Buyer Guide New Apartment – Must Know!
Guide to Buyer New Apartment from a Contractor Buying a new apartment is usually the important deal in every person’s life, where you, the buyer of the apartment, invest most of your money. In-depth judgment and thorough review before purchase can save you loss surprises and grief. This guide does not purport to replace the professionals, or give the full answers, but it does help you with the first steps to purchase an apartment.
Note: Wherever her face appears in a male language, it also refers to a female language.
Purchase your apartment only from a registered contractor in the contractor’s register
Ask the contractor to present you immediately, at the beginning of the “Contractor License” negotiations for the current year and ensure that the license is valid. The license contains the professional classification of the contractor – which determines which branches the contractor may engage in, and its financial classification – which determines to what extent he is allowed to perform works. Make sure the contractor’s construction operations are within its professional and financial classification, please see an example of a contractor’s license to visit previous homes that this contractor has built, to talk to tenants, Check the level of finish and the contractor’s attribution to his hobbies. The contractor’s financial condition should be ascertained, if possible.
Land ownership, construction permit and taxation
Ensure that the land on which the building is built is owned by the contractor or that it has an adequate right (long-term lease right, etc.) and that the land does not have liens, foreclosures, etc., by: Examination of the wording of the registration at the Land Registry, specifying a block number and plot. Checking the ownership documents of the company when purchasing an apartment in a mortgage company.
If the land is owned by the Israel Lands Administration, check whether the land has passed. If not – you may be required to pay a discount, lease and consent fee later, which can reach high amounts.
If this is a “combination deal” that is – when a landowner sells to a contractor part of the land and in return receives some of the apartments in the building to be built, you must check: Is a contractor’s warning note on the land, Will the buyer be able to register a “warning note” on the ground, and what are the terms of the transaction between the contractor and the landowner.
A.Please note that the apartment you purchase will be duly built and that you will not be assigned to any of the lot owners.
B. Ensure that the contractor has an appropriate building permit issued by the local authority.
third.Do not purchase an apartment in a building for which a building permit is not yet legally granted.
D. Check whether the contractor has prior approval from the Income Tax Commission and Property Tax,
For not preventing you from registering your apartment in your name in the Land Registry, (because of the contractor’s obligations)
Remember things
Do not hurry to remember things, which you may regret afterwards. Know that remembering a legally signed thing like him as a contract for everything, and canceling it by you can cause difficulties – such as having to pay the contractor a severance pay. Also, signing a memory of things ties you contractually, reducing your bargaining options in connection with the terms of the contract.
The documents attached to the contract
According to the Law of Sale ( Apartments) – 1973 – The contractor must attach to the purchase contract: Technical specifications of the apartment, according to the wording of the apartment sale ( Form of specification ) “D – 1974 plan The apartment. Pillar floor plan, typical floor and roof floor. Plot plan as required in a local authority submission plan. When examining the plan, it is important to check the location of the apartment in the building, the directions of the air, its size and the internal and external planning. It is also advisable to check for ecological and environmental hazards near the building, such as: industrial buildings, busy roads, garbage facilities, electrical installations, etc. If you are purchasing an apartment with an adjacent garden or roof, check if the areas attached to your apartment do not have facilities belonging to other tenants such as garden or boiler and roof plumbing.
Before signing the contract
Please refer to your home (and not the contractor’s offices) in the contract you are supposed to sign. Get the opinions of professionals on your behalf – lawyer, engineer, architect – for all written in the contract and technical specifications. Make sure that any “promise”, “consent” or “understanding” between you and the contractor appears in a written and clear and unambiguous contract.
Remember! It will make it very difficult for you to prove and claim things that have been said orally, if not specified in the contract. Do not sign a clause in a contract that allows the contractor to “change”, “reject”, “determine”, etc., on his own mind, and without obtaining your consent. Check that the contractor has filled in all the details in the technical specifications, in a detailed and accurate manner.
Requests for changes
Make sure the contract has a clause that allows you to ask the contractor to make changes and / or additions to the apartment. Ensure that the changes are made through and under the responsibility of the contractor and not directly by the subcontractors. Make sure that any request for changes or additions to the apartment is made in writing, in the Appendix to the contract. Where possible – Make sure the application includes prices, execution dates and length of delay in delivery of the apartment, due to these changes (if any). Sign the contractor for the copy you have left. Find out in advance with the contractor whether you will be required to pay a commission for installing accessories that you will provide. Find out the amount of the commission and the amount of credit you will receive for the accessories you have given up.
