Five Things You Must Check Before Buying an Apartment from a Developer

We all dream of that moment — receiving the keys to a new apartment, the smell of fresh paint, and the feeling that everything is perfect and exactly as we imagined. But the reality of buying from a developer can be far more complex than the dream. Unlike buying a second-hand apartment, where you see exactly what you’re buying, here, in most cases, you're paying a huge sum for something that exists only on paper — at least in the first stage.

In recent years, developers have become creative with new payment models like “Pay 20% now and 80% just before taking possession of the apartment.” It sounds tempting, but it's important to remember that in real estate, as in everything else, there's no such thing as a free lunch. Every “special offer” needs to be thoroughly reviewed before you take the plunge. Since this is an investment of hundreds of thousands of shekels and years of waiting, it’s worth taking a bit of time to run checks that could save you from a major headache later on.

1. Checking the Contractor’s Identity – Who’s Actually Going to Be Building Your Home?

Before you let someone build your future home, you should know who you’re working with. The contractor will be your partner in the coming years, and the right choice can make the process smooth and even enjoyable, while the wrong choice could turn it into a nightmare.

Start with the basics: check that the contractor is registered in the Contractors Registry with the appropriate classification. A low-tier contractor trying to take on a project that’s too big for him is dangerous. But registration is just the beginning. The real test is digging into his track record: How many projects has he built? Were they delivered on time? What’s the build quality like — and how do those buildings look today?Don’t be shy to ask, research, and follow up. Today, in the age of social media, it’s easy to find groups of residents from previous projects.

From a financial standpoint, check that the contractor has no debts or restrictions listed with the Israel Enforcement and Collection Authority, and no liquidation procedures or receivership proceedings in the Companies Registry. A contractor in financial trouble is a risk that could end badly. Also confirm that the project has proper bank or non-bank financing — a bank backing the project is another layer of reliability.

2.Project Status – Is It Really Going to Happen?

A common trap when buying an apartment from a developer is falling in love with beautiful plans and imaginary scenarios. It’s only later that we discover that the project has been stuck in the planning offices for two years. Before you sign anything, check the planning status of the project: has a building permit application been submitted? Has the planning committee issued a conditional building permit? Or does the developer already hold a valid building permit that fully corresponds to what was promised?

Verify that the number of units, floors, and other details in the permit align with what you were shown in that glossy marketing brochure. Sometimes there are differences between the dream and reality, and you don’t want to be the one who discovers them only after having paid a deposit.

If there’s still no building permit, that’s not necessarily a deal-breaker — but it does mean you're taking a gamble. In such a case, consult a real estate lawyer to ensure the agreement allows you to walk away and receive a full refund if the permit doesn’t come through within a reasonable timeframe. Don’t accept vague statements like “it’s in the approval process”. You want something concrete and measurable.

Pay special attention if you're buying into an evacuation-reconstruction or demolition-and-rebuilding project. These can be excellent opportunities — but they’re also prone to delays due to issues with existing owners, objections, or changes in planning. It’s better to know about these possible complications in advance than to be surprised by them later.

3. The Technical Specifications – What Are You Actually Getting for Your Money?

We look at the project’s beautifully designed brochure, imagine how we’ll decorate the home, and forget to read the fine print. But it’s the fine print that determines how the apartment will really feel and function.

Let’s start with the dimensions. Knowing there’s a master bedroom isn’t enough — you need to know the exact dimensions. A bedroom that’s 2.5 meters wide may only fit a narrow double bed, and if you want closets or a dresser, that might not be feasible. A living room that’s 3 meters long isn’t a space where you can comfortably entertain or place a family dining area. Check that the dimensions match your lifestyle and needs.

As for parking and storage rooms, it’s not just whether they exist, but where and how.A parking space in an underground garage is one thing; an outdoor parking space exposed to direct sunlight is something else entirely. A storage room located on the same level as the parking space, or adjacent to the apartment, is convenient but one located on a different floor is less so. Ask and confirm exactly where you’ll be parking and storing your things.

Most developers offer a “standard” level of finish which is typically very basic. Any change you request will likely cost thousands of shekels, so it’s better to know in advance what’s included — and plan accordingly.

4. The Sale Agreement – This Is Where It Gets Serious

If there’s one thing you should take away from this article, it’s this paragraph: The developer’s lawyer is not your lawyer! He works for the developer — and only for the developer. The only reason you’re contributing to his legal fee is because he’s responsible for completing the registration of the shared building and recording the ownership of the apartment in your name.

Thinking otherwise is like assuming the bank’s lawyer will help you negotiate better mortgage terms with the bank.

What you need is a recommended real estate attorney who works exclusively for you — a lawyer who specializes in property law, knows all the traps developers like to plant in contracts, and knows how to protect you from them. A good real estate law firm will review every clause, negotiate changes, and ensure that the agreement truly safeguards your interests.

An experienced real estate lawyer knows how to spot problematic terms — such as vague delivery dates (“around winter 2027”), compensation clauses that fall short of legal minimums, or provisions that allow the developer to change specifications and plans or make major alterations to the project down the line. They will also make sure that every verbal promise is recorded in writing — because in court, “if it’s not in writing, it didn’t happen.”

5. Guarantees — Your Final Line of Defense

Let’s say everything checks out and you decide to move forward. Now comes the most critical step: making sure you’re protected against the worst-case scenario — the developer running into financial trouble and abandoning the project halfway through.

The Sale (Apartments) Law sets out several methods to secure buyers’ funds — but not all are equal. The best protection is either anautonomous bank guarantee or a suitable insurance policy. "Autonomous" means you can redeem it immediately without having to prove to the bank that the developer breached the contract. The bank simply pays — and if there’s a dispute, it’s between the bank and the developer, not between you and the bank.

Payments must be made through a voucher booklet — a mechanism that ensures each individual payment you make is separately backed by a guarantee. This is especially important in long-term projects, because it ensures that even if you’ve been paying for two years and the developer encounters financial trouble only afterward, you can still recover the full amount you paid.

The Most Important Part – How Not to Get Duped 

There are several classic mistakes that homebuyers keep repeating. The first mistake is falling in love with a project and rushing to sign a purchase application due to pressure from a sales agent, afraid someone else will “snatch” the apartment — even though many legal and commercial terms have already been determined at that stage. Remember – the Israeli real estate market is full of projects, and if one doesn’t suit you, there are always others.

The second mistake is thinking all developers are the same and choosing based on price alone.In most cases, what seems cheaper up front may end up costing you much more in the long run.

The third mistake is skipping proper legal counsel. Yes, a real estate attorney costs money — but it’s money that can save you far more later. Don’t try to save in the wrong place.

A Smart Investment Starts with Smart Preparation

Buying a new home from a developer can be a great experience. You get a modern apartment, brand-new systems, and the chance to influence the level of finish. But like any major investment, it takes preparation, patience, and thorough checks.

The time you spend doing due diligence before signing is the smartest investment you’ll make.That’s when you should ask questions, check details, and make sure you fully understand what you’re committing to. Once you sign, your ability to make changes becomes much more limited.

Don’t hesitate to ask, research, and ask for explanations. A good real estate lawyer will help you navigate the legal hurdles and ensure you’re protected. Remember — this will be your home for the coming years. It’s one of the biggest and most meaningful decisions you’ll ever make in your life. It’s worth putting in a little more effort up front to enjoy peace of mind later on.