When buying an apartment from a developer, the buyer commits to a transaction that may only be completed much later. It is therefore not enough to rely on the price, the visualisation or an estimated delivery date. The agreement, specification, plans, project status, payment mechanisms and securities should all be examined. The Ministry of Construction and Housing publishes an official guide for buyers of new apartments (Hebrew), but the legal review must address the documents of the specific transaction.
Which documents should you see alongside the sale contract?
Review the appendices the agreement refers to, in particular the apartment plan, the technical specification, the building plan and provisions on parking, storage and other attachments if included. Check whether promises made in conversation or advertising appear in the binding documents, and what mechanism applies to permitted changes in design and construction.
How are payments coordinated with securities?
The payment schedule must fit the agreement, the project’s status and the requirements of the buyer’s lender. Find out which mechanism secures the buyer’s money under the applicable law, when the required documents are delivered and what each payment means. Do not assume that a mechanism suitable for one project automatically fits another.
What should be drafted about the delivery date?
Examine the contractual delivery date, the conditions for handing over possession, provisions on postponement and the possible consequences of delay. Understand how notices will be given to the buyer and what is required of them before receiving the apartment. Clear wording helps reduce disputes if the timetable changes.
Does the review end on the day you receive the keys?
No. At handover, check that the apartment matches the documents and record in writing any matters that need attention. The Ministry’s guide recommends a detailed handover protocol, including defects found and how they will be dealt with. Questions may also arise later about repairing defects and completing registration of rights, each examined under the agreement and the law.
When should you consult a lawyer?
Preferably before any signature or payment that binds the buyer. A lawyer acting for the buyer examines the transaction from their point of view, raises questions about risks and helps negotiate material clauses. Do not assume that the seller’s lawyer also represents the buyer’s interests.
Paz Israel & Co. supports buyers in reviewing transaction documents and through the contract and registration stages. Before signing for a new apartment, contact us. For more on purchase transactions, see our property purchase page.