Necessary checks before buying an apartment and related payments. Buying a home should be one of the most meaningful events of your life. Such an acquisition includes liabilities called in the legal language, proprietary and contractual, which have long-term consequences.
Carrying out a real estate transaction responsibly requires numerous planning and legal checks to ensure that the significant financial investment does not go down the drain. In addition, professional tax planning precedes and accompanies the purchase, ensures budget compliance, and avoids unpleasant surprises later on.
Here is a partial list of tests to be done, but it is worth remembering that professionals should be enlisted when it comes to a large and significant transaction. This article does not replace the need for legal advice.
In terms of the owners of the apartment's rights, there have been cases where innocent buyers purchased an apartment from imposters. We recommend that before committing, it must be ascertained and verified that the seller is the owner of the rights for the property offered for sale. This check is relatively simple and is done by comparing the identity card of the seller with – draft an up-to-date taboo from the Land Registry. Suppose the apartment is not registered in the register. In that case, it is possible to obtain a 'certificate of rights' form from the Israel Land Authority, and even then, the comparison must be made.
(A draft taboo issued by the Land Registry indicates the status of the rights in the property, i.e., who is the owner and what type of ownership, whether full ownership, partnership, lease, or sublease.)
When the asset class wishes to purchase a lease for generations in front of the Israel Lands Authority, check the lease agreement and its terms if it is a property in a condominium. You have to compare the lease agreement to notepad condominium common areas are the same individual listings.
The next necessary step is to check the liens on the property and check if there are liens on the property, preventing the transfer of ownership later. The initial information can be found in the wording of the taboo, which will list liens such as a mortgage, foreclosure, lien, OTZL file, which will appear in the form of a warning note. Please note that this is only partial information, and there are additional checks to prevent creditors from claiming.
Planning inspections: When purchasing a property, whether for investment, renovation, or residential use, make sure that no restraining orders, demolition, expropriation orders have been issued against the property, or there are no construction irregularities. An initial check will be made against the wording of the taboo. Still, it is necessary to remove the "building file" from the local authority, the engineering department and find out if the building on the land was indeed built in accordance with a building permit. Oral or written promises of the property owners will be shattered in the face of the decision of the various authorities and construction plans.
The building file will contain all the planning and construction steps taken by the property owners for their generations, including various correspondence such as warning letters, letters of request, reports of inspectors who visited the property, and more. The importance of an inspection stems from the fact that the property, together with the debts to the authorities, is the new owner's responsibility.
Ancillary expenses for purchasing an apartment and planning the payment system for the property and the required taxation.
When purchasing a real estate property, the related payments must also be taken into account, thus preventing a deviation from the purchase budget.
Among the accompanying payments:
Payment of purchase tax depending on the circumstances of the purchase – you will find details on the website of Adv. Shimon Hahn.
Improvement capital gains tax
Brokerage fee – if any
Payment to an attorney – Fees will vary depending on the transaction and the experience and professionalism of the attorney accompanying the transaction.
Consent payments – Payments transferred to the Israel Land Authority, it is customary to stipulate in the sale agreement that the cost of capitalization will be on the seller.
Mortgage – approval in principle must be obtained from the bank before signing the sale agreement. In this context, the dates of receipt of the loan payments must be verified to ensure compliance with the payment schedule in the contract.
Keep in mind, buying an apartment is not only a significant financial deal they will make in their lives but also an exciting event that holds a future promise. Therefore, it is crucial to avoid unpleasantness and complications by getting professional advice
The aforesaid should not be regarded as legal advice and / or a substitute for it, it is recommended to consult with lawyer Shimon Hahn before any action
All rights in this content are reserved to Shimon Han Law Office and Notary
