Due diligence before buying an apartment in Israel is the stage where you find out whether the property you fell in love with is truly what is being offered: who owns it, what is registered, what was built legally and what was built without a permit. Many buyers spend weeks choosing the neighborhood and the apartment, and only a few days on the legal, planning and engineering checks, even though that is exactly where the risks that cost hundreds of thousands of shekels are hiding. In this guide we have set out the order of checks as we accompany it in north Tel Aviv and the Sharon region: which documents to order, what to look for in each one, which building violations are common in the area and what they mean, and what the lawyer does at every stage.
Where the apartment is registered: Tabu, the Israel Land Authority or a housing company
The first question is not what is registered, but where. Israel has three main registries for apartment rights, and each one issues a different document with a different level of certainty.
The Land Registry (Tabu)
When the building is registered as a condominium (bayit meshutaf), you order an online land registry extract (nesach tabu) from the website of the Land Registration and Settlement of Rights Authority by block, parcel and sub parcel (gush, chelka and tat chelka), for a fee of a few dozen shekels at most (the fee is updated from time to time). The extract shows the owner’s name and ID number, their share in the property, the registered area of the apartment, the attached elements (parking, storage room, roof, garden), and every lien and notation. Beyond the standard extract there is a consolidated extract, which lists all the units in the condominium, and a historical extract, which shows the chain of ownership over the years. The historical extract is particularly useful when the apartment passed through an inheritance, a divorce, or several sales in a short period.
The Israel Land Authority
Some apartments stand on state owned land and are held under a long term lease. In such cases you request a rights confirmation (ishur zchuyot) from the Israel Land Authority (Rashut Mekarkei Israel), detailing the registered lessee, the lease period and the payment status. It is important to check whether the lease is capitalized, meaning it was paid in advance for the entire term, because a lease that is not capitalized may require consent fees or permit fees upon a transfer or a building addition.
A housing company
In buildings constructed by companies such as Amidar, Rassco, Shikun Ovdim and similar firms, the condominium may never have been registered at the Tabu, and the rights are managed in the company’s own records. Here you request a rights confirmation from the housing company itself, not from the Israel Land Authority. Such apartments are more common than people think, even in the established neighborhoods of north Tel Aviv. They are bought and sold normally, but the process takes longer, and instead of a cautionary note at the Tabu, a commitment is recorded with the company, and sometimes a pledge at the Pledges Registrar.
Liens, attachments and cautionary notes: what the Tabu extract really says
The bottom section of the extract is the most important one, and many buyers skip it. Every entry there means that someone else holds a right or a claim in the property, and you need to make sure it is removed before your money changes hands.
- Mortgage: almost routine. The seller still owes the bank, and the debt will be repaid out of the purchase funds. Your lawyer will secure a letter of intent from the seller’s bank and a payment sequence in which part of the money goes directly to the bank in exchange for an undertaking to remove the mortgage.
- Attachment (ikul): usually registered in favor of a creditor or an authority. An attachment does not prevent a transaction, but it requires an arrangement with the attaching party before the rights are transferred.
- Cautionary note (he’arat azhara): under Section 126 of the Land Law, such a note warns that someone has already received an undertaking regarding the property, for example a previous buyer, a bank or a developer. A cautionary note in favor of a third party unrelated to your transaction is a genuine red flag.
- Special notations: a condominium order, a note on agreed bylaws, or a cautionary note in favor of a developer as part of an urban renewal project. Each of these changes what you are actually buying.
For apartments that are not registered at the Tabu, the equivalent check is a search of the Pledges Registrar under the seller’s name. A pledge registered there in favor of a bank or a private creditor will not appear in any land registry extract, which is why this check is essential.
Another check worth knowing is the condominium bylaws (takanon) and the registered floor plan (tashrit). This is where it is determined whether the garden, the roof or the parking space is attached to the apartment you are buying, or whether it is common property that the seller simply uses. That difference is one of the most common causes of disputes between neighbors after a purchase.
