The prestigious Mamilla Neighborhood in Jerusalem is adjacent to and overlooks the Old City Walls next to Jaffa Gate.
Many of the properties in this neighborhood are owned by foreign residents.
Due to the significant legal complexity of this area, the sale or purchase of an apartment in this neighborhood is significantly more challenging in comparison to other “normal” sale transactions. The legal complexity increases by the fact that one of the parties and at times both sides are non-Israeli residents. This means that the transaction becomes significantly more complicated and special preparations are needed.
The registration of rights in this neighborhood is carried out by a housing company – Africa Israel Residences Ltd.
This housing company issues property ownership confirmations and registers notes in its books regarding the transactions.
The apartments are not registered in the Land Registration Bureau in Jerusalem (the “Tabo”). Usually, a Warning Note may be registered in the Land Registration Bureau in favor of the purchaser, although this is only possible at the end of the process and after the transaction is completed.
The interests acquired are subletting interests for a period of 999 years.
The transfer of rights is subject to:
- The consent of Karta Central Jerusalem Development Co. Ltd. and/or Jerusalem Development Company (Mamilla) Ltd.
- A statement specifying that the apartment is sold only to Jews who are not hostile to the State of Israel and who are not residents and/or citizens of a country that is an enemy of the State of Israel.
Receiving a mortgage to finance the acquisition of an apartment in Mamilla Neighborhood is especially complicated. The contents of the mortgage documents are dictated by the housing company, Africa Israel and not by the bank. For that reason, the bank’s inspection and special approval are required. In addition, the bank requires a lot of certificates and confirmations as a condition for granting the loan (documents which are not required in other transactions).
In conclusion, the acquisition of apartments in this magical neighborhood is highly recommended and advisable. During the holiday seasons, apartments in this neighborhood are in extreme demand, and the apartments are leased to tourists for very high amounts. However, this sort of transaction is more complicated than usual and therefore it is recommended to employ an experienced lawyer to avoid breaching the contract or an unfeasible deal.
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Note:
This article provides general and preliminary information only and should not be construed in any event as legal counseling and/or as a substitute for legal counseling in respect of any case and its circumstances.
The above should not be relied upon without consulting with an Israeli lawyer before taking any action or making any decision. The above is true as of the date of its composition, and its veracity may change from time to time.
Distribution and/or duplication and/or photocopying of this document and/or part thereof without permission are prohibited.