Topics for special review in the contract of sale
The price of the apartment specified in the contract of sale must be final and also include all amounts related to the price of the apartment. Therefore, when you are negotiating with a contractor to purchase an apartment, and before signing the contract, it is advisable to take note of how the following (and other) issues appear in the contract to avoid surprises and additional payments on the price of the apartment:
parking
Check whether the price of the apartment specified in the contract includes the price of the parking. Check if you are selling tight parking and indoor parking. If the number of parking spaces matches the number of apartments in the building, the contractor may require you to purchase a parking space, as a condition of receiving the key. In case the number of parking spaces is smaller than the number of apartments, the contractor may sell some of the tenants adjacent parking spaces, while the other tenants will give up without parking space. Make sure the parking space and make sure the parking location you are promised is specified in the contract.
Solar water heater
By design and construction regulations, any contractor installing a water heating system in the building must ensure that it is a perfect “solar system. Make sure the contractor has committed to the technical specification to install a perfect system and not just “preparation” for a solar system.
Development
“Development expenses” is a very broad and undefined concept, which can include road, sidewalk, garden, fences, etc. Check whether “development expenses” are included in the price of the apartment and what they include. And were and are not included in the price, and make sure in advance and in writing what the exact amount of payment for “development” will be”.
Connecting the building to electrical systems, water, gas, and telephone
Check whether the expenses for building connections and apartment connections for electrical, water, gas and telephone systems are included in the price of the apartment specified in the contract. Please note that the expenses for connecting your apartment (i.e. water, gas and electricity) will not apply to you for building connections to the general networks.
Gardening, a TV antenna
Check if the contractor has committed to the specification to provide you with gardening, a TV antenna or a perfect cable connection, or just “preparation” for them. Check out the garden plans, paths, irrigation, vegetation, etc. as well as how many channels there are in the TV antenna.
Value Added Tax
Check whether the payment for value added tax is included in the price of the apartment or whether it will be required to pay in addition to the amount specified in the contract.
Common property
Check which parts were taken out of the common property and attached to the apartments in the building. Check how the common property issue – is regulated for building entrance, parking warehouses, roof and roof access and whether the contractor reserves rights to these areas. Please note that the contractor (who does not own an apartment in the building) or any other foreign entity must not hold parts of the common property when registering the home as a shared home.
Warning note
You must insist that the seller does not include in a provision contract that prevents you from registering a warning note even if you are given another safe. (Please see section 8.) Such a provision is a deprivation condition and repealed by the Supreme Court.
Late delivery
Make sure the sales contract has one set date for delivery of the apartment. You should know that a clause in a contract that allows over two months to be delayed in the delivery of the apartment for no justifiable reason is a deprivation clause (according to another judgment – three months). Please note whether the contract has clauses that allow the contractor to deliver the apartment several months late for reasons independent of the contractor. If so, whether a proper compensation contract is stipulated for the buyer. Proper compensation can be interest and linkage differences on the amounts already paid to the contractor, or at least realistic rent for a similar apartment.
Getting the apartment
Avoid signing a clause stating that the mere receipt of the apartment is proof that the apartment is in good and complete condition and in accordance with the specification.
Taboo registration
It is required of the contractor to specify in the contract a date on which to complete the registration of ownership of the apartment in your name at the Land Registry. Make sure you are unable to contract vague clauses on this topic, such as – taboo registration within a year of registering the home as a shared home, or within a year of the split, etc. Please note whether the registration of the taboo involves an additional fee on the price of the apartment specified in the contract. It is desirable that your payment schedule for the contractor not only be set at “by year”, but will also be related to construction progress, which if you do not, you may find that you have already paid %90 of the apartment price, While there is a lag in construction and the date of delivery of possession in the apartment is still far away. Example of a payment schedule according to construction progress, please see section 9.
