10 Checks Before Signing a Purchase Agreement

Why is a legal review of a purchase agreement critical?

A purchase agreement is the foundational document of any real estate transaction — it establishes your rights, obligations, terms, price, and financial arrangements. Signing an agreement without thorough legal review can result in significant financial loss, legal complications, or even inability to complete the transaction. In recent times, many buyers and sellers encounter problems stemming from ambiguous conditions, hidden liabilities, or documentation defects — all of which can be prevented with a comprehensive advance review.

Experienced attorneys understand that these reviews are not merely techno-bureaucratic formalities — they represent insurance for legal protection that safeguards the largest investment most people make. At Mendelboyum, Gor, Weitzman-Gor & Co. (active since 2008 in real estate and property law), we guide buyers and sellers through every step of this review process, bringing to their attention risks that others might overlook.

10 Essential Checks Before Signing a Purchase Agreement

Below is a comprehensive checklist of 10 checks to be performed in collaboration with an attorney before you sign a purchase agreement:

Purchase Checklist — Practical Steps for Conducting Inspections

To conduct these 10 inspections systematically, here is a practical action plan:

Step 1: Preliminary Planning (Before Signing the Contract)

• Request an Updated Title Deed: Ask the seller or their attorney for an updated title deed (no more than 30 days old). Check the property owner's name, property boundaries, and property area.
• Check for Liens: Contact the Land Registry Office directly and confirm that there are no liens on the property.
• Request a Declaration from the Seller: Ask the seller for a written declaration (as part of the contract) that the property is free from liens, debts, and any legal issues.
• Check Capital Gains Tax: In coordination with the Tax Authority or with an attorney, calculate the expected capital gains tax amount and confirm who will pay it.

Step 2: Contract Review (Before Signing)

• Read Carefully: Read every clause in the contract and verify that all agreed-upon terms are clearly documented.
• Check Price and Terms: Confirm that the price, payment method, and transfer dates match your agreement.
• Check Conditional Terms: If there are conditions (such as bank approval or expert inspection), verify that they are clear and implementable.
• Check Responsibilities: Verify that the contract specifies the seller's responsibilities, property condition, and potential claims after transfer.

Step 3: In-Depth Legal Inspections (With an Attorney)

• Check Planning: Contact the local authority and verify that there is no new building plan or building restrictions that could affect the property.
• Check Insurance: Confirm that the seller or buyer (as per the contract) insures the property until final transfer.
• Check Purchase Tax: Calculate the purchase tax and verify that your budget includes this expense.

Step 4: Closing (Before Finalizing the Transaction)

• Final Inspection: Before final transfer of funds, verify again that there are no new liens or issues that appeared in the updated title deed.
• Registration: Confirm that the transfer of ownership is properly registered at the Registry Office, and that you have received a new title deed in your name.

Common Risks — What Can Go Wrong?

If you do not conduct these inspections carefully, many issues may arise:

• Hidden Liens: Discovery that the property is liened by a bank or the Tax Authority — could prevent the transfer or leave you stranded after you have already invested money.
• Unexpected Capital Gains Tax Obligations: If capital gains tax is not calculated properly, a tax demand may appear in the future, with penalties and interest.
• Vague Terms in the Contract: If the contract does not clearly specify price, conditions, or responsibilities, expensive legal disputes may arise.
• Planning Issues: If the property was built in violation of the building plan, or if there are mysterious building restrictions, the property value could drop significantly.
• Property Not Free of Tenants: In redevelopment projects, if you did not check the rights of existing tenants, it may turn out that you cannot complete the purchase as expected.

Why Work With an Attorney on These Inspections?

A purchase contract is a complex legal document, and small errors can lead to significant consequences. An attorney experienced in real estate and property law can:

• Identify Early Risks: An attorney knows which contract terms may be problematic and can suggest modifications or clarifications.
• Conduct Administrative Inspections: Inspections at the Registry Office, with the local authority, and with the Tax Authority require knowledge and connections — an attorney can do this for you.
• Coordinate Between Parties: If there is an issue, an attorney can negotiate with the seller or their attorney to resolve the problem.
• Protect You in the Contract: An attorney can add conditions (such as guarantees or claims) that will protect you if something goes wrong.

At Mandelbaum, Gor, Yitzhak-Gor & Co., we assist buyers and sellers at every stage of purchase contract review. With over 18 years of experience in real estate and property law, we know how to protect your investment and avoid costly mistakes. Your first meeting with one of our attorneys is at no cost — during which we can review your contract, identify risks, and suggest next steps.

10 Checks — Quick Summary

Below is a table summarizing the 10 checks and what to examine in each:

Each of these checks is essential before signing a purchase agreement. An experienced attorney will ensure every check is performed thoroughly and help you avoid costly mistakes.