Why a Property Transaction Abroad Needs a Lawyer Who Knows Cross-Border Deals: What the Lawyer Checks, and What Happens Without One

Buyers from Israel come to a transaction abroad with the habits of the Israeli real estate market: one lawyer who handles the whole transaction, a land registry extract, the Sale (Apartments) Law and a bank guarantee. Abroad, most of these habits do not apply. The law is different, the professionals are different, and the transaction touches two legal and tax systems at once. This guide explains what changes, who is responsible for what, and what a lawyer who knows cross-border transactions checks.

1Do you need a lawyer to buy property abroad?

In most countries, no. In many European countries the requirement is a notary. In Romania, under Article 1244 of the Civil Code, an agreement that transfers a right in real property registered in the land register must be signed by notarial deed, failing which it is null and void. In Greece too, the deed is drawn up before a notary.

But the notary does not work for you. The notary verifies identity, drafts the document in official form and sends it for registration. The notary does not check whether the price is fair, whether the developer is financially stable or whether what has been built on the ground matches the permit. In Greece, for example, checking title and encumbrances is the role of the buyer's lawyer, not of the notary. An independent lawyer is therefore not required by law, but is the only party to the transaction whose role is to review it for you.

2How does a cross-border transaction differ from a transaction in Israel?

• The law of the country where the property is located - in the European Union, under Article 4(1)(c) of the Rome I Regulation, a contract relating to a right in real property is governed by the law of the country where the property is located, unless another law has been chosen. Under Article 11(5), the mandatory formal requirements of that country apply even when another law has been chosen.
• No Sale Law guarantee - the Sale (Apartments) (Assurance of Investments of Purchasers of Apartments) Law is an Israeli law and does not apply to a project in Romania, Greece or Cyprus. Protection is built from the contract, from registering the contract in the register and from the mechanisms of the local country, such as Law 207/2025 in Romania.
• Disputes are heard there - under the Brussels I Regulation (recast, 1215/2012), a dispute over rights in rem in real property in an EU member state is, as a rule, heard by the courts of the state where the property is located.
• Restrictions on foreign buyers - in Romania, a person who is not an EU citizen does not hold land in his or her own private name (Law 312/2005). In Cyprus, a buyer who is not an EU citizen sometimes needs a permit (Cap. 109). In Greece there are restrictions in border areas (Law 3978/2011, Article 114).
• Tax and reporting in two countries - the country where the property is located levies its own taxes, and at the same time an Israeli resident is liable to tax in Israel on income from all over the world, with a credit for the foreign tax in accordance with the law and the treaties.

3Who does what in a property transaction abroad?

4What does a lawyer who knows cross-border transactions check?

1. Rights and encumbrances - who the registered owner is, which mortgages, attachments and third-party rights are registered, and whether there are pending proceedings.
2. Lawfulness of the construction and the permits - whether what has been built on the ground matches the permit and the registration, and which approvals are required before signing.
3. The contract and the mechanisms that protect the money - registration of the preliminary contract in the register, an escrow account or a guarantee, payment dates against construction stages, and remedies in the event of delay.
4. Your right to buy - restrictions on persons who are not EU citizens, special permits, and land that can be held only through a local company.
5. The holding structure - a private purchase, a joint purchase or a purchase through a company. A foreign company controlled and managed from Israel may be considered an Israeli resident for tax purposes, and a foreign company in a country with a low tax rate may be considered a controlled foreign company.
6. The money trail - identification and source of funds under the Israeli Prohibition on Money Laundering Law and under the rules of the country where the property is located, so that the bank and the notary do not hold up the transaction.
7. The documents from Israel - a notarial power of attorney, an apostille under the Hague Convention, a certified translation and identical names in all documents.
8. The Israeli side - reporting the rent, Form 1399 within 30 days of a sale, the obligation to file an annual return, and inheritance planning so that the heirs can act in both countries.

5What happens when no one connects the two countries?

The common problems are not dramatic. They arise from gaps between professionals, each of whom is responsible for only part of the transaction. The developer's lawyer drafts a contract that protects the developer. The notary verifies the signature, not the transaction. The tax adviser in Israel does not see the contract, and the local lawyer is not familiar with the implications in Israel.

• Payment before review - money transferred before the rights are checked is hard to recover, especially when the contract is governed by foreign law and enforced in a foreign court.
• A structure that creates unnecessary tax - a foreign company managed from Israel, or a structure that does not fit the treaty between the countries, can lead to double taxation or to reporting obligations that were not planned.
• Raising money from Israelis - a developer who raises money from Israelis for a project abroad is subject to the Israeli Securities Law. An offer to the public requires a prospectus, and the main exemption is an offer to up to 35 offerees within 12 months.
• Document delays - the apostille, translation and power of attorney are usually the first stage to be delayed, and they can be prepared even before a property is chosen.
• Inheritance without preparation - the heirs' deadlines in the country where the property is located start on the date of death, and in some countries they are short.

6How do you choose a lawyer for a property transaction abroad?

1. Check that the local lawyer is registered with the bar of the country where the property is located. In Romania, under Law 51/1995, only a lawyer registered with a bar that is a member of UNBR may practise.
2. Ask who pays the lawyer. A lawyer paid by the seller or the developer owes duties to them, even when he or she is professional and honest.
3. Ask for a written conflict of interest declaration. Under Rule 14 of the Israel Bar Association (Professional Ethics) Rules, a lawyer does not represent parties with conflicting interests in the same matter.
4. Obtain in writing the scope of work, what is not included, a written review report, the working language and a timetable.
5. Check that someone is responsible for connecting the local side with the Israeli side: tax, reporting, structure and documents.

7When should a lawyer be brought into the transaction?

Before the first payment, not after signing. In Romania, for example, Law 207/2025 limits the reservation agreement to 5% of the price and to 60 days, and within that period there must be enough time to check the developer, the land and the permits. In other countries the preliminary contract is already binding, and a deposit paid under it is sometimes lost if the buyer withdraws.

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