Legal Matters
Tax changes for the Israeli real estate market in 2011
Posted on 11. Jan, 2011 by Buy-It In Israel Staff.
Israel is in the process of enacting a number of tax changes for 2011 in an effort to cool down spiraling Israel real estate prices and boost the supply of housing in the country. Some of the tax changes, which have come into effect from January 1 this year, will make it more expensive for investors to buy property in Israel, and others are intended to accelerate the sale of apartments and encourage new construction. Most of the tax changes are still in the process of a legislative procedure but are expected to be applied retroactively from January 1, 2011.
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28% of homebuyers unveil defects in purchased homes
Posted on 12. Sep, 2010 by DebbieG.
Only a third of home-buyers of second-hand homes in Israel are having professional checks done before purchasing a home, according to a survey conducted by Nest Value. The survey revealed that 28 percent of buyers of second-hand homes in Israel when moving into the home discovered problems and defects in the home that they did not know and were found only after signing a purchase agreement. About 90 percent of the unveiled problems are related to construction and building defects in need of repairing and 10 percent are related to problems of environment.
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Professional real estate appraisal services
Posted on 06. Sep, 2010 by Buy-It In Israel Staff.
Buying, or selling a property or investing in real estate in Israel is a complex process, which requires an understanding of the Israeli real estate market and familiarity with laws, taxes and government regulations in Israel. Before entering into any real estate transaction in Israel, it is recommended to engage in comprehensive checks in an effort to unveil the characteristics of the property, uncover unanticipated “surprises” and eliminate potential dangers, while thereby averting hidden costs.
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Points to consider when negotiating a rental contract
Posted on 29. Jun, 2010 by buyitinisrael.
Negotiating a rental contract can be stressful for both the landlord and prospective tenant. The negotiations may be further exasperated when a family is endeavoring to rent a home in Israel from abroad. An additional challenge is that a supermajority of rental agreements are presented to the prospective tenant in Hebrew, and in many situations the landlord’s English skills are severely limited as is the Hebrew of the prospective tenant. Add that to the technical differences between what is standard in rentals in Israel and your home country, and the cultural differences, and rightfully so, many parties find themselves extremely challenged.
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The Implications of the Construction Freeze
Posted on 11. Jun, 2010 by buyitinisrael.
On 26 November 2009 the Netanyahu administration imposed the ‘building freeze’ (order no. 1653) which will be in place until 26 September 2010 . Under the provisions of the order, any new building in the West Bank or East Jerusalem whose foundations were not poured by 26 November 2009, are prohibited from carrying out any building works. The order applies equally to all properties be they private, public, residential or commercial.
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Understanding building permits and planning permission in Israel
Posted on 18. May, 2010 by buyitinisrael.
Many foreign residents purchasing Israel real estate are surprised by the prevalence of illegal extensions to the apartments they view prior to finding the property they will ultimately purchase. This phenomenon has its roots in many different factors, including the complicated and drawn out process for obtaining building permits in Israel; the costs involved which can in certain circumstances be excessive and the limitations on the extent of construction imposed by local authorities.
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Warranties of the Builder on Newly Constructed Homes
Posted on 03. May, 2010 by buyitinisrael.
In an attempt to settle some of the confusion surrounding the warranties associated with new construction, a goal of this article is to provide the reader with some basic knowledge about the warranties that a Kablan is obligated to provide to a purchaser of new construction which are primarily set forth in the Sales Law (Apartments), 5733-1973 and the addendums thereto.
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Understanding Mas Shevach tax exemptions
Posted on 13. Apr, 2010 by buyitinisrael.
When selling a house or apartment or any other Israel real estate you may have to pay capital gains tax (known as Mas Shevach) at a rate of around 20 percent. This tax is applied to any capital gain or profits generated as a result of selling a property in Israel. It is important to understand the cost of the tax when considering selling an apartment to buy another.
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Haifa court case sets precedent for broker commission payment
Posted on 16. Mar, 2010 by Buy-It In Israel Staff.
Those who are interested in purchasing or renting a home in Israel using the services of more than one real estate agent should be aware of the legal trap and fees they could fall into under what is termed the “efficient cause” leading to sales transactions of property in Israel.
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Buying a second-hand home in Israel: What will our attorney do during the negotiation process?
Posted on 07. Feb, 2010 by buyitinisrael.
When purchasing a second-hand home in Israel, it is customary for the purchaser’s attorney to conduct negotiations with the vendor’s attorney by discussion, exchange of correspondence, and drafts of the contract of sale which reflect each party’s concept of how the transaction should be structured. The following is a selection of some of the more critical issues that a purchaser’s attorney will address during the process of a second-hand transaction:
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Buying a New Home in Israel: Why am I paying the Kablan more than the agreed price?
Posted on 24. Jan, 2010 by buyitinisrael.
The new apartment unit was selected, the purchase price was agreed, and the contract was signed. Why then was the amount due to the kablan more that the agreed price? There are five main factors that could impact the amount due to the kablan for real estate in Israel.
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