Both the buyer and the seller must have a lawyer (your real estate agent will help you find one). Each lawyer will usually charge a fee of 2% of the property price to their respective client.
Many properties will be listed in dollars or euros, but property payments must be made in shekels. Banks will charge a fee for sending and receiving money, and they will also charge a fee for converting your currency into shekels. Be sure to factor this into the price of your property.
A down payment is paid on signing the purchase contract. The amount of this payment is negotiable, but it is generally 25% of the purchase price. The buyer makes additional payments to the seller before moving in. The last payment is made upon occupancy of the property. This last payment is generally 15% of the property price.
After the last payment, the property title is officially transferred to the new owner. The buyer's lawyer ensures that the property title is registered with the correct authorities.
Letting your property in Israel
Any property owners in Israel may rent their property. You must have your tenant sign a rental contract to legally rent. Contracts specify things like rent payments, maintenance and utility payments. Landlords are generally responsible for major maintenance fees such as fixing plumbing or electricity. Tenants must pay for damage they inflict on the apartment as well as all utilities.
Rental contracts can be downloaded online and be adapted to your specific needs. It is common to have a lawyer look over rental contracts.
Property management agencies are useful if you do not want to deal with tenants. They find suitable tenants, collect rent, ensure utilities are paid and maintain the property. A property manager's fee can be as much as 15% of the annual rental income.