Real Estate Attorney in the United States

Why Legal Counsel is Important When Purchasing Real Estate in the U.S.

Purchasing real estate in the United States is a significant step that requires a deep understanding of the American legal system, local regulations, and required procedures. Each state in the U.S. maintains different laws pertaining to real estate transactions, property registration, taxation, and buyer rights. Mandelboum, Gor, Witzman-Gor & Co. provides comprehensive legal representation for Israeli buyers and contractors seeking to invest in real estate abroad.

Our experience since 2008 in real estate and property law enables us to understand the nuances of the Israeli real estate market while simultaneously providing professional counsel regarding foreign transactions. We represent buyers exclusively and focus on protecting client interests at every stage of the process.

What Legal Counsel in U.S. Real Estate Includes

• Legal Condition Review: Examination of property rights, legal encumbrances, liens, and all obligations related to the property.
• Transaction Representation: Document preparation, coordination with foreign mortgages, review of purchase agreements and commercial terms.
• Tax Considerations: Guidance regarding tax implications for Israeli buyers, reporting to Israeli tax authorities, and foreign reporting obligations.
• Closing Process Representation: Representation during document execution, secure fund transfer, and finalization of property rights.
• Rights Protection: Protection of the buyer against fraud, procedural failures, or future claims.

Every foreign real estate transaction is unique. We examine each case individually and offer legal solutions tailored to the client's specific needs.

Key Differences Between Real Estate Law in Israel and the U.S.

Real estate laws in Israel differ significantly from those in the United States. While Israel has a centralized property registration system at the Land Registry, the United States gives each state and local county its own independent registration system. This means that the procedure, costs, and legal requirements vary depending on the property's location.

Registration and Property Rights System

In the U.S., property registration is conducted at the county level rather than the state level. Each county maintains its own independent register of real estate transactions, and the procedure for proving ownership and property rights differs from the Israeli system. In Israel, the Tabu is a single government document evidencing ownership. In the U.S., there are several forms of joint ownership (Joint Tenancy, Tenancy in Common, Tenancy by the Entirety), and each carries different legal implications.

Investment Process and Issuance

In Israel, a real estate sales contract typically includes a short commitment period and conditions defined by law. In the U.S., the Purchase Agreement is a detailed document containing many conditions, inspection periods, mortgage contingencies, and termination clauses. Each state may add its own requirements, such as environmental inspections, owner's insurance, and liability insurance.

Costs and Taxes

Costs of purchasing real estate in the U.S. include attorney fees, realtor commissions, closing costs, transfer taxes (if applicable in the state), annual property tax, and owner's insurance. In Israel, the primary costs are appreciation tax, purchase tax, and registration fees. The tax system in the U.S. also differs from Israel's, and an Israeli buyer must be aware of reporting obligations in both tax systems.

Real Estate Purchase Process in the USA — Key Stages

Stage 1: Property Search and Preliminary Agreement

The buyer searches for a property with the assistance of a real estate agent (Realtor) or directly. After finding a suitable property, an Offer to Purchase is submitted. At this stage, it is important for an attorney to review the offer terms and ensure they are fair and do not include problematic conditions.

Stage 2: Property Inspection (Inspection Period)

Following acceptance of the offer, the buyer has a period (typically 7–14 days) to physically inspect the property and conduct engineering inspections. This inspection covers the structure, systems (electrical, plumbing, heating), and potential environmental issues. An attorney can provide guidance regarding inspection results and cancellation rights if significant problems are discovered.

Stage 3: Mortgage Approval

Most buyers require a mortgage. The bank abroad (or in Israel, if available) verifies repayment capacity and appraises the property. This process may take 30–45 days. An attorney can assist in coordinating with the bank and reviewing mortgage terms.

Stage 4: Homeowners Insurance and Liability Coverage

In the USA, homeowners insurance is mandatory when there is a mortgage. This insurance covers damage to the structure but not its contents. An attorney can provide guidance on selecting appropriate insurance and ensure the policy protects the buyer.

Stage 5: Closing

At the closing stage, the buyer signs legal documents, transfers funds, and receives title documents. At this stage, an attorney (or a similar professional abroad, such as a Title Company) verifies that all documents are in order, that all legal encumbrances are recorded, and that the transfer of funds is conducted securely. Following closing, the property is registered in your name in the county registry.

Stage 6: Tax Reporting in Israel

After purchasing the property, an Israeli buyer must report the property to the Israeli tax authority. This includes reporting rental income (if applicable), reporting foreign assets, and performing annual tax calculations. An attorney or tax consultant can assist with these aspects.

Comparison of Costs and Parameters When Purchasing Real Estate in the USA

When planning to purchase real estate in the USA, it is important to understand the general range of costs and legal parameters associated with the transaction. The following table presents a comparison of typical parameters in foreign real estate transactions:

It is important to note that these costs are general estimates only and may vary depending on the state, county, property value, and market conditions. Each transaction is unique, and it is essential to obtain an accurate assessment from a foreign real estate attorney or property specialist.