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Moshe Taieb, Advocate | Lev-Taieb Law Firm | 072-2428822Background: Construction Defects and a Couple’s Fight for Justice
In case TA 54633-06-23, the Jerusalem Magistrate Court, presided over by Senior Judge Nael Mahna, addressed a dispute between a couple who purchased an apartment from a contractor company and later discovered serious construction defects: moisture and drainage problems in the storage room and sewage system malfunctions.
Court Proceedings and Claims
The plaintiffs presented detailed engineering evidence documenting the extent of the defects, their causes, and the costs required to repair them. The contractor company denied responsibility, claiming the problems arose from the buyers’ use of the property rather than from construction faults.
The Court’s Ruling
Senior Judge Nael Mahna partially accepted the claim and ordered the contractor company to pay:
- 80,000 NIS compensation for the cost of remedying the construction defects, including 10% VAT for engineering supervision costs
- Additional compensation for emotional distress caused to the couple as a result of living with the defects
- Legal costs and court fees
Legal Principles Established
The court clarified several important legal principles concerning contractor liability:
- A contractor who sells an apartment bears strict liability for construction defects that manifest within the warranty period
- The burden of proof shifts to the contractor to show that defects did not arise from construction faults
- Emotional distress caused by construction defects is a compensable head of damage
- Engineering supervision costs form part of the recoverable remediation expenses
Significance for Apartment Buyers
This ruling strengthens the position of apartment buyers facing contractor disputes. It confirms that buyers are entitled to full remediation costs including professional supervision, and that the human toll of living in a defective home must be acknowledged and compensated.
Frequently Asked Questions
What is the warranty period for construction defects in Israel?
Under the Sale (Apartments) Law, contractors are liable for defects for periods ranging from one year (for finishing work) to seven years (for structural elements), depending on the type of defect.
Can I claim compensation for emotional distress from construction defects?
Yes. Israeli courts have recognized emotional distress as a compensable head of damage when a buyer is forced to live with significant construction defects that impair quality of life.
Does the compensation include VAT on repair costs?
Yes. Courts typically award the full cost of repair including applicable VAT, since this represents the actual out-of-pocket expense to the buyer.