Buying Real Estate in Israel: The 8 Steps of the Purchase Process (2026)

The real estate purchase process in Israel is completely different from what you may be used to in the US, UK, or most Western countries. There is no notary public involved in the transaction as you might expect, no binding preliminary agreement with cooling-off period, and no mortgage contingency clause. The process relies almost entirely on your lawyer, who serves as your legal advisor, verifier, negotiator, and guarantor until your property is officially registered.

This guide details each of the eight steps, from the first viewing to receiving the keys. Whether you're a resident, new immigrant (olé hadash), or purchasing from abroad, these steps apply to any transaction involving existing properties (for off-plan purchases from a developer, see our dedicated article on new construction projects — coming soon).

📖 This article is part of the Ultimate Guide to Israeli Real Estate

Step 1 — Define Your Real Budget

Before viewing a single property, establish the numbers. The listed price of an apartment is not what you'll actually pay. You need to add 8 to 10% in additional costs, which includes:

The acquisition tax (mas rechisha) represents the largest expense. The rate varies based on the property price and your status. For a first home as primary residence, the initial tiers benefit from exemptions. For an investor or non-resident, expect around 8% of the purchase price. Olim hadashim (new immigrants to Israel) benefit from reduced rates for a limited period after their aliyah.

The lawyer's fees typically range between 1% and 1.5% of the price, including VAT. This is a non-negotiable investment — we'll see why at step 3.

The real estate agent commission is 2% of the price + VAT (17%), totaling approximately 2.34%. This is due if you use a real estate agent (metavekh).

If you need a loan (mashkanta), obtain pre-approval from the bank before any commitment. This is essential because, unlike in many Western countries, there's no mortgage contingency clause in Israel: if you sign a contract and the bank refuses your loan, you're still bound by the agreement.

💡 Tip: Residents can borrow up to 70% of the purchase price. Non-residents are limited to 50%. Plan your down payment accordingly.

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Step 2 — Find the Property

The search begins with three fundamental decisions: the city, the type of property (apartment, villa, duplex, penthouse), and the type of transaction (existing property purchase, new project, or rental investment).

You can search independently on portals like immobilier.co.il, or use a real estate agent (metavekh). The agent knows the local market, has access to properties not always published online, and can negotiate on your behalf. Their commission is regulated and transparent.

During viewings, pay attention to details that could cause problems: a room added on the roof, an enclosed balcony without permits, a garden extension, parking that isn't registered to the property. These constructions may be illegal and lead to major complications. Note everything and inform your lawyer.

⚠️ Warning: In Israel, property is sold "as is." There's no legal obligation for the seller to provide a technical inspection report. If you want to have the property inspected (highly recommended), you must hire a bodek bait (property inspector) at your own expense.

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Step 3 — Choose Your Lawyer (BEFORE Committing)

This is rule number one of Israeli real estate: choose your lawyer before choosing your property. Not after. Not simultaneously. Before.

In Israel, there is no notary public involved in the transaction as you might expect. The specialized real estate lawyer (orech din) fulfills this role, and much more. They are the orchestrator of the entire transaction.

Your lawyer intervenes at every step:

They perform legal verifications of the property: title ownership, Tabu registration or other registries, mortgages, seizures, easements, rights of way, demolition orders, unpaid debts, construction legality.

They draft and negotiate the contract in your interest. Every clause matters — there's no standard contract in Israel.

They complete the tax declarations to the authorities (mas rechisha, mas shevach), optimize your taxation, and ensure tax certificates are obtained.

They manage payments and guarantees, deposit funds in escrow if necessary, and supervise the seller's mortgage discharge.

They proceed with the official registration of the property in your name at the Tabu.

⚠️ Important: The buyer and seller must each have their own lawyer. A lawyer cannot defend the interests of both parties — they are often conflicting.

💡 For remote buyers: If you don't reside in Israel, your lawyer can act on your behalf through a notarized power of attorney (yipuy koach). They can sign the contract and handle all procedures without requiring your presence.

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Step 4 — Legal Verifications (Due Diligence)

Once you've found a property of interest, your lawyer launches the verification phase. This is the most important step of the entire process. It determines your purchase decision and the contract terms.

Your lawyer verifies the property title. In Israel, a property can be registered in several ways, and not all offer the same level of security:

The Tabu (official land registry) is the best situation. The property is divided into lots, each apartment is identified and registered. Your title is official, irrefutable, and enforceable against third parties.

The emphyteutic lease concerns land belonging to the State of Israel (the majority). The State grants a renewable 49-year lease. It's a fairly secure title as it's guaranteed by the State, but you must verify the lease conditions.

Undivided land is found in group purchases: several buyers are co-owners of a plot. Rights to each apartment are contractual until official lot division. More risky.

