Real Estate in Israel

Real Estate in Israel

Every transaction requires a real estate lawyer to represent the seller or the buying party. The transaction must be carried out quickly, and sometimes it is necessary to handle several aspects at the same time

Buyer's real estate lawyer: representing the buyer

A real estate lawyer who represents the buyer is responsible for registering the rights in the name of the buyer, and also making sure that the buyer does not transfer money to the seller without receiving some kind of security for his money.

Therefore, a real estate lawyer who represents the buyer should check several things:

You need to check in the tabu what are the encumbrances on the property, for example existing mortgages.

Checking the planning status of the property:
In an apartment building that is registered as a condominium: condominium registration

In the shared house file you can see the part of the apartment in the shared property, the regulations of the shared house, and of course the blueprint by which you can identify the purchased apartment.

You need to check the "building file" at the local committee in the municipality, to check the building permit, and also issue an "exception certificate" - confirmation that there are no demolition orders, administrative orders, expropriations on the property.

In the case of leasing a property in a building that is not registered as a condominium, the property registration must be checked

You need to check the city building plan (TBA) where the property is located, to verify the property's purpose from a legal point of view.

Physical inspection by the buyer himself
The customer also needs to do his own tests. These tests are just as important as the legal tests.

-Physical condition of the property - it is required to see with your own eyes what you are purchasing.
- Actual construction deviations - it is required to see with your own eyes if there is something in the property that does not agree with what is written that exists in the property, for example a 70 meter roof apartment when in practice there is 150 meters, because part of the apartment was built on the area of ​​the common roof in the building.
-Physical construction defects - it is required to see with the eyes if there is a crooked wall, if there is no roof, etc.

Selling real estate lawyer: representing the seller

A real estate lawyer who represents the seller is the one who drafts the sales agreement and delivers it to the buyer. This is the stage where the agreement should be drafted in a way that is as convenient as possible for the seller, but he must also maintain a simple and balanced formulation from a business and legal point of view, to enable an easy and quick transaction .

The seller's lawyer also needs to check if the property has financial charges to the authorities such as improvement levies and/or development levies: they ask the municipality for approval of the improvement levy. This is done with every purchase - the seller has to produce a certificate that he has paid or is exempt.

A real estate lawyer who represents the seller should make sure that the transfer of rights in the property can be carried out legally, and that the seller will receive his money as quickly as possible and without legally risking any kind of responsibility towards the buyer. It can be said that most of the action of the seller's lawyer was carried out at the time when the The last k went into the seller's pocket.

Apartment sale agreement / apartment purchase agreement
The person who drafts the apartment purchase agreement is the seller. Therefore, a real estate lawyer who represents the buyer is required to perform a legal review of the sales agreement.

Below are several examples of conducting a legal review of the apartment purchase agreement. It must be verified that the seller declares that the property was built according to a legal building permit, that the apartment was built according to the law and that the building was built according to the law and that he is responsible for any construction deviations. In addition, make sure that the seller declares that there are no demolition orders, administrative orders or expropriations regarding the building and there is no intention to issue a demolition order for the building. It is also necessary to add that at least until the date of registration of the warning note, the seller has not been and will not open bankruptcy proceedings, and he is not aware of any proceeding that exists or is going to exist against him on behalf of enforcement authorities, including the Tax Authority, the Tax Authority, etc.

Checking the power of attorney
Since the seller is the one who conveys the apartment purchase agreement, he is also the one who prepares the powers of attorney.

The power of attorney must be checked in advance, to make sure that it correctly reflects the transaction, and does not give the seller rights to perform actions that would harm the rights of the buyer in the purchased property.

The only power of attorney the seller should receive is a power of attorney to delete a warning note.

At the time of signing the agreement
At the time of signing the agreement, the parties sign a sales agreement, sign sales deeds, and sign a consent request to register a warning note.

The seller signs a power of attorney in favor of the buyer's lawyer for the purpose of transferring ownership. This power of attorney remains in trust with the seller's attorney. In addition, the seller signs a power of attorney in favor of the buyer to register a warning note on a mortgage.

Also, in case of breach of agreement, the buyer signs a request to delete a warning note, as well as a power of attorney to delete a warning note.

Registering a warning note
Immediately after signing the sales agreement - apartment purchase agreement, the real estate lawyer who represents the buyer needs to register a warning note as soon as possible. Registering a warning note is done today in a quick and efficient procedure, via the Internet in the representative system of real estate lawyers.

There is no point in detailing here too much about all kinds of subtleties and grammars regarding which documents should be attached and in which cases and in what form they should be submitted.

Submitting a report to the Tax Authority within 30 days - submitting a tax return
Within 30 days of signing the sales contract, a report must be submitted to the Tax Authority.

The report can be submitted only on the seller, only on the buyer, or both in the same report.

As part of this action, it is necessary to check, and in general, whether the buyer falls within the scope of exemptions from purchase tax (or appreciation tax in the case of the seller). There are all kinds of exemptions in the law, but by and large, both sides have a simulator on the Internet that you can use and understand exactly what the exemptions are and how much you have to pay, if at all.

Completing the report is important in order to subsequently register in the tabu, that is, transfer rights in the property in favor of the buyer.

Advance for appreciation tax - S. 15 of the Land Law
When a person sells property in a transaction that is not exempt from the payment of appreciation tax, the buyer has to deduct a tax equal to 7.5% because of Section 15 of the Real Estate Taxation Law.