The building file: the permit versus reality
The extract tells you what is registered. The building file (tik binyan) tells you what was permitted to be built. In Tel Aviv you can review building files online and free of charge through the engineering archive on the municipality’s website, by address or by block and parcel. In recent years building permits in the city have been issued in a signed digital format. In the file you will find the original permit and every permit issued after it, the approved plans (the gramushka), Form 4 and the completion certificate, committee decisions, and any administrative or judicial orders that were issued.
The work itself is a comparison: you take the approved plan for the floor and compare it with the apartment as it stands today. Does the number of rooms match? Does the balcony appear as an open balcony? Is the ground floor storage room a storage room or a living unit? Is there an exit to the roof or the garden that does not appear on the plan? Every such gap needs an explanation: a later permit, an approved variance, or a violation.
A useful indirect check is the arnona (municipal property tax) assessment. The municipality charges arnona according to the actual area, so when the area on the arnona bill is significantly larger than the area in the permit, that is a clear hint of an addition worth examining.
Common building violations in north Tel Aviv and the risk they carry
In the established neighborhoods of north Tel Aviv, in Ramat Aviv, Neve Avivim, Bavli and Tzahala, a large share of the buildings went up between the 1950s and the 1970s, and in the decades since, owners have added, enclosed and extended. Three patterns come up in almost every review.
Enclosed balconies
A balcony enclosed with shutters, aluminum or blocks that has become part of the living room or an extra room. Sometimes there is a permit, sometimes the enclosure was done under a general permit for the building, and sometimes there is no permit at all. The direct risk is enforcement: a fine, a demolition order or a requirement to restore the original condition. The indirect risk, and often the bigger one, is that the bank’s appraiser will not recognize that area.
Rooftop additions
In top floor apartments, roof access rooms, enclosed pergolas and rooms built on the shared roof are common. There are two separate questions here: whether the addition received a permit, and whether the roof is attached to the apartment at all or is common property of all the residents. If the roof is shared, building on it may infringe on the neighbors’ rights, and this is also a material problem when the building enters urban renewal and the roof area becomes part of the rights sold to the developer.
Garden apartments
Ground floor apartments with a garden are among the most sought after properties in the area, and this is precisely where the gap between the registry and reality is widest. The standard questions: is the garden attached in the registered floor plan or only used in practice, was a storage room, a room or an extension of the apartment built in it, and did a roof or an enclosure turn part of the garden into living space?
It is important to understand that the problem does not stay with the seller. Using a structure built without a permit is an offense in its own right, so new owners may find themselves facing legalization or enforcement demands. When such an addition is legalized retroactively, it may also trigger a betterment levy (hetel hashbacha) and fees. The violation should therefore be reflected in the price, in the contract terms, or in both, and it is wise to have a lawyer assess the implications in the specific case.
A numerical example: how an enclosed balcony changes your financing
The following example is for illustration only. Assume a four room apartment in Ramat Aviv Gimel selling for ₪4,200,000, with an actual area of 110 square meters. According to the permit, the apartment measures 95 square meters, and the additional 15 meters are a balcony enclosed without a permit.
- The bank’s appraiser values only the permitted area and reaches a value of ₪3,900,000.
- Under Bank of Israel rules, the maximum financing ratio for buyers of a single home is 75%, and the bank calculates it on the lower of the transaction price and the appraisal: 75% of ₪3,900,000 is ₪2,925,000.
- Had the appraisal matched the price, the maximum mortgage would have been ₪3,150,000.
- The gap, ₪225,000, must come from the buyer’s own equity, on top of purchase tax, legal fees and transfer costs.
A buyer who discovers this gap after signing has a problem. A buyer who discovers it beforehand can negotiate the price or walk away from the deal. This is one of the reasons we recommend reviewing a property’s valuation against the permitted area, and not only against market prices.
