To put it simply, any asset that is turned over to the state due to several years of inactivity can be considered abandoned property. The government has an abandoned property division that manages and recovers abandoned property in Israel. Most often the government takes over a property if it is unclaimed for more than two years. For a property to be deemed abandoned, a certain amount of time should be passed after the property is registered as unclaimed.
The abandoned property units of the government collect, manage, and disseminate the abandoned properties across the country. Most often, the government auction the abandoned property in Israel and convert it into cash.
Types Of Abandoned Properties
Abandoned properties may take a variety of forms including land, real estate, houses, buildings, or even safe deposit boxes. It may also include unpaid wages, and life insurance policies. The abandoned properties can be both intangible or tangible and even takes on the form of securities that are held in financial accounts such as bonds, stocks, and mutual funds.
What Are The Benefits Of An Abandoned Property?
It may sound unfair that the state can take possession of your bank account if it is dormant for a certain period of time. Even if it may sound unfair, these abandoned property laws are put in place for the protection of the consumers.
In many situations, it is easier for people to claim back their rightful properties which are taken over by the government as unclaimed assets. Earlier, the financial institution or other entities were to possess an unclaimed property and there was no centralized channel that helped to recover these unclaimed assets. If there were no abandoned property laws, these unclaimed assents would have remained with parties that have little enticement in locating the missing owners.
The properties that are unclaimed for a long period of time is generally used for the public good. It is often said that investing in abandoned real estate is a great way to make a profit. This is mainly because the abandoned property has a lower market value and you can buy one without paying much. If you are ready to make a small investment in renovation, you will be able to sell it for a higher price and reap a huge profit.
Some people buy abandoned buildings to rent out, which is also a great way to earn money. When you renovate the building, you can make some remodeling; you can add more bathrooms, bedrooms, entrances, etc to make it more suitable for renting out.