Buying an apartment is one of the most important and expensive decisions in your life. It is often challenging to find an apartment you like and it is even more difficult to find a suitable apartment in another country. You might not be aware of the real estate market and the property laws in a foreign country.
If you want to buy an apartment in Israel, you have to hire an Israeli real estate agent who has a good understanding of the real estate market in Israel and you should also hire an Israeli attorney in the US to know more about property laws in Israel. You need to know the below things before buying an apartment in Israel.
You should consult a lawyer to obtain legal advice on the applicable taxes for buying an apartment in Israel. There may be substantial taxes for the non-residents due to the several changes in the real estate laws in Israel. With proper planning and good legal advice, you can save taxes.
Memorandum Of Understanding
A Memorandum of understanding is a document that is summarized by both parties after they come in terms to buy and sell an apartment. Among other terms of the sale, this document contains the date of the payment and the agreed price of the apartment. This document is prepared by an attorney and enforceable in Israeli courts.
You will have to obtain a confirmation from the local municipality that all the debts of the apartment have been settled when you register it in your name. Therefore, you have to make sure that there are no unpaid debts for the apartment. If there are any debts on the apartment, it will delay the registration process. Have your attorney check whether the apartment you are about to buy has any unpaid debts.
The mortgage approval for non-Israeli residents can be complicated and time-consuming. You cannot complete your payments if the bank rejects your mortgage. If the transaction is not completed in time, it will be a breach of contract and you will be fined. Non-Israeli residents are eligible for loans of up to 50% of the apartment value.
Examine The Apartment
This is one of the most important things you have to do before buying an apartment. You should examine the physical condition of the apartment carefully before buying it. You can check the apartment yourself or hire an expert to check whether there is any problem with the apartment.