Buying a second-hand apartment
Housing company (chevra meshakenet): buying and selling an apartment not yet in the Land Registry
In many apartments the rights have not yet been registered in the Land Registry, and the record is kept by the company that built the project. The deal is possible and can be made safe, but the checks and the security differ from a deal in a registered apartment.
What is a housing company?
After a project is built, years may pass before the building is registered as a condominium and the apartments are registered in the buyers' names. Common reasons are land re-parcelling, delayed registration, or land of the Israel Land Authority. During this time the owners' rights are recorded in the books of the company that built the project, or of whoever was appointed to handle registration. This is the housing company.
The order that regulates prices in this field calls such a body a "service provider": one who keeps a record of rights relating to land, or who undertook in a contract with the Ministry of Construction and Housing or the Israel Land Administration to handle registration of the rights in the Land Registry.
How are the rights checked without a Land Registry extract?
Instead of a Land Registry extract, an up-to-date confirmation of rights is requested from the housing company: a document attesting to the rights in the apartment as recorded with it on the date of issue. Check in it:
- Who is recorded as the holder of the rights, and that the details match the seller.
- Whether charges, attachments, undertakings to register a mortgage or notes in favour of a third party are recorded.
- The description of the apartment and its attachments, such as parking and storage, and that it matches reality.
Where the land is managed by the Israel Land Authority, its record is checked as well. The Pledges Registry is also checked for a pledge over the seller's rights, because a mortgage on an apartment not registered in the Land Registry is usually recorded as a pledge.
How is the buyer protected without a caution note?
In a registered apartment the buyer is protected by a caution note. Where there is no registration, protection is built from several elements:
- Notice of the deal to the housing company, and a note or undertaking in its books in the buyer's favour, if it allows this.
- A pledge in the Pledges Registry over the seller's rights, in the buyer's favour.
- Where the buyer takes a mortgage: the housing company's undertaking to register a mortgage in favour of the bank.
- A payment mechanism that matches the pace of payment to the progress of the record, with release of the price against the transfer documents.
- An irrevocable power of attorney that allows the transfer to be completed.
Which documents does the housing company require?
Each company sets its own procedure, so it is clarified in advance, before the payment and delivery dates are fixed in the contract. Usually required are the tax clearances for the deal, the local authority clearance, discharge documents for the previous mortgage if there was one, and transfer documents in the company's form. Handling time varies between companies, and a delay affects the timetable of the deal.
How much may a housing company charge for a transfer of rights?
The price is controlled. Under the Price Control Order (maximum price for services of a service provider in the absence of registration of rights in the Land Registry), 5760-1999:
- The maximum price for recording a transfer of rights with the service provider is NIS 300, from 2007 onwards (section 2(a)), plus VAT (section 4).
- For other services, the maximum price is the price set at that time for the parallel service in the Land (Fees) Regulations (section 2(b)).
"Transfer of rights" in the order is a transfer to another of ownership or long-lease rights bought from the service provider, other than by inheritance. The control does not apply to recording rights in favour of someone who bought them from the service provider itself. A demand that exceeds the maximum price is worth checking against the order before paying.
What happens when the apartment is finally registered?
When registration is completed, the rights move from the company's books to the Land Registry, and the pledges and undertakings are replaced by registered mortgages and notes. The contract should state which party signs the registration documents and who bears the costs if registration is completed after the deal.
Related articles and pages: Buying a second-hand apartment | Land Registry extract | Caution note and payment mechanism | Checks before buying | Selling an apartment
Sources
- Price Control Order (maximum price for services of a service provider in the absence of registration of rights in the Land Registry), 5760-1999 (Hebrew)
- Price Control Order (application of the law to services of a service provider in the absence of registration of rights in the Land Registry), 5760-1999 (Hebrew)
Checked on 11 November 2026.
Questions and answers
What is the difference between a confirmation of rights and a Land Registry extract?
A Land Registry extract is issued from the state land registers. A confirmation of rights is issued by the housing company and attests to the rights as recorded in its books on the date of issue.
Can I get a mortgage on such an apartment?
Yes. Instead of a registered mortgage, the bank receives the housing company's undertaking to register a mortgage, and usually a pledge is recorded in the Pledges Registry as well.
How much does a transfer of rights cost?
The maximum price for recording the transfer is NIS 300 plus VAT, under the 1999 price control order. Other services carry the price of the parallel service in the Land (Fees) Regulations.
Is it risky to buy an apartment that is not in the Land Registry?
Not necessarily. Many apartments are traded this way for years. The risk is managed by checking the confirmation of rights and the pledges, recording security in the buyer's favour, and a suitable payment mechanism.
Not sure the deal is safe? Let's start with a conversation
In an initial conversation we will go over the property, the other party and the payment schedule, and tell you what needs to be checked before you sign.