Purchase of real estate in Israel - Budget, Tabu and city taxes (Part One)

Agreements of purchase - buyer / seller

The following information in the document is aimed at those who are buying or selling - renting or leasing of existing structures. When it comes to buying or selling land, buildings, etc. that can be built upon or added, obviously there are a lot more information is needed.

The budget "all-important"

I honestly wish I had a dollar for every time I had to go about this with a client. It often amazes me how little we do not take into account.

So they get married and your parents and future developments of the right and decide to stay together and buy an apartment for you and your spouse. Great! Congratulations! Mazal Tov! You say your budget is $ 250,000 - and not a penny more. And even that is pushing the limit.

So, with a big smile and a heavy pocket called an agent and tell them your budget is $ 250,000. Guess what? This is NOT your budget. This is how much money you have to spend to purchase an apartment. This is not how much you can buy the property. Why? Since it is conveniently left out,
attorneys' fees, expenses of agents, and any other miscellaneous expenses that you have not taken into account. That is assuming that $ 250 000 is the exact apartment you want in the neighborhood you want all painted and ready to get into it! What changes or improvements? And if you get on paper what the rising costs and hidden? What happens if it is not ready in time?

Each case is different. When asked what your budget is,
You must become aware of the other "incidentals". If the $ 250K has everything you have, then your budget should realistically be less than this amount depending on the property you want to buy.

Rule of thumb: If you think that the "costs" will cost $ 15 000 which are sum of € 18,000. Always around UP, never down. If you follow this simple rule that will never be in the worst case be sent in a tizzy for some costs not included in the best and end up with more money in your bank account to make some changes required for a bedroom or buy new furniture.

Tabu and Arnona

The Israel Land Registry records all land and property in the name of the owner. This is something that the lawyer takes care of, and is an integral and fundamental part of the process of owning a property. When purchasing a property is usually the final step of recording the property in your name. Without such registration, legally, the property does not belong to you. (Tabu is a term and the Institute for the first time imposed during the 19 th century by the Ottoman Empire that ruled Israel at that time. It 'was the first attempt in modern times to record all owners of land in Israel . This system still exists today. In other words, Tabu gives the individual the right to own land (including apartments.)

However, there are cases that Tabu is impossible. Some properties in Jerusalem are the property of the Church, and leased to the government for ninety-nine years. So Tabu is often impossible in these properties and there is a legal mechanism which protects as the owner. However, you should be aware if the property you want to buy is one that is "owned by the church and then leased land."

There are other cases, each specialized in Tabu, where registration could be delayed for months. These are things that should be discussed with your attorney and only your attorney can offer advice in this matter.

The only important thing of Tabu, is that it lists the size of the property. This is crucial! The amount of meters listed in Tabu is the legal dimension of the property you are buying or selling. (Here you can learn just how important this is.)

Arnona is the "tourist tax". The important thing new about this document, which also lists the exact meters of property with a few caveats. It does not include open areas, such as porches and gardens. In Israel, you pay tax, or Arnona, only on a closed area. (There are other calculations made in storage rooms, etc.) This is for the agent to show and explain to you depending on the property.

Many people walk into an apartment and having to ask the owner how big it is. The owner says 110 meters. But Tabu or Arnona (see below) the apartment is listed as 86 meters. Okay, maybe the missing meters can be found on open porches or in the garden. And maybe, just maybe, the owner may have exaggerated or did not know really how big the property was.

It should be noted that there is usually a discrepancy of a few meters between Tabu and Arnona. This is predictable. But something more than ten meters should require an explanation that makes sense. Even in this case, it is also the lawyer to make sure that what you are buying is what you saw.

Be careful. Be prepared. Keep up to date .......