Second Hand Purchase
Second-hand real estate purchases
There are several options for buying real estate in Israel. You can aim for a new home that is already built, or under construction, or a second-hand one.
To be clear, a second-hand home is a property that has already been lived in. This does not mean that the property is not worth it, it is simply no longer new. For some people, a home that is already a certain age has advantages. We know in advance if the home is worth it, its condition, its environment, or even if there will be work to be done before moving in.
In Israel, you have to pay an acquisition tax for any purchase of real estate. This tax is a percentage of the price of the property. The amount of this tax depends on several factors: first home, second home, new immigrant, etc. So for a first home there is a reduction, just like for new immigrants. This allows the latter to enjoy a reduction for the purchase of a first property. Then they will have another reduction as a new immigrant. But only in the case where they first buy a first apartment, then the one for Ole Hadash.
The importance of steps for buying a property
To buy a home or any other real estate in Israel, you have to go through certain mandatory steps. Well, mandatory, they are not required by law, but they allow buyers, as well as sellers, to succeed in their transactions without unnecessary problems.
All contracts are established under freedom of contract, which allows each clause to be negotiated separately.
This is why it is so important for buyers to get legal advice by choosing a lawyer whose specialty is real estate. He is the one who will protect the buyer, apply the law, monitor payments, fees and other expenses. In short, he is the one who will ensure that all the buyer’s rights are fulfilled.
The 12 steps
- Establish your budget
- Choose the good
- Contact a lawyer
- Check the land registry to make sure there are no mortgages, seizures or other
- Check at the town hall that there are no construction, demolition or other orders
- Assess the work to be done if there is any
- Negotiate and sign the contract with the lawyers
- Pay the acquisition tax
- Register the property in the land registry
- Declare the property to the tax authorities
- Pay the next door fees
- Getting the work started
That's a lot of work, right?
No, absolutely not. Not all steps necessarily have to be completed by the buyer. The buyer will take care of establishing the budget, choosing the property and contacting a lawyer. For checks at the land registry, at the town hall and elsewhere, it is the lawyer who will take care of them. The assessment of the work will be done with the person who will take charge of it.
When it comes to negotiations and signing the contract, it is the buyer with his lawyer who will meet the seller and his lawyer. Once the contract is established, the lawyer will still take care of the necessary registrations at the land registry, at the town hall and elsewhere if necessary. As for the payment of the property, it will be paid upon signing the contract, or the terms of payment will be established at that time, generally with an initial payment.
Then the buyer will have to pay the lawyer’s fees, the real estate agency’s fees, the price of the appraisal for the work if there is any, and all the little extras that always accompany this type of purchase. The last thing the buyer will do is start the work.
