The Marker, Yael Drel, 09.03.2020
The Commissioner of Sales Law at the Ministry of Construction and Housing issued an unusual announcement to the public buyers of the Ben Galim Group, asking to contact him if there was a concern that funds for the purchase of apartments were transferred to the company in violation of the law.
The firm's statement states that as part of an administrative proceeding that opened against two of the group companies - Ben Galim Entrepreneurship and Properties Ltd. and Gabi Ben Galim Building Company Ltd. - there was a suspicion that the company had contracted with a home buyer in the manner in which the funds were collected in contravention of the Sale Law, and there is concern Material to the purchaser's money. The ministry noted that as part of the administrative procedure, the entrepreneur may have 30 days to respond to the claims of the Commissioner of the Sales Law, the final decision of which is to impose a monetary sanction (fine) of NIS 225,000.
In September 2019, four construction companies from the Ben Galim Group filed a request to freeze proceedings in the Haifa District Court. These applications were filed on behalf of the companies Gabi Ben Galim Building Company, Ben Galim Entrepreneurship and Property, Ben Galim Age of Management and Construction and Ben Galim Development and Investment. The amount of their debts according to documents previously submitted to the court was then estimated at NIS 85 million.
The amendment to the Sales Law (Investment Assurance of Buyers), which came into effect in 2008 following the Heftziba affair, stipulated conditions regarding the sale of a new apartment by real estate developers, in order to protect the buyers of apartments in Israel. 7% of the value of the apartment, without giving collateral to the acquirer of the law, such as a bank guarantee, insurance policy or a warning note, that will guarantee the purchaser's money in the event that the construction is not completed or ownership will not be transferred at the end of the day.
The Ministry of Construction and Housing noted that "Every person who buys a new apartment from a contractor in Israel is entitled to the protections provided by the law. The Ministry of Construction and Housing undertakes proactive reviews on the matter, responds to public inquiries and conducts inquiries regarding any information received on the subject, with emphasis on information that raises suspicions of violating the law. An acquirer who suspects that he has been injured by a sales law violation must report it to the sales law supervisor. "
Minister of Construction and Housing, Yifat Shasha Biton, said: "The administrative procedure that has been opened constitutes an economic sanction against collection of funds in violation of the law and we will not hesitate to use it if necessary."
Commissioner of Real Estate Law, Amit Grady, said that "Any collection of funds, which is done in violation of the law, will be significantly enforced against the seller of the apartment. Collection of home buyers' money can only be made in accordance with the provisions of the Sale Law. When the payment for the apartment exceeds 7% of its value. , A secure buyer must be provided for the funds. "