DISTRIBUTIVE JUSTICE AND REAL PROPERTY: Land Readjustment according to Israeli Planning and Building Law

Real property is notorious for its unequal distributive. Land readjustment is a rare regulatory instrument that can ensure distributive justice. How useful is land readjustment for obtaining land for necessary public services and how does it compare with alternative tools?
LR exists in only a few countries, including Israel, usually as a preferred alternative to land expropriation or compulsory dedication. In Israel, there is a recent tendency in some court decisions to apply the legal limits of compulsory dedication to LR.
This research evaluates the practice of LR in Israel. Two methods are used: First, an interview survey of representatives of local planning commissions examines about how LR is implemented, its merits in comparison with other tools for obtaining land for public services, and the interface with landowners; second, a sample of LR plans in each local commission examines the relationship between land taken for public services and the intensity of owners’ objections.
The main findings of the international review and the field research are that LR is regarded as a “win-win” too. It usually entails an increase in land values. It has more advantages to landowners than other “takings” tools. LR is the only tool in Israeli planning law that ensures distributive justice among landowners – though it too is limited to those within the plan’s boundaries.
Conclusion: LR should be the preferred tool for obtaining land for public services, and the numeral “cap” of compulsory dedication should not apply. Court decisions to the contrary ignore the origins and rationale of LR – to obtain land for the public justly, while enhancing the development rights of private owners.