BPII Articles RSS Feed http://www.buypropertyinisrael.com/ KohanaPHP Sat, 15 Feb 2014 14:46:21 +0000 http://www.buypropertyinisrael.com/article/karmiel-a-truly-exceptional-quality-of-life Karmiel - A truly exceptional quality of life Established in 1964, the city of Karmiel lies on the main road between Akko and Tzefat, in the heart of the Beit Kerem Valley. One of Israel's few "planned cities", this beautiful, unique and modern city boasts continuous municipal activity to keep the city clean. Karmiel’s standard of living is higher than the average standard of the country, with numerous parks, green areas, an amphitheater and cultural center as well as recreational centers in several neighborhoods with many activities, clubs and lectures for all ages. Karmiel is exceptionally child friendly and its daycare facilities and schools enjoy an excellent reputation. Karmiel enjoys very good all year around weather.  Each summer for the past 20 years Karmiel has been host to an international dance festival. The city has been awarded numerous national prizes in areas such as quality of life, management, road safety, and most notably, immigrant absorption. Karmiel has one of the few active and vibrant immigrant absorption centers. Since 1997, Karmiel has been awarded five stars in a competition designed to create a more beautiul Israel and is annually awarded the Ministry of Interior prize for excellent Financial Management. Karmiel is home to the prestigious ORT Braude Technical College, which attracts students from around the country. An approval has now been signed ( October 2017) for the Technical Military Aviation School to be built in Karmiel. Real Estate prices are reasonable with a selection of 3, 4 and 5 room apartments and a growing suburb of private homes with new projects underway for an additional 850 apartment units. . The train is now in full operation. linking Karmiel to Haifa and the south, making it even easier to travel back and forth to Israel's main cities.  Within 20 minutes of the Mediterranean Sea and 25 minutes to Safed, the city continues to attract investors as well as those people moving to the city that offers the "best of both worlds" and a truly exceptional quality of life. See a list of properties currently for sale in Karmi'el Mon, 23 Dec 2013 19:46:10 +0000 http://www.buypropertyinisrael.com/article/planning-for-your-new-mortgage-in-israel Planning for your new mortgage in Israel Planning: Are you planning to purchase a new apartment in Israel? Buying an apartment is an important step that requires a lot of deliberation and decisions that are not so simple. However, financial planning for purchasing an apartment is an important step in the decision process. Before making the decision regarding purchasing an apartment here are a few points to consider: We recommend that you prepare a financial plan to help you make the decision regarding obtaining a loan. The financial plan places significance in checking the expenses required in purchasing an apartment taking into account the purchase price of the apartment and other costs such as tax, valuation fees and legal fees. The plan should also include your financial resources at your disposal. It should also include details of your current income (whether it be by way of salary, dividends, rental income etc.) and your projected expected income (including the rental income of your new apartment in Israel, if applicable) during the loan period. This data can help you in calculating the amount of the required mortgage, choosing the most appropriate type of mortgage for you and in estimating your ability to make the monthly payments. Mizrahi Tefahot Bank recommends that you make an initial financial plan and submit a request for a mortgage before finding an apartment or if one has already been found, before signing the purchase agreement. The submission of a mortgage application form, if acceptable to the bank, will enable you to receive an offer letter for the amount you need in advance. This will enable you to target apartments within a certain price range with an affordable mortgage.How to Make a Financial PlanCalculating the value of the apartment and the expenses required in purchasing it. It is recommended to: Check the land tax rates (betterment tax, purchase tax, and sales tax), real estate agents fees, additional expenses (such as maintenance) and fees for a lawyer handling the transaction. Check the financial resources at your disposal for financing the purchase transaction, excluding the mortgage (sale proceeds from your old apartment, help from parents, savings, loans etc.). Take into account current/future income from all sources (salary, pension, interest, dividends, rental income etc.). This will make it easier to choose an affordable mortgage that is right for you. Calculating Monthly Payments The next step after determining the value of the apartment