In 2016, after a long search and with considerable excitement, Nitzan and Liran Pinhas signed a contract for a new apartment on Negba Street in Ramat Gan. What began as the fulfilment of a dream became a nightmare as serious building defects, repeated delays and discrepancies from what had been promised emerged.
Purchase and handover
Like many Israeli couples, Nitzan and Liran had saved for years to buy a new apartment and begin a new chapter. The plans and contractor's promises led them to expect a quality home meeting their needs. But the contractor did not deliver it in May 2018 as agreed. Handover was repeatedly postponed until February 2019, almost a year later. The couple moved in hoping the problems were over, only to discover further serious defects.
Building defects and their personal cost
The couple found damp and mould in the shower, poorly sealed aluminium windows and discrepancies between the plans and the completed apartment. Company representatives visited more than 15 times to attempt repairs, but many defects remained and some worsened.
The delays and defects cost the family time and emotional energy. They endured prolonged repair works, continuous noise from drying machines in the shower and dust pollution, while their children were at home. The couple also missed work to supervise repairs. They eventually consulted a lawyer and brought a compensation claim.
Court proceedings
The couple claimed NIS 250,000 and submitted an expert opinion supporting their right to a properly completed apartment. The court-appointed expert agreed with most of their expert's findings and confirmed that the defects and requested compensation were justified. The contractor argued that the defects had been repaired and that the claim was unfounded.
The decision
The court ordered the contractor to pay approximately NIS 88,000 for distress, repair costs and late delivery, together with legal costs and reimbursement of lawyers' fees.
Judge Udi Haker examined the parties' arguments, expert opinions and evidence. He found that S. Shitrit Engineering Ltd had breached its obligations in several respects. The delay of almost nine months beyond the contractual date required compensation under the Sale (Apartments) Law. The contractor had not sufficiently proved its claims that circumstances beyond its control justified the delay.
The court-appointed expert identified significant defects, including damp, mould, sealing problems and departures from the plans. These were matters within the contractor's control that should have been rectified before handover. The many visits needed after the claim was filed reinforced the finding that the defects had remained inadequately addressed for a long time.
The judge also awarded compensation for the family's distress caused by extended repairs, noise and disruption. The decision reflected their actual daily experience, including missed work and restrictive conditions in their new home.
The importance of legal guidance
The Pinhas case illustrates the importance of legal assistance at every stage of a property transaction, including a new-build purchase. Legal advice equips buyers to deal with large companies and assert their full rights. If you are preparing to buy an apartment, consult a lawyer who can guide you from the outset and protect you throughout.
Advocate and Notary Haim Shamli specialises in all types of real estate transactions. For questions and advice, contact our office, or browse our articles.
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The information on this page is general information and is not legal advice.