This morning (Thursday), the Knesset approved the amendment to the Sale Bill, promoted by Minister of Construction and Housing Zeev Elkin and his office. A step that can lead to savings of tens of thousands of shekels for and the purchase of apartments. From this the amendment of the law will enter into force within the seven waters after its entry into the records.
More in-
Currently, it is customary to link the price of the entire apartment to the construction input index, an index that weights the changes in construction prices in relation to changes in the cost of the various raw materials from month to month. As a result, the buyer of the apartment pays for the increase in the index and also for those who are not affected by the index, such as the price of the land, the entrepreneurial profit and more.
More in-
The amendment to the new law means that construction companies will be able to attach only up to 40% of the price of the apartment to the input index. The total amount to be paid upon conclusion of the contract of sale will not be linked at all, and in any case payments that are not less than 20% of the price of the apartment will not be linked to the index at all. Hence only up to 40% of the price of the apartment will be linked to the index. It should be noted that according to the bill, it will not be possible to link the price of the apartment to the index after the delivery date specified in the contract, even in the event that the apartment is delivered late.
More in-
In addition, the bill reduces the exemption from payment of compensation to the buyer in case of delay in delivery only in case where the delay was due to the act or omission of the buyer or in case the contract was frustrated. Moreover, in cases where the apartment is delivered at least one month to four months late, the construction company will pay full rent compensation, and in case of five months to ten months delay the construction company will pay buyers a monthly payment of 125% of rent in the area. For any delay beyond ten months, compensation of 150% of the rent in the area will be charged.
More in-
Zeev Elkin, Minister of Construction and Housing, said: “From the moment I took office, I said that the Sale Law should be changed in order to protect the buyers and promote transparency in front of them. It was not easy.” Aviad Friedman, director general of the Ministry of Construction and Housing, also referred to the passage of the law: “This is an important day for buyers of new apartments in Israel.