Balcony, Extension, Add-On — How to Sell Safely (724)
A balcony, kitchen extension, or additional room can significantly increase an apartment’s value.
However, these improvements are also the most common reason deals fall apart or disputes arise after closing.
Let’s examine how to safely sell an apartment with an extension (תוספת בנייה) and avoid legal risks.
What Is Considered an Extension from a Legal Perspective
An extension includes any change that increases the apartment’s area or alters its layout, such as:
- balcony;
- room or kitchen expansion;
- structural add-on;
- enclosed loggia;
- incorporation of common areas.
Important:
Even a “small” extension is considered construction work and must be legally verified.
The Key Question: Is There a Permit or Not?
The legal safety of the sale depends on one critical factor:
Was the extension built with proper authorization?
Three common scenarios:
- Permit obtained and fully registered
The safest situation. - Permit exists but is not registered in Tabu
The sale is possible, but requires proper legal handling. - No permit at all
The highest-risk scenario.
Checking Registration in Tabu (נסח טאבו)
Before selling, it is essential to verify:
- whether the extension appears in the Tabu extract;
- whether the registered area matches the actual size;
- whether there are warnings or temporary notes.
If the apartment looks larger than what is recorded in Tabu, buyers will notice.
Tax Implications of Extensions
An extension may affect:
- capital gains tax (מס שבח) calculations;
- eligibility for tax exemptions;
- the property’s valuation.
Tax authorities often view extensions as:
- property improvements;
- value appreciation;
- a separate taxable component.
Seller’s Duty of Disclosure
The seller is legally required to:
- disclose the existence of the extension;
- provide information about permits;
- clarify whether the extension is registered.
Failure to disclose may lead to:
- buyer lawsuits;
- post-sale price reductions;
- contract cancellation.
How to Sell an Apartment with an Extension Safely
- Conduct a legal review before listing the property;
- Prepare all permits and approvals;
- Clearly define the extension’s status in the contract;
- Calculate tax exposure in advance;
- Present the property transparently to buyers.
Common Seller Mistakes
- assuming “everyone did it this way”;
- failing to verify registered area;
- hiding lack of permits;
- shifting risk to the buyer;
- signing contracts without protective clauses.
Tips from Unehasim
- Start with checking Tabu registration and permits.
- Do not sell an apartment with undocumented extensions blindly.
- Draft contracts that reflect the true legal status.
- It’s often better to adjust the price than face litigation.
Contact Unehasim Specialists
If you are selling an apartment with a balcony or extension in Haifa, Unehasim can help:
- verify legality and registration of all extensions;
- assess the impact on price and taxes;
- prepare the property for sale without legal risk;
- coordinate the transaction together with a lawyer.
A safe sale means all modifications are transparent and legally documented.
