What are the accepted guarantees in today's market? What is an autonomous bank guarantee? And which innovations does Gottlib bring to the market that you must not miss? Let's take them one by one.
The autonomous guarantee
An autonomous guarantee stands on its own, separate from the agreement between the parties: the issuing financial institution must honor it without the injured party producing legal proof of breach, proof of damage, or a court judgment. It is effectively an open check that can be exercised independently of the signed agreement — the preferred security wrapper in today's market, and real peace of mind for the party holding it.
The Sale Law guarantee
A bank guarantee the developer must provide to a new-apartment buyer by law — one of the most significant protections for the buyer's money until the transaction reaches its advanced stages. It is triggered when the apartment is not delivered in certain circumstances, for example bankruptcy. In an urban-renewal deal, the developer provides a guarantee at the value of the owners' NEW apartments. (Owners in a forming project: ask us about the enhanced Sale-Law guarantee — you don't want to miss it.)
The rent guarantee
An autonomous bank guarantee securing rent payments for the alternative housing, in force throughout the project until the new apartments are delivered — so that if the developer is ever late, the rent for your temporary home is covered.
The taxes guarantee
Every real-estate transaction carries tax, save for statutory exemptions. In urban renewal, owners sell their apartments to the developer in exchange for new ones — a tax event. The developer therefore provides an autonomous bank guarantee securing payment of all project taxes, in force until final confirmation of payment.
The defects (bedek) guarantee
In every construction project there is a gap between plan and execution. The bedek guarantee is an autonomous bank guarantee that lets you sleep well: the apartment you receive will match the specification, and defects — if any — will be repaired without chasing the developer.
The maintenance-fund guarantee
Modern high-rises carry complex engineering systems with high upkeep costs, borne by the owners. That burden is sharpest in renewal — moving from an old building with a modest house-committee fee to a modern tower. The developer therefore commits to a maintenance fund covering these costs for existing owners over an extended period, backed by an autonomous bank guarantee.
The registration guarantee
An autonomous bank guarantee securing registration of the building as a condominium, parcelation, and registration of each apartment in its owner's name in the land registry.
NEW: the caution-note cancellation guarantee
A special innovation we demand for our clients: a guarantee that can be exercised to cancel the caution notes the developer registered in the Tabu, should the developer withdraw from the deal. If the transaction falls through, owners won't have to chase the developer to 'clean' the title — leaving them free to sell, or to sign with another developer, without needing the departed developer's consent.
A hurricane-damage guarantee (??)
The guarantees above are the market's core (plus the bonuses we secure for our clients — the extended registration guarantee, the enhanced Sale-Law guarantee, and more). Anchor your rights professionally in the agreement and do the groundwork — this is your home. That said, every project stands on its own economics: demand guarantees the market doesn't accept, or that break the project's feasibility, and you may receive no offers at all. Remember what you gathered for — a safe, sustainable urban-renewal deal.
Owners in an old building? Come set urban renewal in motion — we represent hundreds of apartment owners from the idea stage to the key.
The above is initial information only and does not constitute legal advice or a substitute for it. Consult an attorney specializing in the field before taking any action.
A question about this in your own file? Write to us — you will get an answer on the merits, not a brochure.
General information — not legal advice.