What Happens If the Buyer Delays Payments (731)
During the sale of an apartment in Israel, one of the most common problems for the seller is a buyer delaying payments.
It is important to understand the legal consequences and ways to minimize risks.
Possible Consequences of Delay
- Accrued fines or interest
The contract may stipulate fines or interest for each day of delay. - Contract termination
If the delay is substantial, the seller may have the right to cancel the transaction and retain the deposit. - Legal proceedings
In cases of serious delay or conflict, the seller may need to go to court to claim the owed funds. - Delay in transferring the apartment
Buyer payments are often linked to the handover of documents and keys, so payment delays can slow the entire process.
How to Minimize Risks
- Include clear payment deadlines and consequences for delay in the contract.
- Use an escrow account or bank guarantee to protect funds.
- Document all notifications about delays in writing.
- Consult a lawyer or Unehasim specialists on actions in case of late payments.
Tips from Unehasim
- Do not delay responding to payment delays — the sooner you act, the easier the resolution.
- Ensure the deposit is protected, and the contract clearly specifies consequences of late payment.
- If necessary, negotiate with the buyer through a lawyer.
- Plan risks in advance and use fund protection mechanisms.
Contact Unehasim Specialists
If you are selling an apartment in Haifa, Unehasim can help:
- analyze the contract for protective mechanisms in case of delayed payments;
- prepare notices and documents for action in case of delay;
- manage the process until all funds are received;
- minimize legal and financial risks.
Understanding the consequences of payment delays is key to a safe and transparent apartment sale.
