BMBY Clause Samples
The BMBY clause refers to provisions in Israeli real estate contracts that are mandated by the "Sale (Apartments) Law (Assurance of Investments of Persons Acquiring Apartments), 1974," commonly known by its Hebrew acronym BMBY. This clause typically outlines the developer's obligations to provide financial guarantees or insurance to protect buyers' payments until the property is delivered. For example, it may require the developer to issue a bank guarantee or insurance policy for each payment received from the buyer. The core function of the BMBY clause is to safeguard purchasers against the risk of losing their investment if the developer fails to complete the project or deliver the apartment, thereby ensuring greater security and confidence in real estate transactions.
POPULAR SAMPLE Copied 124 times
BMBY commencing after 12 months have elapsed since the exercise date of the Call Option, one party to this agreement shall be entitled to offer to purchase all shares of the other party constituting part of the Relevant Shareholding, at a price per ORL share that shall be quoted in the offer, and the other party shall be obligated, in such case, to accept the offer, or, alternatively, to purchase all the shares of the first party constituting part of the Relevant Shareholding, at the price per share that was quoted in the offer as stated, and all at the discretion of the second party.