and setting a mortgage amount is deciding the type of mortgage that is appropriate for your needs and financial capabilities (calculating the monthly payment). It is possible that after the financial planning as described above is completed, it will be clear that it would be better to consider another purchase, a cheaper one, or to change the mortgage components and its terms (for example, to shorten or lengthen the mortgage).The monthly payment amount in relation to Income. The affordability of the monthly payment amount of the mortgage depends on several factors, such as: The amount of net income in the household. The total expenses of the household. The number of children. Surety of income. Other factors which will be identified based on your personal circumstances. The bank will only approve the mortgage after checking your personal details when submitting the request for a mortgage.Financial planning for purchasing an apartment Purchasing an apartment is one of the most important and significant decisions in our lives. Whether referring to a new apartment or a second hand one, this is an exciting process, which also has long-term financial significance. In fulfilling your dream of purchasing an apartment, you should make a balanced and intelligent financial plan adjusted to your personal and financial needs, desires and abilities. Before you decide whether to purchase an apartment we have identified a few important points that we recommend you consider for the financial planning process: Valuing the apartment. Is it worth the purchase price of its asking price? Whether the apartment is being purchased to be lived in or as an investment, we recommend performing a valuation by a known independent appraiser. This service does require payment but it is important. It’s possible that the value of the apartment is actually higher than the asking price and therefore it would be wise to buy it, or maybe the value does not justify the asking price. In such a case you can negotiate and try to bring down the price or find another apartment that is more fitting to your personal taste and budget. Financial Obligation. Purchasing an apartment requires a concentration of financial resources. Are you putting all your eggs in one basket? Do you have sufficient liquid funds for a rainy day? Where is your equity. Identify various savings accounts or other sources such as help from relatives or arranging a new or increased mortgage against your UK property. It is important to take into account that at least part of the savings will be used towards investing in the apartment and the monthly budget will need to include new expenses including the monthly mortgage payment. Therefore, you must plan your monthly budget in advance and check your financial capability to meet the new framework. Mortgage Costs Purchasing a new apartment requires, usually, obtaining a mortgage with a fee payable to the bank, monthly capital repayments and interest payments. The bank will take a legal charge over the property as security for the repayment of the monies. The terms of a mortgage will include the provision of insurance, notably life insurance and property insurance. It is recommended, together with a bank representative, to check your financial situation, the amount of mortgage required and the proportion of your income that you will be required to pay for the mortgage and the mortgage insurance.Additional Expenses The financial plan needs to not only include the price of the property but also additional expenses required in the process, including fees for professionals (lawyer, accountant/tax consultant) and taxes (purchase tax and maybe even betterment levies). All of these expenses must be taken into account in the framework of the financial plan.Looking Ahead The financial plan should include possible future income, as well as large expenses that are expected. For example, income from a savings plan that will soon mature, or expenses for a new car bought in instalments, expected promotion at work, the birth of another child, etc.Future Expenses There is an understandable tendency to invest more efforts and resources into an apartment that is owned by you and is your private property (as opposed to a rented apartment for example), both in the building itself and its contents. Therefore, it is important that the financial plan will include at the outset the expenses relating to the required investment – renovations, a new kitchen, equipment for the apartment etc.Preliminary Advice They say there is nothing smarter than those with experience. It is important that you use the knowledge accumulated by family and friends who have purchased apartments and use the advice and tips for intelligent financial management.Mizrahi Tefahot Bank Limited We are the largest mortgage provider in Israel. We have a branch in London and shall be happy to discuss your mortgage requirements at any time’ Mon, 23 Dec 2013 19:01:45 +0000 http://www.buypropertyinisrael.com/article/obtain-a-mortgage-in-english-from-israel-s-largest-mortgage-bank Obtain a Mortgage in English from Israel's largest Mortgage Bank Mizrahi Tefahot Bank is the largest mortgage bank in Israel, here at our London branch we can offer English speaking people around the world a variety of solutions to finance your home in Israel.  