“What do you mean there are no bank guarantees?!” The shrill voice of the lawyer on the other end of the line nearly burst my eardrum. For a week I had been trying to explain to him, with the patience of an elephant, that buying an apartment in a sun-drenched country in southern Europe is not like buying a package of cottage cheese at the neighborhood grocery.
He, for his part, dug in like a Crusader on a holy campaign. “But in Israel...”, “The Sale Law provides...”, “The land registry (Tabu) must...”. I felt I was talking to a wall. A wall of legal ignorance.
It had all started a week earlier, when I received a call from the aforementioned lawyer. “Hello, I'm a lawyer and I'm advising a client who is interested in an apartment in a project you're advising on...”. Sounds promising, I thought. In practice, it turned out that this distinguished lawyer was well versed in Israeli real estate law, but in the real estate law of... he is about as well versed as I am in quantum physics.
“But why doesn't the developer have bank financing?” he asked in astonishment. “Why can't a priority notice be properly registered?” I tried to explain that every country has its own laws, legal systems differ, and the land registry is run differently, but he stuck to his position.
I felt like an elementary school teacher trying to teach algebra to five-year-olds. “But why are there no trustees?”, “Who is the local lawyer representing my client?”. The questions kept flowing like water in a raging river.
In the end, after countless calls, emails and explanations, he informed me in a short, terse email that he was recommending that his client not buy the apartment. I breathed a sigh of relief.
Why does this story matter to you?
Because it illustrates one of the biggest problems facing Israeli investors abroad: Israeli lawyers who do not understand the international market. They try to impose Israeli laws and customs on a completely different reality, and in doing so put you, the investors, at risk.
So what do you do?
- Don't settle for less than the best: When you buy real estate abroad, you must have a lawyer who knows the ground, understands the local laws, and will look after your interests.
- Do your homework: Before you sign a contract, look into your lawyer. Is he experienced in international real estate? Is he familiar with the specific country where you want to invest?
- Don't be afraid to ask questions: Don't be shy about asking your lawyer questions, even ones that seem trivial to you. Remember, this is a significant investment, and you need to be sure you are in good hands.
Buying real estate abroad can be an exciting and profitable experience, but it requires caution and planning. Don't let your lawyer ruin your dream.
Share your experiences in the comments! Have you run into difficulties buying real estate abroad? Was your lawyer professional and experienced?
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית