Quick Answer: Buying a new apartment from an Israeli developer — often before construction is complete — is governed by the Sale (Apartments) Law 5733-1973 (Chok Mecher Dirot). That law requires every developer who receives more than 7% of the purchase price before handing over the keys to provide the buyer with a bank guarantee (aravut bank), insurance policy, or mortgage-free title registration at the Land Registry, protecting every shekel paid. The purchase agreement must specify a contractual delivery date, floor plans, technical specifications, and your rights when things go wrong. Foreign buyers who skip independent legal review before signing developer contracts frequently lose these protections.

New construction is one of the most common ways foreign nationals and diaspora buyers purchase Israeli property. A developer announces a project — often before a single foundation is poured — publishes a sales brochure with glossy renders, and opens a sales office where buyers can reserve apartments at launch prices. The appeal is real: you can sometimes lock in a unit at 10–15% below the eventual market price by buying early. The risks are equally real: construction delays measured in years, developers who go insolvent before completing the building, specifications that look different from the brochure, and contracts drafted entirely in the developer's favor.

Israel's Sale (Apartments) Law 5733-1973 imposes mandatory buyer protections on every new-apartment sale — protections the developer cannot waive or contract around. But they only work if you know to invoke them. Most of the horror stories you hear about Israeli developer purchases — money lost to insolvency, apartments delivered with the wrong finishes, delays that stretch on for years without compensation — trace back to buyers who signed without independent legal review. What follows covers the complete process from first signing through to Land Registry registration.

1. What Off-Plan Buying Means in the Israeli Market

In Israel, the term rechisha al haniyr — buying on paper — describes what is commonly called an off-plan purchase abroad. You are contracting to buy an apartment that has not yet been built, or is partway through construction, based on drawings, specifications, and a developer's promise to deliver a finished unit by an agreed date.

Off-plan buying in Israel tends to follow a predictable timeline. The developer obtains a building permit from the local planning committee (va'adat tichnun), files the plans with the Land Registry, and opens a sales office. During the pre-sales phase — often six to twelve months before construction starts — the developer may offer preferential pricing to early buyers. Once a certain percentage of units are sold, the developer draws down construction financing from an Israeli bank. Completion typically takes two to four years from the permit date, though delays frequently extend this.

The key legal distinctions from a secondary-market purchase are:

  • You are contracting with the developer (yezam), not an individual seller
  • The unit does not yet legally exist as a registered property — it will only be registered at the Tabu once the building is complete and the developer subdivides it into separate registered apartments
  • Your purchase contract is a commitment to pay over time as construction milestones are reached, not a single payment on a definite closing date
  • The Sale (Apartments) Law 5733-1973 imposes mandatory protections that override any contrary developer-drafted language
In Practice: A Canadian family signed a reservation form for an off-plan apartment in a Netanya development in October 2025, paying NIS 50,000 as a reservation fee without retaining an attorney first. When their Israeli attorney reviewed the developer's contract two weeks later, she identified that the contract had no binding delivery date (only a non-binding "estimated" date), no bank guarantee attached (only a promise to provide one "within 30 days of signing"), and a clause purporting to allow the developer to change the floor plan specifications unilaterally without compensation. Their attorney renegotiated three clauses — adding a contractual delivery date with delay compensation under Section 5A of the Sale of Apartments Law and requiring the bank guarantee to be delivered simultaneously with the signing, not 30 days later. The developer accepted these changes because they were legally required under the Law regardless. The family would have paid NIS 2.4 million without any of these protections had they signed the original contract.

2. The Sale (Apartments) Law 5733-1973: Your Legal Framework

The Sale (Apartments) Law 5733-1973, together with the Sale (Apartments) (Securing Buyers' Investments) Law 5734-1974 (Chok Havtachat Zchuyot Konei Dirot), forms the core of buyer protection in Israeli new-build transactions. Together they create a regime that most developed countries have only recently adopted.

What the Law Covers

The Sale (Apartments) Law applies to every transaction where a developer sells an apartment that:

  • Is part of a building of two or more units
  • Has not yet been registered as a separate property at the Land Registry at the time of sale
  • Is being sold while still under construction or before construction has begun

It does not apply to resales by individual apartment owners of fully registered, completed apartments — those are governed by general contract law and the Land Law 5729-1969.

Key Mandatory Rights Under the Law

Regardless of what a developer's contract says, the Sale (Apartments) Law gives every buyer:

  • Full technical specifications: Under Section 2, the developer must attach complete technical specifications (mifrat techni) describing materials, finishes, fixtures, and building systems to the contract. Any deviation from these specifications entitles the buyer to compensation.
  • Delivery date: Under Section 5A (added in the 2011 amendment), the contract must contain a specific delivery date and a table of escalating daily compensation for delays beyond 60 days past that date.
  • Common area obligations: The developer must complete and hand over all common areas, roof gardens, parking garages, and lobbies stated in the plans.
  • Statutory warranties: Under Sections 4 and 4A, the developer is liable for defects for periods ranging from 1 year (cosmetic finishes) to 7 years (structural faults). These warranties cannot be waived.
  • Financial protection: Under the Securing Buyers' Law, the developer must protect all amounts exceeding 7% of the purchase price through one of five approved mechanisms, explained in the next section.
In Practice: A buyer in Tel Aviv signed a developer contract that contained a clause stating: "The buyer waives any right to compensation for delays in construction." An Israeli attorney flagged this clause immediately: it is void under Section 5A of the Sale of Apartments Law (as amended in 2011) and cannot be enforced. Section 5A expressly states that any contractual provision that reduces or eliminates the buyer's right to delay compensation is of no legal effect. The attorney confirmed to the buyer that the clause was meaningless — but also recommended that the contract be formally amended to remove it, because leaving void clauses in the contract creates ambiguity and sometimes triggers unnecessary dispute with developers who do not understand their own legal obligations.

3. Bank Guarantee: How Your Money Is Protected

The Sale (Apartments) (Securing Buyers' Investments) Law 5734-1974 requires a developer to protect every shekel you pay beyond 7% of the purchase price. Once you have paid more than a small initial deposit, your money must be covered by an approved security mechanism — and the developer has no discretion about whether to provide one.

The Five Security Options

The developer can choose among five security mechanisms under Section 2 of the Securing Buyers' Law:

  1. Bank guarantee (aravut bank): An unconditional guarantee issued by a licensed Israeli bank, payable to the buyer on demand if the developer fails to deliver. This is the most common mechanism in practice. The guarantee must cover the full cumulative amount paid by the buyer and must be updated as payments increase. The guarantee bank — typically Bank Hapoalim, Bank Leumi, Discount Bank, or Mizrahi Tefahot — issues the guarantee and stands behind it regardless of whether the developer is solvent.
  2. Insurance policy (polisa bituach): A policy from a licensed insurer covering the buyer's payments in the event of developer default. Less common than a bank guarantee because insurance payouts require a claim and investigation process, unlike the on-demand nature of a bank guarantee.
  3. Charge over the property (mashkanta rishona): A first-ranking mortgage registered at the Land Registry in the buyer's favor, covering the land on which the building will be constructed. Only available where the developer owns the land outright (not common on ILA leasehold).
  4. Mortgage-free registration: The developer registers the buyer's rights at the Land Registry within a set timeframe after payment, effectively transferring title progressively and eliminating the risk of developer insolvency.
  5. Supervision by a third party: An attorney or trustee holds the buyer's payments in escrow and releases them to the developer only against certified construction milestones. Common in self-build cooperative projects (kvutzot rechisha).

In the vast majority of standard developer-to-buyer transactions, option one — the bank guarantee — is what buyers receive. Make sure the guarantee is in your hands before you transfer any payment beyond the initial 7%.

What to Check on Your Bank Guarantee

A properly issued bank guarantee for a new apartment purchase must:

  • Name you (the buyer) as the beneficiary
  • State the exact apartment unit number, building, and project
  • Cover the full amount paid to date (and be updated as you make further payments)
  • Be payable on demand — unconditional, not contingent on proof of developer fault
  • Remain valid until the earlier of (a) registration of the apartment in your name at the Land Registry, or (b) the bank's confirmation that the developer has fulfilled its obligations
In Practice: A London-based buyer paid four construction-stage payments totaling NIS 1.6 million on a Tel Aviv apartment between 2022 and 2024. The developer provided bank guarantees from Bank Hapoalim for each payment — but the buyer's Israeli attorney noticed that after the third payment, the guarantee was updated to cover only NIS 1.2 million, not the cumulative NIS 1.6 million paid. The developer's bookkeeper had issued an updated guarantee for the incremental third payment only, not an updated cumulative guarantee. The attorney wrote to the developer requiring a replacement guarantee for the full NIS 1.6 million within 7 business days under Section 5 of the Securing Buyers' Law. The developer's bank issued the corrected guarantee within 4 days. Had the developer become insolvent before the error was caught, the buyer would have had a shortfall of NIS 400,000 not covered by any guarantee.