We also offer you an English style service, with people that speak your language. Are you planning to buy a property in Israel? They say there is nothing smarter than those with experience.Mizrahi Tefahot Bank Limited (UMTB), London Branch specializes  in Israeli property financing for properties in Israel. Buying an apartment is an important step that requires a lot of deliberation and decisions that are not so simple. However, financial planning for purchasing an apartment is an important step in the decision process. At UMTB you decide on the loan currency, the frequency of payments (monthly or quarterly), and the loan term (up to 20 years). In our Israeli Property Financing Department we offer: Dedicated team situated in London Personalised/tailor-made loan solutions Multi currency facilities for up to 20 years Interest only loans for up to two years are available subject to certain conditions Co-ordination with your lawyer, insurance agents and valuer in Israel Finance available for new or existing properties All paperwork in London Branch is in English No penalty fees for early repayments of variable rate loans Loans are not attached to the Israeli CPI Free money transfers to UMTB branches in Israel Our dealing room can provide competetive exchange rates To be in contact with an English speaking Mortgage Professional at UMTB, please fill out the form below. Sat, 19 Nov 2011 21:40:52 +0000 http://www.buypropertyinisrael.com/article/changes-in-israel-real-estate-tax-law-effective-2011 Changes in Israel real estate tax law effective 2011 By Nicole Levin What to do about the Israeli real estate bubble?  That has been the question asked by many Israeli real estate professionals and government officials.  The prices of apartments have soared in the past few years making buying an apartment for many families a pipe dream. In steps the Israeli Ministry of Finance to save the day! I am being facetious of course.   In mid February of this year the Ministry of Finance enacted a series of changes to the existing laws governing  purchase tax and capital gains tax.  The purpose of some of these changes was to stop the rising real estate prices.  Below please find a few of the changes: 1. Change in the purchase tax.  Purchase tax for single apartments was lowered while purchase tax for an additional apartment was raised.  This helps young couples and families purchasing a home (where this is going to be the only apartment they own) as it greatly reduces the purchase tax they will have to pay.  Indeed, if the apartment is less than 1,350,000 NIS there won’t be any purchase tax to pay at all.  However, anyone who already owns an apartment and would like to invest in real estate by purchasing an additional apartment will pay a much higher purchase tax.  Indeed, if the additional apartment that they buy is  1,000,000 NIS they will pay 5% of this - a whopping 50,000 NIS!  Anyone who enjoyed in the past a partial exemption from purchase tax (such as new immigrants and disabled people) should crunch their numbers first.  After these changes the difference between the purchase tax paid by a new oleh for example and that paid by the purchaser without this exemption is negligible and in some cases the new oleh will pay more if he asks for this partial exemption! 2. Change in Capital Gains Tax.   In all real estate transactions the sellers are liable to pay capital gains tax.  In the case of residential apartments the existing law allows for several types of exemptions from this tax. Examples of this are:  If a person owns more than one apartment then he can sell one of his apartments with an exemption from capital gains tax every four years.   If the seller has only one apartment then he can get an exemption from capital gains tax once every year and a half.  This means someone (who only has one apartment) can buy an apartment, sell it and get an exemption and then buy another apartment instead of the one he just sold and sell that apartment in a year and a half and get an exemption from capital gains tax on that apartment too.  There are also exemptions for the sale of apartments gotten through inheritance, giving apartments as gifts between close family members, the sale of two small apartments in order to buy one large one etc.  Under the new law (which will be in effect for a period of two years only, unless extended) sellers will be able to get an additional two exemptions in addition to any exemptions they could have gotten under the existing law.  