WHAT IS IMPORTANT TO CHECK BEFORE BUYING A NEW APARTMENT IS ISRAEL ?
Is the building being led by a contractor that is registered as law in the contractors’ registry? Make sure that the apartment is built by a contractor registered as law in the right field and classification. Ask your seller-contractor to show you a contractor license as soon as negotiations start. Make sure it is valid for the building year. Make sure it is not past its expiry date. In the contractors’ registry the contractor’s professional classification is noted, which determines the fields he is allowed to work in, and his financial limit, which determines how big of a project he is allowed to perform. As well as that, it is possible to get additional information: Contractor number, ID number, address and phone number.
Who are the owners of the property?
You should make sure that the plot on which the building was built is owned by the seller/contractor or he has a sufficient right to it, that means that he has a leasing right for a long time and the land does not have any foreclosures. Check the wording of the registration in the land registry office by looking up the plot number.Check the company’s ownership documents, when buying an apartment from a populating company.
If the ground is owned by Reshut Mekarkey Israel, check if it was capitalized yet. If not, it is possible you will have to pay capitalization fees, two years’ leasing fees and agreement fees, which might total large sums of money.
If it’s a “combination deal”, (When a plot owner sells a part of the ground to a contractor and in return gets some of the apartments in the building the contractor will build) you should check: isthere a warning note about the contractor on the property? Will the buyer be able to place a warning note on the property? What are the employment terms between the contractor and the plot owner? Pay attention to make sure that the apartment has not designated for the plot owner(s).
Building permit and taxing
Please make sure that the apartment will be built lawfully. Make sure that the seller has a building permit issued by the local authority. The contractor can present the building permit to the buyer. Note details such as group #, plot #, sub-plot, and building to make sure that the permit was issued for the correct building. Also check to make sure that there is no prevention from the tax authority to write the apartment under your name in the land registry office, due to contractor dues.