A couple of buyers approached our firm before signing an agreement to purchase a new apartment in a large residential project in central Israel. This was a transaction worth millions of shekels, מול an experienced contractor and a well known developer, where the draft agreement was presented as a “standard contract” with no real room for substantial changes.

Purchasing an apartment from a developer is one of the most significant transactions in life. Proper legal support does not only review the contract. It protects the dream, so it does not turn into a nightmare.

The challenge

An initial review revealed that the agreement included clauses that could seriously harm the buyers’ rights, including:

Flexible delivery timelines without sufficient sanctions.
Reduced compensation in case of delay in delivery.
Extensive linkage to the construction input index.
A general technical specification allowing unilateral changes.
Sale Law guarantees that were not optimally drafted.
Broad transfer of responsibility to the buyers for delays beyond their control.

The main challenge was to reduce these risks within a complex transaction, מול a commercial party with significant bargaining power.

They came to us with big smiles and plans for the future. A young couple, just before signing the contract for their new apartment in a luxury project in central Israel. “Everything looks perfect,” they said, “but we were told it would be wise to have a lawyer review the contract first.”
That decision changed the entire picture.

Already on the first reading of the draft agreement, worrying signs appeared: general clauses placing almost every possible risk on the buyers, overly flexible timelines in favor of the contractor, and low compensation in case of delayed delivery. For the couple, it was the apartment of their dreams. For us, it was a contract requiring thorough revision.

We began with a full mapping of the agreement: Sale Law guarantees, index linkage mechanisms, vague technical specifications, and unilateral changes allowing the contractor to deviate from the original plans. Each such clause, even if it seemed minor, could in the future turn into an expense of tens or even hundreds of thousands of shekels.

Instead of settling for general comments, we entered focused negotiations with the contractor’s legal representatives. We demanded clarification of the specifications, strengthening of the compensation mechanism for delays, limitation of index linkages, and the addition of clear commitments regarding registration of rights and completion of the surrounding development.

The negotiations were not simple. The contractor claimed that “this is a standard contract” and that there was no room for changes. But we insisted. We presented relevant case law, emphasized the risks, and made it clear that the couple would not sign without adjustments that would protect them.

After several rounds, a revised agreement was reached. The couple signed, this time with peace of mind.

A year and a half later, when they received the key to their new apartment, they returned to us with a bottle of wine. The delivery was slightly delayed, but thanks to the amended clauses they received full compensation, without a fight and without uncertainty. The apartment was delivered as promised, and the rights were registered without delays.

“Only now do we understand how critical it was,” they said. “At that moment we just wanted to sign and move forward. Today it is clear that you saved us a lot of money and a lot of worries.”

Actions taken

The legal team carried out a comprehensive process that included:
Full analysis of the agreement, specifications, and appendices.
Identification of problematic clauses and assessment of potential financial exposure.
Legal negotiations with the contractor’s representatives.
Demand to amend the compensation mechanism for delayed delivery.
Clarification and tightening of the technical specifications and performance commitments.
Limitation of index linkage mechanisms.
Strengthening of guarantees and securities for the buyers.
Adjustment of clauses relating to registration of rights and the corresponding timelines.

The result

A revised agreement that better protects the buyers’ rights.
Significant improvement in compensation in case of delivery delays.
Reduced exposure to excessive index related costs.
A clear and binding technical specification.
Greater certainty regarding registration of rights.
Signing the transaction with full legal confidence.

Added value for the client

The legal support enabled the buyers to:
Fully understand the risks of the transaction.
Improve the contractual terms in practice.
Avoid costly surprises in advanced stages of the project.
Enter the deal knowing their interests were protected.

Conclusion

When purchasing an apartment from a developer, a “standard contract” is not necessarily a balanced one. Professional legal review and support can make the difference between a secure transaction and significant exposure to financial and legal risks.