Real Estate & Property Law · Legal briefing
Tabu Checks & Property Due Diligence
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
The seller appears as owner and no mortgage is recorded. Does that also establish that the flat’s construction and use are lawful?
The legal position
A title extract records registered rights, attachments and notes. It does not certify conformity with permits. Compare the actual property with the building file, permits and plans. Irregularities may affect financing, value, tax and enforcement under the Planning and Building Law 1965. Purchaser liability is not automatic: it depends on the offence, use and legal position. Regularisation costs vary, and regularisation may be unavailable. Official source 1 Official source 2
Your next step
Collect the title confirmation, condominium plan and building file, with a professional survey where needed. Before signing, allocate costs and risks and consider whether regularisation, price changes or safeguards should be transaction conditions.