First Registration Attorney in Ramat Gan

What is First Registration and Why is it Critical in Real Estate Transactions?

First registration in the land registry (Taboo) is a central legal process in real estate transactions in Israel. When a person purchases a property — an apartment, house, plot of land or store — they must be registered as the rights holder at the Land Registry Office. First registration is the historical registration of the first property owner registered in the land registry following the establishment of the Taboo system in Israel.

The importance of first registration lies in the fact that it proves the historical chain of ownership of the property. Each new registration in the land registry is based on the previous registration, and if there is a problem with unregistered rights or historical claims, the first registration is the foundation for complete clarification of rights.

As an attorney specializing in this field, we help buyers and sellers understand the meaning of first registration, verify the correctness of the land registry, and identify any legal risks that may affect the transaction.

Unregistered Rights — The Major Risk in Real Estate Transactions

One of the most significant risks in real estate transactions is the existence of unregistered rights in the land registry. Unregistered rights are legal rights to a property — such as a lease right, right of use, right of habitation, or claims by heirs — that are not registered in the land registry but may be valid under law.

For example: if a property owner stated in a will that the property passes to a son, but the will was not registered in the land registry, and that son can sue for the property even if it was sold to a third party. Or: if a property owner granted a right of habitation to another person (for example, a parent or sister), that right may be valid even if not registered in the land registry.

A thorough review of unregistered rights is an integral part of real estate transaction guidance. We examine: wills, financial agreements, historical contracts, family claims, and any document that may indicate a right that is not registered in the land registry.

The Process of Land Registry Verification and Property Registration

When purchasing a property, a careful review of the land registry must be conducted. This process includes:

• Obtaining an updated land registry extract — a document detailing all rights, encumbrances, liens and caveat notices registered on the property.
• Verification of encumbered rights — identifying mortgages, encumbrances to other creditors, and any financial obligations related to the property.
• Verification of liens — identifying liens placed on the property by courts or official bodies.
• Verification of caveat notices — identifying legal claims or rights that are not formally registered but have been notified to the registrar.
• Verification of the property file at the office — review of all historical transactions conducted on the property to ensure there are no gaps in the chain of ownership.

This review prevents situations in which the buyer discovers, after completing the transaction, that there is an unremoved mortgage, or a lien blocking the sale of the property, or a legal claim by a third party on the property.

Real Estate Transaction Support — Key Stages

As a lawyer specializing in this field, we guide buyers or sellers through every stage of the transaction:

1. Pre-Transaction Legal Review

Before signing a purchase agreement, we examine the land registry, the legal status of the property, the payment of all obligations (taxes, management fees, property tax), and all potential risks. This review provides the buyer with a clear picture of what they are purchasing and under what conditions.

2. Drafting and Review of Purchase Agreement

The purchase agreement is the central document in the transaction. We participate in drafting the agreement, ensure that the terms are fair to our client, and verify that all details (price, rights, obligations, conditions) are recorded accurately.

3. Verification of Payments and Claims

We verify that the seller owes no taxes, management fees, registration office fees, or any other debt related to the property. Any unpaid debt may pass to the new buyer.

4. Preparation of Documents for Registration

After the agreement is signed, we prepare all documents required for registration in the land registry: registration forms, legal declarations, and reports to the income tax and tax authorities. We handle submission of documents to the registration office and follow up on the process until completion.

5. Management of Tax and Fee Payments

In a real estate sale transaction, the seller must pay capital gains tax (the property owner pays on the difference between the original purchase price and the sale price), and the buyer must pay purchase tax (typically 3–8% of the price, depending on circumstances). We calculate the required payments and arrange submission to the tax authorities.

6. Mortgage Review and Removal

If the property was previously purchased with a mortgage, the seller must repay the loan and remove the lien from the land registry. We coordinate with the bank, ensure that the loan will be settled at closing, and verify that the lien is removed from the land registry.

7. Transaction Completion

At the end of the process, we verify that all documents have been registered in the land registry, that the new buyer is registered as the property owner, and that no rights or liens that were not supposed to exist remain in the land registry.

Special Matters: Law 5770 (Urban Renewal), Urban Renewal, and Residents in Co-owned Properties

In real estate transactions with special arrangements — such as urban renewal projects or co-owned properties — there are additional legal layers.

In Urban Renewal: Residents in a renewal project must understand their rights to the new apartment, their participation payments in project costs, and their rights to a temporary apartment during construction. We review the renewal agreement and ensure that residents are legally protected.

In Co-owned Buildings: When a property is part of a co-owned building (such as an apartment building), the buyer must be aware of their rights and obligations as a participant in the co-owned building: payment of management fees, payment of maintenance fees (for repairs and maintenance of common areas), and agreement to decisions made by vote of the property owners.

Comparative Table: Risks in Real Estate Transactions and How We Help

Real Estate Attorney Fees — What to Expect

Real estate attorney fees vary depending on the type of transaction, its complexity, and the property's value. Typically, fees are calculated as a percentage of the property's value or as a flat fee per transaction.

For residential property purchases or sales of apartments or houses, attorney fees generally range from approximately 0.5% to 1.5% of the property's value, depending on the transaction's complexity. For more complex transactions — such as subdivisions, condominiums with legal issues, or transactions involving unregistered rights — fees may be higher.

We offer a complimentary initial consultation where we assess your transaction and provide an accurate fee estimate.