What to ask before signing an off-plan purchase agreement

I often compare the excitement and fear clients feel when purchasing their first home in Israel “on paper” to that of first-time parents bringing their newborn home.

New parents spend months preparing for their little one’s arrival. They consult doctors, make lists, research, and dream about life with their bundle of joy. But nothing can fully prepare them for the moment they walk through their door with a newborn and think: Now what?

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Similarly, months or years of planning often go into purchasing a home. Buyers consult with real estate agents, lawyers, mortgage brokers, and foreign exchange companies. Yet, as soon as the ink dries on the contract, a wave of shock and confusion can hit: What have we gotten ourselves into? This is when many buyers realize they need a professional to guide them through the next steps toward achieving their dream home.

You’ve done your research and planned for your new home purchase. But what happens the morning after you sign? Are you confident that you know exactly what you’ve bought? Do you understand the next steps and the timeline ahead?

The pre-purchase stage involves intense planning and research. Often, this exhausts buyers’ mental capacity, making it hard to imagine what comes next. Understanding the next steps is essential to minimizing surprises.

As an interior designer specializing in building changes, I often wish my clients had asked specific questions before signing. Doing so can prevent unnecessary stress and confusion. When buying off-plan, there are many constraints and limitations, so gathering and deciding on key information beforehand is crucial.

1. Technical Specifications

The builder or real estate agent will provide a Hebrew document known as the Mifrat Techni detailing the technical specifications of your future home. Even if your Hebrew is strong, this document often uses highly technical language specific to the construction industry. Taking the time to read and fully understand it is essential.

Some elements are standardized or required for building regulations. However, there may be items you can negotiate, clarify, or add to your advantage. Even if certain features can’t be changed, knowing what is or is omitted helps with budgeting down the line. For example, window screens may or may not be included. While this detail may not be a deal breaker, it’s essential to know ahead of time to plan for additional expenses. The same applies to HVAC systems, underfloor heating, and hot water solutions. Additionally, understand any limitations the builder imposes, as not all envisioned changes or additions may be feasible.

2. Timing is Everything

Depending on the project’s status, the builder will provide a window of opportunity to make changes, ranging from a few weeks to several months. It’s crucial to obtain as many dates and details as possible to know how much time you must prepare. Your availability to make decisions and visit showrooms will be essential. Understanding the timeline allows you to schedule necessary time off work and plan any required trips.

3. Vendor Locations

No, this isn’t about the location of your property—it’s about the vendors you’ll need to work with. Your contractor will supply a list of approved suppliers from whom you must purchase your kitchen, tiles, faucets, and other essentials. Confirm which branches carry your project’s “standard” items, which can impact your design choices and budget.

4. Budget

It’s essential to allocate room in your budget for changes and upgrades. Design and budget are closely intertwined, and there’s potential for customization within these projects. However, if you’re working with a tight budget, you’ll need to strategize how to get the most value for your money.

Typically, the kitchen is the most expensive room in the house. It would be a shame to deplete your budget on tile upgrades only to find you can’t afford the kitchen you’ve dreamed of. Certain upgrades must be done during the initial stages, while others can be completed later. Plan accordingly to avoid financial stress.

5. Know Your Intentions

Are you planning to flip the apartment or make it your forever home? This intention will significantly impact the design decisions you make. Recommendations for changes will differ based on your long-term plans, so knowing your intended use for the space from the outset will help guide future decisions.

In summary, purchasing a home off-plan in Israel is a significant milestone that requires careful planning and informed decision-making. By asking the right questions and understanding the key aspects involved—from technical specifications and vendor locations to budget considerations and your long-term intentions—you can reduce stress, avoid costly surprises, and take confident steps toward creating your dream home. Preparedness is the key to transforming your vision into reality with greater clarity and confidence.

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.

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