A client of the office is about to start marketing a new project in a new country. He studied the country for almost a year. He visited it dozens of times, eventually focused on a particular area of the country and viewed many properties there until he decided to gamble and buy a certain property. Through local friends and acquaintances he decided to use the services of a local lawyer. He asked for our help and accompaniment, and although we had no previous experience in the country and no local partner, and no prior acquaintance with the local lawyer who had been recommended to him, we began with an introductory Zoom call, and from there I agreed with the client that we could start working on the project, with the client stressing that he wants me to lead the entire legal side and not to rely on the local lawyer.
In another Zoom call I laid out the legal structure I was planning and asked the local lawyer to give his view of the legal side of the structure, and to explain whether it could be implemented, and the implications. After a few days we held another call, and it seemed that the local lawyer had not understood in depth the structure we had created, and the client and I had to explain the structure again, with me practically drawing it on the screen during the Zoom call. At the end of the call we defined which documents the local lawyer was to prepare for us ahead of the next meeting. When I received the documents my heart sank. Even the power of attorney I had asked him to prepare, so that the buyers of apartments in the future project could sign it, did not include all the actions that would be needed (in a conversation between us he explained that some of the actions I was asking for could be carried out by the buyers through the website whose link he sent me. He was not impressed by my reply that the Israeli buyers are not versed in the local language, and certainly not in the regulation, requirements and terminology of the local authorities). Either the fellow did not understand what we tried to explain in the two previous Zoom calls, or he simply wants to impose his own way on us, I told the client.
Instead of another Zoom call, I sat down on the internet and WhatsApp, and through my connections and those of our partners in several countries we compiled a list of several lawyers in that country who are recommended as understanding real estate and with whom it would be possible to work. After a round of introductory calls, I bought a plane ticket for two days of intense meetings with several law firms with which we found there was room for cooperation. The client asked to join, and so we found ourselves in a marathon of running from meeting to meeting.
After two days, at the airport over a cup of coffee at Starbucks, we sat down and drew up a table of the pros and cons of each of the lawyers we met, including each of our preferences. The decision was a foregone conclusion (I could have reached it even without the table).
The difference was like night and day. The lawyer we chose understood the client's needs, and understood my legal requirements. Together we looked for the optimal legal solution for the client while protecting the future buyers of the apartments in the project. The experience and seniority of the new lawyer, together with his team, stood by our side. At the same time the client continued to use the services of the first, younger lawyer to complete the purchase transaction of the property (for which not much sophistication and/or legal experience is required). In less than a week we finished preparing for the client the full set of documents he needed to present to, and have signed by, the buyers of apartments in the project.
“Choosing a lawyer is like choosing a captain for a ship. You want someone who knows the sea, the rocks and the winds. My lawyer's experience in investments abroad was my greatest asset in the project.” - a veteran real estate developer
Choosing professional, experienced lawyers is an important investment that will help you avoid legal problems and maximize the profits from your investment abroad. Choosing a local lawyer and an Israeli lawyer experienced in accompanying developers and investors abroad is a critical decision for the success of the investment. These lawyers will serve as strategic partners and provide essential legal advice at every stage of the project.
Here are a few tips for choosing well:
The Israeli lawyer -
- Look for a lawyer with experience accompanying developers and investors in similar projects, and prefer a lawyer who knows the regulation and the way things are conducted in the country where you are going to operate.
- Make sure the Israeli lawyer works in close cooperation with the local lawyer.
The local lawyer -
- Look for a lawyer who focuses on real estate.
- Give preference to a lawyer with experience working with Israeli clients. He will understand your unique needs and expectations.
- A lawyer with a broad local network of contacts can help you navigate the local legal system.
- Ask for recommendations from colleagues, other developers or other professionals. Set up a meeting with him to get an impression of his knowledge, his availability and his personality.
And no less important (perhaps most important) -
Division of responsibility: Clearly define the responsibility of each lawyer.
Ongoing communication: Make sure there is ongoing communication between the two lawyers.
A common language: Both lawyers need to understand your goals and speak a common language.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית