Buying a new-build apartment in Israel off-plan: how to do it safely

A large share of Israeli homes are sold before they are built. Buying off-plan often means a better price and a brand-new apartment with a mamad (safe room), parking and storage. It also means paying for something that does not exist yet, so the law gives buyers specific protections.

Your money must be secured

Under the Sale Law (Apartments), the developer must secure every payment you make before you receive the keys. The most common form is a bank guarantee (arvut chok hamecher) issued for each payment. Never pay into an account that is not linked to the project’s accompanying bank, and always receive the guarantee for each instalment.

Index-linked payments

Part of the price can be linked to the construction input index between signing and payment. Ask exactly which share is linked, from what date, and how much the price could move if construction costs rise.

Delivery date

• The contract must state a delivery date; the law provides compensation when the developer is late beyond the permitted grace period.
• Ask for the building permit status and the current stage of construction.
• Visit similar buildings already delivered by the same developer.

Questions to ask the developer

• Which bank accompanies the project, and when will the guarantees be issued?
• What is included in the technical specification (mifrat techni), and what are the upgrade prices?
• How are payments scheduled, and which share is index-linked?
• When will the apartment be registered in your name at the Land Registry?

Have the contract reviewed by your own lawyer, not the developer’s. Browse new projects in Israel on Yad le Yad and contact developers directly, with no middleman.