4. The Purchase Agreement: What Must Be Inside

Israeli developer contracts (chozeh rechisha) are typically long — 40 to 80 pages in Hebrew — and written entirely in the developer's favor before your attorney has a chance to negotiate. Understanding what must legally be in the contract, and what commonly problematic clauses to look out for, is the most important due diligence step before signing.

Mandatory Contract Elements Under Section 2 of the Sale (Apartments) Law

  • Full technical specification (mifrat techni): A detailed document — typically 10 to 30 pages — describing every material, finish, appliance, and system in the apartment. Flooring type, kitchen cabinets, bathroom fixtures, wall insulation, hot water system, air conditioning type, window quality, and elevator specifications must all be listed. Any deviation from the specification entitles the buyer to demand repair, replacement, or price reduction.
  • Floor plan (tochenit dirot): The exact dimensions of each room, storage unit, balcony, and parking space, stamped by a licensed architect. The plan must match the building permit.
  • Contractual delivery date: Since the 2011 amendment, the contract must state a specific calendar date by which the developer commits to hand over the keys. "Q1 2027" or "approximately 36 months from commencement" does not satisfy this requirement — a specific date must be stated.
  • Delay compensation table: Section 5A mandates that the contract include a compensation schedule — the daily amount the developer must pay for each day of delay beyond 60 days past the delivery date. The statutory minimum is 1.5 times the monthly rent for a comparable apartment in the same area per month of delay.
  • Building permit number: The developer must attach or reference the current valid building permit issued by the local authority under the Planning and Building Law 5725-1965.

Common Problematic Clauses to Watch

Experienced Israeli real estate attorneys regularly encounter developer contracts that include:

  • Unilateral specification changes: Clauses allowing the developer to substitute materials or layouts "due to supply chain conditions" without compensation. These are partially valid under Israeli contract law, but your attorney should narrow the scope significantly.
  • Broad Force Majeure definitions: Some contracts define force majeure so broadly as to excuse virtually any delay — including general contractor strikes, material price increases, or planning committee processing times. The Sale of Apartments Law limits what delays can be excluded from the compensation regime; overly broad clauses may still be used to create disputes.
  • Buyer termination penalties: Developer contracts typically include a clause that if the buyer breaches the contract — for example, misses a payment — the developer retains 10–15% of the purchase price as liquidated damages under Section 15(b) of the Contracts (Remedies for Breach) Law 5731-1970. Make sure these penalties are symmetric: the developer's liability for its own breach should be equally substantial.
  • VAT escalation: If the statutory VAT rate changes between signing and delivery, developer contracts typically pass the difference to the buyer. This is legally permitted. Know what the current VAT rate is (18% in 2026 for new apartments) and understand that a rate increase adds to your total cost.
In Practice: A New York buyer signed a developer contract in a Ra'anana project in January 2026 for NIS 3.1 million. The technical specification attached to his contract stated "kitchen countertops: stone, as selected by developer." His Israeli attorney marked this clause for negotiation — "as selected by developer" is not a specification, it is a blank check. After negotiation, the clause was amended to read "stone countertop minimum thickness 20mm, Silestone Calacatta Gold or equivalent quality level approved in writing by buyer." Three months later, the developer's sales manager told a different buyer that the kitchen countertops were being changed to quartz composite. That buyer — who had signed the original non-specific clause — had no legal basis for objection. The New York buyer did.

5. Payment Milestones, CPI Linkage, and VAT

Unlike a secondary-market purchase where payment is typically made in two or three tranches over a short period, developer contracts spread payment across construction milestones — sometimes over three to four years. Understanding how these payments work, how they are indexed to inflation, and what taxes apply is critical to financial planning.

