Key Stages in Second-hand Real Estate Acquisition:

1. Initial Technical Verifications: Despite a property’s apparent appeal, a thorough inspection by an expert reveals potential hidden defects and construction issues. The expert’s report not only confirms market-aligned pricing but also verifies the property’s true value.
2. Initial Legal Checks: Ensuring the absence of major legal issues, this step covers property conformity, legality, ownership details, and potential rights of third parties. It is crucial to confirm the absence of illegal constructions and ongoing legal procedures against the seller.
3. Contract Term Negotiation: Upon receiving the contract draft, negotiations occur to reach legal consensus. If negotiations extend, parties may sign a preliminary agreement, temporarily binding them until the final signing. Beyond legal matters, this negotiation period is also apt for reaching agreements on commercial conditions.
4. Financial Structuring: Alongside technical and legal investigations, the buyer must develop the financial structure before signing the contract. This involves seeking a bank and securing a mortgage. Anticipating and completing these financial steps during the pre-signing negotiation period is crucial.
5. Contract Signing: Once both parties agree on legal terms and commercial conditions outlined in the contract draft, they meet to sign the acquisition contract. This act signifies their shared intent to proceed with the transaction.
6. Cadastral Note Registration: Contract signing is followed by the registration of a cadastral note in favor of the buyer. Once registered, the seller is authorized to transfer the initial payment held in escrow by their lawyer to their personal bank account.
7. Tax Procedures: In real estate transactions, both the seller and buyer are subject to capital gains tax and acquisition tax. Within thirty days of contract signing, they must independently or jointly declare the transaction to the tax authorities and make the respective payments.
8. Payment of Contractual Installments: A crucial clause in the acquisition contract is the buyer’s adherence to agreed-upon payment schedules. These payments may also serve to remove any mortgage the seller has on the property.
9. Handover of Keys: On the specified date in the acquisition contract, contingent upon receiving the full acquisition amount, the seller hands over the keys and legal documents necessary for the buyer’s registration as the property owner.
10. Owner Registration: The final step is registering the buyer as the property owner in the cadastre, ensuring their rights and the unrestricted ownership of the property.

Note: The information in this article is not a substitute for specific legal advice and is only valid as of its writing date.

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What is the Duration of the Builder’s Responsibility After Key Handover?

The amendment to the real estate transactions law, enforced since April 2011, aims to balance the power dynamic between the buyer and the real estate developer. Regarding construction defects, akin to the principle of the ten-year builder’s warranty in several Western countries, the Israeli legislature has stipulated that the builder’s responsibility extends beyond key handover for a period determined by law.

As a result, the Israeli legislature has defined two periods of the builder’s responsibility:

1. Verification Period: The verification period starts from the day of key handover to the buyer and varies between one and seven years, depending on the type of repair required. During this period, the builder is responsible for specific repairs:
   
   During the verification period, the builder is responsible for these repairs unless they can prove that the defects were caused by the buyer. These timelines are set by law and cannot be shortened. In practice, except for urgent repairs, the builder typically intervenes in the weeks following key handover and at the end of the first year.
2. Warranty Period: Once the verification period concludes, the warranty period begins, lasting for three years. During this period, the builder’s repair obligation is limited to defects for which the buyer has proven they result directly from construction or materials. Generally, these are problems related to construction errors in the foundations or concrete skeleton of the building or defects that were not discoverable previously.

Note: The information in this article represents the views of the writer and does not substitute for personalized legal advice.

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What Surprises Can Tenants and Landlords Encounter?

A lease agreement is the pact through which a landlord agrees, in exchange for rent, to provide the tenant with the enjoyment of the property for a specified period. Explicitly mentioned terms include the parties’ identities, property address, lease duration, rent amount, landlord’s required guarantees, and clauses regarding property use.

However, unforeseen circumstances can compromise the smooth execution of the lease, justifying its cancellation. A meticulously drafted, rigorous, and professional lease is aimed at anticipating these situations and providing solutions.

Examples of Circumstances that Could Harm the Landlord:

• The tenant cannot fulfill rent payment, and checks received by the landlord bounce.
• The lease period ends, but the tenant refuses to vacate the property.
• The tenant allows a third party access without the owner’s prior authorization.
• The tenant engages in a professional activity on the premises without the owner’s consent.
• The tenant refuses potential tenants or buyers access for property visits.
• The tenant leaves the property and becomes untraceable.
• The tenant causes disturbances or damages to the property.
• The tenant refuses to cover utility costs, water or electricity consumption, homeowner association fees, or municipal taxes.

