REAL ESTATE PURCHASE PROCEDURE
IN CAESAREA, ISRAEL
Caesarea Estates Realty provides this document for informational purposes only. It is not a substitute for advice from your legal counsel, and no responsibility is accepted for reliance on its contents.
Although each transaction is unique, the following is a general overview of the typical purchase process in Caesarea.
Once you identify a property you wish to pursue, you submit an offer to the seller and negotiations begin. An offer is composed of several elements, and your agent should guide you through the details. Unless both sides agree otherwise, Israeli law allows a seller to continue negotiating with other potential buyers up until the moment a contract is signed. Only a signed contract validates the transaction. It is therefore possible that a home you are negotiating may be sold to another party during the process.
Payment terms are negotiable. The initial payment due at contract signing may be considerably higher than what you are accustomed to in other countries, with subsequent payments scheduled as agreed. Possession dates may also extend far into the future.
Once the main terms are agreed upon, including the purchase price in shekels or dollars, the payment schedule, possession date, and any items included in the sale, these details are forwarded to the legal representatives. The seller’s attorney usually prepares the first draft of the contract and sends it to the buyer’s attorney for review and approval. The attorneys will discuss legal language and consult with you regarding financial or transactional points. This stage usually takes five to ten business days.
Although there are commonly used contracts and widely accepted terms, any clause may be added if both parties agree. Unless a different arrangement is negotiated, once the contract is signed it typically does not include contingencies allowing either side to withdraw without penalty, such as a home inspection outcome or mortgage approval. There is no attorney review period. For this reason, it is recommended to complete the home inspection, secure legal approval of the contract wording, and confirm adequate funding before signing.
In Israel, the date of contract signing is considered the official closing date.
Once the contract is executed and the initial deposit is paid, the buyer’s attorney places a lien, or “warning,” on the property to protect the buyer’s interest. This is usually done within twenty-four hours of contract signing by registering the notice with the Israel Land Authority (Tabu) or the relevant governing body. The lien prevents the seller from making any financial changes to the property until the buyer releases the restriction according to the agreement. Because of this protection, the deposit is often transferred directly to the seller rather than held in escrow. If the property has existing mortgages or liens, the initial funds may be held in escrow and used to remove these obligations before payment is released.
In Caesarea, every transfer of ownership requires an inspection by the township engineer. This inspection verifies that the current structure matches the most recently approved plans and the authorized square meterage. Any discrepancies must be addressed and resolved before ownership can be transferred.
From this point forward, both parties comply with their contractual obligations. Once the full purchase price has been paid, whether or not possession has already been delivered, the buyer’s attorney completes the title registration. The final transfer of ownership may take up to eight months from the date of contract signing.
Estimated Closing Costs
Total estimated expenses may range from five to twelve percent of the contract price.
- Optional expenses may include:
• Home inspection for structure, systems, pool, and general defects (approximately 3,000–7,000 NIS). In israel the home inspection is not a re-negotiating tool, rather a piece of mind step for buyer- a “take-it-or-leave-it” for buyer to decide
• Surveyor confirmation of plot boundaries and building position (approximately 1,500 NIS)
• Appraisal if required by the mortgage bank (approximately 4,000–8,000 NIS) - Mortgage broker to navigate the complex Israeli mortgage map
- Interior design or architectural and contractor estimates for planned renovations (costs vary)
Required expenses include:
• Purchase tax charged by the Israel Tax Authority, up to ten percent of the contract price, payable within fifty days of signing. The exact amount depends on the price, applicable exemptions, and the buyer’s residency status. Your attorney will calculate this based on your situation.
• Fees for transfer of ownership documentation in Caesarea (approximately 1,200 NIS)
• Buyer’s real estate agency fee, if an agency was involved in completing the transaction, at two percent plus VAT, payable within seven days of contract signing
• Buyer’s attorney fee, which includes legal negotiation and full title work. Fees generally range from one-half percent to two percent of the contract price plus VAT, depending on the complexity of the transaction. Payment terms are determined directly with the attorney.
We hope this overview supports you as you navigate the real estate purchase process in Caesarea. Additional questions and concerns are completely natural, and we remain ready to assist at every step.
Always at your service,
Dror Kaminer
Caesarea Estates Realty
www.kaminer.co.il