Buying an apartment and discovering construction defects – your rights vis-à-vis the contractor

I bought an apartment and construction defects were discovered – what are my rights against the contractor??

Purchasing an apartment, especially an apartment from a contractor, is one of the most significant and complex transactions in a person's life. Often, after receiving possession of the apartment – and sometimes only months or years later – it is discovered Construction defects: Moisture, cracks, sealing problems, electrical and plumbing defects, deviations from plans, etc. At this point, a critical question arises, which concerns thousands of apartment buyers every year: What are my rights vis-à-vis the contractor, and how should I act to exercise them?

This article is intended to provide a full and clear answer to these questions, in accordance with Israeli law, current case law and customary practice – with an emphasis on buyers of apartments in Jerusalem and in general, from the perspective of Halevi Law Firm, specializing in assisting apartment buyers and in legal battles with contractors.

What is considered a construction defect according to the law??

Construction defect It is any discrepancy between the apartment actually delivered and one of the following:

  • Instructions חוק המכר (דירות), תשל”ג–1973

  • Official standards (Standards Institute of Israel standards)

  • Technical specifications

  • The plans and the agreement signed with the contractor

  • Reasonable expectation from a new apartment

בתי המשפט חזרו וקבעו כי האחריות של הקבלן היא רחבה, ואינה מצטמצמת לליקויים “אסתטיים” בלבד.

Common examples of defects:

Warranty and inspection periods – What is the difference and why is it critical??

The Sales Law (Apartments) creates a key distinction between two periods:

The testing period

This is a variable period, depending on the type of eclipse, during which The contractor must repair the defect., unless he proves that the purchaser caused it.

Examples:

  • Moisture defects – 4 years

  • Piping defects – 4 years

  • Flooring defects – 2 years

  • Skeletal defects – 7 years

Warranty period

At the end of the testing period, the Warranty period (3 years), in which the burden of proof is reversed – but there is still liability for the contractor in many cases.

⚠️ Common Mistake: Buyers believe that if the inspection period has passed, they no longer have rights. In practice, even after that, it is possible to sue in appropriate cases.

What is the buyer obliged to do upon discovery of a defect??

1. Notice to the contractor

The buyer must deliver Written notice To the contractor about the defects, within a reasonable time. It is recommended to do this by registered mail or through a lawyer.

2. Providing an opportunity for a drawן

The ruling states that the contractor must be allowed A suitable opportunity Fix the defects.

However, when it comes to serious, recurring defects or when the contractor evades – You can directly apply for legal proceedings..

What happens if the contractor does not repair or repairs negligently??

In such a situation, the buyer has several options:

  • Requirement to carry out repairs through another contractor at the contractor's expense

  • Claim for financial compensation for the cost of the repair

  • Compensation for depreciation

  • Compensation for mental anguish

The courts do not hesitate to award significant damages in appropriate cases.

Relevant ruling – Examples from the field

ע”א 4445/03 שיכון עובדים נ’ רז – It was determined that an apartment buyer does not have to put up with repeated repairs, and that a persistent defect justifies financial compensation.

ת”א (מחוזי י-ם) 1207/09 לוי נ’ חברת בנייה בע”מ – The court awarded compensation for serious moisture damage, loss of value and emotional distress.

ע”א 5602/03 סגל נ’ שיכון ופיתוח – Strengthening the principle that the law of sale is a cogent law, and cannot be conditioned to the detriment of the purchaser.

Is an engineering opinion required??

In most cases – yes.

An opinion from a structural engineer or real estate appraiser constitutes a central basis for a claim, and includes:

  • Details of the defects

  • Determining their origin

  • Estimated repair costs

  • Impairment (if any)

Frequently Asked Questions 

The contractor claims the defect was caused by my use. – What do we do??

The burden of proof during the inspection period is on the contractor. A general claim is not sufficient.

Several years have passed since receiving the apartment. – Am I late??

Not necessarily. The type of defect, the date of its discovery, and the statute of limitations must be examined.

Can I sue even if I signed a delivery protocol??

Yes. Signing a protocol does not waive rights under the law.

How to maximize your chances of success with the contractor?

  • Careful documentation of defects

  • A well-organized and written request

  • Professional opinion

  • Assistance from a lawyer knowledgeable in real estate law and construction defects

Summary 

ליקויי בנייה אינם “גזירת גורל”. הדין הישראלי מעניק לרוכשי דירות Broad and meaningful protection, but exercising rights requires knowledge, accuracy, and timely and correct action.

If you have purchased an apartment in Jerusalem or anywhere else, and have been exposed to construction defects, it is recommended to obtain early legal advice from Halevi Law Firm in Jerusalem, who will examine the case, protect your rights, and work to obtain the full compensation you are entitled to from the contractor.