Your Apartment Buying Guide

What’s the best way to buy an apartment? How can you be sure that the sales contract protects your interests? What should you check when purchasing a new apartment from a contractor? What is the planning coordination process? And how can you guarantee that you will receive the apartment on time? This special guide we prepared for you will provide all of the answers.

The below information does not constitute mandatory and/or comprehensive advice and/or a recommendation. It constitutes marketing information only, and expert advisors must be consulted on your behalf prior to performing any action, including in relation to any or all of the below information.

Buying an apartment is one of the most important decisions you will ever make, and probably the biggest and most complex as well. We understand that this decision is therefore accompanied by more than a few question marks, concerns, stress over making mistakes, and the hope that you can get through the whole process in the smoothest, most convenient way – until the day you can relax, carefree, in your new apartment, and for long after that.

The best advice we can give you is to be proactive. Don’t just sit back and cross your fingers. Check out the area where you are looking for an apartment yourself, including the various projects available and the companies behind them. Find out what company is building your home, whether it is reliable, and what its financial situation looks like. Go to the other projects it has built and chat with the residents. It is also very important to look into the quality of the plans, the supplied specifications, the company’s record of compliance with commitments and schedules, and the warranty. Make sure you will always have someone to contact, even after you have received the apartment.

A brand new apartment in a new building is not an off-the-shelf product. It is a complex and usually expensive residence, built manually over several years and specifically adapted to your needs. When buying an apartment “on paper,” you need to take into account the fact that the construction process usually takes a number of years. You will need to prepare for this lengthy period of time. Customers are not always aware of the commitment and hands-on involvement required during the entire construction process. This includes coordinating the design of the apartment, in which customers have to make various decisions about the apartment and its design, adapting the apartment to their requirements and personal tastes, as well as meeting with suppliers and touring showrooms. During the handover period, customers need to prepare for the handover, tour the apartment, and fulfill various obligations and payments, before actually living in the apartment during the inspection period and warranty years.

At Tidhar, we look at the relationship between the buyers and the developer as a kind of “marriage” – a long-term relationship that lasts for years and demands extensive trust, transparency, reciprocity, and partnership. It is therefore important to select a real estate developer that will be fully committed to complying with the terms of the agreement to the letter, with complete transparency, reliability, and responsibility throughout.

Like most real estate agreements, an apartment sales contract is long and complex, containing many meandering legal clauses that are not always clearly understood by those who are not professional insiders.

In general, the agreement is intended to govern the relationship between you (the buyer) and the project developer, coordinate expectations, and precisely define all the important details about the rights and responsibilities of each party.

Under the Sales (Apartments) Law, 5733-1973 (hereinafter: “the Law”), the sales agreement must include the detailed technical specifications of the apartment, as well as the apartment blueprints, the floor plan, and other plans as required by law. So the sales agreement is actually the most reliable and accurate source of information you have about your new apartment. If something does not appear in the agreement, then it is not binding upon you, or upon the other party. This is why we recommend consulting a professional real estate attorney who will guide and represent you through the purchasing process, including before you sign the sales agreement.

The price of the apartment does not usually equal the actual price stated in the sales agreement, because there are various other costs you need to be aware of and take into account, such as:

