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Construction Defects Lawyer

A construction defect is a non-conformity between the apartment as delivered and the specification, the contract or the standards, such as damp, cracks or faulty flooring. The Sale (Apartments) Law, 5733-1973, requires the contractor to repair a defect discovered during the inspection period, after the buyer has given notice of it and given the contractor a reasonable opportunity to repair. If the repair is not made, one can sue for repair of the defects or for monetary compensation, usually on the basis of an engineer's expert opinion.

Under section 4 of the Sale (Apartments) Law, 5733-1973, the seller has not fulfilled its obligations where the apartment differs from the specification, from an official standard or from the building regulations, or where a non-conformity is discovered in it within the inspection period. Under section 4B of the same Law, the buyer must give the developer a reasonable opportunity to repair, and the developer must carry out the repair within a reasonable time.

Construction defects in a 30-second video

Construction defects in a new apartment: what should you do?

The video loads from YouTube only after you click. Go to the video page and transcript

In the video: Found defects in a new apartment? Document them and notify the developer in writing, within the inspection period. Under the law, the developer has an opportunity to repair, and if the repair is not done properly you can claim compensation. An engineer's report is the basis of the claim: it determines the extent of the defects and the cost of repair.

When you need a lawyer for construction defects

  • When defects were discovered in a new apartment after handover, and the developer is not dealing with them.
  • When a defect recurs after the developer has already repaired it.
  • When the developer asks you to sign a waiver or a "completion of repairs" confirmation.
  • When the defects are in the common property, and the residents' representative committee needs to act on behalf of all the residents.
  • When damp or another defect has been discovered in a second-hand apartment and the seller did not disclose it.
  • When the inspection period or the limitation period is about to expire.

How the work proceeds

  1. Review of documents and time limits. Reading the contract, the specification and the handover protocol, and reviewing the documentation and the notices sent to the developer. At this stage we already check which defects are still within the inspection period and which time limits apply.
  2. Engineer's report. An opinion from an engineer or another qualified professional, setting out the defects, their cause and the cost of repair. It is the basis for the demand and for the claim.
  3. Written demand and an opportunity to repair. A properly drafted letter to the contractor or developer, enclosing the report and demanding repair within a reasonable time. Under section 4B(b) of the Sale (Apartments) Law, if the defect recurs within two years of a repair, or an urgent repair is not carried out within a reasonable time, the buyer may carry out the repair and the developer bears the costs.
  4. Negotiation or legal proceedings. An attempt to reach a settlement for actual repair or compensation and, if that fails, a claim in court, conducted through to judgment.

A construction defect affects both your quality of life and the value of the property

Construction defects take many forms: damp and water ingress, cracks in walls, faulty flooring, waterproofing problems on the roof or balcony, failures in the electrical and plumbing systems, inadequate acoustic insulation, and non-conformity between the apartment as delivered and the specification, the plans or the mandatory standards.

Beyond the day-to-day nuisance, an untreated defect reduces the value of the property and makes it harder to sell. The more time passes, the harder it also becomes to prove the cause of the defect and to stay within the inspection and warranty periods.

What to do when you discover a defect

  • Document it immediately: dated photographs, videos, and a record of when the defect appeared and how it has developed.
  • Give written notice: written notice to the contractor or developer, which preserves your rights and records the date of discovery and the demand for repair.
  • Allow an opportunity to repair: in many cases the developer is entitled to carry out the repair itself, and giving it that opportunity also matters legally.
  • Obtain an expert opinion: an opinion from an engineer or an appraiser, setting out the defects, their cause and the cost of repair.
  • Check the time limits: the inspection and warranty periods, and the limitation period, directly affect what can be claimed.

The engineer's report is the heart of the case

In a construction defects claim, the decision rests in most cases on the opinion of an engineer or another qualified professional. The quality of that opinion, the way it is presented, and the ability to deal with the opposing party's opinion and with a court-appointed expert are what determine the outcome.

Familiarity with the engineering material itself, not only with the legal procedure, makes it possible to work effectively with the engineer, to sharpen the right issues, and to cross-examine the opposing party's expert witness on technical rather than general grounds.

Actual repair or financial compensation

Money is not always the right solution. Sometimes it is better to require the developer to carry out the repair, under professional supervision and to a binding timetable; sometimes compensation is preferable, as it lets you choose the tradesperson and the timing of the work. The choice depends on the nature of the defect, your relationship with the developer, the state of the project and your own timetable.

Alongside the cost of repair, it is sometimes possible to claim diminution in value, alternative accommodation costs during the repairs, non-pecuniary damage (distress) and expenses actually incurred.

