Six checks before registering for a new apartment in Nazareth

Anyone buying a new apartment chooses the floor, the aspect and the number of rooms first. But when the purchase rests on a mortgage, the decision is made at the bank: if the mortgage is not approved, the apartment stays on paper.

The six checks below work for any new project. They are in the order worth asking them: first what the bank will check, then what the contract must include, and last who stands behind the building.

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1. Where the land is registered

To give a mortgage, the bank has to register the apartment as security in its favour. How that is done depends on where the land is registered: at the Land Registry (Tabu), with the Israel Land Authority or with a housing company. When ownership is not registered, the property is hard to register as security, and the Bank of Israel names this as one of the main barriers to a mortgage.

What to ask: where the project's land is registered, and how a warning note will be registered in your name and in favour of the lending bank.

2. Which planning stage, and is there a permit

A project can open for registration before a building permit is issued. Before the permit, some details can still change, and the timetable depends on it.

What to ask: which plan applies to the plot, whether a building permit has been issued, and when. The permit status can also be checked with the local planning and building committee.

3. How the money you pay is secured

Under the Sale Law, a contractor selling a new apartment may not receive more than 7% of the price without giving the buyer a security: a bank guarantee, an insurance policy or another security the law recognises.

What to ask: which security you will receive, and from which payment. In a project with bank accompaniment, you pay through a voucher book. The details are in the articles on securing the buyer's money and on the voucher book.

4. How much the bank will lend — before signing

The Bank of Israel limits the mortgage financing share by type of buyer. An approval in principle from the bank shows in advance how much you can borrow and on what terms, before you commit to a price.

What to ask: the bank — for an approval in principle for the amount. Yourself — how much equity you have, and when it is available. The calculation is in the article on equity and cash flow and in the site's calculator.

5. When you pay, and what is index-linked

The payment schedule sets how much you pay at each stage of construction. Linkage to the construction inputs index sets how much each payment can rise until it falls due.

What to ask: what the payment schedule is, which part of the price is index-linked, and until when. See the payment schedule and the construction inputs index.

6. Who has already built and handed over in the neighbourhood

A render shows a direction. A building that already stands shows how the company builds and hands over: you can walk to it, look at the facade years later, and ask the people who live there.

What to ask: which projects the company has already completed in the neighbourhood, and when. Then go and see them.

Zidan Tower is the fifth Tawfik Zidan Ltd project in the Galil neighbourhood. Architects: MAAH Hassan Architects.

The six checks in one table

Early registration is free and commits you to nothing. A representative will get back to you when sales open, and you can ask these six questions at the very first meeting.

Renders are for illustration only. This is general information, not legal or financial advice. Only the signed sale contract and specification bind. E&OE.