an addition of - (a) 30 per cent if the assessment was made for the tax years 1946/47 and 1947/48; (b) 50 per cent if the assessment was made for the tax years 1944/45 and 1945/46; (c) 60 per cent if the assessment was made for an earlier period, the result to be multiplied by 175.
	2. Where the built-on area of the property was less than 66 per cent of the area permitted to be built on under a town-planning scheme on the determining date, the amount of compensation calculated according to section 1 shall be increased by half the amount so calculated for that part of the property which could still be built on. The latter amount shall be based on the value determined for vacant land in the neighbourhood nearest to the property in question.
	CHAPTER TWO: AGRICULTURAL PROPERTY (Property on which on the determining date rural property tax was leviable under the Rural Property Tax Ordinance, 1942)
	1. The amount of the compensation per dunam shall be according to the category of the property, as follows: Category Rate of Compensation (a) Citrus and banana plantations (Categories 1-3) 900 pounds (b) 1st grade irrigated land and 1st grade fruit plantations (Category 5) 650 pounds (c) 2nd grade irrigated land and 2nd grade fruit plantations (Category 6) 550 pounds (d) 3rd grade irrigated land and 3rd grade fruit plantations (Category 7) 490 pounds (e) 1st grade ground crop land, 4th grade irrigated land and 4th grade fruit plantations (Category 8) 390 pounds (f) 2nd grade ground crop land, 5th grade irrigated land and 5th grade fruit plantations (Category 9) 275 pounds (g) 3rd grade ground crop land, 6th grade irrigated land and 6th grade fruit plantations (Category 10) 235 pounds (h) 4th grade ground crop land, 7th grade irrigated land and 7th grade fruit plantations (Category 11) 190 pounds (i) 5th grade ground crop land, 8th grade irrigated land and 8th grade fruit plantations (Category 12) 145 pounds (j) 6th grade ground crop land, 9th grade irrigated land and 9th grade fruit plantations (Category 13) 100 pounds (k) 7th grade ground crop land, 10th grade irrigated land (Category 14) 50 pounds (l) 8th grade ground crop land (Category 15) 25 pounds (m) Planted forests and meagre land unfit for cultivation 15 pounds (n) 1. Built-on village areas or land reserved for building 1,600 pounds for the building and the land pertaining thereto if the area of such land does not exceed one dunam; if it exceeds one dunam, the amount shall be increased proportionately; in the case of a building of solid construction (stone, concrete, blocks), 60 pounds shall be added in respect of each square metre thereof. (n) 2. Buildings not situated in a village area 1,600 pounds for the building and the land pertaining thereto; in the case of a building of solid construction (stone, concrete, blocks), 60 pounds shall be added in respect of each square metre thereof. (n) 3. Industrial buildings In accordance, mutatis mutandis, with section 1 of Chapter One. (n) 4. Property included in section 1 regarding which the Minister of Finance is satisfied that it was of definite commercial value and that it or property adjacent to it was the subject of large-scale transactions. Treble the value determined under section 1, but not more than 40 per cent of the value of land of the same type in the area nearest to the land in question on which urban property tax is leviable, or 1,000 pounds per dunam, whichever is less.
	GOLDA MEIR Prime Minister YAACOV S. SHAPIRO Minister of Justice PINCHAS SAPIR Minister of Finance EFRAYIM KATZIR President of the State
	* Passed by the Knesset on the 27th Sivan, 5733 (27th June, 1973) and published in Sefer Ha-Chukkim No. 701 of the 6th Tammuz, 5733 (6th June, 1973), p. 164 ; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1034 of 5733, p. 116. (1) Sefer Ha-Chukkim of 5710, p. 86 ; LSI vol. IV, p. 68. (2) Sefer Ha-Chukkim of 5710, p 278 ; LSI vol. IV, p. 151. (3) P.G. of 1942, Suppl. I, p. 9 (English Edition). (4) P.G. of 1940, Suppl. I, p. 218 (English Edition). (5) Sefer Ha-Chukkim of 5729, p. 259; LSI vol. XXIII, p. 283. 176 ** See section 3 of the Land Law, 5729-1969 (Tr.). (6) Sefer Ha-Chukkim of 5729, p. 28 ; LSI vol. XXIII, p. 32. (7) Sefer Ha-Chukkim of 5717, p. 8; LSI vol. XI, p. 5.

Return: to the TOP of this Law.

THIS LAW: Absentees' Property (Compensation) Law (passed by the Knesset June 27, 1973).
ITS AMENDMENTS: (6.29.76)(7.26.82)

SOURCE: "Laws of the State of Israel: Authorized Translation from the Hebrew, Volume 27". Government Printer, Jerusalem, Israel (1948-1987), p. 176-184.

(C) Israel Law Resource Center, February, 2007.