What disclosures must an Israeli property seller make to the buyer before signing a contract?

The main legal instruments governing seller disclosure in Israel are Section 12 of the Contracts (General Part) Law 5733-1973, which requires good-faith conduct in negotiations, and Section 15, which voids contracts entered into by deception. There is no statutory equivalent of a formal property disclosure statement (as some US states require), so Israeli law instead relies on the general duty of good faith plus specific provisions of the Sale Law 5728-1968: Section 16 makes the seller responsible for hidden defects that existed at the time of sale and that a buyer could not discover by ordinary inspection. Encumbrances — mortgages, liens, caveats, or easements registered against the property — must be cleared or disclosed before closing, and a buyer who checks the land registry extract (*nesicha*) receives constructive notice of registered interests. Planning restrictions, orders under the Planning and Building Law 5725-1965, and outstanding municipal enforcement proceedings affecting the property must also be disclosed voluntarily.

For a foreign buyer, the combination of general good-faith obligations and the land registry system means that professional due diligence on Israeli property is essential before signing. A thorough check of the land registry, municipal records, and planning authority database typically reveals whether there are outstanding building violations, pending expropriation orders, or registered liens. Sellers routinely use a standard purchase agreement that includes a buyer acknowledgment of having inspected the property, which limits claims for patent defects visible on inspection. However, a seller cannot contractually exclude liability for defects they knew about and concealed — Israeli courts will pierce such clauses where deliberate concealment is proved. Buyers should request a written seller declaration covering known defects, open municipal orders, and pending litigation as a contractual condition before signing.

From the full guide: Due Diligence on Israeli Property: A Complete Buyer's Checklist

← Browse all Q&A