In general, closing costs are between 5% and 7% of the cost of the apartment.

Contractors' lawyer
When buying from directly from a builder, one normally pays 1.5% plus VAT to the contractor's lawyer for legal fees. This is only in the case of first hand apartments. The fees are sometimes, but rarely, included in the price of the apartment.

Purchase tax
This tax is usually payable within 50 days of signing the sales contract. You can arrange with the lawyer to pay this fee. At the signing of the contract, give the attorney a check postdated for 50 days from the date the contract was signed. You can also pay it yourself at the post office  or at the bank where you run your account . The lawyer will provide a form for you to take to the post office  or bank .   If you wish to pay the tax at the post office  it must be paid in cash  or with a bank-certified check. The amount of the purchase tax is base d   on the shekel price of the property that appears in the contract.

The rates are as follows. Valid from  15.1.06- 16.4.06 

New immigrants:

Until 1,113,230 NIS                                       0.5% (5,566 NIS)

Above 1,113,230 NIS                                   5%

Single residential home:

Until 594,795 NIS                                          0%

From 594,795 NIS until 737,550 NIS          3.5% (4,996 NIS)

For the remainder above 737,550 NIS       5 %

Second residential home:

Until 737,550 NIS                                          3.5% (25,814 NIS)

For the remainder above 737,550 NIS       5%

Your Lawyer
Your lawyer will ask for between ½% and 2% plus VAT on the amount for the property to draw up the contract and register your home. S/he may add other expenses if you live overseas. It is important that the lawyer is knowledgeable about the city in which you are buying your home and it is not recommended to use a friend or family member. Never sign a contract with a builder without a lawyer first reviewing it. You will often be told that the contract is standard, which it is, but it is completely in favor of the contractor and against your best interests.

Commission
If you are using a real estate agent, it is customary to pay the agent 2% plus VAT. Some agents take 1.5% in certain circumstances. A good agent will save you more money than the commission you pay through the agent's ability to lower expenses related to property purchase and to avoid costly mistakes.

Engineer / Surveyor
You should have the property checked by an engineer or surveyor before you sign the contract. The engineer should give you a written report because you can use it as a negotiation tool with the seller or, if need be, in court to collect damages or rectify defect. Make sure to have a licensed and reputable engineer inspect the property. The costs are, depending on the size of the property, ~$400-$500 plus VAT.

Connection of utilities:
If you are buying from the builder, you will have to pay to connect...
  Water................................~315 NIS
  Gas.................................~1500 NIS
  Electricity...................................free

If you are buying from a private owner, you will have to pay to transfer the rights of the utilities to your name.

Opening of mortgage file
All banks charge for the opening of the file. It is well known that there is no reason for them to charge and you can easily bargain them down, even to zero. Agents should have an arrangement with banks that if their clients take out a mortgage with them there is a minimal or no charge for opening the file.

Bank Surveyor
The bank will want the property to be surveyed by one of their surveyors. They will give you a list of names from which you can choose a surveyor. The cost is ~350 NIS.

Life and Property insurance
You have to, by law, take out a life insurance policy, which insures that the bank is repaid the mortgage should one of the mortgagees pass away. You also have to take out a property insurance policy in order to receive a mortgage. The bank automatically signs you up on these policies, and most people are unaware they have these policies. The property insurance policy is most important, because the insurance company pays for major repairs of the property over the lifetime of the mortgage.

It is certainly cheaper to take out such policies with a private agent rather than with the bank, unless you are over 45 years of age. Just inform the bank you do not want their policies, and make sure that you are not charged for them. You will have a cheaper rate and lower deductible with a private insurance agent, which over the years adds up to thousands of shekels in savings.