3 THINGS YOU SHOULD KNOW ABOUT REAL ESTATE LAW AND PRACTICE IN JERUSALEM
Real estate in Jerusalem is governed by the property laws of the State of Israel, with occasional resort to pre-State English law. The Israel Land Administration administers the Israeli Land which is owned by the State.
- LAND IN JERUSALEM:
Land owned by the Jewish National Fund (JNF) owns land that can be leased to Israeli citizens who are of Jewish origin. In addition to this, this land cannot be leased to foreigners.
Land owned by the State of Israel can only be leased to Jewish people who are not residents of the country. Additionally, Israeli citizens can also own the land.
However, private land in Israel may be transferred to anyone freely, independent of the buyer’s nationality or religion or ethnic origin.
Before buying land in this city, you should contact a Lawyer in Jerusalem like David Page. The following are some of the Real Estate Laws that exist in Jerusalem and Israel generally:
- Legal Documents:
Prior to purchasing any real estate property in Jerusalem, you should be in possession of some important legal documents just to ensure that the process complies with Israeli real estate law.
You should consult a competent lawyer in Jerusalem who will guide you as to which documents you require and how to access them. One of the documents that you need is the Israeli Land Registry Confirmation of Title to the land or real estate, called the Nesach TABU. This legal document will inform you if the property has Hearot Azahara or caveat registration warnings and foreclosures and liens.
Additionally, the buyer should check the rights of the person who is selling the property with the Rashsam Hamashkonot or The Registrar of Pledges to determine if there are other creditors who have rigthts and interests in the property. Furthermore, you need to ensure that the registration of the property was done correctly at the Land Registration Office or TABU.
In addition to this, one also needs a Zichron Devarim or a memorandum of understanding. In this legal document, the sale of the property is summarized, as a well as a more formal contract of sale. Moreover, it should also contain information on pricing, payment dates, and any other relevant issues to the real estate transaction. Make sure to consult a lawyer in Jerusalem before signing this document because it is considered as a binding contract.
- Real Estate Tax:
Various taxes apply to the real estate deals in Jerusalem. Consult an attorney in the city who will inform you about them because a lot of money is potentially at stake depending on how the tax consequences of the transaction are planned. Hetel Hashbacha or the Land Improvement Tax is one of the taxes levied by the municipality on property owners. This form of real estate capital gains tax is paid once the value of the apartment rises, or if the property is upgraded.
In addition, municipal law provides that all municipal debts should be fully settled before any piece of property is sold. Check with the office for land registration or TABU if there any debts pertaining to the property that is being sold.
Prior to the approval of a mortgage, a purchase contract is normally signed in Israel. If one is not a citizen of the country, then the mortgage approval process may be more difficult. Citizens of the country can access an average of 70 percent of the appraised value of the real estate (generally unbuilt). This percentage applies to the property’s value. However, foreigners can get an approval of an average of 50 percent of the value of the property.
February 21, 2019
February 13, 2019