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Purchasing an Apartment from a Developer

Attorney Karin Amsalem
Attorney Karin AmsalemPersonal legal guidance

Before you move forward, understand the rights, documents and risks involved. A personal conversation helps us understand your situation and the legal guidance you may need.

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How we approach your situation

Just your name and phone number. We’ll get back to you to understand your needs and arrange a conversation.

  • Personal legal guidanceStarting with your circumstances
  • Review before decidingDocuments, rights and implications
  • A clear path forwardUnderstand your options and next steps
Before You BeginA Brief Introduction to Our Firm

A short introduction to our process: how the initial review begins, what we need to understand and what happens after your first inquiry.

Look at the deal.

Buying from a developer: review the contract and annexes together

Compare the advertised price and the apartment shown by the sales office with the specification, plan, payment schedule and contractual commitments.

Advice for the buyer includes reviewing the transaction documents and points requiring clarification or negotiation: the apartment, parking and storage, additional charges, indexation, security for payments, handover and registration. If a change was promised verbally, check how it is recorded before committing.

Buying an apartment from a contractor is one of the most significant transactions a person makes during their lifetime. This is a complex transaction that includes a detailed legal contract, payment boards, bank guarantees and sometimes a waiting period of several years until the apartment is delivered. Therefore, it is very important to make the purchase accompanied by a lawyer specializing in real estate law and representing the interests of the purchaser only.

In many cases, apartment buyers assume that the contract the contractor presents is a standard contract that cannot be changed. In practice, a contract for the purchase of an apartment from a contractor is usually written by the lawyers of the entrepreneurial company and is primarily intended to protect the interests of the contractor. Therefore, it is very important that a lawyer on behalf of the buyer examine the contract and ensure that the rights of the purchaser are protected.

Why You Need a Lawyer to Buy an Apartment from a Contractor

When purchasing a new apartment from a contractor the purchaser is required to sign a complex contract that includes dozens of legal clauses. Some of these clauses may significantly affect the purchaser's rights in case of late delivery of the apartment, building defects or change in the project plans.

  • Full legal review of the contractor contract
  • Checking the project's construction permit
  • Checking the contractor's rights on the ground
  • Checking guarantees Sale law for the protection of the purchaser's money
  • Checking the payment boards and adherence to the Construction Input Index

Before signing a contract to purchase an apartment from a contractor, several important legal checks must be performed. These checks allow to verify that the project is legal and that there are no registration issues or liens that may infringe on the purchaser's rights.

Among the important examinations are: checking the land registration at the Tabu or the Israel Land Authority (ILA), examining the project's building permit and examining the legal status of the contractor and the entrepreneurial company.

Protecting the Buyer's Money – The Sale Law

The Sale Law (apartments) is designed to protect home buyers from contractors. The law requires the contractor to provide adequate security for the funds paid by the purchaser, usually through a bank guarantee.

An experienced lawyer will ensure that any payment to the contractor is made only after receiving the appropriate collateral and that the purchaser's funds are protected in case the project is not completed.

Common mistakes of apartment buyers from a contractor

  • Signing a contract without consulting a lawyer
  • Payment advance before receipt of sale law guarantee
  • Failure to check the schedules for the apartment delivery
  • Ignoring adherence to the Construction Input Index

Frequently Asked Questions About Buying an Apartment from a Contractor

Do I need a lawyer to buy an apartment from a contractor?

The law does not require a lawyer on behalf of the buyer, but it is highly recommended to hire an independent lawyer to review the contract and protect the buyer's rights.

What is a Sale Law Guarantee?

The Sale Law guarantee is a bank guarantee that guarantees the purchaser's money in case the contractor does not complete the project.

Moments to Identify

Where buyers tend to discover the risk late

If any of these situations are familiar to you, it is best to check the image before continuing.

  1. A gap in registration

    The official document does not match the identity of the seller, the description of the property or the rights presented.

  2. Unverified planning status

    The planned use or change of the property has not yet been examined in front of the building portfolio and plans.

  3. Payment before conditions are met

    Money transfer is requested before a material document or confirmation of the transaction is received.

Towards the test

Documents and information for reviewing a developer contract

You don't have to come up with a perfect case, these are the starting points that help you understand what's missing and what's important.

  • Apartment and priceAgreement, specification, plan, identification of attached spaces, and details of buyer-requested changes and additional costs.
  • Payment and financingPayment schedule, indexation provisions, payment-security documents and information about the financing on which the purchase depends.
  • Handover and completionHandover date, conditions for changing it, handover documents and commitments to register the rights.
Who is this service for??

Who is this service for?

advising on is suitable for buyers, sellers and property owners when the transaction or dispute involves actual risk, uncomplicated documents or a difficult decision to reverse.

This May Be Right for You If…
  • Buyers and sellers prior to a transaction with special terms or registration missing
  • Heirs, family members or partners who need to settle a common property
  • Investors and business owners who examine a commercial property or a sharing agreement
  • Anyone who has discovered a problem with the property documents, permit or existing liability
When is it important to stop for a wider examination?When there are several stakeholders, more than one authority, documents that do not match or a signature date and a close payment.

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Client Reviews on Google

5.0Google · 27 reviews
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michael ashkar

4 months ago

★★★★★
It is often said that lawyers are exploitative and unfair people. This office came to erase this stigma. The entire staff there is lovely, and they do their job faithfully. In my case, I dealt with Attorney Hussam Armali, and I must say that I have never met such an honest,…

Lynn Aveka

3 months ago

★★★★★
A truly champion lawyer!! I turned to Karin Amsalem for legal assistance in an apartment sale agreement, and the result exceeded expectations. Karin examined each section in depth, ensured full protection of my interests against the other party, and handled all aspects — from…

Dvir Cohen

5 months ago

★★★★★
I contacted Karen just to figure out whether it was worth selling a piece of land we inherited or keeping it. She sat down with me and explained the whole picture – rights, taxation, what can be done in the future. She didn’t try to push in a certain direction, and that was the…

Verified Reviewer

5 months ago

★★★★★
Karin Amsalem, a professional and thorough attorney of the highest level! Represented us in the process of selling a plot of land that we won in a tender. This is a complex process that includes registering lease rights in the Land Registry, payments to the Land Registry such as…

Verified Reviewer

5 months ago

★★★★★
Excellent service, Karin tailors her advice exactly to our needs! She has in-depth knowledge and I feel confident at every step of the process that our representation is in the hands of a professional!

Alber Ewayed

in the last week

★★★★★
Cannoneer lawyer

eti keller

3 months ago

★★★★★
A great lawyer! She handled the sale of my apartment, explained every clause of the sales agreement to me, planned the taxes accurately. Everything was done in a personal and warm manner, highly recommend.

amitツ

4 months ago

★★★★★
We wanted to understand what could be built on the property – units, extensions, etc. Everyone says something different… Karin made things clear, explained what was allowed according to the plans and what required approvals from the Ministry of Housing and Urban Development and…