This means that people with multiple apartments can sell some or all of them and get exemptions from capital gains tax for these sales without having to wait the four years between sales with exemptions. 3. Limit to the exemptions from capital gains tax under the new law: The additional exemptions in the new law are limited to a price of 2,200,000 NIS.  This means that if the price of the apartment sold is less than 2,200,000 NIS then the seller will get a full exemption from the capital gains tax.  If the price of the apartment sold is more than 2,200,000 NIS then the seller will get an exemption from the capital gains tax for the amount of the price up till 2,200,000 NIS and he will be taxed for the amount of the price above 2,200,000 NIS. 4. What happens to the exemptions under the previous law:  Sellers can still use the exemptions from capital gains tax that were in effect under the previous or what I called above the existing law. 5. Tax planning:  The changes in the law make it necessary for sellers to do some tax planning with their real estate attorney.  For example, if a seller has an apartment that is worth 3,000,000 NIS and an apartment that is worth 2,000,000 NIS he can get an exemption now for both apartments without waiting four years between sales.  He should use the previous law for the exemption from the capital gains tax for the apartment selling for 3,000,000 NIS  because the previous law did not have a price limit and only apartments that sell for more than 2,200,000 NIS can get a full exemption from the capital gains tax under the previous law.  For the apartment selling for 2,000,000 NIS the seller should ask for the exemption under the new law.  This is just a simple example of how a little tax planning can save a lot of money. 6. New changes to the new law:  The new law is in effect until the end of December 2012.  The purpose of this law is to encourage people with several apartments to sell them now, thereby flooding the market with more second hand apartments which may bring down the prices.  In order to put pressure on all apartment owners to sell their apartments now, another change in the law was enacted in August of this year.  According to this change, starting from 2013 the law pertaining to the exemption from capital gains tax will revert to what it was before, but the exemption from capital gains tax will only be allowed once every 8 years for people who own more than one apartment.  However, people who only own one apartment may sell once every year and a half and get the exemption from capital gains tax just as they did under the previous law. The new law has brought with it many legal and technical problems as well.  We will have to wait and see if the changes in the law will bring about the desired effect of bringing down the prices of apartments in Israel or at least of stopping the rise in prices. Nicole Levin is an American born, Israeli trained real estate attorney with over 28 years experience in Israeli Real Estate transactions.  Nicole Levin has offices in Jerusalem, Modiin and Beit Shemesh.  To get Nicole Levin’s free ebook “Essential Things You Need To Know About Buying Real Estate In Israel “ sign up for her newsletter at  www.levinlawoffices.co.il. Mon, 14 Nov 2011 17:06:49 +0000 http://www.buypropertyinisrael.com/article/save-money-on--foreign-currency-transfer Save money on foreign currency transfer Buy Property In Israel has partnered with CurrencyTransfer.com, the fastest growing online foreign exchange platform, specialising in Israel Property Transfers. Working with an Israel focused currency specialist, you’ll benefit from vastly better-than-bank exchange rates, expert guidance and our award-winning online platform offers the fastest speed of transfer. The #1 Currency ‘Pro' Tip For Property Buyers In Israel 60% of our clients are overseas property buyers - we know a little about the Israel buying process. The critical thing to consider is this: Would you buy a property in the US, UK or Europe without knowing the final price? No way! The same should be the case for your dream home in Israel. This is what people do when they fail to fix the cost of the currency that will pay for the property.  