Conducting the proceedings

The office represents apartment buyers, property owners and condominium representative committees against contractors and developers: from the first letter and the negotiations, through the choice of engineer and the drafting of the statement of claim, to the conduct of the evidentiary hearings and the cross-examination of the expert witnesses in court or before the Superintendent of Land Registration, depending on the appropriate forum.

In suitable cases, and particularly in condominium representative committee cases, conducting a single claim on behalf of all the residents reduces costs and strengthens the bargaining position against the developer.

In the media

Amos Ilan, Advocate, was interviewed for a ynet article on construction defects in apartments: "Suffering from construction defects in your apartment? Here is how to sue and obtain compensation" (ynet Economy, 5 February 2021). In the article he explained the developer's liability, the documentation of defects and the importance of the engineer's report in a claim.

What to bring to the meeting

  • The sale contract, the specification and the rider of amendments.
  • The handover protocol.
  • Documentation of the defects: dated photographs and videos.
  • All correspondence with the developer or its service company.
  • The engineer's report, if one has already been commissioned.
  • In a condominium: the minutes of the general meeting at which the representative committee was elected or the claim was approved.

Timeline and cost

Timing: at the first conversation you receive an initial assessment of the situation. If the documents are sent in advance, the assessment is better informed. A non-conformity that could have been discovered at handover must be notified to the developer within one year of handover, and a non-conformity that could not have been discovered on a reasonable inspection, within a reasonable time after it was discovered (section 4A of the Sale (Apartments) Law). The inspection periods are set in the Schedule to the Law according to the type of defect (see the table below), and a fundamental non-conformity in the structural frame of the building has an inspection period of 20 years (section 4(a)(4)). The limitation period for a monetary claim is seven years (section 5 of the Limitation Law, 5718-1958), and in certain circumstances it begins to run only from the date of discovery (section 8 of the same Law).

Inspection periods under the Schedule to the Sale (Apartments) Law
Type of defectInspection period
Frames and joinery, including aluminium and plasticTwo years
Interior flooring and cladding, including subsidence and wearTwo years
Machinery and boilers; yard landscaping; thermal insulationThree years
Pipework, including leaks; waterproofing of the buildingFour years
Cracks wider than 1.5 mm in non-load-bearing elementsFive years
Detachment, peeling or crumbling of external claddingSeven years
Any other non-conformity that is not fundamentalOne year

Cost: the fee is set in a written fee agreement, after the case has been reviewed. Court fees, expert opinions and other expenses are paid separately. In many cases the cost of the report can be claimed back as part of the damages.

Actual repair or financial compensation: a comparison

SubjectActual repair by the developerFinancial compensation
Who carries out the repairThe developer, under supervision and to a binding timetableYou, through a tradesperson of your choice
Usually suitableFor isolated defects, where the developer cooperatesWhere previous repairs have failed or trust has broken down
Legal basisSection 4B(a): a reasonable opportunity to repairSection 4B(b), with the cost of repair based on the report
What else can be claimedA timetable and professional supervisionSometimes also diminution in value, alternative accommodation and distress

Contact us to review your case

If defects have been discovered in your apartment or building, it is worth checking the legal position before the time limits expire. We will be glad to go through the documentation with you and explain the options.

Tool: the warranty and inspection period calculator (in Hebrew) shows, for each type of defect, until when the contractor is liable under the Sale (Apartments) Law.

Questions and answers

How long do I have to sue for construction defects?

It depends on the type of defect and when it was discovered. Inspection periods range from one year to seven years, depending on the type of defect, and are 20 years for a fundamental non-conformity in the structural frame (Sale (Apartments) Law, section 4 and the Schedule). The seven-year limitation period also applies (Limitation Law, section 5). Because the time limits differ from one element to another, every case should be reviewed as early as possible.

Do I have to let the developer carry out the repairs?

In most cases, yes. Section 4B(a) of the Sale (Apartments) Law requires the buyer to give the seller a reasonable opportunity to repair. Under section 4B(b), if the defect recurs within two years of the notice despite a repair, or an urgent repair is not carried out within a reasonable time, the buyer may carry out the repair and the seller bears the costs.

How much does an engineer's report cost?

The cost varies with the extent of the defects and the size of the property. In many cases the cost of the report can be claimed back as part of the damages.

Where is the claim heard?

That depends on the amount and the type of dispute: in the Magistrates' Court or the District Court, and in condominium disputes sometimes before the Superintendent of Land Registration.

Need a lawyer or a notary?

A short initial consultation call, to understand whether and how we can help.

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