Controlled payment mechanism
The controlled purchase mechanism implemented by Avraham Lalum & co law firm (“lalum law”) includes multiple provisions to protect the investor/buyer. The main benefits include:
VALIDATING THE LEGALITY OF THE PROJECT
Often a buyer is unable to check if all the project documentation is in order. Our local legal team conducts a full analysis and review of the relevant ownership documents, land rights, building & construction permits prior to project commencement.
STAGED PAYMENTS ACCORDING TO CONSTRUCTION PROGRESS
To reduce buyers exposure to prepayment risks prior to completion of the project. Lalulm Law implemented a unique staged payments approach. Payments are done based on reaching pre-agreed milestones and construction progress. Some of the key milestones include: obtaining the building permits, registering the asset (e.g. apartment) in the buyer’s name, delivery of the apartment, and the overall construction stages
CONSTRUCTION PROGRESS INSPECTION
An independent engineering inspection company is appointed to monitor and report on the progress of project construction, its quality, and compliance with the approved project plan and documentation.
DOUBLE SALE PREVENTION
All sales transactions are conducted through a designated legal entity and are monitored by Lalum Law legal team eliminating the possibility of selling a single asset multiple times to different buyers.
AUDITED PAYMENT APPROVAL
Each payment request is validated by 3 parties; based on the engineering inspection report, an accounting firm approval, and Lalum Law legal validation.
All payment instructions to buyers are done via a reputable financial provider following Lalum Law approval, or via a trust account as may be applicable for the specific project.
Sales agreements incorporate a compensation mechanism to buyers for the late completion of the construction project.
In extreme cases where the developer is unable to complete the construction of the project on time or according to the agreed terms of the sale, an authorized person can get control of the project management and activities to complete the construction on behalf of the buyers.
POWER OF ATTORNEY
To ensure the implementation of the agreed terms and provisions, Lalum Law obtains a notarized power of attorney from the buyers. This ensures proper implementation of the agreement terms from all parties and reduces the buyer’s involvement with the legal technicalities. It additionally reduces the need for international buyers to travel each time a document needs to be signed, which makes the purchase of an overseas property much more convenient.