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Penthouse, Garden Apartment, or Private Home?
Naftali Berezin
Each option has its charm, and the choice ultimately depends on your lifestyle and priorities.
Founder & CEO
Legal fees are an additional (hidden) cost of purchasing a property in Israel. A buyer is required to find a lawyer to guide him/her through the potentially complicated process of acquiring a property.
A lawyer’s expertise in Israeli real estate law is vital for the buyer, in order for him to determine:
In addition, a buyer may have to sign a Zichron Devarim, a one-page document that outlines the essential terms of the agreement. The buyer’s lawyer will have to write it and he/she will charge for their time, incorporating it into the legal fees.
In general, Lawyers do not advise the buyer to enter into a Zichron Devarim because it comes with legal obligations. Yet, it also means that the buyer formally reserves the property for himself/herself and ensures that other, prospective buyers can no longer purchase the property.
The legal fees for the buyer’s lawyer generally range between 0.5% to 1.5% of the purchase price, plus VAT. Usually, the buyer’s lawyer charges a minimum of between 5,000 – 10,000 NIS.
Often, though, and particularly in more affluent neighborhoods, the buyer will have to pay more than 10,000 NIS. However, this may not be the only legal fees that the buyer has to pay.
If a buyer purchases a property from a kablan (a developer), the buyer will be charged for the legal fees of the kablan’s lawyer, even though he/she neither represents the buyer nor looks after his/her interests.
The kablan’s lawyer charges between 1.5% to 2% of the purchase price, plus VAT. This is to cover the cost of registering the property in the buyer’s name.
Founder of Jerusalem Real Estate (JRE). Over a decade of experience guiding international buyers through Jerusalem's luxury property market. Licensed real estate advisor specializing in Rehavia, Talbieh, German Colony, and new developments.
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