Many buyers are surprised to find that even years after receiving the keys, the apartment is still not registered in their name at the Land Registry (Tabu). This is not necessarily a problem, but it is important to understand the process and make sure it is moving.
Why is registration not immediate?
Before each apartment can be registered separately, the building must be registered as a condominium: a plan is prepared, approvals obtained, plots sometimes merged or divided, and registration arranged with the Israel Land Authority. Only then are the apartments registered to the buyers.
What protects you meanwhile?
A caution note in your name, and in many cases registration with the managing company or the Israel Land Authority. Make sure it was actually registered and is still valid.
What must the developer do?
The contract should set the developer’s obligation to register the condominium and the rights, and within what time. Check this clause before signing, and what the developer may charge you for registration. See negotiating a developer contract.
When does it matter?
- On sale: an apartment not registered in the Tabu is sold by transfer of rights with the developer or managing company. This is possible but requires additional checks. See rights in a property not registered at the Land Registry.
- On a mortgage: the bank registers a mortgage only after registration, and until then relies on an undertaking to register.
- On inheritance: additional steps are needed to transfer the rights to the heirs.
If registration is stuck
Find out from the developer and the project lawyer what is holding it up. Sometimes a joint approach by the buyers speeds things up. When there is no progress for a long time, legal steps can be considered.
Where do you go from here?
A developer’s contract is written by the developer’s lawyers, so it protects the developer first. At Paz Israel & Co. Law Office we represent buyers of new apartments and landowners in combination deals: we check the developer, the security and the specification, negotiate the contract and accompany you through handover and registration at the Land Registry. For more information see our property purchase and sale representation page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal advice or a substitute for reviewing your specific circumstances.