Planning, urban renewal and unused building rights
A planning review asks what may happen to the building and its surroundings in the coming years. In Tel Aviv you order planning information through the municipality’s website, and you can check plans in progress on the Planning Administration’s website. What to look for:
- Plans that apply to the plot: whether there are unused building rights, for example rights to extend or to build on the roof, and to whom they belong under the bylaws.
- Urban renewal: TAMA 38 expired in Tel Aviv in the summer of 2024, and the city moved to alternative tracks and municipal plans. You need to know whether the building has signed with a developer, what stage the project is at, and whether a cautionary note was registered in the developer’s favor. The difference between a signed agreement with a permit and an early idea is a difference of years and of certainty. We covered the tracks and criteria in depth in our article on urban renewal in north Tel Aviv and Ramat Hasharon.
- Surroundings: road plans, public transportation, public buildings or nearby towers that may affect the view, the noise and the value.
Pay attention to the financial side as well: a betterment levy equal to half of the increase in value resulting from a plan is, in most cases, borne by the seller, but when a building addition is legalized after the purchase, a levy arising from the use of rights can fall on the buyer. It is worth asking the local planning and building committee whether there is an open assessment on the property.
Arnona, debts and running costs
Under Section 324 of the Municipalities Ordinance, a transfer of rights cannot be registered at the Tabu without a municipal certificate confirming that the debts on the property have been paid, including arnona, betterment levy and development levies. Providing the certificate is the seller’s responsibility, and your lawyer will make sure it is handled as part of the transaction. In addition, it is worth checking:
- Water bills with the municipal water corporation, as well as electricity and gas bills.
- Debts to the building committee (va’ad bayit), and the actual monthly committee fees.
- Renovations already approved in the building but not yet collected, such as an elevator replacement, roof waterproofing or facade reinforcement. Such a decision can turn into your charge days after you move in.
- The arnona classification and the billed area, also as an indirect check for violations, as described above.
Home inspection: due diligence before buying an apartment in Israel, on site
A home inspection (bedek bayit) by an engineer or a certified inspector is the check that completes the paperwork. In older buildings in north Tel Aviv it is especially important, because the age of the building and the additions made over the years leave marks that a regular viewing will not reveal. A good home inspection covers:
- Dampness and leaks, using a moisture meter and sometimes a thermal camera, mainly in wet rooms, under the roof and in exterior walls.
- Cracks in walls and ceilings, distinguishing between superficial plaster cracks and structural cracks.
- Exposed or crumbling rebar in ceilings and balconies, a common issue in buildings from the 1960s and 1970s.
- The electrical system: connection capacity, condition of the panel, grounding and a residual current device.
- Plumbing and sewage, water pressure, and the condition of old piping.
- Waterproofing of the roof and balconies, the condition of the elevator, and whether there is a safe room (mamad) or a protected space.
- Whether the parking space and storage room shown to you match what is actually attached in the registered floor plan.
Beyond the inspector, visit the apartment at different times: in the evening, at rush hour and on Shabbat. Road noise, actual parking, natural light and the life of the building only reveal themselves this way. If you are still searching, you can also browse our properties for sale and compare buildings across different neighborhoods.
Due diligence before buying an apartment in Israel: the checklist in order
Order matters: some checks are cheap and quick and can rule out a property within a day, while others are more expensive and justified only once the property has passed the first stage.
