Aryeh Rachlin is a Jerusalem attorney with 15 years of experience representing clients in real estate transactions in Israel. You can contact Aryeh at +972-2-563-0224, or by emailing him at aryeh@rplaw.co.il.



So you’re nearly there. You have decided on the home of your dreams and before you know it, you will be ready to sign the contract. But don’t take out the champagne glasses just yet… Exciting as the prospect is of finalizing the purchase of your new home in Israel, you have to make sure that you have considered and addressed a number of important issues before signing on the dotted line. Here are three main examples.



1. Have you secured financial backing for your new home?



The purchase contract for your home is not conditional upon your arranging finance after the signing. Therefore, it is critical to ensure that you have secured financial backing for your new home prior to the signing. A breach of contract for failure to pay can lead to interest and penalties which can, in some cases, exceed 10% of the value of the purchase. Though mortgage banks will generally not issue letters of confirmation before receiving a signed contract, they will confirm in advance that your financial record qualifies you for the amount you would like to borrow and advise you of other limitations or conditions that may apply to your loan application. Your attorney can inform you of other conditions the bank may impose in relation to the loan as these vary from deal to deal.



Read "A Step-by-Step Guide to Taking Out a Mortgage in Israel", in which the writer guides you step-by-step through the process so that you will be able to secure financial backing for your home with the confidence and know-how that are crucial in order to succeed.



2. Has your engineer given you the thumbs up?



When you purchase a property in Israel, you should be fully informed about the state of your new home. It is important that you are aware that almost all real estate contracts in Israel are not subject to any conditions, including the discovery of any defects in the apartment after signing the contract. For this reason, it is strongly recommended that you hire a building engineer to inspect the apartment prior to signing. S/he can advise you of any existing defects or problems which are likely to develop in the foreseeable future.



Read "Building Engineering Inspections" for a discussion of how you can save yourself considerable expense down the line by seeking professional advice from a qualified building engineer before signing the contract.



3. Are you aware of the major issues that your attorney has to consider when approaching your real estate transaction?



Though I appreciate the argument that a purchaser hires his/her attorney to oversee the various legal issues that come up in connection with a real estate transaction, it is essential that you have more than a cursory understanding of the main issues that your attorney will need to address. At the end of the day, it is your home, your money, and your risk! Make sure that you set aside time prior to signing the contract to ensure that your attorney takes you through the essential issues involved with the transaction, if not the whole contract.



In "So What Exactly is My Attorney Doing?" you will learn about the major issues your attorney will have to contend with when handling a typical second-hand real estate transaction.



Knowledge is Power



When you buy a property, you are making an enormous investment, so you need to make sure that you are fully equipped with all the necessary information before you finalize your contract. You might find that there are many aspects of the transaction that are intimidating and foreign, but that is where the professional advisors come in. Do not be afraid to ask your mortgage adviser, building engineer and attorney questions; they can play a significant role in providing you with the confidence you need before signing the contract.

Republished with permission from IsraelHomeOwner.com