Via reserving a rate in advance (hedging) and locking in your exposure, CurrencyTransfer.com can not only help you beat the banks rate of exchange, but also help ensure your property stays within budget. Who are CurrencyTransfer.com? With offices in London and Tel Aviv, our online platform specialises in helping over 6,000 registered clients make money transfers, safely and securely. We are now established as market leaders in helping clients send money to Israel. Whether you are  buying or selling property in Israel, making aliyah or making small business transfers, you’ll have the ability to make international transfers online, 24/5, from the comfort of your own home. Last year, the platform successfully completed over 3,200 transfers. We don’t charge any commission, so you will avoid nasty sending charges and a raft of additional, opaque fees. Our small costs are built into a fantastic rate of exchange - nothing else, 100% transparent. It's free to register with our online platform - takes less than 10 seconds. Your transfer is safe and secure, with our payment partners approved by either the FCA or Israeli Ministry of Finance. It’s 100% free to register. Key Reasons to use CurrencyTransfer.com include: Better than bank shekel exchange rates by up to 85% No Transfer Fees or hidden commissions Make online transfers 24/5 from the comfort of your own home Personalised rate alerts & free currency tools Your own Personal Relationship Manager Forward contracts and hedging for property buyers / sellers FCA & Israeli Ministry of Finance approved transfers Offices in London & Tel Aviv with over 6,000 registered clients Sun, 08 Aug 2010 16:23:18 +0000 http://www.buypropertyinisrael.com/article/be-sure-to-check-the-va-ad-habayit Be sure to check the Va'ad Habayit The Va'ad Habayit system was founded in 1968 in Israel.  A va'ad habayit is basically a "committee of an apartment buildings owners" who take responsbility for managing funds that are contributed by each apartment owner for the upkeep of common areas and related services, such as elevator and garden maintenance, the costs of communal heating and hot water systems, cleaning, gardening, and National Insurance (Bituach Leumi) for the cleaner/s. The amount varies enormously in accord with the type of services provided, and is usually collected on a monthly basis.  A va'ad head is elected or appointed to ensure that the cleaning is done, supplies paid for and that everything, including repairs to the roof, is shared equally among all the residents in the building. Also initiated in 1968,  the Assocation for Better Housing (Ha'aguda letarbut hadiyur), a non-profit organization was formed to help protect tenants' rights in apartment blocks.  To become a member of the association, each apartment owner needs to pay NIS 25 per year to receive legal services and council.  In a 2007 interview with jpost.com, Sami Israel, the legal advisor to the Association for Better Housing, estimated that 80 percent of the apartment buildings in Tel Aviv subscribed to the va'ad habayit system.  The person who volunteers to head the va'ad, says Israel, needs to take care of all the maintenance problems associated with the building. "Usually no one wants this position," he notes, "but it is an important one, especially to ensure that property values increase.  We check houses where there is no va'ad.  They are dirty and no one wants to live there - the value of the house goes down.  Where there is a va'ad in place you can see a garden and other facilities that are well maintained." Tue, 22 Jun 2010 18:35:30 +0000 http://www.buypropertyinisrael.com/article/use-your-ira-to-buy-investment-real-estate-in-israel Use your IRA to buy Investment Real Estate in Israel If you are a U.S. citizen and have a self-directed Individual Retirement Account, you may not be aware of the fact that you can actually purchase Investment Real Estate in the U.S. or internationally.  This is information your Stockbroker may not want you to know because he or she would love to see your funds invested in stocks, bonds or mutual funds.   There are obviously rules you must follow, but it is totally allowable and legitimate to use funds in your IRA to buy Investment Real Estate. If you would be interested in speaking with someone who can tell you more about this possible investment path, contact Lyle Plocher at lyle@buypropertyinisrael.com for a Referral. Once you have found out more, you are encouraged to consult your Attorney or Accountant or the IRS to confirm things.  Wed, 02 Jun 2010 15:36:06 +0000 http://www.buypropertyinisrael.com/article/the-request-for-real-estate-brokerage-services The Request for Real Estate Brokerage Services The Israel Real Estate Law established in 1996, requires that a Form with some basic information regarding the details of a Real Estate Transaction must be documented in writing and signed by the Client who is being represented by a Real Estate Agent in Israel, if the Agent wants to get paid for his services.  The "Request For Real Estate Brokerage Services" is the form typically used by Real Estate Agents in Israel to document that they assisted a Buyer or Seller with a Real Estate transaction.  The same form is used for both buyers and sellers, landlords and tenants.  The form requires certain basic information about the Client, the specific property or properties that would fall under the agreement, the rate of commission to be paid and obviously identifies the Company and Agent representing the party or parties. If you are looking to rent or buy a property in Israel or sell or lease a property that you own, and you intend to use a Real Estate Agent, then expect to sign the "Request for Real Estate Services" form.  