Before purchasing or leasing an apartment or any other property, it is important to educate yourself about the purchase regulations and lease conditions in that country. Israel has a major portion of its lands owned and maintained by the state. In fact, 93% of the land in Israel is under the State. As per the Israel law, state owned property cannot be sold but can only be leased out. However, private-owned lands can be sold to other parties.
Things To Know When You Purchase A Second Hand Apartment In An Apartment Building
When you are purchasing a second hand apartment in an apartment building, there are several important things you should do. You have to check the registration warrant of the building, its registration documents and the By-Laws. You can get these from the Land Registry. These documents stipulate the rights and obligation of each of the owners.
The documents can answer the following questions:
- Who has the right to use the remainder of the unused building rights?
- How should the common property be used?
- What share should each apartment owners pay for the maintenance of the building?
Things To Know When You Lease An Apartment Under A Long Term Lease
As mentioned in the beginning of the article, state property cannot be purchased. It can only be leased and thus the title to state property will not be registered in the name of the purchaser. The purchaser is entitled to sign a long term lease agreement with the Israel Lands Administration. In the past, lessees paid an annual rent to the Administration but things have changed today, as most leases are capitalized, which means the lessee pays the amount for the whole lease term in advance and hence is exempted from making annual payments.
Unless and until the lessee wants to modify the existing structure of the Israeli real estate property, they do not really need to get in touch with the Administration. In case the lessees have plans of modification or changing the usage, the approval of the Israel Lands Administration is necessary, and the lessees would be asked to pay some additional rent for the new usage.
When it comes to private property, there are no restrictions in transferring ownership to others. Only 7% of lands in Israel are privately owned. The Israel state protects the system of state ownership of lands and property in an attempt to prevent their lands from being in hands of foreigners. This system is largely being scrutinized recently.