תוכן עניינים
The Right to Compensation for Delayed Delivery
When a contractor delays handing over an apartment beyond the agreed date, the buyer is entitled to automatic compensation under Section 5A of the Sale of Apartments Law. This compensation is calculated as a fixed multiple of the apartment’s fair market rental value per month of delay — no need to prove actual damage.
How Is the Compensation Calculated?
The law sets a tiered compensation structure based on the length of the delay:
- Months 1–12 of delay: 150% of the fair monthly rental value of the apartment for each month of delay.
- From month 13 onwards: 125% of the fair monthly rental value for each additional month.
The “fair monthly rental value” is determined according to market conditions at the time of the delay, typically established through a real-estate appraiser’s opinion.
What Counts as a Delay?
The delay is measured from the contractually agreed delivery date. If the contract includes a “grace period,” that period is subtracted first. The buyer’s occupation certificate (Tofes 4) date is generally used as the actual delivery date for purposes of this calculation.
Can the Contractor Reduce or Avoid This Compensation?
Yes, in limited circumstances. The law allows the contractor to reduce liability if the delay resulted from:
- Force majeure events (war, natural disaster) not within the contractor’s control
- Delays caused directly by the buyer (e.g., late payments, changes to plans requested by the buyer)
However, contractors frequently attempt to invoke these defences improperly. Legal review of any contractor claim to reduce compensation is strongly recommended.
Additional Claims Beyond Automatic Compensation
The automatic compensation under Section 5A does not preclude additional claims for:
- Actual rental costs paid during the delay period
- Moving and storage costs
- Emotional distress in egregious cases
How Lev-Taieb Can Help
Calculating the correct compensation requires a fair-rental appraisal and a precise reading of the contract’s delay and grace-period clauses. The attorneys at Lev-Taieb specialise in construction and real estate disputes and will ensure you receive the full compensation owed. Contact us at 072-2428822.
