Buying property in Jerusalem can be very exciting, but also a potentially daunting experience at first.
If you’re considering purchasing a property in Jerusalem/Israel, there are several steps you need to take to help make it a hopefully smooth and successful transaction.
From our personal experience working with American clients, we’ve outlined the important steps you need to follow when buying property in Israel.
Consult With a Mortgage Broker for a Realistic Budget Assessment
If you’re planning to finance your purchase, the first step is to consult with a mortgage broker. A mortgage broker will provide a realistic budget assessment, which will help you understand how much you can afford to spend on a property.
Additionally, a mortgage broker can also help you secure pre-approval for your mortgage. Keep in mind that there are no mortgage contingencies in Israel, so it’s essential to have your financing in order before making an offer.
Establish Contact With a Lawyer
It’s important to establish contact with a lawyer early on in the process. A lawyer can provide legal advice, help you navigate the complex Israeli legal system, and ensure that all necessary documents are in order.
Additionally, it’s advisable to grant power of attorney to a trusted relative or attorney in Israel, who can act on your behalf throughout the transaction.
Communicate With a Real Estate Broker
A real estate broker can provide valuable market knowledge, manage your expectations, and help you find suitable property listings.
It’s important to communicate your needs and preferences clearly to your real estate broker so they can help you find the right property.
Consult With a Currency Expert
If you’re transferring USD into NIS to purchase the property, it’s advisable to consult with a currency expert.
A currency expert can help you understand the process of transferring your funds, and provide you with advice on how to minimize your currency risk.
Explore Different Apartments
It’s important to take your time and explore different apartments until you find the one that’s right for you. Don’t rush into a decision—buying a property is a significant investment, so it’s important to make an informed decision.
Make an Offer and Finish Negotiations
Once you’ve found the right property, it’s time to make an offer. Your real estate broker can help you with this process, and negotiate on your behalf. Once negotiations are complete, it’s customary to shake hands in good faith.
Start the Due Diligence Process
After the offer is accepted, it’s time to start the due diligence process. This process typically takes two to four weeks and involves a thorough investigation of the property.
Your lawyer can guide you through the necessary steps and ensure that all necessary documents are in order.
Consult With an Interior Designer/Project Manager
If you’re purchasing a new build or a second-hand apartment that you want to renovate, it’s advisable to consult with an interior designer or project manager.
They can help you with the design and planning process, and ensure that your renovation project is a success.
Once your lawyer confirms that the due diligence is completed, you’re ready to sign the purchase agreement. This agreement outlines the terms and conditions of the sale and is a legally binding document.
Congratulations. You’re now a property owner in Israel!
In conclusion, buying property in Israel can be a complex process, but by following these steps, you can anticipate a smooth and successful transaction.
This article is based on the opinions of CapitIL Real Estate CEO and Co-Founder Ben Levene. Ben Levene is a Jerusalem real estate expert with over 10 years of experience, specializing in helping Anglos purchase real estate in Israel. To start your Israel property search, please contact Ben at +972-53-822-4336 or [email protected].