Checking a Tabu extract and liens before buying in Israel
Checking a Tabu extract and liens before buying in Israel
Most costly property disputes in Israel begin with something the buyer could have discovered before signing. The registration may not match the seller, a mortgage or attachment may remain on the title, an extension may have been built without a permit, or a plan may affect the property. Due diligence is the process of finding these issues early, while they can still be priced or resolved. This guide sets out the core checks and who performs them.
Where the rights are registered
Property rights in Israel may be registered in the land registry, known as the Tabu, recorded with the Israel Land Authority or held through a housing company. Each source issues a different document, and a buyer must know which one applies.
The Tabu extract shows the registered owners, the parcel, the share in common property and any notes. For rights not registered in the Tabu, a confirmation of rights from the relevant body serves a similar purpose.
Tabu extract – from the land registry
Israel Land Authority confirmation – for leasehold not yet registered
Housing company confirmation – for rights held through such a company
Reading notes and encumbrances
The extract may show mortgages, caveats in favour of third parties, attachments, bankruptcy or receivership notes and restrictions. Each must be understood and, where necessary, released at or before completion.
In a condominium, the registration also shows attached parts such as parking, storage or roof rights. Buyers should confirm that what they are shown on site is what is registered.
Permits, planning and the building file
The municipal building file shows the permits issued for the property. Comparing it with the actual property reveals unauthorised extensions or changes of use, which can lead to enforcement and may affect financing.
A planning review identifies current and pending plans that could add rights, impose restrictions or indicate expropriation for public use.
Building file – permits and approved plans
Violations – works without a permit
Zoning – permitted use and pending plans
Debts and other checks
Before completion, the seller usually needs to provide confirmations that municipal charges and relevant taxes are settled, along with approvals needed for registration. Buyers should also check for pending litigation involving the property.
For a building in an urban renewal process, ask whether the seller has signed an agreement and what obligations transfer to the buyer. Physical checks by an engineer, covering damp, structure and systems, complete the picture.
The lawyer and the appraiser
A real estate lawyer who represents the buyer carries out the legal checks, drafts or reviews the contract and arranges caveats and registration. An appraiser assesses value, planning potential and physical issues and is often required by a lender.
Elkayam Group works in development, urban renewal and complex deals, and can help buyers understand what a due diligence finding means for the value or structure of a deal.
Frequently asked questions – due diligence before buying
Is a Tabu extract enough on its own
No. It shows registered rights and notes, but not permits, planning, debts or physical issues. It is the starting point of due diligence, not the whole of it.
Can I buy a property with a mortgage on it
Yes, if the contract ensures the mortgage is repaid from the purchase price and released. The lawyer arranges the mechanism with the lender.
What if part of the apartment was built without a permit
The buyer may inherit enforcement risk and financing difficulties. A lawyer and appraiser should assess the issue before price and terms are agreed.
Why Elkayam Group
The group works in development, urban renewal, combination deals and complex deals, cooperates with backing companies and provides guarantees for clients. The team works in Hebrew, English and French.
Contact: +972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv