Apartment Delivery Delay Attorney: Automatic Compensation Under the Sale Law (Apartments)
Thousands of successful cases
Personal attention
Document review without commitment
You signed a contract to purchase an apartment, paid millions, planned your life around the delivery date, and the contractor is late. Weeks, months, and sometimes more. The delay causes real financial damage: rent that continues to accumulate, furniture storage, relocation delays, and family stress. The Israeli legislature recognized this problem and established an automatic compensation mechanism that begins operating the moment the delay exceeds the grace period set by law. Understanding your rights is the first step to receiving the compensation you deserve.
Send purchase contract and dates for review
Section 5A of the Sale Law (Apartments): The Mechanism
What does the section say?
Section 5A of the Sale Law (Apartments), 1973 establishes an automatic compensation mechanism in case of apartment delivery delay. The section is designed to provide a quick and simple solution for buyers, without the need to prove actual damage. All that’s required is to show that the contractor was indeed late beyond the grace period set by law.
60-day grace period
The law gives the contractor a 60-day window beyond the delivery date set in the contract, during which no compensation accumulates. After the first 60 days, compensation begins to accumulate automatically, from the first day of delay and not only from the end of the grace period.
Compensation amount
Compensation is calculated based on customary monthly rent for a similar apartment in the same area. According to the formula in the law, during the first 8 months of delay, compensation is at a rate of 150% of rental fees, and from the ninth month onwards it increases to 125%, meaning above the appropriate rental fee. To determine rental fees, we use a real estate appraiser’s expert opinion, which evaluates the rental value in the property area.
Exceptions and limitations
Force majeure
The contractor may defend with the claim that the delay was caused by force majeure: unforeseeable events that were not under their control, such as war, general strike, natural disaster, or sudden regulatory changes. The law requires the contractor to prove the event and the direct connection between it and the delay. Force majeure claims are examined carefully by the court, and not every economic disruption justifies exemption.
Delays caused by the buyer
If the delay resulted from changes ordered by the buyer themselves (excessive tenant changes), or from their default (non-payment of installments), the contractor may be exempt from compensation for the time period attributed to such delay.
Documented rulings
Party names are kept confidential with client consent. Delivery delay cases involving tens and hundreds of thousands of shekels that ended in settlement or judgment in favor of buyers.
Important actions to take
Written notice
Upon expiration of the contractual date, a written notice should be sent to the contractor stating the beginning of the delay and the intention to demand compensation. The notice creates unambiguous documentation of delay dates and prevents later claims by the contractor.
Document preservation
The purchase contract, payment schedules, correspondence with the contractor, date postponement notices, and any additional document: all of these are the basis for the case. It’s also recommended to keep evidence of actual damage (rent, storage), in case of a supplementary claim.
Related claims to delivery delay
Alongside the automatic compensation claim, the attorney will also examine related claims that may accompany the case: construction defects discovered in the apartment, non-compliance with contract, value depreciation due to unauthorized changes, or serious breach of purchase agreement justifying cancellation. See also: Purchase contract breach and transaction cancellation and Delivery delay due to war: force majeure.
Why choose Lev-Taieb Law Firm?
- 19 years of experience in civil litigation
- Accurate calculation of compensation with real estate appraisers
- Handling related claims: construction defects, non-compliance, value depreciation
- Flexible payment terms
- Initial consultation without commitment
Frequently asked questions about apartment delivery delay
What compensation am I entitled to under the law?
Compensation at a rate of 150% of appropriate monthly rental fees for a similar apartment, for each month of delay (beyond 60 grace days). From the ninth month onwards, compensation increases to 125% per month. The total amount can reach tens and hundreds of thousands of shekels.
Is the Sale Law a mandatory arrangement?
Yes. Section 5A of the Sale Law is mandatory, meaning a provision that cannot be conditioned to the buyer’s detriment. Contract clauses that eliminate or reduce this compensation are invalid.
What to do when the contractor refuses to pay?
A lawsuit can be filed in the Magistrates’ Court (claims up to 2.5 million shekels) or the District Court. In most cases, a settlement is reached before the hearing, but when the contractor refuses, we lead the case to judgment.
How long does it take to receive compensation?
A case ending in settlement usually takes 3-6 months. A case reaching judgment can take 1-2 years. Filing a lawsuit immediately upon completion of the delay accelerates the process.
Is it possible to claim additional damages beyond the fixed compensation in the law?
Yes. The compensation in the law is a minimum, not a ceiling. It’s also possible to claim proven actual damages: rent paid in practice, storage costs, duplicate travel and more, if these exceed the automatic compensation.
What happens if the apartment was delivered with defects?
Delivery of an apartment with serious defects that prevent habitation is not considered legal delivery according to the courts. Compensation for delay continues to accumulate. See: Construction defects in new apartment.
Will a delay lawsuit affect apartment delivery?
No. The contractor is obligated to deliver the apartment regardless of the compensation claim. Filing a lawsuit does not constitute grounds for the contractor to cancel the purchase transaction.
Is it possible to sue after I already received the apartment?
Yes. The statute of limitations is seven years from the date of delay. Even after delivery, it’s possible to file a lawsuit for compensation that accumulated during the delay period.
What if there’s a clause in the contract that limits compensation?
Contract clauses that reduce the compensation set in Section 5A of the Sale Law are invalid. The law overrides the contract, and the buyer is entitled to full compensation according to the law.
Does a construction worker strike justify contractor exemption?
A strike in the construction industry may be considered force majeure, but this depends on circumstances: whether the strike was foreseeable, its scope, and whether its impact could have been minimized. Each case is examined on its merits.
What if the apartment was purchased secondhand with known delay?
Rights to delay compensation transfer with the apartment. If you purchased from an original buyer whose contract was with the contractor, it should be examined whether the rights were transferred as part of the sale transaction.
What’s the difference between compensation under law and proven damage claim?
Compensation under law is fixed and doesn’t require proof of damage. Proven damage claim (rent, storage) requires evidence, but may yield higher compensation. Usually both claims are filed together.
Is the contractor late in apartment delivery? Contact us now
If the contractor is late in delivery beyond 60 days, compensation begins accumulating automatically. Contact us for initial consultation without commitment or call 072-2428822. We’ll calculate the compensation you’re entitled to and ensure you receive it, through negotiation or in court. At Lev-Taieb Law Firm, 19 years of experience and Thousands of successful casesice.