  • Adjustments, Changes & Additions – We plan all of the apartments in each project in line with a certain finishing standard, which is detailed in the technical specifications attached to the sales agreement. The apartment price only includes what is guaranteed in the sales agreement and detailed in these technical specifications. It does not include any changes and additions you might want to make in order to adapt the apartment to your family’s needs and your personal taste. As a rule, our projects offer you very high quality specifications, but these are not final – everything depends on your own requirements, wishes, and taste. So when you select finishing materials other than those presented in the specifications, or want to make additions not included in the sales agreement and change various parts of the standard specifications, which involve certain costs and work hours, these are not included in the apartment price and must be considered separately.
  • Index Linkages – When you sign the sales agreement, you should be aware that the apartment price is generally linked to various indices – mainly, the Building Cost Index – which can affect the final price of the apartment.
  • Financing Costs – Costs associated with financing the purchase of your apartment, as well as the interest rates related to taking out a mortgage and various loans.
  • Legal Advice – It is highly recommended to engage the services of an attorney who will represent you and protect your interests throughout the purchase process (see “How can we be sure that the sales contract protect us?” above). This is an additional expense that needs to be taken into account, should you choose to do this.
  • Taxes – In Israel, there are various taxes related to real estate transactions, so it is very important to be aware of which taxes are applicable, in accordance with the law and tax planning options, as this has a direct impact on the cost of the purchase. We therefore strongly recommend that you consult a tax advisor before making the transaction, to ensure you understand the tax implications.
  • Additional Expenses During & After Occupancy – When you move in, various other expenses must be taken into account that relate to payments to several parties, such as electrical meter, water meter, and gas connections. There may also be other required payments, such as payments to the homeowners’ association / management company, if any, and of course any necessary municipal fees.
  • Additional Expenses When Moving – Buying furniture and equipment, moving costs, cleaning the apartment, installing certain items, and so on.

Note that the above list is not exhaustive, and we recommend evaluating each individual transaction according to its own unique circumstances, and engaging the services of relevant consultants and experts.

Currently, under the law, the prerequisite for receiving a loan (mortgage) for the purpose of purchasing your sole apartment is the provision of equity capital equal to at least 25% of the apartment price (subject to the circumstances of each buyer and the bank’s requirements in relation to each buyer). The mortgage is a loan, for which the ownership/lease rights are pledged in favor of the lender, that is, the mortgage bank, as security for repayment of the mortgage. You can take out a mortgage from any bank of your choice, subject to compliance with the conditions and requirements of the various mortgage banks.

For your convenience, we have spread the payments for your new apartment across the construction period, so that they will end 7 days before you receive the keys.

Upon signing the sales agreement, ensure that you comply with the payment schedule and payment conditions as detailed in the agreement. You must also continuously check the payment dates and other dates specified in the agreement in order to avoid incurring interest on arrears due to late payments and/or violating the provisions of the sales agreement.

The payment plans are adapted to each project and differ from project to project. You should therefore consult the sales office regarding which payment plans are offered for the project that interests you. At Tidhar, we usually offer two payment plans, such as:

(1) Fixed Payment Plan – You pay fixed amounts during fixed periods according to the payment schedule specified in the agreement.

(2) Flexible Payment Plan – You pay around 20% of the apartment cost by the date the building permit is received. Then you pay the balance in flexible installments, according to your ability, and at a time convenient for you throughout the construction period.

Regardless of the plan you choose (as determined for each and every project), you must settle the payment in full at least 7 days before the apartment handover.

As of the time of writing, the Sales (Apartments) (Protecting the Investment of Purchasers) Law , 5735-1974, establishes several mechanisms that are designed to protect the interests of apartment buyers.


For example, under the above law, a developer who sells you an apartment is obliged to secure your money in collateral (such as a Sales Law guarantee issued by the bank backing the project). Most of the time, and certainly in all Tidhar projects, all funds paid by the buyers go to a designated account and are used for the construction of the project.


Regarding Tidhar’s projects, we remind you that Tidhar is one of the largest private real estate groups in Israel, listed among Israel’s largest companies by BDI and the country’s leading real estate companies by Dun’s 100. Tidhar is considered stable and reliable within the industry. Thanks to its financial resources, its economic strength, and the steady income from its income-producing assets, Tidhar enjoys significant capital raising capabilities and the support of most large financial institutions, which back its activities in Israel and around the world.

