We all know that Sunday-morning feeling when phone calls and emails flood in. The clients have had the weekend to think, and now they flood you with messages and questions. But I did not expect a call like this one...
Haim introduced himself as a friend and adviser of Ms. Bracha, who had bought two apartments in Bulgaria and claims she was defrauded. “I want you to return her money, and right away,” he said, raising his voice.
I answered patiently: “Haim, she transferred the money to an escrow account that I managed, and from it I transferred the money, according to the terms of the contract, to the selling company. The apartments are registered in her name in the Bulgarian land registry.”
“You were her lawyer. You're responsible for the fact that she isn't getting a single shekel from these apartments!” he shouted in my ear.
Now I understood the problem - a classic confusion of roles.
Bracha's story: who is supposed to do what?
Bracha, a woman in her 60s, took the inheritance she received from her mother and bought two apartments in Bulgaria from an Israeli developer. She understood from the marketer that I was representing her, and even when I read out to her at the signing meeting the clause stating that I do not represent her (a clause I make a point of dwelling on at every signing of such a contract) - she paid no attention at all. She was thrilled after being promised a 12% annual yield. She relied on the marketer and did not check who was managing her properties and on what terms. This is an utterly essential point in the yield of an income-producing property.
At the meeting in my office I showed her the notarized sale agreement and the copies from the Bulgarian land registry - the apartments are indeed registered in her name. But that did not satisfy her.
“She isn't getting a shekel from these apartments. She received them at the beginning of 2024 and so far they have sent her ₪7,500 once,” said Haim.
“I was the trustee for the money. My role was to make sure the apartments were registered in her name and then to transfer the money to the seller. That I did,” I replied.
Who's who in buying property abroad - the complete guide
The marketer/broker - his interest is clear as day: to sell you the apartment and collect a commission. To achieve this, he will paint a rosy picture and make far-reaching promises. As the British real estate investor Samuel Leeds warns: “The seller will always tell you what you want to hear, not what you need to know.”
The developer - responsible for building the project or renovating the property and handing it over in accordance with the commitments in the purchase agreement. The developer's role ends with delivery of the finished property under the terms of the contract.
The accompanying lawyer (Israeli or local) - his role is to protect the interests of the buyer alone, unlike the trustee, who is chosen by the developer. He will carry out due diligence on the property or project, negotiate with the developer over the clauses of the purchase agreement, and give the buyer ongoing support until the property is received.
The trustee - holds the money and transfers it to the developer in accordance with the “milestones” set in the agreement. It is important to understand: the trustee is not your lawyer! He is usually chosen by the developer, but he owes you fiduciary duties by law. According to a 2024 PwC study, about 40% of international investors do not understand the role of the trustee.
The supervisor (if hired) - reports to the trustee and the buyers on the pace of the project's progress and helps ensure the money is transferred in line with the milestones. This is your additional “gatekeeper” in the project. Unfortunately, in a large share of projects the developers do not agree to / do not allow the trustee to hire a supervisor on behalf of the buyers.
The local lawyer - acts on behalf of the developer to register the properties in your name (just like the developer's lawyer in Israel), to obtain a local tax identification number, to open a bank account (if required) and to register you as owner with the local authority.
The management company - the ongoing handling of the property: finding tenants, signing lease agreements, collecting and transferring rent, and dealing with faults. This is where Bracha failed - she did not check who was managing her properties and on what terms. I recommend checking the management company, for example: experience, reputation, fees, transparency in reporting, ability to find tenants, and more.
The most important lesson
As the economist and investor Robert Kiyosaki notes: “The best investment you can make is an investment in your own education.” Before buying property abroad, it is vital to understand the roles, to hire an independent lawyer to represent you, and not to rely on verbal promises.
According to a 2025 report by the real estate consultancy Knight Frank, international real estate investments are expected to rise by 15% this year, but the successful investors are those who understand the system before they enter it.
Remember: you are not just buying an apartment - you are buying an entire system of services. Understand who does what, and you will spare yourselves a lot of headaches.
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית