We’re frequently asked about how to search for an apartment in Israel or what to look out for during the property journey. But once the property has been found and the contract signed, is there anything else to keep in mind?
Navigating the final stages of buying property in Israel is exhilarating. As you approach the finish line, staying focused and remembering these essential tips is crucial. Whether you're a first-time buyer or a seasoned investor, these vital steps will ensure a smooth and successful conclusion to your property journey. 
Tip 1: Pace the Process
When a newly erected apartment nears the final stages of construction, the developer sends the buyer a letter, asking him to inspect the property. During this inspection, the buyer must detail whatever repairs he requires before he moves in.
The average buyer generally only notices things like poorly grouted tile or sloppy paint. However, a buyer who hires a professional to inspect the home will discover if something isn't up to code, the tiling isn't level, the windows aren't adequately sealed, and so on.
During this time, developers often encourage buyers to take possession of their keys – and the buyers are happy to oblige, often having waited years for their property to be built. Unfortunately, some developers pressure buyers into taking those keys before the apartment is truly ready.
Once the keys are in the buyer's hand, the buyer must take full responsibility for coordinating the apartment's finishing touches. He must schedule all necessary repairs — and be present during them. If the developer sends workers to make updates, the buyer will have to work according to the developer's timetable. But if the developer still holds the keys, he is the one who must schedule, coordinate, and supervise the improvements.
Furthermore, once the buyer takes possession of the keys, the developer is relieved of bank guarantees related to that apartment. This often results in a lower priority for completing that property, as the developer prefers to finish dwellings for which he is still legally responsible obligated.
So, don’t rush to take the keys when that move-in date nears.
We include the right to an independent inspection in the purchase contract, allowing us to bring in an unbiased professional to perform the inspection on behalf of our clients. In a recent case, the engineer found significant issues in the mamad, or safe room, indicating that it does not meet code requirements. Once we receive the engineer’s final report, we will present it to a lawyer and determine how to proceed to ensure everything is in top shape for our clients move-in.
Collaborate with the right engineers and appraisers — and ensure the contractor is working for you. When you finally receive the keys, you’ll truly be able to enjoy it
Tip 2: Deal With Delays
Surprise, surprise: new construction is usually delayed. However, these setbacks are not always the developer's fault. Sometimes permits or other bureaucratic procedures are to blame.
Though developers legally have a grace period of 30 days after the estimated finish date to hand over an apartment to the buyer, the buyer is entitled to compensation once that time elapses.
After the 30-day grace period ends, for the second through fourth month of delayed entry, the contractor must compensate the buyer 100% of the rent price for a similarly sized apartment in that area. From months 5 to 10, if delays occur, the contractor pays 125% of the rent price for a similarly sized apartment in that location. Starting from the 11th month, the contractor must compensate the buyer 150% of the rent price for a similarly sized apartment
A client purchased a beachfront property in Netanya. The project's completion was significantly delayed. The average rent in the area for an apartment the size of the one they purchased is NIS 9000/month. Our client eventually collected NIS 13,500 a month on their property, paid by the developer as a penalty for the delay. They collected nearly 10 months of rent at this rate until the construction was completed.
But beware: there are numerous escape clauses at the developers’ disposal to avoid reimbursing buyers for holdups. Fortunately, the courts generally side with the buyers. Developers usually come forward to work out a settlement if a buyer pursues legal action. So if the delivery of your property is delayed, hire a lawyer and fight for your rights.
Remember that delays aren't the only area in which a buyer is entitled to compensation. If a buyer installs a custom kitchen or an upgraded bathroom in a newly constructed property, he's entitled to receive a credit for the cost of the builder-grade materials he would have automatically received. Unfortunately, it is usually up to the buyer to pursue and collect this credit. But if you stay on top of it, you will generally be successful in getting the money owed to you.
Tip 3: Finalize the Filing
Registering your property should be as easy as filling out a few forms and signing on the dotted line. If you're buying an existing property, it typically is straightforward. However, the registration of new construction can be surprisingly complicated. This is because a developer can only legally register apartments in the owners' names once construction has been completed on the entire property project.
This means all apartments in a particular development must be ready for occupancy before they can be registered. Apartments in a new project may take several years or more to reach this stage, even after the first units are ready—and only then can they be registered. It’s the buyer’s responsibility to follow up on that registration. Even if he has been living there for several years, the buyer still needs to ensure his lawyer has completed all the necessary documentation properly time.
Lest you think registration is a mere formality, know that the legal ramifications can be significant. This is especially true if you wish to refinance or resell the property in the future.
Remember the Results
Navigating the complexities of buying a home in Israel can feel overwhelming due to the multitude of details and decisions involved. However, it's essential to stay focused on the prize: owning your dream home in this unique and vibrant country, the homeland of the Jewish people. By concentrating on the ultimate goal and seeking assistance from experienced professionals, you can streamline the process and make it more manageable manageable.
In the future, the effort you invest in navigating paperwork, making decisions, and negotiating deals will become memories (and hopefully fond ones!) of your journey. Ultimately, the reward of having your own home in Israel, in the Holy Land, will outweigh the challenges you faced along the way. This is what truly matters, and it will make all the hard work worth it worthwhile.
For more information on what to expect at each stage of the home buying process, or to learn how we can assist you in purchasing a home in Israel, contact The Getter Group today at +1.732.806.0816 or visit thegettergroup.com.
We support buyers throughout the entire process, from searching to purchasing and beyond, to ensure a smooth, easy, and enjoyable experience experience.
The information in this article is for informational purposes only, based on the most accurate data available at the time of writing. However, we cannot guarantee that all the information presented here is complete, current, or error-free. Therefore, readers are advised to verify any information independently for the most recent updates.
This article was written in cooperation with The Getter Group.