Revolution in the Sale Law:
The Ministry of Construction and Housing has published a new sales law memorandum for public comments that is expected to save apartment buyers up to hundreds of thousands of shekels.
According to the proposed law memorandum, a developer will only be able to link the construction component to the total cost of the apartment, and only until the delivery date specified in the contract and not until the actual delivery date.
The balance of the amount will not be linked at all.
The amount that will be linked to the index will be determined according to the cost of construction per square meter, according to the division of areas in Israel and according to the types of construction double the area of the apartment, as stated in the contract of sale.
The bill changes the current situation, according to which it is customary to link the price of the entire apartment to the construction input index.
Therefore, the buyer pays the increase in the index for all components of the price of the apartment, even those that are not affected by the index, such as land, entrepreneurial profit and VAT.
2 additional sections mentioned in the bill: concern compensation for late delivery of an apartment and collection of legal expenses.
Compensation for delay in delivery of an apartment
- Today, the law reduces the exemption from payment of compensation to the buyer in case of delay in delivery only to the case where the delay was due to an act or omission of the buyer.
Therefore, the buyer will be entitled to compensation for late delivery in any case that is not his responsibility.
Prohibition on collecting legal expenses
- Today, an apartment buyer, separately from the price of the apartment, can be charged for legal expenses paid directly to a lawyer on behalf of the seller.
The amount is limited to NIS 5,114.
Subject to the proposed amendment, a seller will not be entitled to charge the purchaser of the apartment a lawyer's fee beyond the cost of the apartment itself.
"Critical for Tens of Thousands of Buyers"
Minister of Construction and Housing Zeev Elkin that this is an important line for the buying public: "From the moment I took office I said that the Sale Law should be changed in order to protect buyers of apartments from contractors and developers. , While having a meaningful dialogue with all relevant parties in the real estate market.
Aviad Friedman, Director General of the Ministry of Construction and Housing: "The amendment to the Sale Law comes at a critical time for tens of thousands of apartment buyers who are expected to buy their apartment in the near future.
The sales laws have not been updated for 5 years and it is time to remove the dust from them and correct what is necessary. "
Contractors' fury: "Everyone else, we are fined"
The law memorandum arouses great resentment among contractors, who oppose it outright.
A contractor who spoke to the "Real Estate Today" system said: "The government is late in everything, the local authorities are not functioning on time and who is fined for late delivery? The contractors"
Adv. Avraham Lalom, Deputy Head of the Israel Bar Association, also sharply attacks the Housing Minister's statement: "The State of Israel produces bureaucratic procedures that constitute a significant barrier to meeting deadlines and instead of providing a real solution to the barriers. "Before the upcoming elections and trying to produce a presentation to the public that takes care of the buyers of the apartments. The direct result will be an extension of the deadlines set in the agreements and an increase in the prices of the apartments."
Lum adds: "Advocate Shachat is intended to protect the buyers of the apartments and create a commitment to register the joint home, so the attempt to present savings (NIS 5,000) is a disregard for the public. NIS 5,000 that will be added to the price of the apartment does not really produce a solution." .
The law severely and disproportionately violates the freedom of occupation of lawyers, and imposes on them the amount of fees contrary to their will and their rules of ethics.
We can accept as a bureau that the subject of the index should be limited to the soil component and this is acceptable, but no suitable formula has yet been found and it is appropriate to appoint an external party who will offer an acceptable formula that does not take into account the soil component.
As for the delivery date, it is desirable that the state resolve the bureaucracy and not hold the developers responsible for the alleged failures of the state authorities, which often cause delays unjustifiably. "
Were we wrong?
Fixed!
If you found an error in the article, we'll be happy for you to share it with us
