Due diligence before buying property in Israel

The Tabu extract and warning notes

The full Tabu extract (nesach tabu) shows the current legal status of the property as registered in the Land Registry. It is ordered online from the Ministry of Justice, which also offers it with an apostille.

A warning note (he’arat azhara) is registered when an owner, lessee or mortgagee has committed in writing to a transaction. Land Law 1969, s. 126(a).

While a warning note stands, no transaction that contradicts it is registered without its beneficiary’s consent or a court order. Land Law, s. 127(a).

A later attachment, bankruptcy or liquidation order, or the appointment of a receiver, does not harm the rights the note protects. Land Law, s. 127(b). A buyer registers a note in their own favour as soon as the contract is signed.

Rights outside the Tabu, and the foreign-buyer rule

An Israel Land Authority (ILA) lease is not always in the Tabu: the ILA Law itself deals with lessees whose right is registered on part of the land only, or not registered at all. Israel Land Authority Law 1960, s. 4Yod-Zayin(b)(1). The Tabu extract then does not show the right, and it is checked with the ILA.

If the property is ILA land, its transfer to a foreigner needs approval. Israel Lands Law 1960, s. 2A(b). This includes land whose ownership was later vested in the lessee under the ILA Law. Israel Lands Law, s. 2A(a).

The rule applies to sales of attached property, mortgage enforcement and sales by the Execution Office. Israel Lands Law, s. 2A(c).

A foreigner is someone who is not an Israeli citizen or resident and is not entitled to immigrate under the Law of Return. A transfer made without approval has no effect and is not registered. Israel Lands Law, s. 2A(a) and (d).

The planning file and the permits

The local planning committee must give anyone with an interest in a plot, on written request and within 30 days, the plans that apply to it, whether in force, deposited or announced, and information on betterment levy liability. Planning and Building Law 1965, s. 119A.

Plans can be searched by address on the Planning Administration’s planning information site, which also lists permits and exceptional uses. The ILA has its own plan search.

No one may build without a permit from the local licensing authority, or other than as the permit allows. Planning and Building Law, s. 145(a). What is built on the plot is compared with the permit plans held by the committee.

Betterment levy and municipal debts

Betterment (hashbacha) is the rise in a property’s value caused by approval of a plan, a variance (hakala) or an exceptional use. Planning and Building Law, Third Schedule, s. 1(a).

The owner pays the levy (heitel hashbacha); if the land is under long lease, the lessee pays. The rate is half the betterment, and a quarter for a residential urban-renewal (pinui-binui) plan. Third Schedule, ss. 2(a), 3 and 3A(a).

The levy is due no later than the date the rights are realised, which includes a sale. Third Schedule, s. 7(a) and s. 1(a), definition of realisation, para. (3).

A sale is not registered without the planning committee’s certificate that the levy due has been paid or secured. Third Schedule, s. 10(a).

Nor is it registered without the municipality’s certificate that all the owner’s debts on the property, municipal tax (arnona) included, are paid. Municipalities Ordinance, s. 324(a). In a receivership sale, who carries these arrears is set by the sale notice.

Occupants

An occupant can be a protected tenant (dayar mugan) under the Tenant Protection Law. The Law does not apply to a property that had no protected tenant on 20 August 1968 unless it was later let for key money. Tenant Protection Law 1972, s. 9.

Nor does it apply to a building completed after that date and let after it. Tenant Protection Law, s. 14(a).

Where it applies, a protected tenant can be evicted only on the grounds listed in the Law, and the court may still refuse eviction if it would not be just. Tenant Protection Law, ss. 131 and 132(a).

Real prices of comparable sales

The government real estate site (nadlan.gov.il) is run by the Survey of Israel. It shows sales from the Tax Authority’s transaction file, corrected with Land Registry data and developers’ declarations under the Sale of Apartments Law. State Comptroller, October 2025 report, PDF p. 100.

The Tax Authority runs a separate database, which shows at most 150 results per search. Same report, PDF p. 100.

The Comptroller found that the two sites return significantly different results for the same address, and that the government site omits land sales and often shows only the latest sale of a property. Same report, PDF pp. 101 and 105.

Comparables are therefore read on both sites, by block and parcel as well as by address, before a price is set. Before signing, the file is reviewed by an Israeli lawyer.