Globes, Uri Khodi, Eric Mirowski, 10.06.2020
The Ministry of Construction and Housing estimates that the Corona crisis has delayed an average of 70 to 90 days relative to the time of delivery of apartments, in sales contracts that set the date of delivery of the apartment between March 18 and December 31 - according to the answer of the Minister of Construction and Housing, Jacob Litzman Moshe Arbel (Shas).
According to the firm's position - it is proposed to establish a mechanism for providing a 40-day extension in relation to the date of delivery, which, according to the firm: "with a view to neutralizing disputes between purchasers and entrepreneurs". The Ministry of Construction and Housing also emphasizes that the final number of days will be determined according to the updated data when a final decision is made on the matter. The matter is about to be opened by Deputy Attorney General Erez Kaminitz.
While the Ministry of Construction and Housing concluded that the delay is on average 90 to 70 days, as stated, the Ministry of Housing proposal only takes 40 days, according to the Minister of Construction and Housing to balance the buyers of apartments on the one hand and developers and contractors against: "The Corona crisis "A big hit to the public. The home buyers are our top priority and we have to take care of them. There are also employers, including contractors who have been hurt and lost their money during this period.
The interim director of the Ministry of Construction and Housing, Elazar Bamberger, added: "The firm's position is to promote pre-emptive and market-driven intervention in order to neutralize conflicts between buyers and contractors as much as possible. Given the Corona crisis and its effects on the real estate market, providing a fixed extension to the delivery of the apartment is a fair and equitable solution for the benefit of all concerned. "
Recall that under the Law of Sale, an entrepreneur is required to pay the buyer for each day late, after 60 days of delay - 150% of the area's rent for a similar apartment in the first eight months and 125% until the actual apartment is delivered. If a higher amount than the law stipulates in the contract of sale, the contract shall increase.
The Ministry of Construction and Housing emphasizes today: "The goal is not to decide on the question of" supreme power "or the existence of counterterrorism, but rather to make the decision on this issue. In this context, it should be emphasized that the proposed solution is in the view of a division of burden between apartment sellers and apartment buyers. To an inter-office team headed by Attorney Erez Kaminitz, Deputy Attorney General, who is addressing the effects of the Corona crisis on various contractual charges, including delays in delivering apartments. "
However, the Ministry of Housing's proposal actually bypasses some of the issues currently being discussed within the interministerial team established by the Department of Justice, which is supposed to advance a legislative definition of supreme power issues, following the Corona crisis and the government's imposition of the epidemic, which resulted in breach of agreements between parties that undertook various actions. , Starting from the rent of a business that remains closed and unable to pay the landlord, through contractors who are to deliver after their apartments, through service providers who have pledged to termination of work and to debtors who are unable to repay debt.
The issue is very complex, because in Israeli contract law there is a term "preventive factor", also known as a "supreme power", which, when proven under certain circumstances - the parties can be exempted from contract, without any of them can claim compensation for its breach. On the other hand, the law has not clearly defined this factor, and there are no updated legal practices.
The Ministry of Justice concluded that if they did not decide on the matter, the courts could flood thousands of claims for breach of contract, in the course of grueling proceedings that will take years, some of which will go to the Supreme Court, which will take a long time. Along the way, we expect conflicting rulings to be issued by various courts, and uncertainty that the economy and the court system cannot bear.
President of the Builders Association Raul Sarogo said: "The period of stopping work on most construction sites so far has been well over 90 working days, and is the result of government decisions and restrictions created by the Corona.
"As in the entire world, this is his event that contractors who build Israel were not held, did not watch and are not guilty of it. In this event and should not absorb the damage done to them.
"The proposal of the Ministry of Construction and Housing is an outrageous government of the Israeli government to take responsibility for its actions. Unlike many other business sectors in the economy, which demanded that the government compensate the business owners in which they were compensated, we, in the Israel Builders' Association, did not demand any compensation, but the contractors may not require compensation. Buyers for Corona delays.
"If it is not a force majeure, I do not know what force majeure is. We demand that the government declare this period as a force majeure event and make a legislative amendment to the decision and will not settle for a position paper that will send all the victims to court. We demand that the state itself compensate the apartment buyers for a delay period Anticipated construction due to the damages caused to them due to the construction halt. "