The importance of the price of the apartment on the part of the appraisals
- Buying an apartment in Israel
- Contract Structure
It is usually customary to write down a monetary price that will be considered the value of the apartment.
Often at the end of the apartment sale procedure, the consideration will change according to the terms of the provisions of the agreement.
However, the price of the apartment is important to us in the practical aspect for a number of reasons. For example, if the consideration is linked to the representative rate of the dollar in each payment, it may be that after the act the consideration will be extremely high or lower than the price stated at the top of the agreement. It is possible that a breach of the agreement by the seller will cause the buyer to pay for the apartment less than what appears in this section.
The price may include movables, which will be transferred to the buyer as part of the possession of the apartment, and therefore, in fact, the price includes the apartment and its movables.
Sometimes the agreement includes a mechanism that gives the consideration for the purchase of the apartment on such and other terms, which can change the price.
For example, if the seller sells the apartment at an X price, but it is agreed that if an improvement levy applies to the transaction, the price will be Y, or when it is agreed that the parties will share in the renovation of the apartment.
Lawyers whose fees are derived from the price at which the apartment is purchased are supposed to calculate according to the price of the consideration that appears in the contract of sale and without all the additions and changes we have detailed above.
Therefore, on a practical level, it is advisable to give some thought when we come to indicate the ‘price’ at which the apartment is sold.
Sometimes the agreement can be changed to maximize the interests of the buyer or the seller, without infringing on the rights of the seller.
It enjoys and it is not lacking.
We will break down the price into different factors according to our interests.
In this case, benefits can be obtained without infringing on our rights under the agreement.
For example, for the purchase of the apartment 100,000 NIS and for the purchase of the movables that are delivered together with the apartment another 10,000 NIS.
However, it’s a mixed blessing – if the buyer is forced to pay appreciation tax on the day he sells the apartment, then the appreciation will be calculated from the amount of 90,000 NIS and not 100,000 NIS, we might one day pay appreciation tax in a higher amount because of such wording.