Under the guidance of the Minister of Construction and Housing, this morning it was uploaded to the Government Memorandum website for Amendment 9 to the Sale of Public Comments Law.
The law memorandum is published after extensive staff work carried out at the Ministry of Construction and Housing over the past six months.
The main issues in the amendment are:
Limiting the linkage of apartment prices
As of today, it is customary to link the price of the entire apartment To the construction input index. Therefore, the buyer pays the increase in the index for all components of the price of the apartment, even those that are not affected by the index, such as land, entrepreneurial profit and VAT.
According to the proposed law memorandum, an entrepreneur will be able to make a linkage of only The construction component Of the total cost of the apartment, only until the delivery date specified in the contract and not until the actual delivery date. The balance of the amount will not be linked at all. The amount that will be attached to the index will be determined in accordance with the cost of construction per square meter, according to the division of areas in Israel and according to the types of construction multiplied by the area of the apartment, as stated in the contract of sale.
Compensation for late delivery of an apartment
The law reduces the exemption from payment of compensation to the buyer in the event of delay in delivery only to the case where the delay was due to an act or omission of the buyer. The purchaser will be entitled to receive Late compensation In delivery in any case that is not his responsibility.
Prohibition on collecting legal expenses
Currently, it is possible to charge an apartment buyer, separately from the price of the apartment, a payment for legal expenses paid directly to a lawyer on behalf of the seller. The amount is limited to NIS 5,114. In accordance with the proposed amendment, a seller will not be allowed to charge the buyer of the apartment a lawyer in excess of the cost of the apartment itself.
Wolf Elkin, The Minister of Construction and Housing: “From the moment I took office, I said that the Sale Law must be changed in order to protect the buyers of apartments from the tax collectors and developers. The proposed amendment to the legislation is the result of complex staff work that has been carried out in the office by the various divisions, while maintaining a meaningful dialogue with all the relevant parties in the real estate market. I believe that amending the law will bring fairer sales transactions in the real estate market in Israel, along with certainty for the buyers. “
Aviad Friedman, Director General of the Ministry of Construction and Housing: “The amendment to the Sale Law comes at a critical time for tens of thousands of apartment buyers who are expected to buy their apartment in the near future. The sales laws have not been updated for 5 years and it is time to remove the dust from them and fix what is needed. I would like to thank all the parties who took part in the work and believe that we will soon be able to include the amendment in the book of laws in the State of Israel. “