Buying a new apartment: probably the biggest deal you will make in your lifetime (Photo: ShutterStock)
Buying a new apartment from a contractor entails great excitement.
For most of us, certainly when real estate prices are constantly rising, it is also the biggest expense we will make in our lives.
Unlike a "second-hand" apartment, buying an apartment from a contractor carries with it many advantages: the possibility to adapt the apartment in the most optimal way to the buyer's needs, the ability to make additions and changes, And also the exciting feeling of something "new from the nylons" - all these very beckon to many Israelis.
But not everything is rosy. A new apartment from a contractor can cause a lot of problems and frustration, and in many cases - also lead to lawsuits and legal disputes. Delay in delivering the apartment, low quality of finish, lack of Adjustments to the guaranteed specifications and changes requested by the buyer, cracks, dampness, an apartment in a smaller area than what appeared in the plans - with all these and other frustrating deficiencies many apartment buyers have to deal with.
The 10 commandments for buying a new apartment from a contractor (Photo: ShutterStock)
So what do you do when you encounter defects?
Do we have a "case" to sue?
And what is the most careful way to purchase an apartment from a contractor?
We turned to attorney Roni Eitan, a real estate expert from the attorney office of Doron, Tykotsky, Kantor, Gutman, Ness, Amit Gross & Co., and with his help we created ten practical rules of thumb that can prevent you from many unnecessary headaches. The full guide is here
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Do your "homework": check who is the developer and who is the contractor, even before the purchase
Not all contractors and not all entrepreneurs are born equal.
Find out information about the contractor even before the purchase, and check the reputation of the person you are interested in buying an apartment from on the Internet.
There isn't a contractor, no matter how good, that isn't filed against by tenants, however, if the number of claims seems to be particularly extreme, that should turn on a red light in your head.
Document everything, it will help you later
Any relevant request and demand from the contractor, and any additional relevant correspondence, will be recorded.
It is better in writing, and if that is not possible, record the conversations with him.
Every promise of the contractor, every verbal commitment, may prove to be critical in real time, if the relationship between the parties goes awry.
Document the procedure of receiving the key, check the delivery report, and document, in real time during the inspection, any defect that exists in the apartment and in the common areas, and report it to the contractor in such a way that it can be restored in the future.
Pay a lawyer to go over the contract
A purchase without legal support can lead to large financial losses.
The financial expense for an apartment is large and significant, so there are those who choose to forgo this step, sign a contract without a lawyer (or rely on the lawyer who represents the contractor/developer) and save the lawyer's fees. This is a mistake that can cost you money Rav; an expert attorney will be able to locate and defuse "mines" that the developer has placed in the contract, as well as come up with various alternatives that he has reserved for himself in the specification in which you may not be interested.
The agreement in front of you is not a "Torah from Sinai", and a short and inexpensive bargaining process between the lawyer you will hire for the task and the lawyer of the entrepreneur, may save you time, money and heartache in the future.
Take advantage of the "year of inspection", and document the condition of the apartment
During the first year, the contractor is responsible for all existing defects in the apartment, and the burden of proof of their cause rests on him.
It is important this year to document any damage that exists in the apartment, and to demand from the contractor, in writing, its repair.
As mentioned, the contractor is obligated this year to correct the defects in the apartment, and if the contractor evades this obligation, and references to him are documented, a cause of action is created against him which you can easily prove.
By the way, it is important to pay attention to something else: the term "inspection year" is so well known that many apartment buyers do not notice that there are cases where, according to the law, the apartment buyers have an inspection period for certain components beyond one year, even up to seven years.
The law clearly defines the warranty period for each component.
For example, the warranty on the plumbing system is four years, the warranty on cracks is five years, etc.
Contact an expert on your behalf
In order to map the existing damages in the apartment after receiving it, it is recommended to get a professional and neutral opinion as soon as the apartment is delivered, in order to be able to give the contractor a complete picture of the required repairs.
They gave this opinion to the contractor, and demanded the corrections mentioned in it.
If at the end of the inspection year there are still defects that have not been corrected, or if there is a discrepancy between the guaranteed specifications and the existing specifications in the apartment, order an updated report, in order to document its condition. Make sure that the reports are written for you by engineers who have experience with submitting opinions which are received in court in construction defect cases, so that if you do have to file a lawsuit, you will be equipped with an appropriate opinion in advance.
Was the contractor/developer wrong?
Try to end the dispute without resorting to a lawsuit
A lawsuit is long, expensive and unpleasant for all parties involved.
If there are still defects in the apartment, or if you have not received the full payment for the late delivery, notify the contractor of the situation in an organized letter, which can be sent through a lawyer.
A reasonable contractor will often be willing to go towards you in order to avoid a lawsuit, and it may turn out that the goodwill that was not revealed during the audit year on his behalf, will resurface when a credible threat of filing a lawsuit is in the air.
And if you still have no choice, don't be afraid of a lawsuit
If the contractor/developer does not perform, or does not perform properly, the necessary repairs, or does not give the compensation for the delay, do not be afraid of starting legal proceedings.
That's your right.
You made the purchase that will most likely be the biggest expense of your life, and you should not be ashamed of standing up for your right to receive the product you purchased as the person who sold it promised.
get together
If the contractor was late in delivering your apartment and if there are many defects in the apartment, it is likely that this is also the case with other apartments.
Filing a joint claim by as many of the building's occupants as possible has several distinct advantages.
In terms of legal representation, the difference between representing one home buyer and representing all the tenants is relatively negligible, so that the work that the lawyer you choose, and the fees he will demand, will be shared by all the tenants, which will make the filing of the claim worthwhile for both the tenants and the handling lawyer.
In addition, as part of a defect claim, the tenants are entitled to demand compensation for defects in the common property, solely according to their relative share in the ownership of the apartments in the building.
That is, if only some of the tenants sue in the name of the joint property, the court will be able to rule only according to their share of it, and not a single shekel more.
The only way to ensure your rights and the continuation of your residence or ownership in an apartment located in a functioning and proper building is to file a class action.
True, it is difficult in a new building where acquaintance with the other tenants is mostly superficial to recruit additional plaintiffs, but it is an effort that they hired on his side.
Be realistic
The courts are overloaded with construction defect claims, and in the absolute majority of cases, the cases do not end in a verdict but in a settlement.
Usually, after a lawsuit is filed with the inspection report on behalf of the tenants, a statement of defense is filed on behalf of the contractor who presents an inspection report with low to zero values, and the court appoints an expert on his behalf.
The opinion on behalf of the court expert receives enormous weight in the further proceedings, and in many cases, it is good to consider reaching a compromise based on it, and save the time and money of continuing the procedure until its end.
Do not "fall in love" with the amount written on the statement of claim, but calculate, between yourselves, and together with your lawyer, who probably has much more relevant experience than you, what is the red line for you and what are the realistic options that are on the table in whatever way you choose.
Get a lawyer who specializes in real estate
Sometimes, due to financial or other considerations ("My sister's son has just opened an independent office, I want to provide him with a living...") tenants choose to forgo the services of a lawyer or hire the services of a lawyer who does not necessarily specialize in the field of real estate. This is a mistake. Do not face the contractor alone, and do not skimp on legal representation in a way that will cause you to receive less at the end of the procedure.
Representation in the construction defects procedure by a law firm that has specialization in the field and knows the handling of cases of this type, the way in which experts work on behalf of my The trial and how to approach their opinion, may be the tiebreaker that will be the difference between a result that will leave you with a sour taste from the new apartment, and a result that will truly compensate you for the damage and heartache you have caused, because after all, you deserve to live in an apartment that you are happy with.
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