Can I Resell a New Apartment Before Construction Is Complete?

Yes, you can resell a new apartment while its still being built—but only under specific conditions. If you’ve signed a contract on a new apartment that’s still under construction and want to transfer your rights to someone else before receiving the keys, here’s what you need to know.

What does it mean to resell a new apartment during construction?

This is known in Hebrew as hasavat zchuyot (“assignment of rights”). You’re not selling the apartment itself—since you don’t legally own it yet—but rather transferring your rights in the purchase contract with the developer. It’s entirely legal in Israel, but far more complex than a standard resale.

Do I need the developer’s approval?

Yes. Most developers include a clause in the sales contract requiring written consent before you can transfer your rights. In practice:

• You’ll need to formally request permission.
• The developer may require information about the new buyer.
• A transfer fee—typically 1–2% of the original price—is often charged.
• In some cases, the developer may not allow it at all, especially if they’re still marketing units and don’t want to increase competition.

If you wait until you receive possession of the apartment and it’s registered in your name, you’re free to sell it like any other secondhand property.

What are the relevant real estate taxes?

If you want to resell a new apartment, two key taxes apply:

• Capital Gains Tax (Mas Shevach): If you sell a new apartment for more than you paid, you’re liable to pay tax on the profit—even if construction isn’t complete.
• Purchase Tax (Mas Rechisha): The new buyer pays purchase tax based on the resale price at the time of transfer.

What about registration and legal protection?

Since the apartment is not yet registered in the Land Registry (Tabu), your rights are usually recorded via a warning note (he’arat azhara). This legal tool notifies others that you have a contractual claim to the property.

When you resell a new apartment, you have to update the warning note to reflect the new buyer’s name. This ensures the buyer is legally protected and that the transfer is formally recognized by the relevant authorities.

What does the lawyer need to handle?

Because you’re transferring rights in an uncompleted property, your lawyer plays a central role. Beyond reviewing the conditions of the original contract, their tasks typically include:

• Coordinating with the developer, including submitting the resale request and securing legal approval.
• Drafting the assignment of rights agreement between you and the new buyer.
• Updating the he’arat azhara or equivalent legal registration.
• Managing the financial process, including Capital Gains Tax, Purchase Tax, fund transfers, and compliance checks.

How does the market affect my ability to resell a new apartment?

Your chances of success—and potential profit—depend heavily on:

• The project’s location and stage of construction
• Market demand and current prices
• Whether the developer is still selling units in the same building

A rising market with low availability can make resale attractive. But if the project is struggling or prices are falling, finding a buyer may be difficult—and, as mentioned before, some developers may deny the request altogether.

So what’s the bottom line?

You can resell a new apartment during construction, but it’s not always a simple process. With the right legal guidance, proper approvals, and an understanding of the financial implications, it can be done smoothly and legally.