Although it is rare for to us encounter a buyer who wants to buy an apartment as quickly as possible (and for some buyers, the timeline is not a factor), the most common question we are asked by potential apartment buyers is how long it takes to buy an apartment. If you are a proactive and informed buyer who has read this guide and encounters no unexpected surprises in your buying process, and if you are buying under standard transaction conditions (discussed below), in our experience you could find and purchase an apartment in four months or less. On the other hand, if you encounter difficulties with the registration of your ownership rights or with other elements in the buying process like financing, or if you want to buy into a collective or construction project, the process could stretch for many months or longer.
Standard vs. Non-Standard Transactions:
Because each buying scenario is unique, it is helpful to differentiate between standard and non-standard transactions for the purpose of estimating how long the process will take. A standard transaction is a transaction that meets two conditions:
a) The transaction is made directly between the registered owner of the property and buyer, and not through a third party of any kind.
b) The rights to the apartment are sold “as is,” meaning the physical and legal condition of the apartment meets the requirement of the owner without additional physical or legal work being needed. Standard transactions usually can take among the shortest times to execute, but not always, especially if negotiations with the seller become drawn out. A non-standard transaction, on the other hand, contains an element of legal or physical uncertainty that can increase or decrease the amount of time required to complete the transaction. Some common such scenarios are the following:
Indirect Transactions Via a Third Party:
a. Buying from a receiver: A receiver is an agent, usually an attorney, who is in charge of selling properties following a bankruptcy. One advantage of buying from a receiver is the ability to purchase the apartment very quickly, sometimes in a matter of days. However, the receiver might attempt to coerce you into making an initial deposit on the property before you have received adequate information.
b. Buying from a block-parcel company This is a type of legal entity that was widespread in Israel a few years ago, and although not legal anymore, it is still common. Years ago, it was possible to register a number of apartments together, from which tenants would then lease or gain shares. If you will be from a block-parcel company, the tenants must dissolve the company and register the rights to the apartment under their own name before you may buy the apartment, which can increase the turnover time.
Indirect Transactions Where the Apartment is Not Sold “As Is”:
c. A damaged or value-add apartment: A value-add or damaged apartment requires improvements. If buying such an apartment, you must weigh the cost of the required improvements against the low cost of the apartment, and if you will be buying the apartment for residence, also against the cost of the time required to fix the apartment, during which you might need alternate accommodation.
d. Buying through TAMA 38. TAMA 38 is a popular Israeli government program for incentivizing reinforcement of apartment buildings against earthquakes, with new apartment units built onto specific buildings. Buying an apartment through TAMA 38 usually can take longer than usual, because contractors often build “projects” through combination contracts, and chances are that the rights to the apartment have not yet been fully registered. Note, TAMA 38 has caused the emergence of tens of thousands of new apartments for sale on the Israeli market.
e. Buying into a construction project: Depending on the completion stage of the project, or if it’s even started yet, this type of purchase takes at least as long as the construction of the apartment. The most important thing to be aware of in such a case is that typically for an unbuilt apartment, the initial plans shown to you by the construction company before agreeing on a price do not bind the company. Rather, the plans that bind the construction company are the plans that are attached as an addendum to the purchase agreement and signed by the parties. In rare cases, you might find an apartment owner who must sell quickly, for one personal or legal reason or another. Although it can be tempting to act quickly, you should take care to act prudently and not become frivolous. Very rarely is a ”find” everything it’s chalked up to be.