Typical Payment Structure

Israeli developer payment schedules vary by project but commonly follow this pattern:

  • Reservation / pre-contract (5–7%): Paid at the sales office to secure the unit. This amount falls below the 7% threshold at which the Securing Buyers' Law kicks in — meaning it may not be covered by a bank guarantee. Ensure your attorney negotiates for the guarantee to start immediately.
  • At contract signing (10–15%): Paid on the day both parties sign the purchase agreement, simultaneously with receipt of the first bank guarantee.
  • Foundation complete (~10%): Triggered by a developer certification that the foundation has been poured, often confirmed by an architect's certificate (teudat av beit)).
  • Structural shell complete (~20%): When the building's concrete frame reaches the buyer's floor level.
  • Roof complete (~15%): When the top floor is sealed.
  • Key handover (remaining balance, typically 15–20%): Paid against a snagging walkthrough and the official key handover protocol. This is when the Sale (Apartments) Law's defect reporting obligations begin.

CPI Linkage (Hatzmedah LaMadad)

Nearly all Israeli developer contracts link the purchase price to the Consumer Price Index (madad hamechirim laztarchan). This means that each payment instalment is adjusted upward by the change in the CPI between the contract date and the payment date. In periods of high inflation — Israel's CPI rose approximately 3.4% in 2024 and 2.9% in 2025 — this can add a meaningful amount to your total cost. On a NIS 3 million apartment with three years between signing and delivery, a 3% annual CPI increase adds approximately NIS 270,000 to the total purchase price. Budget for this from the outset and do not plan your financing on the headline contract price alone.

VAT on New Apartments

New apartments sold by a developer carry VAT (mas erech musaf) at the standard rate — 18% in 2026, applied to the purchase price. The price stated in the developer's contract is typically quoted inclusive of VAT. Olim (new immigrants) who make Aliyah before or within a defined period of purchasing their first Israeli apartment may qualify for a reduced VAT rate of 0% or a reduced rate on the VAT portion under a Ministry of Finance directive, subject to conditions set by the Israel Tax Authority and Ministry of Construction and Housing. Verify eligibility with your attorney before contract signing, not afterward.

In Practice: An American buyer purchased an off-plan apartment in Jerusalem in 2024 for NIS 2.8 million inclusive of 18% VAT. The CPI linkage clause in the contract used the construction input index (madad tashuma), not the general CPI — a distinction that matters when construction costs rise faster than consumer prices. By the time the apartment was delivered in late 2026, the construction input index had risen 8.3% from the contract date, adding NIS 232,400 to the purchase price. The total actual payment was NIS 3,032,400 — 8.3% above the headline contract price. The buyer's Israeli bank had approved financing on the original NIS 2.8 million figure; the buyer had to make up the NIS 232,400 difference in cash. Planning for this eventuality from the start would have been straightforward had the buyer's attorney flagged the index type at the time of contract review.

6. Delivery Delays and Your Legal Remedies

Construction delays are endemic in Israel. The typical off-plan project is delivered six to eighteen months behind the contractual delivery date. When a delay occurs, the Sale (Apartments) Law gives you a structured set of remedies — but only if you know how to use them.

The 60-Day Grace Period

Under Section 5A of the Sale of Apartments Law, a developer has a 60-day grace period beyond the contractual delivery date before the compensation regime starts. During those 60 days, the developer owes you nothing for the delay — this is a statutory grace period built into the law. After day 61, automatic compensation begins.

Delay Compensation Rates

The mandatory compensation for post-60-day delays is calculated based on the monthly rental value of a comparable apartment in the same area — what you would pay to rent equivalent accommodation while waiting. Specifically:

  • Days 61–150 of delay: 1.5 times the monthly comparable rent, prorated daily
  • Day 151 and beyond: 1.25 times the monthly comparable rent, prorated daily

In central Tel Aviv, where monthly rents for a new 3-bedroom apartment run NIS 8,000–12,000, a delay of 12 months (after the 60-day grace period) generates roughly NIS 108,000–162,000 in compensation owed to the buyer. The developer must pay this compensation monthly as it accrues — not as a lump sum at delivery. If the developer does not pay, you can add it to the list of outstanding sums at the time of key handover and deduct it from your final payment instalment.

