What NOT To Do During Your Property Search in Israel

What NOT To Do During

Your Property Search in Israel

(These are the thoughts of CapitIL Real Estate Agency Sales Director Ben Levene.)

Here are my top 5 tips of what NOT to do during your property search in Israel.

This is meant to be informational and educational to prepare you for your future search.

NEVER sign something called a “zichron dvarim”

A zichron dvarim is a one-page agreement that is a sort of “shortcut contract” between a buyer and a seller, which in Israel can be upheld as a binding contract.

If you like an apartment, do the proper due diligence required. Without doing all the appropriate checks, you may not realize that this is not the purchase for you.

Taking this “shortcut” can only hurt you in the end. Always make sure to consult with your lawyer before signing anything. 

Do not believe everything you hear.

You must do your own research and checks, and cannot rely on the words of others.

I was looking at a listing that I would potentially list on the market and was told it was a 200 SQM villa with a 100 SQM garden appropriately registered.

Upon doing my own checks, the garden was not registered, and only half the villa was.

This is why it is CRUCIAL to do your own research. Everything is provable on paper if what is being told to you is true.

Make sure to ask for all physical documentation and show it to your lawyers.

Never decide to not use an attorney or use the same attorney as the seller.

This is something that occasionally happens in Israel - sometimes innocently and sometimes unfortunately not so innocently.

If the seller suggests a lawyer for you to use, this is also not advised in any way. The proper way to find yourself an attorney is by getting referrals from friends and family or from your team of professionals including your mortgage broker, real estate agent, etc…

Whomever you get a reference for, make sure to talk to them and see if you like and trust them.

Do not do something you wouldn’t do at home.

If for example, you are someone who would never buy an apartment without seeing it in person, do not change your rules just because you are looking in Israel.

Generally speaking, you know yourself and what makes you comfortable. You also know what you would consider a successful purchase.

Obviously, assuming you have the budget, do not buy something you would not be happy with if you bought it in America.

If you have rules at home, chances are they apply here too. There are nuances, as it is a different country, however, you want to ensure you like what you purchase. 

Do not get pressured into spending more money than you want to.

You will see beautiful apartments, and some agents will tell you everything you want to hear. But at the end of the day, this is your money and you should respect your budget.

If you have the money to splurge, spending it should be your decision based on your own market research. However, if you have a budget based on your financial situation and overspending will put you in an uncomfortable position, be cautious.

A good broker will give you a good understanding of the market and try to find solutions to best suit you.

Conclusion

It is very possible to buy an apartment in Israel, so do not let any of the points mentioned above scare you.

Purchasing property in Israel can be a very positive experience so make sure to build a team of experts who can advise you through the process and to always do your research.

Offers in Israel are always done in good faith, so only make an offer if you are sure you would like to purchase the apartment.

Despite this, you can always walk away from the deal, as your offer is subject to contract and due diligence.

Once the contract is signed, however, there are no contingencies, and the deal is final. The system is made to give you the room to check everything properly before entering a binding agreement.

Any seller who refuses to give you a couple of weeks to do the contract and checks would make me quite skeptical.

Contact CapitIL Real Estate Agency.

See available Jerusalem real estate here and new development projects here.