Real Estate Registration in Israel
In Israel, the right and legal action to purchase Real Estate is through the Department of Land Registration included in the Ministry of Justice, or as it is often called in Israel “El Tabu”. The Israel Taboo is the body in charge of registering any real estate action in the official books of the Bureau. There are three different and separate books: the Book of Rights, the Book of Joint House, and the Book of Deeds. The goods registered in the first book are regulated by the Torrens system. Most of the properties in Israel are registered in this book. Second book property is property that contains two or more separate real estate units. Finally, the third book records the assets that are not regulated by the Torrens system and are not classified as multiple units.
Only by proper registration does one make their legal action (sale, purchase, parcel, etc.) legal in Israel as stipulated in Section Number 7 of the Israeli Real Estate law of 1969. It is important to file the registration in the same regional office of location of the property or properties. If the action has not resulted in registration in one of the nine offices spread throughout Israel, it will be considered as a binding commitment. In Israel, registration is legally binding and ownership will legally change hands only when registration is complete. Registering in the official Israeli Tabu books secures the legal rights of the owner and increases the value of the property. Registration also allows for the rapid transfer of property rights to new owners, saves money and time, and is an essential condition for the transfer of ownership of property in Israel.
After the purchase of real estate, the actual purchase is for the use of rights to the property. At the end of the registration process, the Israeli Tabu office issues the registrar with a deed stating the lease period and termination date, and any ownership information about the asset (whether it is capitalized, mortgaged, confiscated, etc.). In addition, the deed on assets regulated by the Torrens system includes the precise location of the asset in Israel, specifying the division into block, parcel and sub-parcel. The deed becomes the de jure identification of the asset and contains the same information as the taboo. This information is considered highly credible and only in very rare and extreme situations can it be subverted. In this way, the Tabu system secures to the greatest extent possible the property rights of the landlords.
In some cases in Israel, a person can buy real estate and the construction has not yet been completed. For example, a buyer of an apartment in a residential building that is still under construction cannot register his ownership rights to the apartment since the apartment does not yet exist. The legal solution that the Israeli legislature has established to address this common situation is to register a “warning note” in the Tabu as stipulated in Section Number 26 of Israel’s Real Estate Law. Therefore, when another potential buyer visits the Israeli taboo to write a new warning note, he may find that the asset has already been sold. The mortgage is also recorded as a warning note to alert others to potential bonds. For the same reason, warning notes can be registered in the form of a third party agreement, third party rights, liens, demolition orders and notes under Israel’s Planning and Zoning laws. It should be noted that only a person who has a written agreement that grants the transfer of rights by the owner of the property rights can register a warning notice.
Before purchasing a real estate asset in Israel, the prospective buyer is strongly advised to issue a Tabu deed at the start of negotiations to ensure that there are no particular complexities that could interfere with or prevent the deal from being consummated. A real estate seller in Israel is even strongly advised to issue a Tabu deed to ensure that property rights are listed in the seller’s name in a legal manner to avoid any deal-obstructing interference. It is strongly recommended that anyone considering buying or selling real estate in Israel consult with an experienced lawyer who is familiar with Israeli law.
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