Investing in New York City real estate can be a smart move for Israeli investors — but navigating the legal landscape is very different from buying property in Israel. To ensure a smooth and successful transaction, here are five essential legal tips every Israeli investor should follow:
In New York, attorneys play a central role in real estate transactions — much more so than in Israel. Your attorney will handle contract negotiation, due diligence, and the closing process.
Tip: Choose an attorney fluent in both U.S. law and Israeli expectations to bridge cultural and legal differences.
NYC closing costs can be substantial — including title insurance, broker commissions, mansion tax (typically paid by the buyer), and transfer taxes (typically paid by the seller). Foreign buyers may also face additional tax or reporting requirements.
Tip: Plan for approximately 4%–6% of the purchase price in closing costs, and consult with a U.S. tax advisor early.
3. Conduct Thorough Due Diligence
Due diligence protects your investment. Your attorney will review the property’s financial statements and board minutes (for condos or co-ops), check for building violations, obtain questionnaires, and review city records for compliance issues.
Note: This is a legal and financial audit — not a physical one. You are responsible for arranging a property inspection.
Tip: In NYC, sales are "as-is"— it’s your responsibility to uncover issues before signing.
Buying in your personal name might expose you to U.S. estate taxes and liability risks. Many Israeli investors form LLCs or trusts to own their property.
Tip: Work with a knowledgeable attorney and accountant to set up the right ownership structure for tax efficiency and asset protection.
In New York, once your offer is accepted, you may have just a few days to sign the contract — especially in a competitive market. All-cash purchases can close in as little as 30 days after signing.
Tip: Have your attorney, financing, and decision-making ready to move quickly and confidently.
With careful planning and the right legal guidance, Israeli investors can unlock tremendous opportunities in New York City’s real estate market. If you're considering investing, working with an experienced NYC real estate attorney who understands the Israeli approach can make all the difference.
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