Tabu Extract — Complete Guide: What to Check Before Every Transaction?

What is a Tabu Extract and Why is It So Important?

A tabu extract (or tabu for short) is an official document issued by the National Land Registry, containing all legal details and land data relevant to a specific property. It is essentially an "identity report" of the property, recording current ownership, appeals, liens, notes, and any restrictions or rights related to the land or apartment.

When you are considering purchasing a property, checking the tabu extract is not just recommended — it is essential. This document can expose legal issues that may affect your purchase, your rights as a future owner, or even your ability to use the property as you wish. In recent years, awareness of the importance of the tabu extract has increased among buyers and sellers, especially following complex transactions and urban renewal projects.

At Mandelbaum, Gor, Wittmann-Gor & Co. — specializing in real estate law since 2008 — we conduct a thorough examination of every tabu extract on behalf of our clients, comparing it against the purchase plan and transaction terms. This is an integral part of our legal advice to buyers and sellers in Petach Tikva, Ramat Gan, and throughout the central region.

What Information Appears in a Tabu Extract and Why is Every Detail Important?

To understand the importance of checking a tabu extract, it is important to familiarize yourself with the main components that appear in it. Each detail can have significant legal and financial implications.

1. Ownership Details and Registry

This section lists the current owners' names, their ID numbers, and the degree of ownership (full ownership, joint ownership, or a share of a jointly owned property). If the property is jointly owned, it is important to understand the ownership percentages of each owner, as this affects the sale process and the required consent of each party. In cases of joint ownership without agreement, a court order may be necessary to complete the transaction.

2. Liens and Waiver of Rights

This is one of the most important sections. A lien is a legal attachment by a court, government entity, or creditor on the property, preventing sale or transfer of ownership until the debt or claim is settled. A lien can be due to tax debt, bank debt, or a judgment against the owners. If a lien exists in the extract, the transaction cannot be completed without clearing it first. Waiver of rights is a similar term, referring to a third party's right to the property (such as a lease right, usage right, or restoration right).

3. Notes and Stop Orders

The notes in the tabu extract may contain information about legal issues or claims relating to the property. A stop order is a formal notice that prevents changes in ownership until the matter is settled or restricted. For example, a stop order may be due to a family law claim (such as a divorce claim) or a civil claim involving the property.

3. Restrictions and Conditions on Property Use

The tabu extract will show any legal restrictions on the property's use. These may be original conditions at the time of registration (such as an obligation to maintain a certain structure), or guidelines from zoning plans (planning directives). Such restrictions can affect your ability to rent the property, build on it, or use it for certain purposes.

5. Housing Rights and Lease Rights

If the property is an apartment in a multi-unit building, the extract will show details of housing rights (i.e., your right as a resident in the apartment), and also any existing lease rights for the benefit of third parties. A lease right can be a significant issue, as it may grant a lessee legal rights to the property even after its sale.

6. Property Details Itself

The extract will also include basic data such as the property number, address, area, and a brief description of the property type (apartment, house, plot, etc.). It is important to verify that this information matches reality and your purchase documents.

Common Risks — What to Watch Out for When Reviewing a Tabo Document?

In recent years, following an increase in real estate transactions and urban renewal projects, we have witnessed a rise in risks related to unencumbered tabo documents. Here are the main risks that real estate attorneys must examine:

Unresolved Liens

This is one of the most serious risks. If there is a lien on the tabo document and it is not cleared before the transaction closes, the buyer may find themselves owning a property that is legally frozen. They will not be able to lease it, sell it, or even pledge it as collateral for a loan. It is important to ensure, even at the initial review stage, that every lien is cleared by the seller or from the consideration at closing.

Issues with Joint Ownership

When a property is jointly owned by two or more owners, and some refuse to participate in the sale, a legal problem may arise. In such cases, it may be necessary to obtain a court judgment to allow a forced sale of the co-owner's share. In the tabo document, this review is essential as it directly affects the timeline and expenses of the transaction.

Restrictions on Property Use

There are cases where a property registered in the tabo has legal restrictions on the type of use permitted. For example, a property may be restricted to residential use only and cannot be used for commercial purposes. If you plan to use the property differently, you may face a problem. A thorough review of the restrictions in the tabo document will ensure that your planned use is legally permissible.

Lease Rights Imposed on the Property

A lease right is a right of a third party (typically a tenant) on the property. If a lease right exists in the tabo, it means that even after you purchase the property, someone else has a legal right to lease part of it or use it. This can lead to financing risks, as banks often refuse to lend on a property with an active lease right.

Planning and Zoning Issues

Some properties registered in the tabo have notes relating to the zoning plan (land use plan). If the property is located in a zone with restrictions on construction, expansion, or change of use, this may affect the property's value and your ability to make changes to it in the future. In Tama 38 projects (urban renewal), this review is essential to understand your rights as a new unit owner.

Caveats or Notes Regarding Family Law Claims

Sometimes, a caveat is placed on the tabo document due to a divorce claim, an inheritance claim, or another family dispute. This can delay the transaction until the matter is settled in court. It is important to ensure that any such caveat is removed before the purchase is completed.

Comparative Table: Common Taboo Registry Scenarios and Ways to Address Them

Each scenario requires a different approach. At Mandelbaum, Gor, Witzman-Gor & Co., we endeavor to identify such issues at the earliest due diligence stage to help you plan your next steps with confidence.

Taboo Registry Examination in TAMA 38 Urban Renewal Projects

In recent years, urban renewal projects (TAMA 38) and building demolition and reconstruction projects have become a common task in real estate law offices. In such projects, taboo registry examination becomes more complex because it is necessary to understand the rights of previous owners, their new rights in the new units, and all restrictions related to the renewal plan.

When you are part of a TAMA 38 project, the property's taboo registry will present the current ownership. However, it is important to understand that after the plan is approved and the project is completed, you will receive rights in new (or renovated) units. Taboo registry examination at this stage will help you understand the value of your rights, any restrictions on the new property, and all obligations related to the project.

Additionally, in renewal projects, there are often notations in the taboo registry relating to the renewal plan itself or the rights of public entities (such as a municipality or the Ministry of Construction). This examination is essential to ensure that the project is progressing properly and that your rights are protected.