תוכן עניינים
By: Attorney Michael Lev
Construction Defects in a New Apartment: What You Need to Know About Your Rights
Construction defects in a new apartment are something almost every buyer encounters. The Tel Aviv-Yafo District Court recently ruled on an important case that clearly illustrates what can be done when defects and moisture infiltration appear. In this case, a couple purchased an apartment from a construction company in 2010, and within just a few months, various defects and moisture infiltration appeared.
In our daily work at the firm, we encounter situations like these repeatedly. This ruling provides clear answers to questions many buyers ask themselves: do they truly have the right to sue the developer, and how long do they have to file a claim? These are the questions we address here.
How It All Began: The Defects That Emerged
The plaintiff couple purchased an apartment from the company on 27 June 2010. Possession was transferred to them in October of that year. Just a few months after moving in, construction defects and moisture infiltration appeared. They did not sit with their hands folded and turned directly to the construction company.
In May 2011 they received an expert opinion estimating the damage at 102,000 NIS. The construction company attempted repairs, but the problems were not fully resolved. Their repairs did not produce the expected result, and the matter escalated into a dispute that reached the courts.
The Path to Court
Proceedings: in September 2017 the plaintiffs filed a claim (Case No. 60408-09-17). The court established a judicial procedure and appointed an expert. However, in November 2022 the court decided to close the file, but with notice that a new claim could be filed within six months.
The plaintiffs did not give up. On 14 May 2023 they filed a new claim within the time allowed. The construction company responded with a plea that the limitation period had expired and the case was stale, but the court did not accept this argument.
What the Court Ruled on Limitation
The limitation question was the central issue in the case. The court clarified several important principles:
First, the new claim was filed exactly as prescribed, so Sections 10(b) and 10(c) of the Limitation Law apply. These sections explain how to calculate time when a court sets a deadline.
Second, the original claim was filed after seven years of living in the apartment (October 2010 to September 2017), i.e., before the statutory period had expired. This is a crucial principle: the limitation period for a construction-defect claim begins on the day you actually moved into the apartment, not from the day you signed the contract.
Third, the court held that the fact that the construction company received the expert opinion and attempted repairs is tantamount to an admission that the plaintiffs were right. This prevents the company from arguing much later that “it has already gone stale,” because it has already acknowledged the problem.
How Much Money in the End?
The plaintiffs sought a total of 142,497 NIS: 69,731 NIS for repairs, 50,000 NIS for distress and the suffering they endured, and 17,840 NIS for expenses. The court’s expert calculated differently.
According to the expert, unrepaired defects amounted to 6,300 NIS, moisture damage to 6,500 NIS, and additional defects to 4,000 NIS. Total: 16,800 NIS. See the gap between what was demanded and what was received? This is common in such cases and requires careful examination of all the evidence.
What to Know If You Are Buying a New Apartment
Several principles here are worth taking to heart. First, documentation is key. When defects appear, record them and notify the developer in writing. Second, do not wait too long. The law gives you seven years from the day you moved in, but do not treat this as eternal. Third, clarify to yourself: you do not need to beg the developer. If he does not fix things properly, you have a legal right to sue.
In our legal practice we see many cases where buyers do not raise their voice in time, waiting for the developer to “fix it.” This delay can cause you to lose rights. Turn to a lawyer early, document everything, and do not wait.
Questions Buyers Ask
Exactly when does the limitation period begin for filing a claim?
Not from the day you signed the contract, but from the day you received the keys and moved in. In this case that was October 2010. The first claim was filed in September 2017, which was still within the seven years, so it had not expired.
Does what the developer does to try to fix things change anything about limitation?
Yes, it changes things. If the developer accepts your expert opinion and attempts repairs, that is considered as if he admitted you were right. That actually helps you, not hurts you. He cannot later say “it has already expired” because he already acknowledged the problem.
How is the amount of money you receive determined?
An expert examines exactly what broke and how much it costs to repair. In this case, the plaintiffs sought about 70,000 NIS for repairs, but the expert assessed it at about 17,000 NIS. You can also receive money for distress, up to around 50,000 NIS if it truly ruined your life.
What happens if the court closes your case?
That is not the end of the road. The court can give you another six months to file a new claim. That is exactly what happened here. As long as you act within the time the court gave you, you are still protected, even if more than seven years have passed since you moved in.
Need legal advice on this matter? Contact us today at no obligation.
The text above is general information only and does not constitute legal advice. For advice tailored to your specific situation, please contact us.
Frequently Asked Questions
Exactly when does the limitation period begin?
Not from the contract date but from the day you received the keys and moved in. In this case that was October 2010. The first claim was filed in September 2017, still within the seven years.
Does the developer’s repair attempt affect limitation?
Yes. Accepting your expert opinion and attempting repairs is treated as an admission of the problem, which prevents the developer from later claiming the matter is time-barred.
How is the compensation amount determined?
An expert assesses the exact defects and the cost of repair. You may also claim distress damages up to around 50,000 NIS if the defects genuinely disrupted your life.
What happens if the court closes my case?
The court can grant you an additional six months to file a new claim. As long as you act within that window, you remain protected even after seven years from moving in.
