Sale of real estate
Sale of real estate
The real estate sector in Israel is always in turmoil, especially in recent years.
Everyone needs a home, that’s why you can see constructions everywhere in the country. For buying a property there is a procedure to follow, the same is true for selling. Selling a property is quite complex and there are many things to evaluate and check. However, you just have to follow the process step by step to achieve a positive and satisfactory result.
There are several reasons for selling a property. It can be an inheritance after a death, a divorce, or simply a decision made for private reasons. It can also be a transfer of rights, for example parents who wish to pass on their property to their child, or a donation. There are many laws as well as specific taxes depending on the reasons for the sale. This is why it is always advisable to hire a lawyer to follow the steps with you. This will ensure that everything is done legally and that there will be no problems in the future.
Important steps before the sale
First of all, and before even talking about a contract, the seller must complete a few very important steps. These are the steps that will allow him to make a good sale, completely legally, and to his satisfaction. Anyone can sell a home, at least if he is the legitimate owner. To do this, the first thing to do is to check under what name the property is registered in the land registry or elsewhere.
Path to follow
- Verify the identity of owners, beneficiaries or heirs
- Estimate the amount of capital gains tax that will have to be paid
- Check for mortgages on the property
- Check for the existence of constructions or modifications to the property, legal and/or illegal
- Check if there are tenants
- Estimate additional costs, including fees, taxes, repairs, etc.
- Carry out renovation work if necessary
- Post ads for sale
Last step: the sales contract
Once everything has been checked and estimated, it is time to meet to establish the sales contract. For this meeting there is generally the seller with his lawyer and the buyer with his. Here too the lawyers are the guarantee that everything is done legally. It is during the establishment of the contract that the method of payment will be decided and described. The contract must also contain the measures for canceling it in the event of non-payment of the property.
Another clause included in the contract is the date on which the property will legally pass to the buyer. If there are tenants, their situation is described in the contract. Either they continue their rental, or they must vacate the property. In the event that there is a mortgage or loan on the property, the seller must check the procedure for a transfer of the mortgage or loan with the Ministry of Housing.
All the commercial conditions as well as the legal clauses and details that both parties have agreed upon are clearly stated and described in this contract. The signing of the contract finalizes the sale, followed by the handing over of the keys to the new owner.
