Apartment Sale Agreement
What to Check Before Signing

A common mistake: many people think the attorney enters the picture only at the Land Registry registration stage. In practice, the most critical stage is contract drafting and negotiation. Once you have signed — you are bound by the agreed terms, even if they are problematic.

The attorney at the contract stage: reviews the Land Registry Extract (Tabu) for liens, encumbrances and notes; checks the building file for unauthorized construction and permits; conducts tax checks (capital gains and purchase tax); negotiates problematic clauses; adds protections not in the standard contract; and removes dangerous clauses.

An unbalanced sale agreement can cause significant financial damage — hundreds of thousands of shekels in multi-million shekel transactions. The investment in a professional attorney is a fraction of the potential savings.

Waiver of Liability for Defects: An "as is" clause eliminates the seller's responsibility for known defects. You cannot claim against a defect that was already known and disclosed. The clause can be limited to what is disclosed in advance.

Asymmetric Damages: A large penalty for the buyer's breach (e.g., 20% of the price) versus a small penalty (1%) for the seller's breach — this is a gross imbalance that can be corrected in negotiation.

Vague Handover Date: "By 1 December 2025 unless a delay beyond the seller's control occurs" — this formulation opens the door to any delay. The date must be absolute with a fixed penalty for each day of delay.

Uncapped Index Linkage: Payments linked to the construction input cost index can inflate the apartment price significantly in inflationary periods. Indexation should be capped or a fixed price agreed.