The Ministry of Construction and Housing estimates that the Corona delayed construction work up to 90 days and offers a 40-day length at the time of delivery of the apartments

• The works are delayed. Contractors and home buyers will share the burden?

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Produced by the Special Additives Department

The Corona crisis results in an average of 70 to 90 days postponed when delivering apartments across the country. This is estimated in the Ministry of Construction and Housing, following a check carried out on price complexes for the client, which is a significant part of the new construction. The firm is proposing a 40-day extension to contractors who are scheduled to deliver the apartments by the end of 2020.

Under the Sales Law, an entrepreneur is required to pay the buyer for each day after 60 days of delay 150% of the rent in the first eight months, and 125% until the actual delivery of the apartment.

The firm aims to neutralize the disputes between sellers and home buyers with regard to delays in delivering apartments, by setting a fixed extension period. It should be emphasized that the aim is not to decide on the question of supreme power or the existence of counterterrorism, but rather to make the decision on this issue. The proposed solution is supposed to divide the burden between home sellers and buyers.

This position was presented to an interagency team headed by Erez Kaminitz, Deputy Attorney General, who deals with the effects of the Corona crisis on various contractual charges, including delays in delivering apartments. The purpose of the team is to provide solutions to problems that have arisen as a result of the crisis.

MK Yaakov Litzman, Minister of Construction and Housing: "The Corona crisis has hit a large public. Buyers of apartments are at the top of our minds and we have to look after them. Alongside this, there are also employers including contractors who have been injured and lost money during this period. Our solution takes into account the need to balance the buyers on the one hand and the contractors on the other, for the benefit of all parties. "

Director General of the Ministry of Construction and Housing Elazar Bamberger: "The firm's position is to promote pre-emptive and market-driven intervention in order to neutralize conflicts between buyers and contractors as much as possible. In light of the Corona crisis and its effects on the real estate market, providing a fixed length of time for the delivery of the apartment constitutes a fair and proper solution for the benefit of all concerned. "

Produced by the Special Additives Department