Reconsidering buying a new apartment for resale upon key receipt?

• Published date: 21 April 2024
• Author: OFER PETERSBURG
• Publication title: Jerusalem Post, The: Web Edition Articles (Israel)

According to the position paper, a significant portion of these buyers are not regularly involved in the real estate sector and are not familiar with the legal requirements involved in sales transactions of new apartments. At the same time, the various financing operations of the entrepreneurs opened up to them the possibility of purchasing an apartment with a low initial capital and subsequently selling it to a third party for profit

In the described case, the purpose of the purchase is the sale of the apartment, therefore it is a transaction subject to the provisions of the sales law. Accordingly, if the buyer who has become a seller does not comply with all the obligations applicable to the "seller" according to the law, he will be exposed to the sanctions stipulated in the law.

The sale of an apartment to the buyer is the guarantee of the buyer's money. In the event that the first buyer becomes the seller, he must guarantee the money of the new buyer, especially if the construction of the apartment has not yet been completed and delivered to the buyer, and when the payment is from the second buyer, which is the profit component of the first...