This is something that is handled by the seller's real estate lawyer. He is the one who receives the money in trust from the buyer, and then transfers it to the tax authority.

Taking out a mortgage to purchase the property
In the case where the buyer wishes to purchase the property with a mortgage, the seller's cooperation with the buyer's bank is required. The buyer's bank forwards documents to the buyer to forward to the seller. One of the documents is a form that the seller signs before the seller's lawyer, according to which if the seller does not transfer the property to the buyer, he agrees to the registration of a mortgage on the property.

Registration of a warning note on the obligation to register a mortgage
The action of registering a warning note on the obligation to register a mortgage is performed by a real estate lawyer who represents the buyer.

The seller signs in the bank's documents that he agrees to register at the land registry office a warning note in favor of the bank about the obligation to register a mortgage.

The seller undertakes to register the rights of the bank at the same time as the rights of registration of the buyer's rights, and in the event that it is agreed that the buyer's lawyer will do so, the seller undertakes to provide all the necessary documents to allow the buyer to carry out the registration of the rights and the transfer of ownership.

At this point the buyer's lawyer registers the warning note on the mortgage. After that, there will be two warning notes on the register that are written about the rights of the seller: a warning note in favor of the buyer, as well as a warning note to the buyer's mortgage bank. This is a "Mortgage Warning Note".

The warning note in favor of the bank is a guarantee that the registration of the mortgage will be done at the same time as the registration of the rights in the name of the buyers at the land registry office, and if the transaction does not go through, the seller will return the money back to the bank before canceling the warning note.

In other words, if the sales transaction is canceled for any reason, the seller is obligated to return the loan amount they received to the bank.

After the warning note has been registered in favor of the bank, the bank will issue a bank check in the seller's name, and in return will receive the power of attorney from the seller to register the buyer's rights to the property.

Transferring ownership of the property to the buyer - registering the rights to the property
This action is carried out by a real estate lawyer who represents the buyer. While the action of the seller's lawyer reaches its peak when the check reaches the hands of the seller, the action of the buyer's lawyer reaches its peak when the ownership of the property is transferred to the buyer, and this is the last action the buyer's lawyer In the process, the result of transferring ownership of the property is actually the final result desired for the buyer.

The act of registering the rights to the property by a real estate lawyer who represents the buyer's side is currently carried out online. Again, there is no point in going into too much detail here about all kinds of subtleties and grammar regarding which documents should be attached and in which cases and in what form they should be submitted.

Cooperation between the parties
To complete a real estate transaction, full cooperation between the parties is required, and each taking responsibility for his side. Just one document can stall the entire process of transferring the rights to the buyer, and therefore it is required that the parties communicate quickly with each other, and provide documents immediately upon request.

Buying an apartment in a new unregistered building

Buying a property in a new building that has not yet been registered in the tabu is an interesting operation. Because the building is not yet registered in the tabu, the registration of all rights is carried out in the law offices of the "Mortgage Company", which is actually the contractor/developer of the building.

Each apartment has its own file, in which there are legal documents relating to the ownership of this apartment. To purchase or sell such an apartment, one must contact the mortgage company, which directs the parties to the law firm that handles the registration of the rights.

This office gives a large list of documents and procedures, and the lawyers who represent the parties simply have to follow it.

Registration of a lease right as part of an office building

There are buildings like the stock exchange, whose owner is "the stock exchange", and it grants lease rights to offices, and does not sell offices. The lease right is registered, or a warning notice is registered. That means the entire building is privately owned by the stock exchange, and the stock exchange leases the offices, just as an office owner can rent rooms to individuals. It is not a condominium, so the draft for the whole building will be a normal draft without subdivision. In other words, the building will be one undivided unit. This is in contrast to a shared house, where each apartment is a unit on its own, so you can issue a statement only for this apartment.

The registration of the lease right is carried out in a similar way to the procedure above, with changes required by the essence of the property, and also with the small difference that in order to register a lease right in a part of the building that has not undergone registration of an internal division in the tabu (that is, it has not been registered as a condominium in which there are subdivisions), it is necessary to attach a script which Identifies the leased property.

The service we provide

We will handle your real estate transaction quickly and efficiently. You are invited to contact us now free of charge to receive a free initial legal consultation with real estate attorney Tamir Hodorov, by phone +972-52-5690866 or by WhatsApp, or by contacting us via "Contact" through the site.

When you turn to the Hodorov lawyers office, you will find professional assistance that expresses a lot of experience, efficient and high-quality solutions in the real estate transaction, with a minimum of time and costs. Contact us today to make a real estate transaction.

We will accompany you from the beginning of the process to the end. We will help you and guide you according to our best experience, answer all your questions, and offer you solutions if necessary.

√ We will prepare a sales agreement / apartment purchase agreement for you, or perform a legal review on it

√ We will check all the transaction documents for you and guide you on how to obtain them.

√ We will register a warning note for you

√ We will make submissions to the Tax Authority on your behalf

√ We will register the property in your name

√ Emphasis on the speed of the transaction

√ Maximum protection of the client's interest

√ You will receive legal advice throughout all stages of the transaction.

√ You will receive personal treatment

√ You will receive fast and direct service, with exact schedules for performing each operation and service.

√ You will get the benefit of our extensive experience in real estate.

√ If necessary, we can connect you to accountants we know, free of charge.

Contact us now free of charge to receive a free initial legal consultation with real estate attorney  Tamir Hodorov, for any real estate transactions in Israel , by phone +972-52-5690866 or by WhatsApp, or by contacting us via "Contact" through the site.