Investment Guarantee
Please note that all funds you pay at the expense of the apartment being built, or to be built, will be secured in accordance with the provisions of the Selling Law (Apartments) (Investment of Apartment Buyers) – 1974. In accordance with the above law, the seller is prohibited from receiving more than 15% of the price of the apartment unless he has secured your investment in one of the following ways:
Give you a bank guarantee to secure all the funds paid by you, in any case where the contractor cannot, Transfer you ownership or other right of the apartment as agreed in the sale agreement – because of a foreclosure imposed on the apartment or land on which it is being built, or because of an asset receipt order, Dissolution order or appointment of a receiver – issued against the seller or landowners.
Assured himself in a recognized insurance company in favor of the home buyers to ensure the return of all funds paid at the expense of the apartment, as stated in paragraph A above. Make sure the insurance premiums are paid in advance.
To process the apartment, or a relative portion of the land on which it is being built, on a first mortgage in your favor, to ensure the return of all funds as stated in paragraph 1 above.
Registrar of the apartment, or a relative portion of the land on which it is being built, a warning note in the Land Registry, provided that they have not been registered for the lien, foreclosure or right of a third party who has priority
Please note that the warning note will take effect immediately and that it does not depend on additional conditions, such as construction progress, partition construction, etc.
Transferred to your name the ownership or other right of the apartment or part of the land on which it is being built, as agreed in the – sales contract when they are free of any lien or foreclosure of a third party.
The recommended way to secure the investment today is the bank guarantee. The wording of the bank guarantee must be carefully checked before signing the contract, in such a way that the guarantee is indeed conclusive, will ensure the rights of the buyer of the apartment and the value of his money”
Payment for the safe: The law does not determine who must bear the expenses involved in providing the safe. The question of expenses is the subject of free negotiation between you and the contractor before signing the contract.
Payments according to construction progress
Know that in accordance with Regulation 1 of the Sales Regulations (Apartments) (Ensure of Investment of Apartment Buyers) (Tag Payments at the Price of the Apartment) – 1975, If the collateral given to you is not in the form of a bank guarantee or insurance policy (as specified in section 8 (a) or (b) above, despite the payment dates set in the purchase agreement, the payment dates as prescribed by law will be, As below:
With the ceiling of the pillar floor or the first floor floor finishing when there is no pillar floor building – this rate includes the forward fees paid at the time of signing the agreement – 40% of the apartment price. With the finishing of the floor skeleton in which the apartment is built, including interior partitions and excluding lintels and water and electricity piping %20 additional %15 with finishing of plaster or replacement for plaster, as described in the specification. %Another 15% with outer plaster finish or exterior coating. %10 more upon delivery of the apartment in accordance with the contract of sale.
Remember! Failure to comply with the provisions of Article 8A The seller constitutes a criminal offense and if you are the injured party, you are entitled to file a criminal complaint with the Israeli police for this offense.
Ensuring the increase in the value of the apartment
Please note that the Law of Sale requires the investment to be guaranteed in the nominal (chic) value and does not discuss the retention of the investment value by the safe link to the index or foreign currency. However, your full right, as a party to the negotiations, to insist that the assurance given to you be linked to the index.
Payments
Please note that any payment you pay at the expense of the apartment price, changes or any other payment – will be made by check (chic), and that you will receive a receipt for each payment, Specifying the full amount paid and payment details.
When building
Monitor the pace of the contractor’s work, in the event of a deviation from the promised pace, send the contractor an alert letter through a lawyer. It is recommended to check the apartment at least once when building an expert engineer, preferably before flooring. Do not negotiate with subcontractors so as not to allow the contractor to evade his responsibilities.
Arranged receipt of possession of the apartment
Don’t be keen to get possession of your apartment – to the point of recklessness. Please note that the delivery of possession in the apartment will be done in an orderly manner, after giving notice in a reasonable time in advance. It is advisable to have possession of the apartment after washing the floor and cleaning the sanitary ware by the contractor so that you can see if there are any defects. Be sure to thoroughly inspect the apartment before receiving possession by you or by a professional force on your behalf – preferably an engineer. Ensure a clear and detailed delivery protocol that will detail all deficiencies found in the apartment (if found) as well as how they will be repaired and the repair dates. If you find any deficiencies after receiving the apartment, contact the contractor in writing with details of the deficiencies. It is customary that at the end of the first year of residence the contractor addresses all deficiencies except deficiencies that must be urgently removed.
