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{"id":69911,"date":"2021-10-08T16:18:18","date_gmt":"2021-10-08T13:18:18","guid":{"rendered":"https:\/\/lawoffice.org.il\/%d7%9c%d7%9e%d7%9b%d7%95%d7%a8-%d7%93%d7%99%d7%a8%d7%94-%d7%95%d7%9c%d7%94%d7%9e%d7%a9%d7%99%d7%9a-%d7%9c%d7%92%d7%95%d7%a8-%d7%91%d7%94\/"},"modified":"2023-12-09T18:24:15","modified_gmt":"2023-12-09T16:24:15","slug":"sell-%e2%80%8b%e2%80%8ban-apartment-and-continue-to-live-in-it","status":"publish","type":"post","link":"https:\/\/lawfirmbackup_200125.k1uagm.ap-southeast-2.wpstaqhosting.com\/en\/sell-%e2%80%8b%e2%80%8ban-apartment-and-continue-to-live-in-it\/","title":{"rendered":"Is It Possible to Sell an Apartment and Continue Living in It? (Legal Information)"},"content":{"rendered":"

An apartment sale transaction in which the seller continues to live in the flat is not common in Israel, unlike in other places in the world. However, the law generally does not prohibit selling an apartment and continuing to live in it. This kind of transaction is a real-estate transaction that may in many cases be very lucrative for both parties. The current article explains about this type of transaction from the legal perspective, and the legal restrictions it may have.<\/p>\n

Our law firm in Jerusalem and Tel Aviv specializes in land use and real estate law<\/a>. At our firm you will find lawyers who are proficient in drafting contracts for apartment sale transactions and providing legal advice on the matter, as well as legal representation and advice in matters of real estate taxation and a variety of other legal matters.<\/p>\n

\"Sell<\/span><\/p>\n

How can I Sell \u200b\u200ban Apartment and Continue to Live in It?<\/h4>\n

The housing market in Israel suffers from many problems, but it seems that the biggest problem in this market is the severe shortage of apartments. The low supply leads to high prices, and requires finding creative solutions within the existing situation. A creative transaction was recently signed which even received press coverage<\/a>. The transaction involved the selling of an apartment in the center of Tel Aviv at a significantly lower price than its current value. In exchange for the low price, the buyer agreed that the seller would continue to live in the apartment until the day she died, and would even be able to rent the apartment out during the period.<\/p>\n

Although there have been previous cases of similar agreements<\/a>, this type of transaction is not considered standard in Israeli terms. In Israel, it is customary to agree on an exact date for the buyers to enter the apartment. However, in many places in the world, such as the United States and European countries, this is an acceptable and possible deal, which may be worthwhile for long-term real estate investors. In Israel, too, this agreement is legally possible, but subject to a number of matters that must be considered in the transaction contract<\/a>. Some of the main ones are explained below.<\/p>\n

What Is Required When Creating a Contract for Such a Transaction?<\/h4>\n

In principle, the parties to the contract may include in it whatever they wish, as long as they agree on it and the content of the contract is legal<\/a>. But there are various limitations to this, of course. For example, it is important that there be no legal defects in the contract, such as coercion or extortion, terms that are explained below. In addition, the law<\/a> requires that real estate sale transactions be made in writing, and that the contract be signed closely before the transaction. Also, the contract must be as accurate and detailed as possible regarding the content of the transaction.<\/p>\n

On the face of it, as long as the requirements of the law are met, there is no limit regarding the date of entry of the buyer into the property. In general, it may certainly be agreed that the buyer will enter the property only after a number of years. It may even be agreed that there will be no time limit, and that the apartment will be transferred after the death of the seller. It may also be agreed that the sellers will rent the apartment out to others during the period in which they continue to hold the right to live in it.<\/p>\n

Problems That May Arise with Such a Transaction<\/h4>\n

Apart from taxation matters, chiefly capital gains tax<\/a>, which depend on the specific sale transaction, there are two general problems that may arise when signing such contracts. One concerns the legal situation known as “conflicting transactions.” This occurs when the apartment owner sells the apartment to two buyers. The law stipulates that the buyer who signs the first transaction shall receive the rights to the apartment. However, the rights of the second buyer may prevail in certain conditions.<\/p>\n

In a Supreme Court ruling<\/a> from 2003, it was determined that one of these conditions is if the first buyer did not register a caveat at the land registry on time. In this case, if the second buyer has met all the other requirements of the law, they may get the property. Therefore, it is extremely important for buyers to register a caveat. This is true for all types of real estate transactions, but especially for the type of transaction discussed here. The reason for this is that the buyers do not immediately enter the property, and the ownership of it does not necessarily pass into their hands upon execution of the transaction.<\/p>\n

A second problem that may arise in this context is defects in the contract. A major defect that may arise in the type of contract discussed here is called “extortion<\/a>“, which means exploiting the weakness or distress of the other party. Transactions of this type usually involve elderly sellers, who sometimes have no significant asset in their position other than their apartment. A lawyer specializing in contract and real estate law will be able to help you make sure that the transaction is carried out without fear of the sellers raising claims of extortion.<\/p>\n

Contact a Lawyer Specializing in Contract and Real Estate Law<\/h4>\n

As explained above, you can definitely sell an apartment and continue living in it. However, it is important that this be done subject to the various legal requirements. For further questions and assistance on the matter, you are welcome to contact a lawyer from our firm and they will be happy to assist. Our law firm specializes in real estate and contract law. The firm deals regularly with apartment sale transactions, registration of real estate rights, and more. You can contact us using the phone numbers or e-mail address listed below.<\/p>\n

[author_and_contact_info]<\/p>\n

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An apartment sale transaction in which the seller continues to live in the flat is not common in Israel, unlike in other places in the world. However, the law generally does not prohibit selling an apartment and continuing to live in it. This kind of transaction is a real-estate transaction that may in many cases…<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[150],"tags":[],"class_list":["post-69911","post","type-post","status-publish","format-standard","hentry","category-real-estate-property-law-en"],"acf":[],"yoast_head":"\nCan you sell an apartment and still live in it? law firm<\/title>\n<meta name=\"description\" content=\"A real estate lawyer explains a rare transaction: selling an apartment and still living in it. 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