| Stage | What is checked | Who checks | When |
|---|---|---|---|
| 1 | Tabu extract, or a rights confirmation from the Israel Land Authority or the housing company | The buyer or the lawyer | Before serious negotiation |
| 2 | Seller’s identity, inheritance order or divorce agreement | The lawyer | Before serious negotiation |
| 3 | Building file and comparison between the permit and the actual apartment | The buyer, an architect or an engineer | Before a final price offer |
| 4 | Planning information, plans in progress, urban renewal status of the building | The buyer or the lawyer | Before a final price offer |
| 5 | Condominium bylaws and floor plan: attachment of garden, roof, parking and storage | The lawyer | Before a final price offer |
| 6 | Engineering home inspection | An engineer or certified inspector | After agreement in principle on price |
| 7 | Mortgage approval in principle and bank appraisal | The bank or a mortgage advisor | Before signing |
| 8 | Arnona, water, building committee, approved renovations, betterment levy assessment | The lawyer and the buyer | Before signing |
| 9 | Pledges Registrar search for an apartment not registered at the Tabu | The lawyer | Before signing |
| 10 | Registration of a cautionary note in the buyer’s favor, and an updated extract before every payment | The lawyer | Immediately after signing and throughout the transaction |
What the lawyer does, and when
The buyer’s lawyer is not just the person who drafts the contract. The role begins with the rights review, before a final price is discussed: verifying the extract, the seller’s identity and their capacity to sign, checking notations, attachments and pledges, and reviewing the bylaws and the attached elements. Once findings emerge from the building file or the home inspection, the lawyer translates them into protections in the contract: a price reduction, an escrow on part of the consideration, or an undertaking by the seller to legalize. We detailed the clauses of the sale contract itself in our guide to the apartment sale contract.
Immediately after signing, the lawyer registers a cautionary note in your favor, ensures that every payment is released only after an updated extract has been checked, and handles the report to the Israel Tax Authority, payment of purchase tax (mas rechisha), the municipal certificate and the removal of the seller’s mortgage, all the way to registering the rights in your name. These are all areas that require personal legal and tax advice. RS Nadlan does not provide legal or tax advice, and in every specific case the decision should be made with a lawyer and a tax advisor.
Our role as a real estate marketing and brokerage company is to connect the dots: to know the buildings and the neighborhoods, to identify early on a property that may become complicated, and to make sure the buyer arrives at signing with the full picture. If you are looking in the city’s established neighborhoods, you can start with our overview of neighborhoods in north Tel Aviv, and if you are interested in houses with their own land, floor plan and addition checks are especially important in Tzahala.
Frequently asked questions
How do I get a Tabu extract and what does it cost?
You order it on the website of the Land Registration and Settlement of Rights Authority at the Ministry of Justice, by block, parcel and sub parcel. The online extract is issued immediately, and the fee is low, a few dozen shekels at most, updated from time to time. If you do not know the block and parcel, you can locate them on the government maps by address.
What if the apartment is not registered at the Tabu?
Check where it is registered: with the Israel Land Authority or with a housing company, and request a rights confirmation from the relevant body. At the same time, run a Pledges Registrar search under the seller’s name. The transaction is entirely possible, and banks do grant mortgages for such apartments, but the process is longer and requires close legal guidance.
Can I buy an apartment with a building violation?
Yes, and it happens often in older buildings. The questions are how large the violation is, whether it can be legalized, what that will cost, and what the bank’s appraiser will recognize. A known violation that is priced in and addressed in the contract is a managed risk. A violation discovered after signing is a problem.
When should the home inspection be done?
After the initial legal and planning checks have been passed successfully and there is agreement in principle on the price, but before signing. That way you do not pay to inspect a property that will be ruled out because of its registration, and you can still use the findings in the negotiation.
What is a cautionary note and why does it matter to the buyer?
A cautionary note (he’arat azhara) is an entry at the Tabu that informs anyone checking the property that an undertaking exists in your favor. It prevents the seller from selling the apartment a second time or encumbering it without your consent, which is why it is registered immediately after signing, before most of the money is transferred.
Do the seller’s arnona debts pass to the buyer?
The debt belongs to the seller, but without the municipal certificate confirming the debts have been settled, the apartment cannot be registered in your name at the Tabu. That is why the lawyer makes sure the debts are settled as part of the transaction, and also checks for debts to the building committee and the water corporation.
Before you sign
Due diligence before buying an apartment is not a formality. It is what separates a quiet transaction from years of litigation, legalization and uncertainty. If you are considering an apartment in north Tel Aviv or the Sharon region and would like to go over the right order of checks for a specific property, we will be happy to help. You can reach us through our contact page or by phone at 077-500-4600 (+972 77 500 4600 from abroad).
