Investigate the property

Information is the key to a successful real estate transaction.  Once you’ve found a property that meets all of your criteria and know how you’ll be paying for it (if you’re taking out a mortgage, etc.), it’s crucial that you research the property thoroughly.  It’s very important to determine its legal standing.  An agent should know if there are any illegal extensions on the home which can potentially create issues, such as being unable to get a mortgage for that part of the property.  An agent or  lawyer should confirm if the owner is the registered owner of the property or not. Another important recommendation before moving to the next step is to have an engineer perform an inspection in order to identify if there are any problematic areas of concern, structural or other.  If you plan to renovate the apartment, you can obtain an estimate from a builder as to what the cost will be.

Negotiation

There are different factors that need to be worked out before a deal is closed.  First and foremost the purchase price.  A good agent can assist you in negotiating the terms of the contract, including the price of the property as well as what “extras” that will come with it – such as lighting fixtures, closets, etc.  When buying a property that’s new construction – “on paper,” there are other areas of negotiation of which you should be aware.  Reviewing the technical specifications with an architect/interior designer is highly advisable as that can used to drive negotiations for any changes that are required.

Legal

In Israel, there is no such thing as a deposit on a home.  Signing a real estate contract is critical and a down payment of approximately 15% is required at the closing.  Any breach of contract results in various penalties.  In Israel, as opposed to some other countries, it’s the lawyer’s responsibility to confirm that there are no legal issues with the property. For that reason, it’s highly recommended that you hire a real estate lawyer familiar with Israeli law for the purchase of your home who will be able to anticipate and identify legal issues that can arise.