Real Estate Agents will typically require that you sign this form before they show you a property or properties. A few things to be aware of in general when dealing with the "Request for Real Estate Services" form, include (1) Do not sign an Agreement with 2 different Agents regarding the same property or you will have obligated yourself to pay 2 commissions.  (2) Although a 2% Commission Rate is probably the predominant rate, commissions are negotiable.  (3) The Real Estate Commission becomes due and payable upon the signing of a "binding agreement" between you and the other party.  (4) On rentals, it is pretty typical to pay a commission at a rate that equals one month's rent on a twelve month rental agreement. Thu, 29 Apr 2010 03:51:36 +0000 http://www.buypropertyinisrael.com/article/eight-questions-to-ask-before-you-buy-a-home-in-israel Eight questions to ask before you buy a home in Israel That’s the title of an article at haaretz.com, written earlier this year by Guy Liberman.  Although it’s difficult to tell when you read the article where one questions ends and the next begins, the article does have some very good information for those people who are considering buying an apartment in a “new” building in Israel. check out the article Thu, 29 Apr 2010 03:43:28 +0000 http://www.buypropertyinisrael.com/article/a-great-resource-for-those-interested-in-buying-property-in-israel A great resource for those interested in buying property in Israel Jerusalem based Real Estate Attorney, Dr. Haim Katz has provided some great resources for people who are interested in buying property in Israel.  He has recently authored a book entitled “Buying Your Home in Israel”.  Visit his website and see for yourself.  The book can purchased on the website or an e-version can be downloaded for free. Dr. Katz’s website   Wed, 28 Apr 2010 03:16:16 +0000 http://www.buypropertyinisrael.com/article/types-of-land-in-israel Types of land in Israel Adv. Michael Decker, the author, has a B.A. in Israeli law and is a partner at the law offices of Cohen, Decker, Pex & Brosh. The three different categories of land in Israel are: those which may not be purchased by foreign citizens; those which may be purchased by foreign citizens, yet are subject to various conditions; and those which may be purchased by foreign citizens not subject to any conditions. The overwhelming majority of land is Israel is owned by the State and only a small minority is under private ownership. A negligible portion of land in Israel has not yet been categorized into either of these two areas. Approximately 7% of the allocated land in Israel is privately owned. The rest, i.e. 93%, is owned by the State and is known as “Israeli Land”. Israel’s Basic Law on real estate states that Israel’s Land is jointly owned by the State (69%), the Development Authority (12%), and the Jewish National Fund (12%). While the law expressly forbids transferring of such land either by sale or other means, it does imply that a long term lease would be permitted. State-owned land includes all land that was subject to the British Mandate prior to the foundation of the State of Israel and was requisitioned by the government subsequent to its establishment. Development Authority-owned land includes land that was confiscated in accordance with the Absentee Land Law and the Land Purchase Law. JNF-owned land consists of land purchased before and after Israel’s inception. The JNF’s by-laws grant it a fiduciary role, stipulating that land it owns shall be held for the benefit of and in trust for the Jewish people. This principal has so far been respected and was solidified in a treaty entered into between the JNF and the State. A bill has recently been submitted to the Knesset (Israel’s parliament) with the interest of legislatively solidifying this principal and is likely to be passed in the near future. State owned land (”Israeli Land”) is administered by the Israel Land Administration (ILA). Being a government orchestrated entity, the ILA exercises very limited powers, namely: the administration of State-owned land. The ILA is required to remain faithful to the purpose for which it was established and may not deviate from its authority. Furthermore, being a government entity, the ILA is subject to legislatively mandated modes of behavior, such as equality in hiring standards and the proscription of discriminatory practices. While there is no legislative mandate prescribing the objectives the ILA must advance, these have been established through judicial precedent. A seminal ruling dictating these objectives can be found in the Israel Supreme Court case of Adal Ka’adan v. the Israel Land Administration: “…The objectives that comprise the core