Why Are Pre-Purchase Checks So Important?
Buying an apartment is one of the most significant financial decisions in your life. A mistake or skipped check can cost tens or even hundreds of thousands of shekels. Here are ten critical checks every buyer must perform – or ensure their lawyer performs – before signing a contract.
1. Land Registry Extract (Tabu)
The extract reveals all information about the property: registered owner, liens (mortgages), charges, cautions, leasehold rights and more. This is the first document the lawyer should examine.
2. Verifying the Seller's Identity
Ensure the seller is indeed the registered owner of the property and has authority to sell. In cases of inheritance, power of attorney or a company – a deeper check is required.
3. Zoning Plan (Taba) Check
The zoning plan reveals land designation, building rights, height limits, building lines and more. It is important to ensure the property was built in accordance with the plan and that there are no future plans that could affect its value.
4. Building Permit and Building File
Verify that the apartment was built with a permit and that there are no building violations. Violations can lead to demolition orders, fines and problems obtaining a mortgage or future sale.
5. Physical Inspection of the Property
A visit to the apartment with a professional (engineer or appraiser) to check for defects, dampness, cracks, plumbing and electrical condition. Defects not discovered before purchase can prove costly.
6. Checking Debts and Payments
Ensure there are no municipal tax, building committee, water or electricity debts on the property. Unsettled debts may pass to the buyer.
7. Checking Additional Building Rights
Can the apartment be extended? Is there permission to build on the roof? Unused building rights can significantly increase the property's value.
8. Checking Future Plans in the Area
Infrastructure projects (roads, light rail), land use changes or expected construction – all can affect the property's value and quality of life.
9. Condominium Registration Status
Is the building registered as a condominium? Is there an agreed bylaws? What are the common areas? Are there attachments (parking, storage, roof)?
10. Purchase Tax and Additional Cost Estimate
Beyond the apartment price, calculate purchase tax, legal fees, brokerage, renovation costs and more. Proper budget planning will prevent surprises.
Summary
Do not skip any of these checks. An experienced real estate lawyer will accompany you through all of them, identify potential issues and protect your interests. At Adar – Dor we perform comprehensive checks for every transaction and accompany clients step by step.