Lawyer in Israël

Kaufman 6
Tel Aviv, ISRAEL

Builder purchase (KABLAN)

Builder purchase, buy on plan from a kablan (contractor), is the purchase of a property that is not yet built, or whose construction is in progress. This is a good way to acquire quality housing and to check its construction. This also allows to make some changes or additions that are not feasible or too expensive to add in an apartment that is already completed.

Buying on plan is a good deal. The prices are around 10 to 15% less than the market.

Kablanim (contractors) often have many housings and are willing to make some concessions to sell them. This gives buyers the opportunity to negotiate one or more benefits. These can be in kind, such as changes in the apartment, different painting, more outlets, different floors etc. They can also be financial, for example a price reduction, another arrangement for payments or not having to pay notary fees that are high.

Find the ideal kablan

In order to buy a home on plan, it is necessary to examine several plans. This in order to find the apartment most in accordance with the buyer’s wishes. This done, the buyer still should follow some important tips to avoid risking his money. Not all the Kablanim are serious and reliable, there are certain points worth checking before trusting them.

How to do this

  1. The first, and most important, is that the kablan must absolutely be on the list of kablanim in Israel. It will avoid future problems. This list is official and contains all the information about the kablanim. They are listed according to their reputation.
  2. It is imperative to check about their reputation. It is recommended to research the previous projects of the kablan in question.
  3. It is advisable to speak with other customers who have already purchased goods from the same kablan. Ask them what benefits, if any, they have received from the kablam. He will not be able to deny them to you if he has already offered them to another.
  4. Check urban plans and environment construction to make sure they are suitable for what the buyer wants to find. Check the kablan’s plans and ask him to give you the plans themselves with the technical specifications (mifrat tekhni).
  5. Check prices, including the total price with taxes, legal fees and other fees if necessary, for changes or additions.
  6. The kablan requires a prior signed application with down payment before signing the contract. The buyer must take a lawyer with him to negotiate this prior request and the down payment. Also must be discussed the disengagement of them if there is retraction, and all other conditions of the contract.
  7. Set the construction deadline and the *deadlines for payments depending on the advance of the construction.
  8. Demand guarantees, the kablan’s bank guarantee versus the bank financing the project. In case of problem the bank will have to repay the buyer’s advance. The warning guarantee must be included in the taboo. Check that the construction is indeed finished. Include a period of control and responsibility since the delivery of the keys after the end of the construction. The last in case there would be defects or problems to be repaired.
  9. Find the right time to apply. You will find that there are two moments that are a little more advantageous. Try to be among the first to sign the advance application or wait until the end of construction. Often there are still some apartments left and their buyers can sometimes receive a 10% discount.

Annex :

Until 2014 the legal costs of the kablan, which are borne by the buyer, were 1.5% of the purchase price + VAT. In December 2014 this law was changed and since the buyer must pay a fixed price of 5000 NIS + VAT, regardless of the purchase price of the property.

*Deadlines for payment

Payment deadlines are generally as follows, however, minor changes may occur in certain circumstances:

Key collection

Since the purchase is on plan, it is clear from the beginning that the construction can last months, even years. Once it is complete, the kablan receives the tofess arba (residential permit) and the buyer receives a date for the delivery of the keys. This is the time when he must check some important things before accepting the keys:


Upon the handing over of the keys, the buyer should take a tour with the kablan or his representative. This to check the condition of the premises and to note if there are any problems or defects. Once the buyer is settled in the apartment it is imperative to notify the kablan of any defect or problem. In this case, the kablan will have the obligation to make repairs.