Examples of Circumstances that Could Harm the Tenant:

• Serious malfunctions or anomalies in the property, and the landlord refuses repairs.
• The landlord refuses to return financial deposits at the end of the lease.
• Building access becomes impossible due to construction work.

Moreover, some developments beyond the parties’ control can lead to a modification of lease terms, such as the death of a party or divorce leading to property sale.

Note: The information in this article represents the views of the writer and does not substitute for personalized legal advice.

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Property Verifications:

The initial step involves confirming the seller’s identity by comparing information from identification documents with that in the Land Registry. It is also crucial to verify the detailed description of the property in the Land Registry, including the address, floor, number of rooms, etc. Any additional spaces, such as a cellar or parking spot, must be confirmed in the Land Registry.

The existence of mortgages, debts, and beneficiaries requires in-depth investigation to ensure that the property is not encumbered by financial burdens or third-party rights. Analysis of plans and cadastral records is also essential to ensure compliance with the physical reality of the property.

Technical and Structural Verifications:

The prospective buyer must ensure that the construction adheres to the issued permit, that the certificate of conformity is obtained, and that no illegal construction has taken place. A thorough inspection by professionals is recommended to detect potential hidden defects or structural issues.

Analysis of available construction rights and the legal status of the property with the municipality is crucial. Furthermore, an expert’s visit is necessary to assess the property’s real value, considering its legal and physical situation.

Verifications Related to Additional Costs:

It is essential to check for additional taxes at the Keren Kayemet LéIsraël (K.K.L.) during the transfer of rights to the buyer. Additional costs, such as registrations in the Land Registry, notary fees, and courier fees, should also be considered.

The establishment of the financial framework, including the search for a real estate loan, should be carried out before the signing of the acquisition contract.

Tax Verifications:

Israeli law mandates the payment of capital gains tax and acquisition tax. Before purchasing, an estimate of the acquisition tax amount is recommended. The buyer must ensure that the seller pays the capital gains tax and verify the payment of municipal taxes.

In conclusion, these thorough verifications ensure a real estate acquisition with confidence, eliminating potential risks, and ensuring a comprehensive understanding of the contemplated property. These preliminary steps form a solid foundation for a successful real estate investment in Israel.

The information contained in this article reflects only the writer’s views and should not substitute for personalized legal advice.

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Vérifications de propriété :

La première étape consiste à confirmer l’identité du vendeur en comparant les informations des documents d’identité avec celles du Cadastre. Il est également crucial de vérifier la description détaillée du bien au Cadastre, incluant l’adresse, l’étage, le nombre de pièces, etc. Tout espace annexé, tel qu’une cave ou une place de parking, doit être confirmé au Cadastre.

L’existence d’hypothèques, de dettes, et d’ayants-droit nécessite une investigation approfondie pour garantir que la propriété n’est pas grevée par des charges financières ou des droits de tiers. L’analyse des plans et du dossier cadastral est également essentielle pour s’assurer de la conformité avec la réalité physique de la propriété.

Vérifications techniques et structurelles :

Le futur acquéreur doit s’assurer que la construction respecte le permis délivré, que le certificat de conformité est obtenu, et qu’aucune construction illégale n’a été entreprise. Une inspection approfondie par des professionnels est recommandée pour détecter d’éventuels vices cachés ou problèmes structurels.

L’analyse des droits de construction disponibles et du statut juridique de la propriété auprès de la municipalité est cruciale. De plus, la visite d’un expert est nécessaire pour évaluer la valeur réelle de la propriété, en prenant en compte sa situation juridique et physique.

Vérifications relatives aux frais annexes :

Il est essentiel de vérifier l’existence de taxes supplémentaires au Keren Kayemet LéIsraël (K.K.L.) lors du transfert des droits à l’acheteur. Des frais annexes, tels que les inscriptions au Cadastre, les frais de notaire, et les frais de coursiers, doivent également être pris en considération.

L’établissement du montage financier, y compris la recherche de crédit immobilier, doit être effectué avant la signature du contrat d’acquisition.

Vérifications fiscales :

La loi israélienne impose le paiement de la taxe sur la plus-value et de la taxe d’acquisition. Avant l’achat, une estimation du montant de la taxe d’acquisition est recommandée. L’acquéreur doit s’assurer que le vendeur s’acquitte de la taxe sur la plus-value et vérifier le paiement des taxes municipales.

En conclusion, ces vérifications approfondies garantissent une acquisition immobilière en toute sérénité, éliminant les risques potentiels et assurant une compréhension complète de la propriété envisagée. Ces étapes préliminaires constituent une base solide pour un investissement immobilier réussi en Israël.

Note : Ces informations sont fournies à titre indicatif et ne remplacent pas un avis juridique spécifique.

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