Buyer group & investor representation in new-construction deals
Alone, a buyer. Together, an institution.
A lone buyer walking into the sales office gets the price list. A buyer group that comes in organized gets a deal: wholesale pricing, payment terms, spec, and guarantees — for every member. We build the group as one organized body and run the deal with the developer, all the way to the key.
Buyer group, purchase group — and why confusing them costs money
A buyer group is buyers organizing to purchase finished apartments from a developer — each on their own contract, with the full protections of the Sale Law. A purchase group (kvutzat rechisha) is something else entirely: a group that buys land and builds on its own, with no developer answerable for the outcome. The market blurs the two constantly, sometimes on purpose. And the difference is not semantics — it decides who is responsible for your apartment, what tax you pay, and what protects your money if things go wrong.
| Lone buyer from a developer | Buyer group from a developer | Purchase group (land) | |
|---|---|---|---|
| What you actually buy | A finished apartment, at list price | Finished apartments, as one group transaction | A land right + a commitment to fund construction |
| Who answers for the outcome | The developer | The developer | The group members themselves — there is no developer |
| Sale Law protection for your money | Yes | Yes — anchored for every member | None. The money is exposed to execution risk |
| Purchase tax | On the contract price of the apartment | On the contract price of the apartment | As if a finished apartment were bought — land plus construction services (Amendment 69) |
| Bargaining power | A flooring upgrade, maybe a kitchen | Price, payment schedule, spec, and guarantees | No single seller — project management instead |
| Delivery date and late compensation | Fixed by the Sale Law | Fixed by law — reinforced in the group rider | No binding date and no statutory compensation |
This page is about the middle path — a buyer group buying from a developer: the power of a group, without giving up an accountable developer and the law's protections. Already inside a classic purchase group and need legal eyes? We handle that too — talk to us.
Why a lone buyer gets exactly what the price list says
The price list doesn't negotiate
Facing a single buyer, the sales office has no reason to move. The discount ends at an upgraded kitchen — and the commercial terms stay exactly as written.
The contract predates you
The payment schedule, escalation, and guarantees were drafted by the developer's counsel, in the same wording for every buyer. Against them, one voice counts far less than twenty.
Everyone there works for the developer
The marketer, the broker, the project's lawyer — all on the seller's side. Not one of them owes you a fiduciary duty.
The real opportunities never reach the listings
The genuinely worthwhile deals close early, at the stages where a developer needs certainty — long before the sales campaign.
Your money. An institution’s leverage.
That is the whole idea: dozens of apartments bought as one transaction give the developer certainty — and give you terms no lone buyer ever sees. These are the terms we set out to win in every group deal:
Wholesale pricing
Entry below the price list — the price of one large transaction, not of a single apartment.
Capital-efficient payment terms
Structures such as 20/80 — a deposit at signing, the balance at delivery. Your money keeps working for you.
An upgraded spec — in the contract
Finish levels and upgrades as a binding group condition in the sale agreement, not a showroom promise.
Guarantees for every member
A Sale Law guarantee for every payment, vouchers only and a release letter — for every apartment in the group, no exceptions.
Access to off-market opportunities
Inventory that never reached the open market — projects at the early stages, where the terms are truly set.
One group rider — counsel for each buyer
The terms are won once and anchored in every contract, and each member receives full legal counsel on their own deal.
The law decides whose side we are on: yours only.
Every new project draws organizers, marketers, and brokers — all compensated from the seller's side. We are built the other way around: our only client is the group, and our fiduciary duty — a duty fixed by law — runs to the buyers alone. That changes every decision in the deal: which projects we examine, what we insist on, and when we tell you to walk away. What we commit to: every shekel you put into the deal is covered by a statutory guarantee, and your contract holds up on a rainy day.
- A fiduciary duty by law — to the buyers only
- Committed to the group alone
- One side of the deal — never the group and the developer together
- Personal representation for each member — each on their own contract
- The same picture for every member — what one is told, all are told
- Our new-construction red lines — applied to every apartment
And when it is called for, we tell the group no. The duty runs to the buyers — including when the answer is not the comfortable one.
A buyers' market. Literally.