When the Delay Is Extreme: Termination Rights

Under Section 6 of the Sale of Apartments Law, a buyer has the right to terminate the purchase agreement and receive a full refund of all payments (plus statutory interest) if:

  • The delay exceeds 180 days beyond the contractual delivery date (after the 60-day grace period — meaning a total delay of 240 days)
  • The developer goes into receivership or insolvency proceedings
  • The developer materially breaches any other obligation under the contract

The termination right must be exercised in writing, giving the developer a written notice citing the section of law and demanding performance or refund within 14 days. If you exercise a bank guarantee, the bank pays the guaranteed sum directly to you without requiring developer consent.

In Practice: A Melbourne-based buyer contracted to purchase an apartment in Rishon LeZion in November 2022, with a contractual delivery date of March 2025. The developer delivered the apartment in January 2026 — 10 months after the contractual date, or approximately 7 months after the 60-day grace period expired. The buyer's attorney calculated delay compensation under Section 5A: based on comparable rents of NIS 7,500 per month for a similar apartment in the area, the compensation was NIS 7,500 × 1.5 for the first 90 days (NIS 33,750) and NIS 7,500 × 1.25 for the remaining 120 days (NIS 37,500) — a total of NIS 71,250. The developer initially disputed the amount, proposing NIS 45,000. The buyer's attorney cited Section 5A of the Law, attached comparable rental listings from Yad2.co.il (Israel's main property portal), and filed a complaint with the Ministry of Construction and Housing's Consumer Affairs Department (agaf tlunotot chutzot). The developer settled for NIS 68,000 within three weeks of the complaint being filed.

7. Defects, Snagging, and Your Statutory Warranty

The day the developer hands you the keys is not the end of the legal relationship — it is the beginning of the defect warranty period. The Sale (Apartments) Law imposes mandatory minimum warranty periods on every developer for every type of defect, and these cannot be shortened by contract.

Statutory Warranty Periods

Under Section 4 of the Sale (Apartments) Law and the Sale (Apartments) (Defining the Defects That the Developer Is Responsible For) Regulations 5736-1976, the warranty periods are:

  • 1 year: Cosmetic defects — paint, tiles, plastering, caulking, internal doors and windows, kitchen cabinets, sanitary fittings, electrical switches, and surface finishes.
  • 2 years: Mechanical and plumbing systems — heating, hot water, air conditioning, water pipes, drainage, and electrical wiring.
  • 3 years: Waterproofing of roofs, terraces, bathrooms, and wet rooms.
  • 5 years: External building envelope — cladding, external plaster, external windows and doors, structural terraces.
  • 7 years: Structural defects — foundations, load-bearing walls, columns, beams, floor slabs.

These periods run from the date of actual key handover, not from the contractual delivery date.

The Snagging Walkthrough (Seker Mesira)

At key handover, insist on a formal snagging walkthrough with the developer's site manager. Every defect you identify should be documented in the handover protocol (tochenet mesira) — a signed document listing the apartment's condition at the time of key receipt. Defects not listed in the handover protocol can still be claimed under the statutory warranty, but documented defects are easier to enforce. For foreign buyers who cannot physically attend, the walkthrough can be conducted by a licensed building inspector (magshim bniya) acting under a power of attorney.

In Practice: A Canadian investor took delivery of a new apartment in Ashdod in June 2025 without attending a formal snagging walkthrough — the developer told him keys were "ready" and suggested he simply come in to sign and collect them. He signed the handover protocol without reviewing it carefully, and it stated the apartment was "received in good condition." Six months later, when his tenant reported a major water leak from the terrace waterproofing — a defect clearly covered by the 3-year warranty — the developer's lawyer initially argued that the handover protocol's "good condition" statement was evidence that no defect existed. The owner's attorney countered that the waterproofing defect was latent (not visible on the date of handover), that the 3-year warranty for waterproofing runs regardless of handover protocol language, and that Section 4A of the Sale of Apartments Law makes the warranty non-waivable. The District Court in Ashdod upheld the warranty claim 14 months after the initial dispute arose, ordering the developer to repair the terrace waterproofing at a cost of NIS 38,000. The lesson: a thorough snagging protocol — ideally with a professional inspector — prevents much of this dispute from arising in the first place.

