Compensation for delay in delivery of an apartment by a contractor according to the contract date, documentation of the delay, and reasonable rental value.
The statutory compensation: without proving damage
The Sale Law (Apartments) may entitle a purchaser of an apartment from a contractor to compensation for delay in delivery without proof of damage. The start of eligibility and its rate depend on the date the sale contract was made: contracts made from 7 July 2022 are subject to the arrangement of Amendment 9, which includes compensation after one month of delay and tiers according to the length of the delay; it does not grant automatic retroactive compensation from the first day. For earlier contracts, the arrangement that was in force at the time they were made must be examined. The calculation is made in relation to the rent of a similar apartment, subject to the conditions of the law and the exceptions to liability. The protections in the law may not be conditioned to the purchaser’s detriment.
The familiar tactics of contractors
Having buyers sign "consents" to postpone delivery in exchange for negligible benefits; sweeping claims of force majeure and circumstances beyond the contractor's control, which the case law examines carefully and accepts only when a concrete connection to the delay has been proven; "technical" delivery of an apartment that is not fit for habitation (without Form 4, without utility connections) in order to stop the compensation clock; and conditioning delivery of the key on signing a waiver. Important: signing documents when receiving the key does not necessarily bar a claim, but it is preferable to avoid it and to sign "under protest".
How do you maximize the compensation?
Precise documentation: the contractual delivery date, all postponement notices, the actual delivery date, and Form 4; an appraiser's opinion regarding the appropriate rental value; and a compilation of the related damages, rent actually paid, storage, financing. Delay claims are also conducted as group claims by project purchasers, a move that increases the pressure on the contractor and reduces the cost of the proceeding for each purchaser.
Representation of Apartment Buyers
Israel Arama represents buyers in delivery delay claims against contractors, as individuals and as groups of buyers. Do not sign a waiver and do not forgo the compensation prescribed by law: contact us for an initial consultation without obligation.
The Compensation Prescribed by Law: Without Proving Damage — What Is Important to Know?
The Sale Law (Apartments) may entitle a purchaser of an apartment from a contractor to compensation for delay in delivery without proof of damage. The start of eligibility and its rate depend on the date the sale contract was made: contracts made from 7 July 2022 are subject to the arrangement of Amendment 9, which includes compensation after one month of delay and tiers according to the length of the delay; it does not grant automatic retroactive compensation from the first day. For earlier contracts, the arrangement that was in force at the time they were made must be examined. The calculation is made in relation to the rent of a similar apartment, subject to the conditions of the law and the exceptions to liability. The protections in the law may not be conditioned to the purchaser’s detriment.
Contractors' Familiar Tactics — What Is Important to Know?
Having buyers sign "consents" to postpone delivery in exchange for negligible benefits; sweeping claims of force majeure and circumstances beyond the contractor's control, which the case law examines carefully and accepts only when a concrete connection to the delay has been proven; "technical" delivery of an apartment that is not fit for habitation (without Form 4, without utility connections) in order to stop the compensation clock; and conditioning delivery of the key on signing a waiver. Important: signing documents when receiving the key does not necessarily bar a claim, but it is preferable to avoid it and to sign "under protest".
How do you maximize the compensation?
Precise documentation: the contractual delivery date, all postponement notices, the actual delivery date, and Form 4; an appraiser's opinion regarding the appropriate rental value; and a compilation of the related damages, rent actually paid, storage, financing. Delay claims are also conducted as group claims by project purchasers, a move that increases the pressure on the contractor and reduces the cost of the proceeding for each purchaser.
This information is for initial orientation about the service and contact process. It is not individual legal advice.
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