Numbers, not slogans: new-apartment inventory is at a record, the interest rate has started falling, and prices — for the first time in years — are moving the buyer's way. These are exactly the conditions in which sales certainty is worth a lot to a developer, and an organized group knows how to convert it into terms.
new apartments waiting for a buyer
CBS, May 2026
months of supply in new-apartment inventory
CBS, May 2026
Bank of Israel rate — first cut of the cycle
Bank of Israel, May 25, 2026
annual change in the housing price index
CBS, May 15, 2026
Figures are current as of this page's update date and refreshed with every new official release.
What the law says — word for word
These are not interpretations. They are the sections themselves, from the source — the same sections we enforce in every group deal. Buyers who know them buy differently.
The 7% cap without a security
A seller shall not receive from a buyer, on account of the apartment price, an amount exceeding seven percent of the price, unless he has done one of the following
Section 2, Sale (Apartments) (Assurance of Investments of Apartment Purchasers) Law, 1974
In plain terms: a developer does not touch more than 7% of your money without posting one of the law's five guarantees — a bank guarantee first among them. With us that is the opening condition for every group member, not a clause to haggle over.
The voucher book
Section 3B, Sale (Apartments) (Assurance of Investments) Law, 1974
In a bank-financed project every payment moves by voucher, straight into the project's supervised account — and the voucher itself obligates the bank to issue your guarantee. Paid without one? The money sits outside the protection. So our group rule is simple: no voucher — no payment. Not one member, not one shekel.
"Purchase group" — the definition that sets the tax
"Purchase group" — a group of buyers organizing to purchase a real estate right and to build on the land... through an organizing party
Section 1, Land Taxation (Appreciation and Purchase) Law, 1963, added by Amendment 69 (2011)
In plain terms: buy land through a group put together by a compensated organizer, and the Tax Authority treats you as having bought a finished apartment — purchase tax is computed on the built apartment's value, not the land. In a buyer group buying from a developer this simply never arises: you buy an apartment, you pay tax on the contract price.
Bank of Israel limits on financing promotions
Banking Supervision Department, temporary order of March 23, 2025 — in force until the end of 2026
The Bank of Israel reined in contractors' financing promotions: extra capital charges on banks where a quarter or more of a project's apartments sell on 20/80 promotions, and a 10% monthly cap on contractor-subsidized balloon loans. What it means for a group: a deferred payment schedule is a matter for professional negotiation that knows the regulation — not a billboard headline. Which is exactly why you want a lawyer on your side of the table.
How much purchase tax do you pay in a group purchase?
The short answer: exactly what you would pay buying from the developer alone. Group membership does not change the tax by a shekel — it follows your contract price and your status. The 2026 brackets:
A single home
0% up to ₪1,978,745, then rising brackets from 3.5%. The 2026 brackets are frozen by legislation — no index update this year.
An additional home (investors)
8% from the first shekel up to ₪6,055,070, and 10% above. The one figure every investor must run before falling for an apartment.
Olim and foreign residents
New olim have a reduced track of their own; foreign residents pay investor brackets. For groups with members abroad we map the tax picture member by member.
The deadlines you cannot miss
A purchase tax declaration within 30 days of signing, and payment as assessed. Late — penalties and interest. With us this is part of every member's representation.
Source: the Israel Tax Authority's purchase-tax brackets for 2026. Want the number for a specific apartment? Our purchase-tax calculator is calibrated to the current brackets —
Open the purchase tax calculatorFirst we vet the deal. Then the group. Only then do we sign.
The developer and contractor
Who stands behind the project, what they have actually delivered, their financial strength — and that execution sits with a duly registered contractor.
The land and the title
Land-registry extract or rights confirmation: who really owns the land, and what liens, attachments, and notes sit on it.
Planning and the permit
What is approved, what is still pending, and what could change around the project before delivery.
The financing bank and the guarantees
Closed bank financing, a supervised project account, payment vouchers and the guarantee-release mechanism — for every member.
The group's own structure
How decisions get made, what happens when a member leaves, and who is bound to what. Every member should have those answers before the group commits to anyone outside it.
Each buyer's contract
Every member's sale agreement and rider: escalation, delivery date, warranty, and guarantees — to our new-construction standard.
From first organization — to a key for every member
- 01
Organization
The group comes together around one agreed target: which property, which area, and at what price range.
- 02
The offer, then the choice
Developers bring the offers, including projects that haven’t reached the open market, and the group chooses. What it picks goes to the negotiating table.
