Purchasing property in Israel is one of the largest financial commitments most people will ever make. Between the purchase price itself, purchase tax, legal fees, mortgage costs, and potential renovations, buyers are often looking for ways to reduce costs during the process.
However, a more modest expense that should never be overlooked is hiring a qualified engineer to inspect the property before signing — or, in the case of a new development, before taking possession of the apartment.
An engineer’s inspection can uncover issues that are not immediately visible to the untrained eye and can ultimately save buyers significant money, stress and legal complications down the line, or even prevent the purchase from going through at all.
For example, we have seen cases where an engineer identified dampness in a wall of an apartment and determined that, due to the property’s orientation, the issue could not be permanently resolved. Armed with this information before signing the purchase agreement, the buyers chose to walk away from the transaction and avoid a potentially costly mistake.
Why an Engineer Is Important When Buying a Second-Hand Property
Many second-hand properties in Israel may appear well-maintained aesthetically, while concealing structural, electrical or moisture-related issues beneath the surface.
An engineer can help identify concerns such as:
- Water damage or ongoing moisture issues
- Structural cracks or movement
- Electrical problems or outdated infrastructure
- Plumbing concerns
- Roofing or insulation issues
In some cases, buyers discover that the layer below the flooring is saturated with water, walls repeatedly suffer from dampness or leaks that cannot simply be resolved with cosmetic repairs.
Electrical infrastructure is another common concern. Many older apartments in Israel still operate on a single-phase electrical system rather than the more modern three-phase system that many families require today. Upgrading to three-phase electricity can be costly, time-consuming and subject to approvals. Engineers will often inspect whether the wiring and outlets meet modern standards and whether upgrades may be necessary.
Negotiating Repairs Before Signing
The reason an engineering inspection is often considered a necessity is that it provides buyers with critical information before they become legally committed to the purchase. Identifying defects, structural concerns, or maintenance issues in advance can help buyers avoid costly surprises and gives them leverage to negotiate repairs or a price adjustment with the seller before signing the purchase agreement.
Often, once issues are identified, the parties can agree that the seller will repair specific defects prior to the buyer taking possession. In these situations, the sale agreement must include a detailed list of items the seller is obligated to fix before delivery of the property.
This is particularly important because Israeli sale agreements most commonly include an “as is” clause, meaning the buyer agrees to purchase the property in its current condition. Without proper inspections beforehand, and adding an addendum to the “as is” clause, buyers may later discover expensive problems they unknowingly accepted.
An engineer’s report therefore becomes not only a practical tool, but also an important legal and negotiation tool during the transaction process.
The Importance of an Engineer in New Developments
Many buyers assume that purchasing a brand-new apartment from a developer eliminates the need for inspections. In reality, this is often where professional inspections become even more important.
Before taking possession of a newly constructed apartment, buyers should strongly consider bringing an engineer to conduct a full inspection of the property.
The engineer will check whether:
- The apartment was built according to Israeli building regulations and standards
- Construction matches the plans and specifications
- Any upgrades or layout modifications were properly executed
- Finishing work meets acceptable standards
- Apartment systems such as water, electricity and sewage are properly connected and working.
- There are defects requiring repair before handover
Even newly completed projects can contain significant construction defects, often because they are being built on a larger scale than a specifically tailored renovation.
For example, we have seen cases where balconies were constructed incorrectly, with tile slopes directing water toward the apartment instead of away from it. In one such case, the developer was required to remove and completely redo the tiling work after the issue was identified by an engineer.
In other situations, developers may agree to provide compensation when defects are discovered prior to occupancy.
Determining Whether an Apartment Is Considered “Livable”
Another important role of the engineer is determining whether the apartment meets the standard of being considered “livable” at the time of delivery. This mostly relates to the status of systems in the apartment, such as water and electricity, and the ability to use the apartment in a normal way.
This can become especially significant in situations involving delayed delivery by the developer or seller.
Under Israeli law and many purchase agreements, buyers may be entitled to compensation if the apartment is delivered late. However, disputes sometimes arise regarding whether the apartment was truly fit for occupancy and therefore considered officially delivered.
An engineer can provide professional documentation and opinions regarding the apartment’s condition and whether it meets livable standards.
A Small Investment That Can Prevent Major Costs
Whether purchasing a second-hand apartment or in a brand-new development in Israel, having a professional engineer inspect the property is a step buyers should strongly consider as part of a careful and informed purchasing process and due diligence.
While hiring an engineer adds another expense to the purchasing process, it is an important and (relatively) inexpensive line item that will provide peace of mind before completing one of life’s biggest investments.
