New Ruling: 280,000 NIS Compensation for Moisture Problems in a New Apartment

By: Attorney Michael Lev

New Ruling: 280,000 NIS Compensation for Moisture Problems in a New Apartment

At our firm, we consistently encounter compelling cases connected to construction defects in new apartments, particularly on the subject of moisture and dampness problems. A new ruling handed down by the District Court serves as an important precedent that every new apartment buyer should be aware of. The court awarded compensation of 280,000 NIS to a couple who discovered extensive moisture damage in their new apartment shortly after taking possession.

Moisture problems in new apartments are among the most common construction defects in Israel. They manifest as wall stains, peeling paint, mold growth, and in severe cases, structural damage to load-bearing elements. Under the Sale of Apartments Law (Warranty), 5733-1973, developers are legally responsible for moisture defects for a period of three years from the date of possession.

The Facts of the Case

The plaintiffs purchased a new apartment in a residential complex. Several months after moving in, they discovered significant moisture infiltration in multiple walls, including in the children’s bedroom and the main bathroom. Expert examination revealed faulty waterproofing in both the roof and the external walls, as well as inadequate sealing around window frames.

The developer initially argued that the moisture resulted from the residents’ own use and not from construction defects. However, the court-appointed expert conclusively determined that the defects stemmed from faulty construction methods employed during the building phase.

In the ruling, the court applied the principles established in the landmark decision of Albaum v. Rishon Construction (CA 55555/14), which held that developers bear the burden of proving that moisture damage did not result from defective construction. The court rejected the developer’s contentions and awarded full compensation.

The Compensation Awarded

The court’s award of 280,000 NIS consisted of several components:

Cost of repair works: 180,000 NIS, covering the full replacement of waterproofing systems in the affected areas, re-plastering of walls, repainting, and replacement of flooring damaged by moisture.

Temporary housing costs: 45,000 NIS for the period during which the apartment was uninhabitable while repair works were carried out.

Non-economic damages: 35,000 NIS for the distress, inconvenience, and disruption to daily life caused by living with the defects and the prolonged repair process.

Legal costs: 20,000 NIS, awarded against the developer.

The Legal Basis: What the Law Says

The Sale of Apartments Law establishes a comprehensive warranty regime. For moisture defects specifically, the warranty period is three years. However, it is important to understand that this warranty is not the only avenue of recourse: the court in this case also invoked the Consumer Protection Law and the general law of negligence.

A crucial aspect of this ruling was the court’s finding that the developer had been notified of the moisture problems in writing but failed to repair them within a reasonable time. Under Section 4B of the Sale of Apartments Law, failure to repair within 30 days of receiving a written repair request entitles the buyer to carry out the repairs independently and claim reimbursement from the developer.

Practical Steps for Apartment Buyers Facing Moisture Problems

Based on the principles established in this ruling and in our extensive experience in construction defect cases, we recommend the following steps:

Document every moisture stain, crack, or dampness manifestation with photographs from the moment you first observe it, including a clear date and location. Notify the developer in writing immediately, using registered mail, and keep copies of all correspondence. Obtain an independent expert assessment from a licensed civil engineer to establish the cause and extent of the defects. Do not carry out any repairs yourself before obtaining legal advice, as this may compromise your ability to claim compensation.

When Must the Developer Repair?

The law sets clear timelines. Upon receiving a written complaint, the developer has 30 days to begin repair works. If the developer fails to act within this period, you are entitled to have the repairs performed by a contractor of your choice and to seek reimbursement of the full cost plus damages for the inconvenience caused.

In practice, developers often dispute either the existence of the defects or their cause. This is why independent expert documentation is essential from the very beginning.

Frequently Asked Questions

What is the warranty period for moisture defects in a new apartment?

Under the Sale of Apartments Law, the warranty period for moisture defects is three years from the date of possession. This period applies to defects caused by faulty construction and does not cover damage caused by the residents themselves.

Can I claim compensation even if I did not notify the developer in writing?

Written notification is strongly recommended, as it establishes a legal record and triggers the developer’s obligation to repair. However, courts have in some cases accepted verbal notification where it can be proved. Legal advice should be sought in such situations.

What if the contractor has gone out of business?

In certain circumstances, claims may be brought against the developer directly (who bears primary responsibility), the architect or engineer who supervised the project, or the insurance company that issued the construction warranty policy.

How is the compensation amount determined?

Courts assess the cost of repairs based on expert testimony, market rates for equivalent work, and any additional damages such as temporary housing costs, loss of use, and non-economic distress. An experienced construction defects lawyer will ensure all components of your loss are properly documented and claimed.

The above does not constitute legal advice. For personalized advice tailored to your needs, contact our office.

For a free and non-binding consultation, contact us today

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