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

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

The significant ruling issued recently in the “Leviathan” case is changing the rules of the game regarding the calculation of betterment levies by local authorities. The Supreme Court ruled that when preparing a betterment assessment, the contribution of TAMA 38 before the issuance of a building permit must not be included, a determination that creates broad legal, budgetary and economic implications.

The new decision increases the level of uncertainty and the volume of disputes between local authorities, developers and landowners. Many in the industry warn that legal proceedings in this field could become a precedent-setting arena of conflict, where each ruling 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 betterment disputes, led by a dual-professional team, a lawyer and a real estate appraiser. This combination allows for a comprehensive legal and appraisal review, and the formulation of a balanced and realistic assessment agreed to by both the authorities and the developers or landowners.

Today, objections to betterment levy assessments are usually handled by an appointed appraiser or appeals 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 and Arbitration unique?

Our mediation is conducted with a professional, dynamic approach based on many years of experience. The team of mediators, a lawyer well versed in planning and building 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 sources for urban development. This is done while conducting 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, grounded in appraisal values, existing case law and an understanding of market forces.

This model enables:

Balanced and realistic assessments

Narrowing gaps on a professional basis rather than rigid positions

Preserving the relationship between the parties over time

Avoiding precedent-setting rulings that could harm both sides

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A process that earns broad trust

Judges and chairs of appeals committees refer disputes to us when they believe they should not be decided by a precedent-setting ruling. The process enjoys broad trust among authorities, developers, appraisers and lawyers who have seen its advantages and results.

Impressive success rates, 89.7% agreement

In recent years, highly complex disputes involving betterment levies and compensation have been resolved at the House for Mediation and Arbitration, 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 measured decision-making, without fear of a broad precedent that could affect overall policy.

How do you apply for mediation?

Two main channels:

Referral by appeals committees, in cases where a judicial decision could create a lose-lose situation, appeals committees recommend turning to professional mediation and thus avoid a direct clash and an unwanted precedent.

Initiative by the parties themselves, developers and authorities turn of their own accord in order to try to reach a professional, evidence-based agreement before they begin to fight in court.

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

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

In an era in which every court 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 perspective is not just an advantage, it is a solution worth gold, time, fairness and security.

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

Adv. Mital Winkler Teshuva, Photo: Shmirit Sito Maor Advertisement

The House for Mediation and Arbitration provides professional solutions for complex disputes affecting local authorities, developers and residents, and serves as an efficient and 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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