A developer must prove economic feasibility and sell a certain number of units before he can receive financing for a project. These early-stage transactions, which occur even before obtaining a building permit from the local and district committees, are known as pre-sales.

Payments are made between signing an agreement and taking possession of the apartment. Installments are often determined by the stage of construction; however, nowadays, it is not uncommon to pay 10 to 20% at signing, a large percentage in the middle, and the rest when the apartment is ready.

According to the Sales Law, the developer must protect the money you pay him toward a unit in a new project. In most cases, payments are secured through a bank guarantee from the “escorting” bank that has loaned money to the developer for the project.

After paying purchase tax, agent commission, and legal fees, you should consider the Construction Cost Index (if outstanding payments are linked to the index) and fluctuations in exchange rates if you use foreign currency to pay for the apartment.

Before construction, the contractor usually agrees to ‘minor’ changes, such as adding a socket, moving lighting, or building a small wall. When it comes to more significant changes that require plumbing work or moving walls, some contractors refuse to comply, while others may require you to present plans drawn up by an architect. All changes and upgrades incur fees and/or additional costs.

When a delay exceeds the 60-day grace period, the contractor must compensate the buyer until he takes possession of the apartment, retroactively from the first day of the delay. For the first eight months, the compensation will be the monthly rent of a comparable unit in the same area multiplied by 1.5; after eight months, the rent will be multiplied by 1.25.

After the local authority issues the Certificate of Occupancy (Tofes 4) and Certificate of Completion (Tofes 5) and there’s a permanent connection to the electricity and water infrastructure, a new apartment can be delivered to the buyer.