Israel Real Estate Registration – Tabu, Minhal
Posted On July 7, 2021
Israel real estate registration
In Israel, the right and legal action to buy real estate is through the Property Registration Department included in the Ministry of Justice, or as it is often called in Israel “The Taboo”. The Israeli taboo is the body in charge of recording any real estate action in the official books of the Office. There are three different and separate books: the Rights Book, the Joint House Book, and the Deeds Book. The assets recorded in the first book are regulated by the Torrens system. Most of the properties in Israel are registered in this book. The assets in the second book are assets that contain two or more independent real estate units. Finally, the third book records the assets that are not regulated by the Torrens system and are not listed as multiple units.
Only by proper registration does one make his legal action (sale, purchase, parceling, etc.) legal in Israel in accordance with the provisions of Section 7 of the Israeli Real Estate Law of 1969. It is important to file the registration in the same regional bureau of the location of the property or properties. If the action has not resulted in registration with one of the nine offices throughout Israel, it will be considered a binding commitment. In Israel, registration is legally binding and ownership will legally change hands only when registration has been completed. Registration in the official books of Israel Tabu ensures the legal rights of the owner and increases the value of the property. Registration also enables the rapid transfer of property rights to new owners, saves money and time, and is an essential condition for transferring property in Israel.
After the real estate purchase, the actual purchase is for the use of property rights. At the end of the registration process, the Israeli Tabu office issues the registrar a deed indicating the lease period and termination date, and any ownership information regarding the asset (whether it is capitalized, mortgaged, confiscated, etc.) . In addition, the asset deed regulated by the Torrens system includes the precise location of the asset in Israel, specifying the division of 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 ensures the property rights of the owners to the greatest extent.
In some cases in Israel, a person can buy real estate and 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, as the apartment does not yet exist. The legal solution that the Israeli legislature has established to address this very common situation is to register a “warning note” in the Taboo in accordance with the provisions of Section 26 of the Israeli Real Estate Law. Therefore, when another potential buyer visits the Israeli taboo to write a new warning note, they may discover 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 recorded in the form of a third party agreement, third party rights, links, demolition orders, and notes under Israeli planning and zoning laws. It should be noted that only a person who has a written agreement granting the transfer of rights by the owner of the property rights can record a warning note.
Before purchasing a real estate asset in Israel, the prospective buyer is strongly advised to issue a taboo deed at the beginning of negotiations to ensure that there are no particular complexities that could interfere with or prevent the deal from being consummated. Even a real estate seller in Israel is strongly advised to issue a taboo deed to make sure property rights are listed in the seller’s name legally to avoid any interference that will obstruct the deal. It is strongly recommended that anyone considering buying or selling real estate in Israel consult an experienced attorney who is familiar with Israeli law.
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