How to Buy Real Estate in Israel - Part I

When you buy property in Israel, you must be aware of certain basic legalities, terminology and norms. Firstly, let me clarify that Real estate in Israel is divided into two categories. Privately owned Israel property and State owned Israel property. In this article, I will be discussing Privately owned Israel property only.

Privately owned property includes all Israel real estate that is owned by private individuals, private or public corporations or any other legal entity that is recognized by the state of Israel. Privately owned Israel real estate, be it residential or commercial, can purchased and sold by a foreign citizen, resident or legal entity (such as a company or public corporation). Israel real estate can even be purchased by non-Jews.

Many affluent Jews from the Diaspora will visit for the sole purpose of shopping for luxury homes in Israel. A common assumption is that buying property in Israel is not so different than buying property in their country of origin. But, in fact, there are several basic Israeli real estate laws that are unique to the country. Firstly, when you buy property in Israel, whether it's a Cottage in Jerusalem or a luxury apartment in Tel Aviv, you must be aware that you are buying property according to the specifications in the contract.

If you buy a house or apartment in Israel and you move in to find that the bathroom fixtures are missing, the spot lights are gone and even the entire kitchen has been removed, don't be surprised. It's normal for people to take, literally, everything with them when they move out. This is why it's important to hire an experienced Israel real estate attorney that will guide you through the specifications on the bill of sale, check important matters such as betterment tax, as well as help you understand, in simplified terms, the complex procedure involved in buying property in Israel. An Israel real estate attorney will also go through the process of investigating the Property Tabu (Title/Deed).

There have been countless cases where Jews from abroad have purchased a home in Israel without attorney's only to find that the property they purchased didn't belong to the seller in the first place. A thorough Tabu investigation will reveal property ownership, but also other important details such as whether the property has any outstanding mortgages or liens. Once the property status has been clarified, your real estate attorney will be able to inform you of any possible issues which may prevent you from following through on the transaction. Most new apartments in Israel are sold before construction begins or before it is complete. This is common in Israel, nothing to be concerned about.

If you are considering buying a luxury apartment or villa in Israel, contact me - yoram@indik.net - with information on the type of property you are seeking to buy and I will forward you a complete list of exclusive properties within your chosen price range. I can then arrange for private tours of prospective properties.