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Buying a new apartment, in general, is an
important event in one's lifetime. The following are a few points
which can prevent unnecessary anguish and losses. In no way are
these "points" intended to replace the guidance and services of a
qualified lawyer, but they can help you in the first steps
involved in buying an apartment.
Ownership
The three types of registration of ownership which exist in Israel
are:
1. The Land Registration Authority, known as "TABU," which can be
land ownership or long-term leases.
2. Israel Lands Authority (Minhal Mekarkaei Yisrael)
–registered long-term leases only.
3. Land Management Companies (Chevrot Mishkenot) –not yet
registered long-term leases. At the offices of all three of the
above a document of ownership can be obtained for a minimal fee or
for free. At TABU it is known as Nesach (extract) and, in
the latter two, as a Rights Verification Letter. Get one of these
documents from the apparent property owner to prove his ownership
of the property. Otherwise, there is nothing to talk about. These
documents also tell you what liens, mortgages, third-party rights
and other limitations or obligations apply to the property.
Memorandum of Understanding (Zichron Dvarim) or
Contract
If it's only a Memorandum of Understanding, don't sign it. You are
likely to regret it at a later stage. Know that a proper zichron
dvarim, once signed, is equivalent to a full-scale contract, in
which your needs are not completely spelled out and cancellation
of which could lead to you paying hefty breach-of contract.
The Contract
In the purchase contract (Chozeh) you must have all the
minimal details: exact name of the parties, id numbers, plot (gush),
parcel (chelkah), location (tat-chelkah), price,
payment schedule, date of transfer, etc.
One obviously can not begin to deal with payments and transfer of
property or property rights until the resolution of all matters
concerning old and new mortgages and when they will be removed or
available.
Many other subjects must be related to in the contract such as:
vehicle of payment, taxes, tangibles, outstanding bills, condition
of the apartment and much more. These are matters to be dealt with
by a lawyer within the general framework of the contract. The
writing of an apartment purchase contract is obviously one task
which must be handled carefully by an expert who is aware of the
"potholes" and knows how to avoid them.
Remember: just one word in the wrong place
could cost you hundreds or even thousands of dollars, so why not
use a professional who could help you avoid such unnecessary
expenditures and anguish.
Contractors
In today's market the majority of apartments are sold directly by
contractors. This means that not only should one be sure to follow
the points mentioned above but also there is a need to demand
other terms. Among them are proper licensing both for the
contractor and the project. Make sure his taxes have been properly
dealt with and that he has the proper building rights if he has
entered a "combination deal" with landowners.
• You have a legal right to receive Technical Schematics of the
apartment and the building in which it is to be built.
• You have the legal right to show the schematics to professional
engineers, architects and, of course, an attorney.
• You are allowed to make changes in the proposed contract. Even
though it's an uphill battle, a good deal of changes can be made.
• Unlike second-hand apartments, matters such as parking spaces,
solar heaters, development, gardens, cable, water, gas and
electric connections, as well as public ownership between
neighbors, taxes and repairs must be specifically agreed upon.
• When you buy through a contractor, you need only pay according
to the progress of the building stages. Get bank guarantees and
check out other previous projects or buildings which the
contractor has built in the past prior to making a decision.
Taxes
If you are either a new immigrant, not an owner of a home, a
newlywed or disabled, you are entitled to receive considerable
discounts in purchase taxes. This matter should also be taken into
account prior to making a decision.
GOOD LUCK AND WELCOME TO YOUR NEW HOME!
David H. Baskin is an Anglo Attorney who studied in the US and
Israel. His local office is located at Rabbi Kook Street #9,
Jerusalem. Tel. 972-2-6233322. He is of Counsel to the law offices
of Aaron C. Ambalu in New York City. |
