© All rights reserved to Barnea Jaffa Lande Law offices

Together is powerful

Together is powerful

Search by Practice

Client updates /  Real Estate

Developers can no longer rely on changes to an apartment, requested by the purchaser, as reason to avoid payment of compensation for late delivery. This was ruled recently by the Supreme Court in a case involving a dispute between purchasers of an apartment and a contracting company. The Sale (Apartments) Law states that a delay of over 60 days from the date specified in the sale contract for the delivery of the apartment to the purchaser, means that the purchaser will be entitled to compensation without proof of damage, and this from the first day of delay. In the abovementioned case, the sale contract which was signed by the purchasers and the contracting company stated that any request to change or supplement the apartment will postpone the delivery date of the apartment for at least 60 days. It should be noted that clauses of this nature are common and appear in almost every sale contract from a contractor. The Supreme Court ruled that the wording of the relevant clause is broad and vague, and gives the contractor unlimited options to determine the date of delivery, which creates uncertainty among the purchasers. Thus, the contractor prevents the purchasers from preparing themselves for a new and clear date on which the apartment will be delivered to them, and to plan their moves accordingly. The Court further ruled that from now on, the contractor cannot rely on sweeping clauses in apartment sale contracts, which include provisions exempting him from paying compensation for delays in delivery of apartments, in any case where changes to the apartment were ordered by the purchasers. However, the Court held that the parties can agree, for example, on a new and concrete postponed delivery date, in the case of making changes in the apartment at the request of the purchaser, in a later agreement signed by the parties. The Court also noted that a new and postponed delivery date that will be determined by agreement, as mentioned, may be examined by the Court, in terms of its reasonableness in relation to the scope of changes made to the apartment and their nature.
Categories: Real Estate
Amendment 101 to the Building and Planning Law was promulgated in April 2015. The amendment concerns a transfer and expansion of authorities to the local committees and sweeping amendments designed to shorten, streamline and simplify construction licensing.Following is a brief review of the amendments, which shall come into effect on January 1, 2016. Three construction licensing tracks were defined:Structures exempt from a permit requirement – light-weight structures, such as storage sheds, pergolas, awnings, fences, winter-time enclosures and more (this amendment came into effect at the beginning of August).Fast-track permits – structures (to be defined by the Minister) that are unlikely to pose a substantive hazard or disturbance, or to have a material impact on the appearance of the building, on the environment or on their character or characteristics. This track relates to building additions, such as apartment protected spaces, porches, small rooms of up to 25 square meters, elevators, enclosures of open pillared storeys, and more. Standard-track permits – the amendments relating to fast-track permits will come into effect on January 1, 2016, which shorten the waiting time until the authority must issue its response to 45 workdays. In cases whereby a response is not issued, then the permit application shall be deemed an approved permit. According to the amendments relating to standard-track permits, if a permit is not issued after 90 workdays, the applicant may file an appeal to a district appeals committee authorized to issue the permit.The law specifies the work stages, procedures and timeframes for the issuance of construction permits, completion certificates / Form 4 / use and occupancy permits. External planning and building control and inspection institutes are to be establishedThe main objectives of setting up external institutes are to centralize all approval authorities (municipality and local committees) and professional controllers and inspectors in a one-stop format. The amendment prescribes provisions regarding the establishment and accreditation of authorized control and inspection institutes, and defines roles: design controllers, who are responsible for verifying that the permit complies with the building code provisions addressing the building’s stability and safety and suitability for use; and construction inspectors, who are responsible for verifying that construction is being executed in compliance with the building code.Online permits – the legislation includes instructions for filing online applications for building permits.Affordable housing – besides the issue of licensing, another section of Amendment 101, which addresses the issue of affordable housing, Addendum Six to the Planning and Building Law comes into effect on January 1, 2016. Inter alia, the amendment authorizes local committees to approve plans for adding construction lots and for adding public uses, including rental housing, which will apply to buildings and lots defined in plans as being intended for affordable housing. Update about planning and building amendments anticipated in theproposed State Budget for 2015-16, which was approved by the government on August 6, 2015As part of the efforts to resolve the housing crisis, a number of additional legislative amendments have been proposed in resolutions of the Israel Land Council and in National Outline Plan 35 that relate to planning and infrastructure and real-estate registration. The purpose of the amendments is to increase the supply of apartments in the market by removing barriers and by accelerating the pace of land development and the planning and construction of apartments.Briefly, these amendments include: increasing the number of local planning committees and expanding their authorities, streamlining of parcelization and partitioning procedures, accelerating the construction and marketing of State lands, government funding for the planning of privately-owned housing complexes, lowering of infrastructure barriers, encouraging development agreements between local authorities and entrepreneurs, building permit exemptions for particular types of national infrastructure works, uniform primary legislation on the subject of development permits in local authorities and converting buildings currently deemed under nonconforming use to apartments for residential use.
Categories: Real Estate
Enter your email for newsletter sign up: