Cooperation between the Ministry of Construction and Housing and the Attorney General's Office resulted in the suspicions that
Berkat HaShem Ltd.
committed violations of the Sales Law in the project at 8 Shefat Emet St. in Beit Shemesh.
Following this, the Commissioner of the Sales Law at the Ministry of Construction and Housing reported today (Sunday) that after the completion of the administrative procedure against The company - decided to impose a financial sanction of NIS 4.8 million on the "Blessing of the Sun" company for collecting large sums of money from dozens of buyers, apparently, without guaranteeing their money, as required by law. The Ministry of Construction and Housing notes that the prosecutor's office is operating a parallel criminal proceeding against many parties involved in the project
, Including the owners of the company and former senior officials of the Beit Shemesh municipality.
At the end of the administrative procedure, it was determined that despite the company's claim that it did not sell apartments, it was found that a sale did take place by joining the buyers to associations.
Also, the commissioner stated that the company is the real developer of the project and accordingly the sales law that determines the ways in which the money of apartment buyers must be collected applies to the company.
Since the company allegedly did not comply with the provisions of the law and did not convince the Commissioner of the Sales Law that it was not selling apartments, it was imposed, as mentioned, a financial sanction of NIS 4.8 million.
Did you buy an apartment in this project?
The company will pay a fine of NIS 4.8 million (Photo: ShutterStock)
As part of the written decision, the trustee stated that "it is not possible to take for granted the manner in which the parties to the transaction defined the agreement between them, and things must be examined according to their true essence. If this were not the case, any agreement that includes a title that is not 'sale of an apartment,' apparently, would receives an automatic exemption from the Sales Law, regardless of the legal essence of the agreement which is determined according to the arrangements therein. Such a result cannot be accepted."
The commissioner also added and wrote that "the seller's claim that no apartments were sold, but only a ``right to live,'' only, since all the circumstances show otherwise, including the companies' approvals according to which the buyers were granted rights in certain apartments, with a final price, which seems to be consistent the apartment prices in the market at that time."
"Furthermore, the large disparity of power between the buyer and the seller of an apartment, as can be seen from the documents mentioned above, can lead to a situation of agreements that are signed between parties and do not reflect the wishes of the buyer and at the same time - go against the provisions of the law. A claim concerning receiving funds for the full value of the price of an apartment but Without the transfer of the right therein to the buyer, thus exempting the seller from all the protection obligations imposed on her by law, it cannot exist in parallel with the sales laws whose purpose is to protect apartment buyers, even if this is the seller's method, the documents on which the buyers sign - indicate otherwise. The sale law is a cogent law and thus, It is not possible to condition the rights of the buyers. Accordingly, the HM rejects this central defense claim of the seller."
Director General of the Ministry of Construction and Housing, Yehuda Morgenstern (Photo: Nir Kider)
Further to this,
the Commissioner of the Law of Sale, Amit Grady,
states that "Sellers of apartments, who act contrary to the provisions of the Law of Sale, endanger the funds of the buyers of the apartments, we work at all times to eradicate these phenomena. Compliance with the provisions of the law strengthens both buyers and sellers. These days we manage We will publish additional investigations and tests and their results as soon as possible in order to protect the public of apartment buyers."
The director general of the Ministry of Construction and Housing, Yehuda Morgenstern:
"I welcome the cooperation between the Ministry of Construction and Housing and the attorney's office at the Ministry of Justice.
This cooperation is a significant force multiplier in regards to the efficient and effective protection of the apartment buyers and their money.
The firm operates with all the tools at its disposal in order to ensure a safe market situation for buyers.
I am addressing the public, if you have any questions in the process of purchasing the apartment, contact the Department for the Protection of Apartment Buyers for assistance."
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