Why You Need a Lawyer When Buying a New Apartment from a Developer
Purchasing a new apartment “off-plan” from a developer is very different from buying a second-hand property.
While such deals offer clear advantages under Israel’s Sales (Apartments) Law, they also involve higher risk — since the apartment usually does not yet exist in reality.
A professional real-estate lawyer plays a vital role in protecting your investment, verifying the developer’s reliability, and negotiating contractual terms that secure your rights.
Below are some important tips for purchasing a new built apartment:
Check the Developer and the Contractor
Before signing any contract, thoroughly investigate the reputation and experience of both the developer and the contractor:
- Did they deliver previous projects on time?
- What was the quality of construction?
- Were there defects or delays?
- Are they financially stable?
A lawyer can perform due-diligence checks and identify warning signs that may put your investment at risk.
Verify the Legal Status of the Land
The legal ownership of the land determines the security of your transaction. Ask:
- Who owns the land?
- Is this a combination deal (developer and landowner partnership)?
- Is the land registered in the Land Registry (Tabu), under the Israel Land Authority (Remi), or another housing body?
Each ownership type has different legal implications. Your lawyer will confirm that the seller’s ownership is valid and pro perly registered.
Ensure There Is Bank Financing and a Sales Law Guarantee
Never buy an apartment in a project that lacks bank supervision and a Sales Law Guarantee.
Without a supervising bank, the developer cannot issue the legally required guarantee under the Sales (Apartments) Law.
This guarantee ensures that if the developer fails to deliver the apartment, your money will be refunded by the bank.
Review the Building Permit and Urban Plan (TABA)
Make sure the project complies with the approved building permit and the relevant urban building plan.
Discrepancies may lead to construction delays or legal issues later.
Examine the Technical Specifications and Drawings
Ask for full architectural plans of the apartment, floor, and shared areas, together with a detailed technical specification.
Your lawyer will verify that the actual plans match the developer’s promises and marketing materials.
Check the Payment Schedule
Confirm that the payment schedule follows the Sales Law and matches your financial plan (equity and mortgage).
Your lawyer will ensure that payments are linked correctly to construction milestones and protected under the bank guarantee.
The Lawyer’s Role: Legal and Tax Protection
Your lawyer ensures that every promise by the developer is anchored in the contract and that no clause places the buyer at risk.
In terms of taxation, your lawyer will:
- Verify your Purchase Tax rate and handle reporting to the Tax Authority.
- Ensure that betterment levies or other taxes owed by the developer are not transferred to the buyer.
Registration of the Condominium
A professional lawyer also oversees the future registration of the building as a condominium.
They ensure that the developer commits to registering the apartment under your name in the Land Registry and that your rights in shared areas — such as use of facilities, shared expenses, and attached spaces — are fully preserved.
Conclusion
Relying on the developer’s lawyer is a common and costly mistake.
A dedicated buyer’s lawyer will review every detail, identify risks, and protect your rights throughout the entire purchase process — from the first signature to final registration.
The information above is provided for general guidance only and does not constitute legal advice.
