When purchasing a second-hand apartment in Israel, one of the most common legal and planning pitfalls is the existence of building violations. These violations expose the buyer to judicial orders, heavy fines, and severe difficulties in securing a mortgage.
What is Considered a Building Violation?
A building violation is any physical change made to a property without a lawful permit or in violation of an existing permit. Examples include closing balconies, constructing wooden galleries, adding unpermitted yards sheds, splitting the apartment, or modifying exterior walls.
Impact of Violations on Mortgage Approval
Before issuing a mortgage, banks send an appraiser to evaluate the property. The appraiser compares the physical structure with building permits and explicitly notes any violations. Serious violations can lead to the bank refusing the mortgage or devaluing the property significantly.
Who is Liable, and How to Protect Yourself?
Legally, criminal liability for zoning violations transfers to the new owner upon ownership transfer. Therefore, discovering them during due diligence is essential. If legalizable violations exist, the contract must hold the seller accountable to resolve them or keep substantial funds in escrow to secure compliance.