Buying an apartment is indeed one of the most important decisions you will make. We, at Tidhar, understand that this decision is naturally accompanied by quite a few question marks, doubts and a desire to go through the process in the easiest and most convenient way.
The best advice we can give you is not to be lazy. Walk around and check out the area you’re interested in, the various projects and the companies that stand behind them. Check who actually builds the house for you – is this the company that markets the project, or a contracting company? Is it a reliable and financially stable company? Ask for recommendations, go look at other building that company built, talk to tenants and make sure they are satisfied with the quality, planning, specifications, compliance and schedules.

A new apartment is not a “shelf product”, but something complex and expensive, tailored to your needs. When purchasing an “apartment on paper”, you must consider that the construction process usually takes between 1.5 to 3 years. During this process customers are required to make various decisions, such as interior design, adjustment to their personal needs, tastes and desires, meet with suppliers, choose finishing materials, constant supervision of the construction and finishing work, including the connection of the gas meter, water and / or electricity meter, payment of municipal taxes, etc. It continues even with regard to the period after entering the apartment, during the years of inspection and warranty, when the contractor is required to deal with malfunctions, defects and other discrepancies that could not be discovered in advance and are discovered only after moving in.
We look at the relationship between buyers and the contractor as a ‘wedding’ – a long-term relationship that takes years and requires a great deal of trust, transparency, reciprocity and partnership. Therefore, it is important to choose a company that is committed to fulfilling the terms and conditions of the agreement, with full transparency, maximum reliability and responsibility throughout

As with most real estate agreements, an apartment purchase agreement is long and complex, and includes many legal clauses that are not always clear and understandable to laypersons. We recommend consulting with a real estate attorney who will accompany and represent you during the purchase process prior to signing the contract.
In general, the purpose of the agreement is to regulate the relationship between you and the developer and / or the contractor, to coordinate expectations and to accurately define all the essential details about the obligations of the parties.
According to the Sales Law (Apartments), 5733-1973 (hereinafter: “the Law”), the purchase agreement must include detailed technical specifications of the apartment as well as your apartment plans, floor plan and other plans as required by law. The purchase agreement is in fact the source of the most reliable and accurate information for you, and anything that is not included in the agreement does not oblige you or the other party to the transaction. That’s why we recommend consulting a real estate attorney to avoid unnecessary aggravation and trouble.

The cost of the apartment always includes additional costs you need take into consideration, such as:
Adjustments, Changes and Additions – We plan all our apartments according to a certain final standard, and the price includes only what is promised in the purchase agreement and detailed in the technical specification. It does not include changes and additions that you would like to make in the apartment in order to suit your personal taste.
As a rule, we provide you with high quality specifications, but the choices are endless, depending on your ability, desire and personal taste. Therefore, selecting finishing materials other than those listed in the specifications, additions that are not included in the agreement and various changes are not included in the price of the apartment and must be taken into account.
Linkage – The price of the apartment is linked to various indices, usually – to the Construction Inputs Index – which can affect the final price.
Financing costs – costs involved in financing the purchase and the interest involved in taking a mortgage and various loans.
Legal support – It is strongly recommended to hire a lawyer to represent you and protect your interests in the purchase process. This is an additional expense that you must take into account.
Taxes – Various taxes are imposed on real estate transactions and it is very important to be aware of those which apply. We strongly advise you consult with a tax advisor before making the transaction and understand the tax costs involved.
Additional expenses during the occupancy period – Additional costs which involve payments to various parties, such as the electricity company, water works and gas company, as well as payment to the building’s tenant committee, management company (if there is one in the building), and other municipal costs.
Additional expenses involved in moving – purchasing furniture, movers’ fees, cleaning the apartment, installing items, etc.
The list above is not comprehensive, and we recommend reviewing each transaction according to its circumstances and using the relevant consultants and experts.

