How long does it take to buy an apartment in Israel?

The most common question asked when purchasing real estate is: How long does it take to buy an apartment in Israel? Although not every buyer wants to purchase an apartment as quickly as possible, the process could potentially be completed in four months or less. On the other hand, if difficulties are encountered regarding the registration of ownership rights or other elements related to purchasing property, this process will be prolonged and may take many, many months.

Standard vs Non-Standard Transactions

As each buying scenario is different from case to case, it is important to be able to differentiate between standard and non-standard transactions. A standard transaction meets the following two conditions:

The transaction is made directly between the owner of the property and the buyer, no third party is involved.
The rights to the apartment are sold “as is”, meaning the legal and physical condition of the apartment meets the requirement of the owner, without any additional work needed.

On the other hand, non-standard transactions may take longer, and also contain an element of legal or physical uncertainty that alters the traditional process at hand.

Common Non-Standard Transaction Scenarios

Indirect Transactions Requiring a Third Party:

Buying from a receiver: A receiver is an agent, often an attorney or real estate agency, who is in charge of selling a property after bankruptcy. One advantage is the speed in which one may be able to purchase this apartment, however the receiver may coerce you into making an unreasonable deposit before receiving adequate information.
Buying from a block parcel ׂ(Gush Helka) company: This type of legal entity was common years ago, when it was possible to register several apartments as a block from which the tenants could purchase or lease shares. Although it is no longer legal today, it is still very common in Israeli culture. Before you can buy an apartment in such a block, the company has to be dissolved and the apartment registered under the name of the seller.

Indirect Transactions where the Apartment is Not Sold “As Is”

Damaged or value-add apartment: This is a type of apartment that requires improvements, so the cost of the improvements must be weighed against the low cost of the property.
Buying through TAMA 38: TAMA 38 is a popular Israeli Government Program incentivizing reinforcement of buildings against earthquakes. Buying through TAMA 38 may take longer than usual.
Buying into a construction project: This type of project takes at least as long as the construction of the apartment, and the most important part is receiving the initial plans from the construction company before agreeing upon a price.

Contact us if you need help with a real estate purchase or need to ensure the transactions is processed and completed as quickly as possible: