New Developments

Generally: 10-15% upon signing the preliminary contract, 30% after foundation delivery, 25% at structural completion, 25% at weatherproofing, and 10% at turnkey delivery. Exact percentages vary by developer and project. Each payment is secured by the developer's bank guarantee and should only be made after validation of the stage by your lawyer.

Three guarantees are legally mandatory in Israel: the bank guarantee (Arvout Mekhira) which protects 100% of amounts paid in case of developer bankruptcy; the ten-year guarantee on major construction defects; and the annual guarantee for all finishes in the first year. Categorically refuse any developer who does not provide these three guarantees.

For a small building or Tama 38 project: 18 to 24 months. For a large residential complex: 24 to 36 months. For complex projects (Pinui-Binui, tall towers): 36 to 60 months. Delays are common in Israel — your contract must provide clear penalties (generally 0.5% to 1% of the price per month of delay).

Partially, yes. The developer provides a choice of standard finishes (Mifrat Tekhni): tiles, kitchen, sanitary, doors. You can generally choose from these options without extra cost. For superior finishes, the developer often offers paid upgrades. Structural modifications are rarely possible after signing.

Yes, in Israel, developers systematically display the price including VAT (currently 18%). Beware of prices that seem abnormally low — always verify that it's 'Kolel Maam' (VAT included) in the contract.

The mandatory bank guarantee (Arvout Mekhira) reimburses you 100% of amounts paid. This is the key security of the Israeli new property market. You can also, depending on cases, obtain the property in its current state if another developer takes over the project. This is why verifying the bank guarantee is the most critical step in your due diligence.

Yes, without any legal restrictions. However, certain incentive programs (Mehir Lamishtaken, Mehir Matara) are reserved for eligible Israeli residents. The Mas Rechisha for non-residents is 8% from the first shekel — to be budgeted from the start. The minimum mashkanta down payment required will be 50%.

Yes, this is the practice of off-plan resale (Mechira al HaNeyar). You assign your contract to a new buyer with the developer's agreement. Fiscally, capital gains realized before delivery are subject to Mas Shevach like all real estate. This strategy is common among investors who speculate on appreciation during construction.

Five classic pitfalls: signing without the bank guarantee being in place; accepting a vague Mifrat Tekhni without specifying brands and models; not providing for delay penalties in the contract; forgetting to include parking and cellars in the price (often sold separately); and neglecting additional costs (initial Vaad Bayit, connections, exterior developments). A specialized lawyer detects these pitfalls upstream.