Heskem Ekar: Understanding the Sale Agreement in Israel

Heskem Ekar: Definition and Legal Framework

The Heskem Ekar (הסכם עיקר) is the real estate sales contract in Israel. Unlike the French system, which separates the preliminary sales agreement (synallagmatic promise) from the notarized deed, Israeli law is based on a single document: the Heskem Ekar, negotiated and signed between the parties through their respective lawyers.

This contract is legally binding as soon as it is signed. There is no statutory cooling-off period like the 10-day SRU period in France. That is why the involvement of a specialized real estate lawyer is absolutely essential before signing: once the contract is signed, you are committed.

The Heskem Ekar is drafted in Hebrew. For buyers from abroad, your lawyer will provide a detailed translation and a clause-by-clause explanation before signing. This is a standard process that is part of the IsraelStart support.

The 12 Essential Clauses to Check

Each Heskem Ekar is unique, but some clauses are universal and must be carefully reviewed by your lawyer:

1. Identification of the Parties — Full names, ID numbers (Teudat Zehut or passport), contact details. Check that the seller is the legal owner in the Tabo.

2. Property Description — Exact address, Gush and Helka numbers (land registry references), gross and net area in sqm, floor, parking space number, storage room or cellar included.

3. Price and Payment Terms — Total price in shekels, detailed payment schedule with dates and amounts, possible indexation to the Madad (construction price index).

4. Bank Guarantee (Havtachat Milvia) — For off-plan purchases, the developer must provide a bank guarantee covering each payment, according to the law on apartment sales.

5. Delivery Date — Expected key handover date, with a tolerance period (usually 6 months without penalty for the developer).

6. Delay Penalties — Compensation owed by the developer in case of delivery delays beyond the tolerance period, and by the buyer in case of late payment.

7. Technical Specifications — Detailed description of finishes, materials, included equipment. Technical annex (Mifrat Techni) attached to the contract.

8. Modifications and Customization — Conditions for modifying interior plans, deadlines, possible extra costs.

9. Defects and Reservations — Handover procedure, period to report defects, developer's correction obligations, warranty period (Bdeq).

10. Transfer of Ownership — Conditions for registration at the Tabo, deadlines, responsibility for fees.

11. Termination — Termination conditions for each party, applicable penalties (usually 10% to 15% of the price).

12. Jurisdiction — Competent court in case of dispute (usually the district court where the property is located).

Major Differences with the French Compromis

The Heskem Ekar is fundamentally different from the French preliminary sales agreement on several key points that every French buyer should be aware of.

There is no cooling-off period in Israel. In France, you have 10 days to withdraw after signing the compromis. In Israel, the contract is binding and final as soon as it is signed. Any subsequent cancellation results in heavy contractual penalties, usually 10% to 15% of the price.

There is no notary in Israel. The legal guarantee is provided by the lawyers of both parties. The buyer's lawyer and the seller's lawyer negotiate the contract terms, check the legal status of the property, and secure the transaction.

Payment is made directly between the parties. Unlike in France, where the notary holds the funds in escrow, in Israel payments are made directly to the seller or the developer, protected by a bank guarantee for off-plan purchases.

Withdrawal Period and Penalties

As mentioned, there is no legal withdrawal period in Israel. However, your lawyer can negotiate the inclusion of a conditional clause in the Heskem Ekar. The most common suspensive conditions are: obtaining the mashkanta (mortgage), satisfactory verification of the situation at the Tabo, and obtaining the necessary permits.

In the event of termination not provided for in the contract, the standard penalties are 10% of the property price. For an apartment at 2 million shekels, this amounts to 200,000₪ — a significant sum that highlights the importance of preparing your file in advance.

The Role of Your Lawyer in Negotiations

Your lawyer does more than just review the contract: they actively negotiate it on your behalf. The main negotiation points include the payment schedule (securing more extended installments), penalties for developer delays (making them more deterrent), customization conditions for the property (timelines and costs), and post-delivery guarantees (duration and coverage).

A good real estate lawyer can save you tens of thousands of shekels on a single contract by negotiating more favorable payment terms or identifying abusive clauses.

Special Case: Buying Off-Plan (kablan)

Buying off-plan from a developer (kablan) is subject to enhanced legal protections in Israel. The Apartment Sale Law (Hok Mecher Dirot) requires the developer to provide a bank or insurance guarantee (Havtachat Milvia) for each payment received from the buyer. This guarantee protects the buyer in case the developer goes bankrupt.

The contract with a developer also includes the Mifrat Techni (technical specifications), a detailed document describing every element of the apartment: flooring, sanitary fittings, kitchen, carpentry, electrical system, air conditioning. Your lawyer checks that this document is sufficiently precise and complies with Israeli standards.

Checklist before signing

Before signing your Heskem Ekar, make sure your lawyer has checked: the seller's ownership in the Tabo, the absence of liens, mortgages, or seizures on the property, the compliance of the building permit, the developer's bank guarantees, the project's insurance coverage, and the developer's track record (disputes, delays on previous projects). IsraelStart evaluates and rates each developer in its catalog to provide you with this transparency from the outset.

IsraelStart includes this aspect in its turnkey service.