authority of the Israel Land Administration are the continuation of State control of Israeli Land and the perpetuation of the administration and development of land in Israel under the concentration of a singular government entity. This is to prevent the transfer of ownership to non-favorable entities, to advance security issues and to authorize the operation of different national projects – such as: the absorption of new immigrants, the proper distribution of the population and agricultural settlement…” Now that I have clarified the different types of land prescribed under Israeli Law, I would like to discuss the opportunities existing for their acquisition. In principle, land that is owned by the Jewish National Fund can be leased to Jews only. The implication is that foreigners, as well as Israeli citizens and/or residents who are not Jewish, are not entitled to lease this land. Nevertheless, the land that is owned by the Development Authority and by the State can be leased to any citizen of Israel, whether he is Jewish or not. Foreigner’s who are Jews and are entitled to immigrate to Israel under the Law of Return may also lease this land. It is our experience, though, that in spite of the aforementioned limitations, foreigners who are not Jews can also lease land from the Israeli Land Administration, although this would be subject to approval by a specially convened committee. Such approval, should it be granted, is subject to submission of a cogent and persuasive letter demonstrating the potential contribution the applicant can make to Israel. Recommendations from several Israeli sources attesting to this can also smooth the way to receipt of approval. Another option is to register a company and/or a not for profit organization in Israel and ensure that this entity has a board primarily comprising Israeli citizens. The 7% of privately owned land is much less restrictive. The owner of such land may transfer his ownership to any other person, whether he is Jewish, non-Jewish, Israeli or non-Israeli. Most of the privately owned land in the country is located in urban areas, chiefly in the large Israeli cities of Tel Aviv, Jerusalem and Haifa. This is ascribed to the State not having requisitioned such land prior to its inception. This land, due to its geographical location and owning to the relative dearth of privately owned land, is in great demand today. Once again, there is no restriction on purchasing this land, irrespective of the potential buyer’s religion or nationality.  For legal advice in purchasing real estate in Israel contact Michael Decker: Wed, 28 Apr 2010 03:11:09 +0000 http://www.buypropertyinisrael.com/article/the-basics-of-buying-property-in-israel The basics of buying property in Israel In Israel, both the Buyer and the Seller pay commissions to their respective Agents.  Real Estate Agents in Israel predominately charge 2 % of the price of the property.   As a Buyer, you can choose a Real Estate Agent first or just look for properties and deal with the individual Agent who is representing that particular property.  Whichever course you choose, negotiations are conducted between the Agents. Consult your Real Estate Agent for guidance in deciding on location, type of property, understanding what is included in the Purchase Price, the length of the process, etc.  Be sure and determine what is included in the purchase price because property in Israel is sold with just the bare walls unless otherwise agreed.  Once an agreement is reached, the matter is turned over to Lawyers. Typically, both the Buyer and the Seller have their own Lawyers. The Lawyers do all the necessary research to determine the legal status of the property, insure that improvements that were made, were done with the proper permits, etc.  Obviously, the price and all financial terms are incorporated into the Agreement by the Lawyers.  Upon signing the Contract to purchase your property, you must be prepared to make a first payment and your Lawyer and Real Estate Agent will present their bills-their fees are due at this point.  In addition, the purchase tax is also due, however you do have a 50 day grace period to pay the tax.  Coordinate this payment with your Lawyer. Before an Agent will show you a property, they will ask you to sign a “Request for Real Estate Services”.  This form is required by Israeli Real Estate Law and becomes the Agreement which legally entitles the Agent to a commission.  Make sure that the exact address is indicated on the Agreement, especially if you are looking at property with more than one Agent, so you don’t get into a situation where you obligate yourself to pay 2 commissions for the same property. For additional information about the buying process, write me at lyle@buypropertyinisrael.com.  If I can’t answer your questions for you, I will put you in touch with a Real Estate Agent or Attorney in Israel who can.