The statutory payment schedule: a percentage for every construction stage
Where the security you received is neither a bank guarantee nor an insurance policy, the payment schedule in your contract gives way. A statutory table takes its place, fixing an exact percentage for each stage of execution.
Most buyers read the payment schedule in their contract as a given. It is not necessarily a given. Where the security the seller provided is neither a bank guarantee nor an insurance policy, the Sale (Apartments) (Assurance of Investments) (Limit on Payments on Account of an Apartment's Price) Regulations, 1975 substitute a different schedule — and the Ministry of Construction and Housing puts it sharply: notwithstanding the payment dates set in the purchase agreement, the payment dates shall be those set by law.
The idea is simple. If the money is not secured by a guarantee that returns it, it must be tied to physical progress on site. A buyer does not pay for a promise; a buyer pays for a slab that has been cast, a frame that has been completed, external cladding that has been finished.
New construction: the binding table
| Construction stage | Part of the building the stage must cover | Share of the price |
|---|---|---|
| Completion of casting the lowest-level slab | The whole building | 31% |
| Completion of frame works, including electrical and plumbing in the frame, internal partitions and opening frames in the protected space | The floor of the apartment and the floors beneath it | 25% |
| Completion of frame works, as above | The whole building | 5% |
| Completion of external cladding | The whole building | 6% |
| Completion of plaster and flooring | The apartment | 10% |
| Completion of internal cladding, installation of windows and railings, entrance doors and fire doors | The apartment | 13% |
| Completion of shared systems, including lifts and firefighting, and yard and common-area development as required for occupancy approval | The whole building | 5% |
| Receipt of occupancy approval and handover of the apartment per the sale contract | The apartment | 5% |
| Total | 100% |
Note the second and third stages: the same description of works appears twice — once for the apartment's floor and those beneath it (25%) and once for the whole building (5%). That is deliberate, separating progress that reaches your apartment from completion of the building as a whole.
What the table actually says
- 31% attaches to a single slab. The first and heaviest stage is completion of the lowest-level slab across the whole building. Until that has happened there is no statutory basis for demanding that share.
- 5% stays for handover. The law reserves part of the consideration for the moment occupancy approval is received and the apartment is handed over. That is real leverage on handover day.
- Every stage is measured against a written description. Not "the building is progressing", but "completion of external cladding, the whole building". A buyer asking for evidence of a stage is asking for confirmation that a specific description has been met.
The separate schedule for earthquake-strengthening projects
For projects where new apartments are added as part of strengthening an existing building, the regulations set a separate schedule weighted towards the strengthening works themselves: 13% on completing strengthening works on the first floor of the existing building, a further 13% across the whole existing building, 20% for the frame of the new floors, 6% for external cladding, 22% for plaster and flooring, 10% for internal cladding and windows, 10% for shared systems, and 6% on occupancy approval and handover.
When the table does not apply
Where the security is a bank guarantee or an insurance policy, the payment schedule is the one in the contract. The logic: the money comes back even if the project stops, so there is no need to tie it to execution stages. That is precisely why the two protective routes — return of money versus linkage to progress — are complementary by design. The five securities and the seven-per-cent rule are covered in the article on securing a buyer's funds.
The key figures
- Largest single stage
- 31% — completion of the lowest-level slab, whole building
- Reserved for handover
- 5% — occupancy approval and delivery
- Source
- Regulation 1 of the 1975 payment-limit regulations
- When it applies
- When the security is neither a bank guarantee nor an insurance policy
- Breach
- A criminal offence
What to ask for, and when
- Before every payment: identify which stage in the table it corresponds to.
- Ask for written evidence that the stage has been met for the part of the building named in the table.
- Demand a receipt setting out the full amount paid and the payment details.
- If the project is bank-financed, pay only through the voucher book, and verify with the financing bank that the voucher details match its own records.
- Keep the document chain: evidence, voucher, receipt. Three documents for every payment.
From the developer's side
The statutory schedule is also cash-flow discipline for a developer: it prevents raising cash quickly against slow progress and forces the project to be built at a pace that justifies the money coming in. A well-planned project is not harmed by the table, because the table mirrors the order in which building actually happens. The execution status of the company's projects is set out on the projects page.
Questions and answers
When does the statutory schedule override the contract?
When the security given is neither a bank guarantee nor an insurance policy — that is, with a first mortgage, a caution note or transfer of title.
What is the largest percentage in the schedule?
31% — on completion of casting the lowest-level slab across the whole building.
How much remains payable on handover day?
5% — on receipt of occupancy approval and handover of the apartment per the sale contract.
Is there a separate schedule for strengthening projects?
Yes. The regulations set a separate table for new apartments added while strengthening a building against earthquakes, with 13% for strengthening works on the first floor, a further 13% across the existing building, 20% for the frame of the new floors and 22% for plaster and flooring.
What if I am asked to pay above the stated rate?
The Ministry of Construction and Housing notes that non-compliance is a criminal offence and that an affected buyer may file a criminal complaint with the Israel Police; a complaint may also be made to the Sale Law Commissioner.
Sources
Updated 17.09.2026
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