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Ruling: [Last time we saw that zd2 is too weak to bind def to go through with the sale, at least at the original price.]
Was the handshake a kinyan based on common practice, as it normally is, at least to prevent the raising of the price? Since it was done in the framework of zd2, it works to strengthen only the commitment of good will, including to try to finish the permit process. It also might obligate def to give pl the first chance to buy the apartment at the price at the time it is sold. While the latter explanation is somewhat forced, the possibilities suffice to prevent pl from obligating def based on the handshake.
Chazal prescribed a mi shepara (a semi-curse) for those who back out of a sale after payment, where there was no kinyan (Shulchan Aruch, Choshen Mishpat 204:1). There are machlokot whether this applies to cases without payment but with a kinyan-like act like a handshake or zichron devarim (see ibid. 6; Sha’ar Mishpat ad loc.) and whether it applies to the sale of land (see Pitchei Teshuva, CM 204:2). However, mi shepara does not apply here because not all of the sale’s details were in place (see Pitchei Choshen, Kinyanim 1:(4)) and because some say that it does not apply regarding real estate when no money (only a check of deposit) was paid (Achiezer III:40).
There is a lower-level moral criticism of one who backs out of a deal called mechusar amana (Shulchan Aruch ibid. 7). There are two possible reasons to say that it does not apply here: 1. The details of the agreement were incomplete (see Pitchei Choshen VIII, 1:(4)); 2. The change of heart was because of a significant change in market price (see machloket in Rama, CM 204:11; Aruch Hashulchan, CM 204:8; Shevet Halevi IV:206).
P'ninat Mishpat (829)
Beit Din Eretz Hemda - Gazit
707 - Realtor Fee Without a Contract – part II
708 - The Binding Nature of the Tentative Agreement – part II
709 - The Binding Nature of the Tentative Agreement – part I
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Beit Din Eretz Hemda - Gazit

P'ninat Mishpat Limits of Interest Rate for Loan with Heter Iska – part II
based on ruling 80033 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat Repercussions of a Sale that Turned Out Not Happening – part III
(based on ruling 83045 of the Eretz Hemdah-Gazit Rabbinical Courts)

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P'ninat Mishpat Profits from Formerly Joint Swimming Pool – part
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P'ninat Mishpat P'ninat Mishpat: Smoking Rights in a Rental? – part II
based on ruling 85076 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part II
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part III
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts

P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part II
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts

Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
Lessons
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