Currently, according to the law, the precondition for obtaining a loan for the purchase of an a single apartment is to provide equity at a rate of at least 25% of the apartment price (subject to the circumstances of each buyer and the bank’s requirements). You can take out a mortgage at any bank you choose – subject to compliance with their terms and requirements.
For your convenience, we have issued payments for your new apartment throughout the construction period to be completed 7 days prior to receiving the keys. Upon signing of the purchase agreement, make sure that you can meet the payment schedule and the terms of payment as specified so you will not have to pay interest on late payment and / or breach of the purchase agreement.
The payment tracks are suited to each project, and can vary from project to project, so check with the sales office about the method offered for the one you are interested in. At Tidhar, we usually offer two payment tracks, such as: (1) a “fixed” payment track – in which you pay fixed amounts according to the payment schedule specified in the agreement, and (2) a “flexible” payment track in which you pay about 20% of the entire cost of the apartment up to the date of receiving the building permit, and the balance is paid in flexible payments according to your ability throughout the construction period.
Whichever track you choose, you must arrange full payment up to 7 days before receiving the apartment.

The Sale of Apartments Law, amended in recent years, establishes a number of mechanisms designed to provide protection for apartment buyers. For example, a developer is obligated to secure your money in collateral (such as the guarantee of a sale law issued by the bank accompanying the project). Usually, and certainly in Tidhar’s projects, all the funds paid by the buyers go to a dedicated account and are used to build the project.
In relation to our projects, we would like to point out that Tidhar Group is Israel’s largest private real estate company in Israel, ranked among the 7 largest companies according to BDI ranking and DUN’S 100 ranking. Our company is considered one of the most stable and robust companies in the industry. Due to our financial data, economic strength and cash flow from income-producing properties owned by the Group, we enjoy significant capital raising capabilities and the support of many of the large financial entities that accompany our operations in Israel and around the world.

Tidhar is committed to quality and excellence in all its activities. We constantly work to improve planning and construction processes and execute projects with the highest quality standards. We work only with suppliers and subcontractors who meet our high quality standards, and who build accordingly. We also monitor the quality of the construction process according to ISO9001 international quality standards.
In each project we have performed so far, a quality supervisor has been appointed, whose sole task was to ensure that the work is carried out at the highest level. Through the use of tablets, we standardize the various construction tasks and maintain the high level of quality – in each projects. In addition, Tidhar is the only Israeli real estate company that uses advanced 3D information modeling technologies which help to gives you a broader picture of the process at any stage.

An apartment is built according to an exact architectural plan, according to standards and the engineering and planning possibilities. Therefore, there are changes that can be carried out – such as moving, removing or adding partitions and / or electrical outlets. On the other hand, there are changes that cannot be made, such as changes to the front of the building, alterations to the apartment’s contour, moving a supporting wall or column, or a security wall in the protected area or changes related to the building’s central plumbing system.
In addition, when planning the project, we set a standard specification for each type of apartment. This includes finishing materials such as colors, flooring, bathroom and kitchen tiles, etc., and various finishing accessories such as sanitary ware, kitchen cabinets, bathroom cabinets, etc.
As a general rule, we offer high quality specs, including a variety of models and shades of your choice, from a variety of suppliers – so you will have great flexibility in designing the apartment according to your taste and desires. However, there are customers who choose to purchase accessories and finishing materials that are different from those we offer. In this case, buyers will need to pay for the upgrade as well as for the additional work involved.
We invite you to design your new apartment to suit your needs and dreams. Tidhar’s planning and service coordinator will be at your service throughout the construction period, with a commitment to maximum flexibility, attentiveness and willingness to make changes, subject to the limitations of planning, execution and law.
Please note: Not every dream can be fulfilled. There are changes and additions that you can make at no extra cost. There are other changes and additions that you can make with additional payment for the material and work, and some that cannot be performed due to engineering limitations, safety, conformity to standards, budget limitations, etc.

When we receive the building permit, you will be invited to a personal meeting or a tenants’ meeting, where you will receive a file containing all the information you need for the planning process and required changes. Once you have formulated a conceptual plan of the changes and adjustments that you want to perform, you will be invited to another meeting with the planning coordinator, in which you can check feasibility and decide on changes, such as moving walls, electric outlets, etc.
After coordinating expectations and during a period of several months, you will be invited to visit the showrooms of the various suppliers and choose finishing fixtures (sanitary ware, kitchen cabinets, cladding, etc.) from the variety offered in the technical specs. After final approval of the plan, it will be transferred to actual implementation in the apartment.

Tidhar has always been meticulous about full compliance with its obligations, with an emphasis on timetables. We do everything possible to meet the timetables we committed to, so that you can plan ahead accordingly.
In addition, Tidhar is obligated to complete the registration of the rights in your apartment in accordance with the legal restrictions.

The building permit is an approval given by the local planning and construction committee to carry out construction work, without which the contractor cannot start building. The process of issuing a building permit may take several months, all according to the specific circumstances of each project. You may wish to find out when the permit is expected to be received, and also to pay attention to the provisions in the purchase contract, which relate to the building permit and derive from it.
Usually after receiving the building permit, we invite you to a customer meeting or a personal meeting to announce the start of construction work on your new apartment.

Service is the central value of Tidhar’s organizational culture. To that end we operate a large and high quality service system that will accompany you all the way from the purchase stage to the end of the warranty period and thereafter – professionally, responsibly and with total dedication.
Even after you relax in your new apartment, Tidhar provides you with a customer service system that will accompany you throughout the entire inspection and warranty period. In addition, Tidhar operates a unique emergency center 24 hours a day, 7 days a week, and is prepared to handle any urgent request.
The inspection team will provide you with details regarding the nature of the defect, the manner of handling it and the timetables for performing repairs. All this will be done with full transparency and reliability, and the team will do everything in its power to minimize as the inconvenience involved in performing the required repairs.

Your new apartment is designed and built to the highest standards, and is delivered only after undergoing strict quality control to determine that it meets Tidhar’s high standards.
However, a new apartment is a handmade product that includes many systems, most of which are hidden from view. Therefore, despite our efforts, in the first few months after you enter the apartment and sometimes even in the first few years, there may be discrepancies or defects. In order to ensure that you have received the best value for your money and to enjoy the new apartment, we take responsibility for defects discovered in the apartment during the period following your moving in, and we promise to correct any malfunctions and subject to the provisions set out in the Sale Law (Apartments), 5733-1973.

According to the Sale of Apartments Law, every seller of a new apartment is responsible to repair any defects that were discovered in the apartment during the period following its delivery to the buyer. The “inspection period” begins on the day the apartment is made available to the buyer and it lasts between 1 to 7 years, depending on the type of defects. Any defect found in the apartment during the inspection period we are obliged to repair, unless it is proven that the fault was caused by improper or unreasonable use of the apartment or due to poor maintenance on the buyers part.

Upon completion of the inspection period, a 3-year warranty period commences. During this period – in order for the Company to be responsible for correcting the defect – the buyer is required to prove that it is due to planning, work or materials used by the contractor, and to present the defect and its findings to the contractor.

For safety reasons, we do not allow tours of the project and apartments during construction of the building’s frame. Later on, it is possible to coordinate a tour of the apartment, and consult with the foreman.
In preparation for the completion of the final work in the apartment, just before the big day when you can receive the key, we will invite you to a pre-delivery tour of the apartment with the project foreman (subject to compliance with the safety regulations). During this tour, you can get an impression of the apartment and the quality of work, and make sure that all changes and additions you have requested were actually done to your satisfaction. If any defects or discrepancies are discovered during the tour, they will be accommodated, as far as possible, until the time the apartment is handed over.
On this solemn occasion, we pledge:
• To provide you with a total and professional purchasing experience.
• To provide you with a dedicated customer service center, which will answer any questions or inquiries regarding the apartment, the process and the required preparations.
• To provide you with a clean and ready-to-live-in apartment, having undergone strict quality control and been determined to meet Tidhar’s high