In short
What does a lawyer do in an apartment purchase or sale?
The lawyer checks the title (registration, mortgages, liens and caution notes), drafts and negotiates the sale agreement, and arranges the caution note, protected payments and the report to the Israel Tax Authority. The transaction is reported to the Tax Authority within 30 days of signing.
What to Check Before You Sign
Buying or selling an apartment is usually the largest financial transaction a family makes. Before signing, we check the Land Registry (Tabu) extract or the registration of rights with the Israel Land Authority or the housing company (chevra meshakenet), along with mortgages, attachments and caveats (he'arat azhara), building permits and unauthorized construction, and debts to the municipality.
With a resale apartment, we also look at the status of the condominium (bayit meshutaf), the zoning plans that apply to the property and any liens. If the seller has a mortgage on the apartment, its payoff is coordinated with the bank in advance, so none of your money is transferred before the property is free and clear.
The Sale Agreement
The sale agreement sets a payment schedule that protects your money, along with security arrangements, a handover date and compensation for breach. Each payment is tied to progress: a caveat before the first payment, and an irrevocable power of attorney and the handover documents before the last one.
Even a signed memorandum of understanding (zichron dvarim) can be as binding as a contract. So it makes sense to consult a lawyer before you sign any document, including a draft the real estate agent offers you.
Land Appreciation Tax, Purchase Tax and Registration
After signing, the transaction is reported to the Israel Tax Authority. The seller pays land appreciation tax (mas shevach) unless an exemption applies, for example on the sale of a residential apartment under the conditions set by law. The buyer pays purchase tax (mas rechisha) according to brackets that depend on whether this is the buyer's only apartment.
At the end of the process, the rights are registered in the buyer's name at the Land Registry Office, the Israel Land Authority or the housing company, and the caveat in favor of the seller's bank is deleted.
What the service includes
- Title review and Tabu extract
- Drafting and negotiating the sale agreement
- Land appreciation tax, purchase tax and exemptions
- Mortgage coordination and registration of rights
When to contact us
- Before you sign a memorandum of understanding or an agreement
- You found an apartment and want it checked
- You are selling an apartment and want to know how much tax you will pay
- The apartment is not registered at the Land Registry
What to bring to the meeting
- Tabu extract or confirmation of rights
- The draft agreement, if there is one
- The building permit and the apartment's floor plan
- Mortgage details, if any
Real Estate Transactions throughout Israel
The firm represents clients from all over Israel: Jerusalem and the Shfela, Be'er Sheva, Ashdod and Ashkelon, Haifa and the North, the Sharon and Gush Dan. Meetings take place at our two Modiin branches, at the WE Towers branch in Tel Aviv or by video call, and documents can be sent in advance on WhatsApp. We represent clients in the courts, the Labor Courts and before planning committees throughout Israel. How we work with clients across Israel.
Frequently asked questions
When should I bring in a lawyer for a real estate transaction?
Before you sign anything, including a memorandum of understanding. A signed memorandum of understanding can be as binding as a contract.
Who pays land appreciation tax and who pays purchase tax?
The seller pays land appreciation tax and the buyer pays purchase tax. Both taxes have exemptions and reductions, and we check them before signing.
How much does a real estate lawyer cost?
The fee is agreed in advance in a written fee agreement, based on the scope and complexity of the transaction. In the first conversation you will receive a clear, detailed quote.
What is a caveat and why does it matter?
A caveat is registered at the Land Registry in the buyer's favor. It prevents the seller from selling the apartment to someone else or encumbering it without your consent. It is registered immediately after signing.
How long does a sale transaction take?
From signing to handover usually takes a few months, depending on the payment schedule. Registration at the Land Registry comes after all the taxes have been paid.
