For many international buyers, the idea of owning a home in Israel is both emotional and exciting — a dream tied to identity, belonging, and the future. Yet many are unaware of what the process actually entails and what’s needed to successfully close on the right property.
Buying real estate in Israel isn’t overly complicated, but it is different from what many are used to abroad. Understanding the steps — from the moment you find the right property until the keys are in your hand — helps you move forward with clarity and confidence.
Step 1: finding the property and negotiating the price
It all begins with finding the right property. Whether through a realtor or your own search, once you’ve identified a serious option, negotiations begin.
In Israel, bargaining is part of the culture, and real estate is no exception. Factors that can help you negotiate include readiness to make a deal, access to funds, and the ability to sign quickly — all signs of a serious buyer.
Once there’s a verbal agreement on price and basic terms, both sides typically exchange details so the lawyers can begin drafting the contract.
Tip: In competitive markets such as Tel Aviv or Herzliya, having your lawyer and mortgage pre-approval ready beforehand can make a major difference.
Step 2: connecting lawyers and performing due diligence
Here’s where Israel’s process differs most from other countries — it’s the lawyer, not the realtor, who executes the contract.
Once terms are agreed upon, the realtor usually connects the lawyers on both sides via email, summarizing the price and payment terms. From there, the lawyers draft a sales agreement for signature by both parties.
Your lawyer’s role is to conduct due diligence before signing: checking the Land Registry (Tabu) to confirm ownership, ensuring there are no debts or liens, verifying property boundaries, and reviewing all building permits and plans.
If it’s new construction, your lawyer will also examine the project’s permits, specifications, and bank guarantees. Once everything checks out, they prepare or review the sales contract.
It’s best to involve a lawyer early — ideally at the same time you begin working with a realtor. Clear communication between the two is critical. When they work in sync, the process is smooth, efficient, and stress-free. When they don’t, even a simple deal can become complicated or fall apart.
Step 3: financing and the mortgage process
If you plan to take a mortgage, speak with a mortgage broker early — ideally before property hunting. In Israel, you’ll need a bank pre-approval, called an Ishur Ikroni, which confirms how much you can borrow.
The pre-approval process takes about a week to 10 days. Once you have it, you can negotiate confidently, knowing your financial limits.
After you’ve found a property, the bank sends an appraiser (shammai) to assess it. The appraisal confirms the property’s value and legality, and the process usually takes several days to about two weeks.
From pre-approval to appraisal and final mortgage approval, financing typically takes two to three weeks. Banks generally release mortgage funds within about 60 days of signing.
Foreign buyers can usually borrow up to 50 percent of the property’s value. Israelis and new immigrants (olim) can borrow up to 75 percent on their first property.
Step 4: signing the contract, payments, and registering the cautionary note
Once due diligence is complete, a signing date is set, and the first payment is made. If you live abroad, you can authorize your lawyer to sign on your behalf through a power of attorney.
The first payment usually ranges between 10 and 30 percent of the purchase price, depending on the negotiated schedule.
At this stage, your lawyer registers a Cautionary Note (He’arat Azharah) on the property — one of the most important legal safeguards in the process. It “locks” the property in your name, preventing the seller from reselling it. The note remains until full ownership is transferred.
For new construction, payments are made in stages tied to building milestones. Each payment is backed by a bank guarantee and accompanied by a voucher from the developer — ensuring your funds are protected even if the developer faces delays or financial problems.
Note: One of the first payments you’ll make after signing is purchase tax (Mas Rechisha). It must be paid within 60 days to avoid penalties.
Step 5: possession, registration, and getting the keys
Once the final payment is made, ownership is transferred to your name — mazel tov!
Your lawyer then completes the Land Registry process, which formally records you as the property’s owner. In new construction, this step may take longer, depending on when the project is registered.
If you purchased “on paper,” the final milestone is the occupancy permit (Teudat Gmar) issued by the developer.
Before accepting the keys, bring in a professional inspector (bedek bayit) to check that the property meets the agreed specifications. The inspector confirms all systems are working and that finishes match the contract. Any issues must be documented and corrected by the developer within a set timeframe.
Step 6: post-purchase setup and ownership
After receiving the property, transfer utilities — electricity, water, gas, and arnona (municipal tax) — into your name. Set up home insurance and, if you’re renting it out, coordinate with your property manager or tenants.
Foreign owners who spend most of the year abroad often hire a property management company to handle maintenance, tenants, and rentals. That way, when you return to Israel, your apartment is move-in ready.
How long does it all take?
Every transaction is different. For secondhand properties, the process usually takes two to three months from offer to keys in hand.
For new construction, the timeline depends on the project’s stage. Once construction begins, completion typically takes 24 to 36 months. Large urban renewal projects and high-rises can take four to five years or longer.
By law, Israeli developers must provide a guaranteed delivery date. If they fail to deliver on time, they face financial penalties — a legal protection that helps keep projects on schedule.
Final thoughts
For many international buyers, purchasing property in Israel may feel unfamiliar at first. Yet the system is built with strong protections at every stage — from the Cautionary Note that locks in your deal, to bank guarantees that secure your payments, to the transparency of the Land Registry that confirms your ownership.
With the right lawyer, realtor, and mortgage broker on your side, the journey is not only manageable — it’s one of the most rewarding experiences you can have in Israel.
As someone who has guided many through this process, I find deep satisfaction in helping clients see their dream of owning a home in Israel become a reality.
Noah Sander is a Canadian-born real estate agent based in Tel Aviv, specializing in helping international buyers and new olim navigate the Israeli property market. For inquiries: [email protected], his brokerage: Daon Group Real Estate