Real Estate Transactions
Real estate transactions are among the most significant financial decisions for individuals and businesses, carrying substantial legal and financial implications. Whether purchasing a residential property, investing in a commercial asset, acquiring agricultural land, or engaging in complex real estate projects, the success of the transaction depends not only on market conditions but also on proper legal planning and professional risk management. With over 30 years of experience in real estate law, our firm provides comprehensive legal support to private clients, businesses, and investors—from due diligence to the seamless completion of transactions—ensuring their rights and financial interests are fully protected.
Legal Support for Property Sales & Purchases
Buying or selling real estate requires careful planning and meticulous attention to detail. Our firm provides full legal guidance throughout the process—from due diligence and contract negotiations to registration with the Land Registry (Tabu). Comprehensive legal checks help prevent costly mistakes, such as discrepancies in property registration, unexpected tax liabilities, or other unforeseen legal issues. We deliver practical legal solutions, allowing clients to complete transactions smoothly and securely.
Agricultural Land & Complex Real Estate Transactions
Purchasing agricultural land or farm estates involves unique regulatory challenges, including approvals from the Israel Land Authority and complex lease and ownership structures. Our firm offers expert legal counsel to buyers and sellers of farmland and rural estates, ensuring all legal, tax, and planning aspects of the transaction are carefully addressed.
Urban Renewal & Evacuation-Construction (Pinui-Binui)
Urban renewal projects, including TAMA 38 and Pinui-Binui, offer significant financial potential but involve complex legal challenges. We primarily represent property owners, reviewing developers’ proposals, identifying potential risks, assisting in negotiations, and ensuring that contracts are fair and protective of residents’ rights. Our experience enables us to provide professional legal support from the project’s initial stages.
Real Estate Taxation & Tax Planning
Tax liabilities are a crucial factor in any real estate transaction. Effective tax planning can save sellers and buyers substantial amounts. We provide expert legal advice on capital gains tax, purchase tax, betterment levies, land lease fees, and other real estate-related tax matters, ensuring compliance while maximizing available tax benefits.
Fraud Prevention in Real Estate Transactions
With the rise in real estate fraud cases, we assist clients in registering for the Ministry of Justice’s property alert service, which provides real-time updates on any changes to their registered properties. This service serves as a critical safeguard against fraud and forgery, and we guide our clients on how to use it effectively.
Brokerage Agreements – Avoiding Unwanted Surprises
Real estate brokerage agreements must be clear and properly documented to prevent legal disputes. We provide legal counsel to buyers and sellers on their rights vis a vis estate agents, assist in drafting fair brokerage agreements, and help prevent unjustified commission claims.
Legal Guidance – Ensuring a Safe Transaction
Our experience shows that professional legal support provides peace of mind, prevents legal risks, and saves clients significant costs. Our firm is committed to offering personalized, meticulous legal services to ensure that every transaction is completed efficiently, securely, and in the client’s best interest.
Memorandum of Understanding (MOU) – Yes or No? (“Zichron Devarim”)
Under Israeli law, real estate transactions must be in writing. Oral agreements or unsigned understandings are generally unenforceable. Contrary to common misconceptions, an MOU is legally binding, and if a dispute arises, parties may find themselves locked in prolonged legal proceedings. Our clear recommendation: Do not sign an MOU—sign a purchase agreement instead! If urgency requires immediate action, our firm can draft a full sale contract on short notice.
When to Engage a Lawyer?
Whether selling or buying, legal counsel is essential—and legal fees will be incurred regardless. To maximize benefits, it is advisable to seek legal guidance before starting the transaction:
- For Sellers: Advance planning helps assess potential tax liabilities (capital gains tax, betterment levies, etc.), verify ownership rights, and ensure there are no hidden encumbrances such as mortgages, liens, or government restrictions.
- For Buyers: Early legal consultation protects their interests, helping structure payment schedules, verify outstanding debts, and uncover any legal or structural issues with the property.
How to Determine a Fair Market Price?
The Israeli Ministry of Finance operates a Real Estate Information Database that publishes transaction prices based on official tax reports. This tool provides reliable insights into market values, helping sellers set competitive prices and buyers assess fair purchase amounts.
Understanding Additional Transaction Costs
Real estate transactions involve various additional costs that should be anticipated and, when possible, minimized. Key expenses include capital gains tax (which can be a significant cost for sellers), purchase tax, betterment levies, land lease fees, outstanding municipal charges, and other regulatory costs.
Buying from a Developer – Hidden Risks
Many buyers are unaware of the complexities and risks involved in purchasing from a developer. Important financial and contractual issues should be clarified before receiving a draft contract, as signaling intent to buy weakens the buyer’s negotiating position. Our advice: Consult a lawyer early in the process to receive strategic legal and commercial guidance before making any commitments.