Condominium Registration
Condominium registration or land registration is one of the most complex topics in Israeli real estate law. Your rights in the apartment you’re buying must be clear in every aspect. Therefore, the land registration proving the seller’s full rights to the apartment must be transparent.
However, this isn’t always the case. If the apartment you want to buy isn’t properly registered in the Land Registry (Tabu) or within the land registration framework – you have a problem. How to avoid land registration issues – here’s some essential information:
First, a simple check at the Land Registry Office with the seller’s ID number will tell you if the seller owns all rights to the apartment. If not, this could increase your mortgage interest rate, as banks see risk in situations where condominium registration is incomplete. If you notice a land registration issue, you should think twice.
Condominium Registration – Why Are There Problems With It At All?
Due to a loophole in the capital gains tax law, building contractors in the 1950s used to register apartment buildings they built under a limited company, and instead of selling apartments and paying capital gains tax, they sold shares of that company, so the property rights were held by multiple owners. Now try finding them all.
Some of these companies are no longer properly registered with the Companies Registrar, they didn’t always ensure proper transfer of property rights to the apartment buyer who is now the seller you wish to buy from, and now it lacks proper condominium registration with all rights. Some of the shareholders of the apartments have passed away and their inheritance isn’t properly arranged for the condominium registration of the apartment you’re interested in.
Checking Condominium Registration
In short: Buying an apartment in a building? If the land registration matter isn’t completely clear, transparent, and visible, you must consult with a real estate attorney who will tell you whether to avoid the deal or find you a secure solution.
The content of this site is intended for informational purposes only, it does not constitute legal advice and is not a substitute for legal advice provided by an attorney.
