Lawyer in Israël


Group Purchase

There are many possibilities for buying a home in Israel. One can buy one already built but new, or one already built but already inhabited. We can buy housing on plan that will be built over a certain period. The advantage the last is that the land has already been bought and has construction permits. The price will be definitively established from the beginning. It is also possible to build your home through a promoter, but it costs much more.

Nevertheless, there is another possibility to build his apartment for less. This possibility is to be part of a group purchase (kvutsat Rekhisha). Meaning several individuals who come together to buy land and build a building. The fact that this is a group of people allows them to avoid the expense of a real estate promoter. On the other hand, buyers will have less influence on decisions since they are not alone.

What is a group purchase?

Group purchase means that everything is done independently by the buyers. They will buy land and build a building with housing for the group participants. They will have to check all the legal details of the purchase of a home and its construction. They will have to make as a group all that a single buyer does before buying his property.

Having checked the legal status of the purchase, they will then plan the implementation of the project. This is done through a cooperation agreement signed by all parties. This agreement states the terms and conditions of their alliance. It is also at this point that they will appoint a management committee. This can be one of them elected by the entire group, or an outside management company. Their role will be to represent the buying group and make the decisions for them.

In case of a management company, it will help the group and its members to carry out the project. It will also be responsible for finding a bank for the financing of the project. This done, it will have to launch offers to find a builder. With the help of the latter, it will look for a site manager who will follow the work. A law firm and a accountant will be added to this group to address legal and financial issues.

The benefits of a group purchase

There are many advantages to buying a property together. Each member of the group will be able to give their opinion which will be examined by all. The final choice on all questions will be done by a vote. But the main advantage is financial.

Buyers will benefit from a housing to their taste, at a lower price and without risk. This is the reason why more and more people are looking for the possibility of a group purchase. It can be acquaintances, friends, family, or even an established community. In the case of strangers, it is essential to check their situation and background. This may eventually prevent later problems.