There are a number of laws related to real estate transactions in Israel that often result in property transactions not going as smoothly as would have been hoped. Besides the negotiation between the buyer, seller and the realtor, the parties have to navigate their way through a minefield of tax laws, mortgage requirements and the finalization for the actual legal contract. This makes it essential for you to retain the services of a legal professional qualified in real estate law in order to ensure that your interests are well looked after.
Understanding Property Sales
Every real estate transaction attracts two taxes as follows:
- The purchase tax which must be paid by the buyer and
- The capital gains tax which must be paid by the seller.
While the purchase tax on property in Israel is obligatory, the percentage that has to be paid varies with the value of the property. The Capital gains tax on the other hand is dependent on a number of factors which the property lawyer you retain will be able to explain fully and will also ensure that that you have to pay as little as possible in terms of the law.
Property Lawyer
If you are in situation where you are selling one property and purchasing another, you should be able to transfer the mortgage from the property being sold to the one being purchased. Once again, the property lawyer will be the best person to advise you on this subject and will also attend to the necessary legal obligations on your behalf.
Because much of Israeli property law as well as many property registrations date back to pre-State of Israel, your property lawyer will know precisely what has to be confirmed at the Land Registry Office and will do so on your behalf. This is to ensure that the property in question is legally registered in the name of the seller and also to establish that zoning and other laws relating to the development of the property have been observed.
The actual sale or purchase contract can only be finalized and concluded once your legal representative has attended to all the necessary checks in order to safeguard your interests. All the above makes it essential to consult with and then to retain the services of a property sales lawyer who has the necessary qualifications and experience to attend to your legal needs effectively.
