Right of First Refusal Lawyer in Ramat Gan

What is a Right of First Refusal in Real Estate in Ramat Gan?

A right of first refusal (or "right of first purchase") is a legal right that grants the holder of certain rights in a real property the opportunity to be the first buyer before any other person, when the lawful owner of the property decides to sell. This right is typically registered in the land registry (cadastral documents) and creates a legal obligation for the seller to approach the rights holder first before any negotiation with other buyers. In real estate transactions in Ramat Gan, a right of first refusal may have considerable significance, whether it concerns an apartment in a condominium, a lot, or a commercial property.

A right of first refusal may exist between co-owners of real property, between a landlord and tenant, or between heirs and inheritance. Each such case requires thorough legal examination to ensure the right is exercised properly and the transaction is conducted in accordance with the law.

Who Needs Legal Consultation on Right of First Refusal?

If you are purchasing or selling a real property in Ramat Gan, you may encounter a right of first refusal held by a third party. Buyers must know whether a right of first refusal exists that will affect the transaction, while sellers must understand their obligation to approach the rights holder before any negotiation with an external buyer. Heirs dividing real property among themselves may encounter a right of first refusal held by one heir against the others. Additionally, residents in urban renewal projects (TAMA 38) holding certain rights in a property should be aware of their rights of first refusal or those of other parties.

Mandelbaum, Gor, Witzman-Gor and Partners law firm has guided real estate transactions in Ramat Gan for over 18 years, and carefully examines every right of first refusal before signing a purchase agreement or registering in the land registry. Our legal guidance protects your rights and prevents future complications.

Right of First Refusal vs. Right of Pre-emption — What's the Difference?

These two rights are related yet fundamentally different. Right of First Refusal is an active right that grants its holder the right to be the first buyer when the legal owner decides to sell. This right requires the seller to notify the rights holder of their intention to sell and give them the opportunity to purchase on the same terms offered to another buyer.

Right of Pre-emption, by contrast, is a protective right. It grants its holder the right to object to a transaction if it is proven that the seller failed to properly notify the rights holder, or if the right was breached in any way. A holder of a right of pre-emption can demand cancellation of the transaction with the external buyer and offer themselves as a buyer on the same terms.

Typically, both rights are registered together in the Land Registry to ensure complete protection. If only a right of first refusal exists, the rights holder can use it to purchase before others. If only a right of pre-emption exists, they can demand cancellation of a transaction conducted without proper notification.

The Legal Process: When and How is a Right of First Refusal Exercised?

When the legal owner of a real property decides to sell, and the property is registered with a right of first refusal, they must follow certain steps:

• Step 1 — Notification of the Rights Holder: The seller or their attorney must send a registered notice to the rights holder, specifying the terms of the proposed sale (price, conditions, timeline, etc.).
• Step 2 — Consideration Period: The rights holder receives a fixed period (typically 30–60 days, according to applicable law or the original agreement) to decide whether to exercise the right.
• Step 3 — Notice of Decision: The rights holder must notify the seller of their decision — acceptance or rejection. If they choose to purchase, they are bound by the terms included in the original notice.
• Step 4 — Execution of Sale Agreement: If the rights holder accepts the right, a transaction takes place between them and the seller. If they reject or do not respond, the seller may proceed with another buyer, but must comply with applicable law.
• Step 5 — Registration in Land Registry: After the transaction, the change in rights must be registered in the Land Registry and the caveat for the right of first refusal removed (unless a new right exists).

Each step in the process requires legal precision and care. An attorney experienced in real estate law will ensure that every requirement is properly fulfilled and that all parties are protected.

Risks and Common Mistakes in Right of First Refusal

Many real estate transactions are delayed or canceled due to improper handling of the right of first refusal. Below are the most common mistakes:

• Failure to notify the rights holder: If the seller fails to properly notify the right holder, the transaction may be void. The rights holder can demand cancellation and offer themselves as a buyer.
• Notification that does not meet requirements: If the notice did not include all required details (price, terms, timeline), it may be considered invalid.
• Failure to observe the waiting period: If the seller did not give the rights holder sufficient time to decide, or if they began a transaction with another buyer before the period expires, this can constitute a breach.
• Failure to register in the Land Registry: A right of first refusal not registered in the Land Registry may be considered non-existent in the eyes of a third party. It is important to ensure accurate registration.
• Failure to review warning notes: Buyers often ignore warning notes in the Land Registry that indicate rights of first refusal. This can lead to unnecessary legal fees or even transaction cancellation.

An experienced attorney will conduct all necessary checks in advance, ensure that all instructions are properly executed, and protect your rights throughout the entire process.

Legal Fees in Right of First Refusal Transactions

An attorney's fees for real estate transactions involving a right of first refusal vary depending on the complexity of the case. Typically, costs include:

• Land Registry and rights review: A thorough examination of the land registry abstract, warning notes, and all registered rights.
• Preparation and execution of purchase agreement: Drafting the purchase agreement, formulating clear terms, and negotiation advice.
• Notification and documentation: Preparation of notice to the rights holder, management of communications, and documentation of all correspondence.
• Land Registry registration: Submission of an application for Land Registry registration, follow-up on the process, and handling of any technical requirements.
• General legal consultation: Consultation on negotiations, understanding rights and statutory requirements.

In complex transactions or when there are disputes over the right, costs may be higher. However, investing in preliminary legal consultation prevents much larger future costs — such as transaction cancellation, lawsuits, or prolonged delays.

At Mandelbaum, Gor, Witzman-Gor & Co., we offer a complimentary initial consultation to discuss expected costs and available options for you.

Right of First Refusal in Urban Renewal (Tama 38)

In urban renewal projects in Ramat Gan, current residents may have special rights of first refusal. Typically, these residents have the right to purchase an apartment in the new project before any external buyer, and sometimes on special terms (discounts, mixed payments, or rights in common areas).

These rights are anchored in renewal agreements and in the Interior Ministry's provisions. All project residents must be aware of their rights and how to exercise them. Sometimes, residents waive their right of first refusal in exchange for monetary payment or other benefits — and this requires comprehensive legal consultation to ensure they receive fair value.

An attorney experienced in Tama 38 will help you understand your rights, negotiate with the developer, and properly register all rights in the Land Registry.

Right of First Refusal in Inheritance and Property Division

When a property owner dies and their heirs divide the property among themselves, one or all of them may have a right of first refusal toward the others. For example, if two brothers inherit a shared apartment, one of them may have a right of first refusal to purchase the other's share before the brother sells to a third party.

These rights may be anchored in a will, a family agreement, or the law. Division of property in inheritance requires thorough legal review to ensure that all rights of first refusal are handled properly and that each heir receives the value they are entitled to.

Mandelbaum, Gor, Witzman-Gor & Co. guides inheritance processes in Ramat Gan and ensures that all rights of first refusal are registered in the Land Registry and that transactions between heirs or with external parties are conducted in accordance with the law.