- 03
Group negotiation
One transaction with the developer: price, payment schedule, spec, and guarantees — a group package anchored in writing.
- 04
Signing
Each member signs a sale agreement and rider in their own name — group terms inside, full personal counsel throughout.
- 05
To the key — and after
Payments by voucher only, counsel through delivery and the defects protocol, and release letters through to full discharge.
What we get asked about buyer groups
What is the difference between a buyer group and a purchase group?
A buyer group purchases apartments from a developer — each member holds their own sale agreement with the full protections of the Sale Law: guarantees, vouchers, a binding spec. A purchase group, by contrast, buys land and builds on its own — no developer responsible for the outcome and no Sale Law protections, with all the risk that carries. The tax differs too: in a purchase group, purchase tax is computed on the finished apartment's value (Amendment 69 to the Land Taxation Law); in a buyer group — on the contract price. We represent the former.
How many buyers does it take?
There is no magic number. Even a handful of apartments changes the conversation with a developer — sales certainty is worth real money to them, especially in a market carrying tens of thousands of unsold apartments. The larger the group, the better the package it can win.
Does each of us sign a separate contract?
Yes. Each member buys their apartment directly from the developer, under a sale agreement and rider in their own name. The group terms are anchored in every one of the contracts — the power is collective, the rights entirely personal.
What is a 20/80 payment structure — and is it still viable in 2026?
20/80 is a payment schedule where roughly 20% is paid at signing and the balance near delivery — instead of payments tracking construction progress. The Bank of Israel's temporary order (in force until the end of 2026) restricts contractors' leveraged financing promotions and the balloon loans behind them. A deferred schedule is still achievable — but it is a matter for professional negotiation that knows the regulation and the financing bank, not a promise from an ad. It is exactly the kind of term an organized group wins properly.
How much purchase tax will I pay in a group purchase?
Exactly what you would pay buying alone from the developer — group membership does not change the tax. A single home: 0% up to ₪1,978,745 (2026 brackets). An additional home: 8% from the first shekel. Olim — on their reduced track. What does matter: not confusing this with a land purchase group, where tax is computed on the value of the finished apartment before it is even built.
I'm an investor. Why buy through a group rather than alone?
Because an investment's return is set on the day you buy, not the day you sell — and a group buys better: below the price list, on payment terms that keep your capital working, with full guarantees. What we commit to: the deal gets vetted deeply, the contract protects you, and every shekel is covered by a statutory guarantee.
Who is the organizer — and what is their interest?
The key question in any group effort. In the market, organizers, and marketers are usually compensated from the side of the deal they bring — and their interest ends at signing. Our structure is the reverse: the firm represents the group only. Our fiduciary duty is fixed by law — and it runs to you.
We already have a formed group. What do you add?
What turns a group of friends into a deal: negotiating the commercial and legal terms themselves with the developer and their counsel — the price linkage and the payment schedule, the security, the specification and buyer-requested changes, the delivery date and the warranty that follows it, and the associated costs. It ends in a rider, and in representation for each member on their own contract.
Do the Sale Law protections apply in a group purchase?
In full. A group purchase from a developer is a new-construction purchase in every respect: a Sale Law guarantee for every payment above 7% of the price, payments by voucher book and a binding spec. With us it is part of the group terms — no waivers, for any member.
Can I join a group from abroad?
Yes. A group deal signs remotely like any real estate transaction — an authenticated power of attorney, remote identification and full English-language counsel where needed. Olim and foreign residents have a dedicated solution of their own with us, including the full tax picture — see our olim & overseas investors page.
One buyer group. One transaction.
The firm represents buyer groups in opportunity deals: a group already assembled, coming into a project as a single party. For a developer, that's volume — dozens of apartments and one counterparty, at the stage where certainty is worth the most. And the conversation starts with the commercial terms themselves: payment schedule, upgraded specification, legal terms, and guarantees. Every proposal is put to the group, on those terms.
Every one of these reaches the office directly:
A conversation with a real estate lawyer, wherever you are in the process.
An apartment you're buying or selling, a building entering renewal, or a contract waiting on a decision. Leave a name and a number and a senior lawyer on the team will call you back: we hear you out and tell you what the next step is — even when it isn't with us.