When buying a new apartment from a developer, the sales office often explains that “the project lawyer handles everything”. That is only partly true. The developer’s lawyer represents the developer, not you.
What does the developer’s lawyer do?
He prepares the project’s standard contract, handles caution notes and condominium registration, and supports the developer with the financing bank. He is not supposed to advise you whether the contract is good for you, negotiate for you or warn you about problematic clauses.
How much do buyers pay the developer’s lawyer?
Developers usually charge buyers a contribution to their lawyer’s fee. The law caps it: in 2026 the cap is the lower of 0.5% of the apartment price or NIS 5,915, plus VAT, up to a certain apartment price. This payment does not replace a lawyer of your own.
What does the buyer’s lawyer do?
- Checks the developer, the land rights, the plan and building permit, and the financing bank.
- Reviews the contract, specification and plans, and negotiates. See negotiating a developer contract.
- Makes sure every payment is secured under the Sale Law. See Sale Law guarantees and payment vouchers.
- Handles Tax Authority reporting and purchase tax, and coordinates with the mortgage bank.
- Accompanies you through handover, defects and registration at the Land Registry.
When to contact a lawyer?
Before signing anything, including a “registration form” or “reservation agreement” with a deposit. Before the meeting, read buying a new apartment from a developer: what to check before signing.
Where do you go from here?
A developer’s contract is written by the developer’s lawyers, so it protects the developer first. At Paz Israel & Co. Law Office we represent buyers of new apartments and landowners in combination deals: we check the developer, the security and the specification, negotiate the contract and accompany you through handover and registration at the Land Registry. For more information see our property purchase and sale representation page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal advice or a substitute for reviewing your specific circumstances.