As Court Rulings Set Dangerous Precedents, Mediation in Betterment Levies Offers Balanced Solutions

Professional mediation: the smart way to avoid lengthy legal proceedings, in cooperation with the House for Mediation and Arbitration, Din Din Published: 11.06.26, 08:00 Illustration | Photo: 123RF

The significant recent ruling in the Levitan case is changing the rules of the game when it comes to calculating betterment levies in local authorities. The Supreme Court ruled that when preparing a betterment assessment, the contribution of TAMA 38 may not be included before a building permit is issued, a decision with broad legal, budgetary and economic implications.

The new ruling increases the level of uncertainty and the amount of disputes between local authorities, developers and landowners. Many in the industry warn that legal proceedings in this field could become a battleground of precedents, where each decision may affect hundreds of projects across the country.

In a complex reality, a smart solution is needed. The House for Mediation and Arbitration of the Federation of Local Authorities offers a unique platform for resolving disputes over betterment, led by a dual professional team, a lawyer and a real estate appraiser. This combination allows for comprehensive legal and appraisal review, and the creation of a balanced and realistic assessment agreed upon by both the authorities and the developers or landowners.

Today, objections to betterment levy assessments are usually handled by an appointed appraiser or appeal committees, and often reach the administrative courts. In cases where the professional process does not lead to a decision, exhaustion, heavy costs and uncertainty are created for both sides. This is where professional mediation comes in, an efficient, discreet and precise process that makes it possible to reach agreements instead of being dragged into prolonged litigation.

To contact the House for Mediation and Arbitration directly, click here

What makes mediation at the House for Mediation different?

Our mediation is conducted with a professional, dynamic approach based on many years of experience. The mediation team, a lawyer with expertise in planning and construction law and an expert real estate appraiser, enables a thorough, professional and substantive examination of the dispute.

The challenge facing the mediators is to create a professional, needs-based dialogue between the developers and property owners, who seek to reduce the levy, and the local authorities, which seek to secure resources for urban development. This is done while maintaining an in-depth dialogue with the appraisers and the parties' legal representatives, in order to identify the "true tax," the correct and balanced rate of betterment, anchored in appraisal values, existing case law and an understanding of market forces.

This model allows:

Creation of a balanced and realistic assessment Reduction of gaps on a professional basis rather than rigid positions Preservation of the relationship between the parties over time Avoidance of precedent-setting rulings that could harm both sides

Advertisement A process that enjoys broad trust

Judges and chairpersons of appeal committees refer disputes to us that are better not decided in a precedent-setting ruling. The process enjoys broad trust from authorities, developers, appraisers and lawyers who have experienced its advantages and results.

Impressive success figures, 89.7% agreement

At the House for Mediation and Arbitration, highly complex disputes in the area of betterment levies and compensation have been resolved in recent years, with an exceptional success rate of 89.7%.

Among those who turn to us: * Leading real estate companies in Israel * Active and experienced developers * Large and small local authorities from across the country

For developers, this is a platform that enables risk management, a balanced legal and appraisal assessment, and a solution that removes obstacles and advances the project. For authorities, it is a professional framework that allows for careful decision-making, without fear of a broad precedent that could affect overall policy.

How do you apply for mediation?

Two main channels:

Referral by appeal committees, in cases where a legal ruling could create a lose-lose situation, appeal committees recommend turning to professional mediation, thus avoiding a frontal clash and an undesirable precedent.

Initiative by the parties themselves, developers and authorities approach on their own in an effort to reach a professional, well-founded agreement before they begin to "wage war" legally.

In most cases, mediation makes the legal process unnecessary and saves the parties significant costs and resources.

Professional mediation: the safe and smart way to manage betterment disputes

In an era in which every ruling can become a broad precedent and affect hundreds of projects in the country, professional mediation that combines legal and appraisal expertise, a deep understanding of how authorities work and their needs, and a broad market view is not just an advantage, it is a solution worth its weight in gold, time, fairness and security.

In betterment levy disputes, do not let the court shape your next precedent for you. Contact us for professional mediation that leads to stable, balanced and worthwhile agreements for all sides.

Attorney Mital Winkler Teshuva | Photo: Shimrit Sitton Maor Advertisement The House for Mediation and Arbitration provides professional responses to complex disputes affecting local authorities, developers and residents, and serves as an efficient, professional alternative to resolving disputes outside the courtroom, through mediation or arbitration.

The article is courtesy of din.co.il.

*Please note, the information on this page does not constitute legal advice of any kind or a recommendation to take or refrain from taking any action. Anyone relying on the information does so at their own risk. The accuracy of the information may change from time to time.

To contact the House for Mediation and Arbitration directly, click here

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