How to File a Warranty Claim

Send defect reports in writing to the developer's registered warranty address — the contract must specify one — with photographs, a description of the defect, and the date you first noticed it. The developer must respond within 30 days under standard practice (some contracts set shorter periods). If the developer fails to repair within a reasonable time, you have three parallel paths:

  1. A formal complaint to the Ministry of Construction and Housing's National Housing Authority (Reshut HaDiyur HaLeumit), which can sanction non-compliant developers
  2. A claim in the Magistrate Court or District Court for the cost of repair or replacement
  3. Commissioning an independent repair and deducting the cost from remaining payments — only available if payments are still outstanding and the contract specifically permits it

8. Land Registry Registration: Getting Your Name on the Tabu

Foreign buyers often don't think about Land Registry registration until it doesn't happen on schedule. Until your apartment is registered in your name at the Tabu (Lishkat Rishoum Mekarka'in), you are a contractual owner, not a registered owner, and your title is not fully protected against third-party claims.

How Registration Works for New Builds

New apartments cannot be separately registered until the building is complete and the developer has obtained two things:

  1. Certificate of Occupancy (teudat gmar bniya): Issued by the local authority confirming the building was constructed in accordance with the approved building permit under the Planning and Building Law 5725-1965.
  2. Condominium Registration (rishoum bayit meshutaf): The developer files a subdivision plan at the Land Registry, creating separate registered units (the nechesim) out of the building as a whole. This is when your specific apartment gets a registered title number.

Under Section 6B of the Sale (Apartments) Law, the developer must complete Tabu registration within 18 months of obtaining the Certificate of Occupancy, unless delays are attributable to the buyer. This deadline is frequently missed in practice, but it creates a legal obligation on the developer that can be enforced.

Protecting Yourself Before Registration

Between contract signing and Tabu registration, your rights are protected by:

  • The bank guarantee or other security mechanism (protecting your payments)
  • A kavshara (attachment) on the developer's land registered by your attorney at the Tabu shortly after contract signing — this flags that you have a buyer's right on the land and prevents the developer from mortgaging or selling the land without your knowledge
  • The Lands Authority's buyer registration system for ILA leasehold land, where the developer notifies the ILA of your buyer rights at the time of contract

Your attorney should register a buyer's annotation (he'arat azhara) at the Land Registry within days of contract signing. This is a standard step in Israeli new-build transactions but requires your attorney to act promptly and is sometimes missed when buyers use developers' recommended "house attorneys" who have a conflict of interest.

In Practice: A British buyer completed a new apartment purchase in Herzliya Pituach in 2024 and discovered three years later that registration at the Tabu had still not occurred — the developer had been slow to file the condominium subdivision plan. The buyer's attorney filed a formal demand under Section 6B of the Sale of Apartments Law and lodged a complaint with the Land Registration Authority (Rashut Rishoum Karka) at the Ministry of Justice. The attorney also confirmed that the he'arat azhara buyer's annotation filed at the time of contract was still in place and valid. The developer completed registration within 90 days of the formal demand. Had the he'arat azhara not been registered at the time of purchase, the buyer would have had weaker standing to enforce the registration demand — and any third-party purchaser or lender who relied on the public register without seeing the annotation could have acquired competing rights.

Purchase Tax at Registration

Purchase tax (mas rechisha) is payable to the Israel Tax Authority within 60 days of signing the purchase agreement — not at Tabu registration. For non-residents buying a second property in Israel (or any property if they own property elsewhere), the 2026 rate is 8% on the first NIS 6,055,070 of the purchase price and 10% above that from the first shekel. For new Olim purchasing their first apartment under the Oleh benefit, a reduced rate and partial exemption apply under Section 9(g) of the Land Taxation Law 5723-1963. Missing the 60-day payment deadline generates interest and penalties; developers will often remind you but are not legally obligated to do so.

In Practice: An Australian buyer signed a developer contract for a NIS 2.9 million apartment in Ra'anana in March 2026. As a non-resident purchasing his first Israeli property (he had no other property), his purchase tax was calculated under the standard residential brackets, not the higher non-resident brackets — because the 2024 Supreme Court ruling clarified that a non-resident who has no other property in Israel is eligible for standard brackets. His attorney filed the purchase tax declaration (Form 7000) with the Tel Aviv South assessment office of the Israel Tax Authority within 60 days of signing, paying approximately NIS 108,000 in purchase tax on the bracket-stepped calculation. The attorney confirmed to him that paying even 24 hours after the 60-day deadline would have triggered a 4% per annum penalty interest charge — on NIS 108,000 that adds NIS 4,320 per year until payment.