What Is Legal Due Diligence?
Legal due diligence is a comprehensive review of all legal documents related to a property, conducted before signing a contract. Its purpose is to ensure the property is "clean" — that there are no legal issues, debts, third-party rights, or title defects that could affect the purchase. This is perhaps the most important stage in any real estate transaction.
Checking the Land Registry (Tabu)
The Tabu (Land Registration Office) is the official registry of ownership of land and properties in Israel. Some properties are registered with the Israel Land Authority (state-owned land) rather than the Tabu. A Tabu search reveals: who the registered owner is, whether there is a mortgage on the property and to which bank, whether any caveats have been registered (meaning someone is claiming a right to the property), and whether there is a lien, attachment, injunction, or right of first refusal.
Building Permits and Violations
In Israel, construction without a permit is a serious problem that can lead to a demolition order. Your lawyer will check: whether the land use plan (taba) matches the current use, whether existing permits cover all the floor area, and whether there are enclosed balconies, room additions, storage conversions, or other changes made without a permit.
Even if the problem originated with a previous owner — as the buyer, it becomes your problem. That is why it is important to check before buying.
The Purchase Agreement
A property purchase contract is fully legally binding. Your lawyer represents your interests in drafting and reviewing the contract. They will ensure: protective clauses in case defects are discovered, adequate security (bank guarantee, structural insurance), cancellation clauses and penalties, payment and handover schedules, and dispute resolution mechanisms.
Never sign a real estate contract without an experienced specialist lawyer.
Shared Building and Regulations
In a shared building, it is important to read the building regulations. What is permitted and what is not? Are there restrictions on use or short-term rentals (Airbnb)? What is the condition of the common property? Are there upcoming renovations that you will be required to fund? Also check any unpaid building committee fees owed by the seller.