Developers usually offer two routes: buy early, “off-plan”, at a lower price, or buy an apartment already built or close to completion. Each has different advantages and legal risks.
Off-plan
- Advantages: a lower starting price, choice of floor and orientation, and sometimes the option to make changes.
- Risks: years of construction, late delivery, index linkage and exposure to the developer’s finances.
- What matters most: Sale Law guarantees, a detailed specification and a clear delivery date.
A completed or nearly completed apartment
- Advantages: you see what you buy, the risk is lower and you can move in quickly.
- Risks: a higher price, fewer choices, and sometimes “last apartments” with drawbacks.
- What matters most: an engineering inspection before signing, checking that Form 4 exists, and a payment schedule tied to receiving possession. See new apartment handover.
What both have in common
In both cases the Sale Law, the inspection and warranty periods and the rules on security apply. In both cases it is also worth checking the developer, the land rights and the contract with your own lawyer. See a lawyer for buying a new apartment.
And the mortgage?
Off-plan, the bank releases the loan according to construction stages and the payment schedule. For a completed apartment, usually in one large payment. Coordinate with the bank in advance. See buying with a mortgage.
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.