Ministry of Construction and Housing State of Israel
Address: Government Kiryat, East Jerusalem, 91180, tel. 02-5847305 Letters to Letters: A.D. 18110, Jerusalem, Fax. 02-5847301
Contractor Warranty
The Amendment to the Law of Sale (Apartments) of August 1990, the contractor’s responsibility is divided into two periods:
A. The period of inspection – which begins when the apartment is made available to the buyer and extends from one to seven years Ltd. The nature of the defect as follows:
(1) piping including heating system and gutters – 2 years; (2) penetration of moisture in the roof, walls and shelter – three years; (3) machines, motors and boilers – three years; (4) Peeling of stairwells in stairwells – three years; (5) Sunset of floors on ground floor – three years; (6) Sunset of floors in parking, sidewalks, paths in the building area – three years; (7) cracks pass through walls and ceilings – five years; (8) Considerable peels in outer coverings – seven years; (9) Any other discrepancy, which is not a fundamental discrepancy – one year”.
B. Warranty period – Three-year period beginning at the end of the review period.
The difference between the two periods is that during the review period, the contractor must correct the defect unless it is proved that the defect was caused by the owner of the apartment, while during the warranty period the duty of proof is on the buyer of the apartment. When tenants do not take care of proper maintenance of the contractor property, they are not required to correct the deficiencies that have arisen in their guilt.
We will emphasize that although it is customary to address deficiencies, at the end of the first year, the contractor must continue to treat them with the law as set out above. The sales contract cannot cancel the law requirements and shorten the review period or warranty period.
Consumer Protection Law
On 1.8.81, the Consumer Protection Act, Tshma – 1981, came into force. Here are some sections of this law, which also have implications for home buyers:
Section 2
“Do nothing about – in deed or omission, in writing or orally or in any other way – which may mislead a consumer…”
Section3
(A) “Will not do a dealer to bind an occupation, anything – in an act or omission, in writing or orally or in any other way – which exploits the consumer’s intellectual or physical weakness. (B) do nothing about – in an act or omission, in writing or orally, or in any other way, which exploits the consumer’s distress, ignorance or unfair effect on him, All to tie a deal under unacceptable or unreasonable conditions, or to receive a consideration in excess of the acceptable consideration.
Despite the above, you must know that the general contract law comes from assuming that one knows and understands what he is signing, and the contract requires him. It is very difficult, and sometimes impossible, to cancel a contract or condition of a contract, on the grounds of misunderstanding, deprivation, etc. Complaints regarding offenses under the provisions of the Consumer Protection Act should be directed to: Consumer Protection Commissioner, 30 Agron Street, Jerusalem – 91000.
And finally: The above recommendations do not have to impose the integrity of contractors. Buying an apartment is a commercial operation that is done voluntarily by both parties. The Contractor may protect his affairs in the manner desired and profitable, and your full right to uphold your rights. Successfully. Essential information Complaints against contractors
As part of his role, the contractor addresses complaints against registered contractors, on engineering issues – technical such as: building deficiencies, wetness, failure to complete work;
And on matters of practical breach of the contract, such as: delay in delivery of the apartment, failure to register in the taboo, failure to perform guaranteed by the technical specifications. The Registrar does not deal with disputes and financial claims between an apartment buyer and a contractor.
For complaint forms and information page please contact our office at: Contractor Registrar, A.D. 18110 Jerusalem Zip Code 91180 Tel 02-5847143 Fax: 02-5847148 On the days of A.G. 10:00 am to 12:00 pm on Wed 12:30 am to 2:00 pm:30 or leave a message on answering machine 02-5847847 running 24 hours a day.
General Consumer Commissioner for Consumer Protection, Ministry of Industry and Trade, 30 Agron St., Jerusalem 02-6220220
Consumer Protection Authority, 03-6921111
Israeli Consumer Council, 76th ZA, 03-5604671
Standards, Standard Notes of the Israeli Standards Institute, R.H. Lebanon (University) 42, Tel Aviv, Tel. 03-6465154
Shared Homes Association for Housing Culture, Head Office, Lincoln St. 3 TA, 03-5631823
