Purchasing Process

Colony's well experienced professional agents will guide you through the entire process:

  1. Assessing your budget and your demands of the property.

  2. Estimating costs

    Our experience has shown that a property buyer should take into account an additional sum of 4 to 9 percent so as to include: agent's fee, lawyer's fee, taxes (unless you are eligible for a tax waiver), renovations costs, home-movers' fee and replacement of old furniture or furniture that won't fit into the new home.

  3. Looking into mortgages.

  4. Looking into properties.

  5. Assessing the properties and making a decision.

  6. Having an engineer inspect the property

    It's highly recommended to hire a professional engineer to inspect the property before signing an agreement. Such an inspection may identify water leakage, damaged foundations, poorly built extensions and so on. Professional inspection may well be worth the expense.

  7. Handling documentation and taxation matters

    • Registering the rights to the property at the Land Registry Office ("Tabo").
    • Checking for liens.
    • A purchase tax of 0.5%- 5% of the property’s value is levied on all real estate purchases. The tax criteria distinguish between buyers who own other properties, and those who don't. If you have purchased a new house but have yet to sell your old one, you have one year to do so without falling into to "multiple owner" category. We’ll be happy to discuss your status and examine whether you might apply for any tax reduction category.
    • Dollar/ Shekel- While real estate prices in Israel are sometimes set in dollar, the payment is always in shekels. When the price is set in dollars you are advised to keep your money in a dollar savings account and vice versa.
  8. Legal care and lawyer's fee.

    As with any real estate purchase, it is recommended to use the professional services of a lawyer. When conducting a second hand real estate transaction, both sides bring their own lawyer and pay a fee of between 0.5%-2% of the property price for writing up a contract.

    We will be happy to assist you with information concerning legal matters, tax issues and mortgages. Please contact us.

  9. Signing the contract.

  10. Renovating

    In most instances, buyers wish to make some renovations in the property. The renovation may entail the following expenses: hiring an interior designer and/or contractor, upgrading the kitchen and bathroom appliances, etc. It is highly recommended to estimate the renovation costs before the acquisition.

  11. Property management, when needed.