Registration with a construction company: when the building isn't yet divided at the Tabu, your rights are recorded in the developer's registers. Your lawyer must ensure that a notation protecting your rights exists on the land.

Beyond the title, your lawyer verifies the absence of mortgages, seizures, condominium debts, building permit compliance, condominium regulations, and if there are urban planning projects that could affect the property (Tama 38, Pinouyi Binouyi).

💡 Good to know: The nesach Tabu is the cadastral extract that summarizes the legal status of the property. Your lawyer will request this first — it's the complete X-ray of the property.

Step 5 — Negotiation and Offer

In Israel, negotiation is generally done orally or through the real estate agent. There's no formalized offer system like in many Western countries.

A crucial point: don't sign anything and don't pay any deposit before the final contract. No purchase agreement, no preliminary contract, no reservation with check. The vast majority of Israeli lawyers strongly advise against this, and for good reasons:

Any signed document can be considered a firm contractual commitment. It will be very difficult to cancel if a problem is discovered later. Moreover, a written commitment immediately triggers a tax declaration obligation — you might have to pay tax on a property you ultimately don't purchase.

The correct sequence is: oral negotiation → price agreement → your lawyer performs verifications → the final contract is drafted → you sign the contract and make the first payment.

⚠️ Golden rule: In Israel, you only sign once, and that's the final contract. Everything that precedes remains verbal and non-binding.

Step 6 — Contract Signing

The sales contract is drafted in Hebrew — it's the official language, and this document is binding with the authorities. Your English-speaking lawyer will explain each clause to you, or provide you with a summary letter in English of the essential points.

The contract sets the price, the payment schedule (usually in 3 to 5 staggered payments), the delivery date of the property, the conditions of the transaction, and the penalties in case of default by either party.

At the time of signing, your lawyer also has the final transfer deeds signed. These documents, although signed immediately, will only be registered at the Tabu once the price is fully paid and the property delivered. The advantage of this method: if the seller were to die or default before the end of the transaction, your rights are already secured by these irrevocable deeds.

Your lawyer also obtains a provisional registration (he'arat azhara) at the Tabu, which protects your rights against third parties from the signing.

Step 7 — Payments and Transition Period

Payment of the price is made in several installments, according to the schedule defined in the contract. Typically:

Each payment is conditional on the seller fulfilling certain obligations: mortgage discharge, obtaining tax certificates, property vacated by any tenant.

If you finance part through mashkanta, the bank pays its portion directly to the seller. Your lawyer coordinates the schedule between your down payment and the bank's payments.

Meanwhile, both lawyers complete the tax declarations to the authorities. The seller declares the sale for calculating mas shevach (capital gains), and you declare the purchase for calculating mas rechisha (acquisition tax). These declarations must be made within 30 days of signing.

Step 8 — Delivery and Tabu Registration

On delivery day, you receive the keys to the property. Before this, your lawyer has ensured that the seller has fulfilled all obligations: effective mortgage discharge, payment of all debts related to the property (arnona, vaad bait, water, electricity), and obtaining tax certificates.

After delivery comes the final step, often the longest: official registration at the Tabu in your name. Your lawyer proceeds with registration once all conditions are met (full payment, tax certificates, discharge of all liens). This process can take several weeks to several months depending on the case complexity.

Once registered at the Tabu, you are officially and legally the owner. This title is enforceable against all parties.

💡 Good to know: From your move-in, register with the municipality for arnona (property tax) and with the condominium (vaad bait). If you're an olé hadash, you may benefit from significant arnona exemptions.

How Long Does the Process Take?

For an existing property purchase, expect 2 to 4 months between the purchase decision and receiving the keys. The timeline typically breaks down as follows:

Summary: The 8 Steps at a Glance

Documents to Prepare

Before getting started, gather the following documents:

For all buyers: passport or Israeli identity card, recent bank statements (proof of funds or mashkanta pre-approval), Israeli banking coordinates.

For olim hadashim (new immigrants to Israel): teudat oleh (to benefit from tax advantages on mas rechisha).

For buyers from abroad: notarized power of attorney (yipuy koach) if your lawyer must sign on your behalf, Israeli bank account opened (essential for wire transfers).

Also Read

👉 Back to the Ultimate Guide to Israeli Real Estate

👉 The Purchase Process — 8 Essential Steps

👉 Mashkanta — Financing Your Purchase in Israel

👉 Taxation — mas rechisha, mas shevach, arnona

👉 Best Cities to Invest in Israel

👉 Off-Plan Purchases — New Projects, Tama 38

👉 10 Pitfalls to Avoid in Israeli Real Estate

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This guide is regularly updated to reflect changes in Israeli legislation. Last update: March 2026.

immobilier.co.il — The real estate portal in Israel since 2004.