Legal services

 

Property purchase, leasing and rental is relatively straight-forward in Israel, and following are a number of points to note:

• You do not need to be an Israeli Citizen, or have "Permanent Resident" status in order to purchase or rent property in Israel.

• Property purchase contracts, or long-term rental agreements (for 5 years or more) become valid only after registration with the Land Registration and Settlement of Rights Department of the Ministry of Justice (This is called the "TABU" for short). There are nine Land Registration Offices: in Jerusalem, Tel Aviv, Haifa, Petach-Tikva, Nazareth, Netanya, Beersheba, Holon and Rehovot, plus two extension branches in Hadera and in Acre.

• Short-term rentals (for periods less than 5 years) are not normally registered. Usually the contract period for short-term rental agreements is one year for dwellings and three years for businesses.

• Approximately 93% of building land in the country belong to the State of Israel. These lands are mostly held on long term leases (tenancies) for periods of 49 or 99 years. The annual leasing fees in these cases are very low. The leasees/tenants have possession and use rights, as well the right to develop, rebuild or remodel the property.  Such leases may not be terminated before the end date, and are normally automatically extended/renewed by the State after this date.

• During purchase negotiations it is normally necessary to ascertain the Legal status of the property. It is also advisable to check the Planning status of the property, as well as that of surrounding area and properties, to see if any planning regulation changes are in the process of approval.

 

Normally, the process of purchasing property or a long term lease includes the following stages:

-          Negotiations,

-          Contract signing (payment of 10-20% of the purchase sum),

-          Placing an "Alert Entry" in the Land Registration office for protection of the purchaser,

-          Payment of registration taxes,

-          Payment of remainder of the purchase sum,

-          Receiving possession of the property by the purchaser,

-          Final registration of the purchase in the Land Registration office.

 

We will guide you through all aspects of this process, in negotiations, searches of legal and planning status, preparation of contracts, securing of purchaser's right or lien in the "TABU" with contract first payment, through to final property registration, providing you with confidence and peace of mind throughout the purchase of your new home.

 

Written by Valentina Nelin, Registered Lawyer LL.B., M.Arch.