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Contractor's responsibility for repairing defects in a new apartment

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A contractor who sells a new apartment bears responsibility for correcting the defects discovered in the apartment in accordance with the Sale (Apartments) Law 5733-1973.
 
As detailed below, the warranty is divided into 3 different periods depending on the type of defect, beginning from the moment the apartment is delivered to the buyer. Upon delivery of the apartment, a delivery protocol procedure is performed 

What is a delivery protocol?

 
Upon delivery of the new apartment and receipt of the key, it is customary to register a delivery protocol which details all the construction defects that are discovered.
 
It is recommended to review, with a representative of the contractor, all parts of the apartment and record any defects that are discovered. It is also advisable to bring an engineer to check, but this is not necessary.
 
Defects and / or defects should be noted, for example, fractures in the apartment tiles should be photographed so that the contractor cannot claim the fracture or crack was caused during the buyer’s ‘move in.’  
 
You should also open the faucets and check water pressure. Make sure all doors and windows open and close properly.
 
Defects that could have been discovered at the time of delivery of the apartment but were not recorded in the delivery protocol can still be reported within a reasonable time from the time they were discovered (and preferably immediately), up to one year from the date of delivery of the apartment.
 
It is clear that hidden defects, such as those that cannot be discovered during the delivery of the apartment, can be reported to the contractor within a reasonable time from the moment they are discovered.
 
It should be noted that there is no legal obligation to prepare a delivery protocol and even if no protocol has been written, the contractor still bears responsibility, provided the buyer acted in accordance with the law and reported the defect, and allowed the contractor to correct it. 
 
The types of defects that exist in the law
 
It should be noted that that the word "defect" is not written in the law, but rather "non-conformity". There are 3 types of non-conformity:
 
1. A defect that can be discovered during the delivery of the apartment to the buyer and therefore must be reported within one year from the date of delivery of the apartment.
 
2. A defect that cannot be detected at the time of delivery of the apartment, for example, a problem of sealing from rain - it is mandatory to report to the contractor within a reasonable time from the moment it is discovered.
 
3. Fundamental defect - such as related to the stability of the apartment / building and its safety. Notice must be given within a reasonable time 
The seller responsibilities are divided into 3 time periods.
 
Inspection period
 
A fixed period that begins when the apartment is made available to the buyer. The inspection period lasts between one and 7 years, depending on the nature of the defect:
 
(1) Defect in frame and carpentry products, including aluminum and plastic - two years;
 
(2) Defect in flooring and interior cladding, including subsidence and erosion - two years;
 
(3) failure of the function and durability of machines and boilers - three years;
 
(4) Defects in the completion of a yard, including subsidence, including tiles on the ground floor, in parking lots, sidewalks and paths in the building area, as well as defects in surfaces from various finishing materials - three years; for this purpose, "yard development" - includes paths, surfaces, walls, fences, built components and systems, including water, sewage, drainage, electricity, lighting and communication systems;
 
(5) failure of the function and durability of the components of the thermal insulation systems - three years;
 
(6) Failure of piping systems, including water, heating system and gutters, drains and sewers - four years; for this purpose, "failure" - includes leaks;
 
(7) Failure to seal the structure, including underground spaces, walls, ceilings and roofs, including ‘light roofs’ with shielding - four years;
 
(8) Cracks with a width greater than 1.5 mm in non-bearing components - five years;
 
(9) Disengagement, peeling or disintegration of exterior cladding - seven years;
 
(10) Any other non-fundamental non-compliance - one year.
 
To clarify: "Failure" means a complete or partial failure of the product or system to function; "Defect" means a deficiency in the function and durability of a product or system, including failure to maintain stability, integrity, quality and appearance, including each individual component, as well as the assembly. During the inspection period, the seller-contractor is responsible for all defects unless they have proved that the non-conformity was caused by the act or omission of the buyer or a professional on his behalf. 
 
Warranty Period
 
A period of three years beginning at the end of the inspection period. During the warranty period, the buyer must prove that the defect originated in the contractor's defective work, defective design, or defective materials, etc. 
Inspection Period for Fundamental Non-compliance
 
This period last for twenty years from the date of delivery of the apartment to the buyer by the seller unless the seller has proved that the fundamental non-compliance was caused by the act or omission of the buyer.
 
After 20 years, there is still an unlimited warranty but only if it can be proven that a fundamental non-conformity originated in the design, work or materials used by the contractor.
 
A fundamental non-compliance is defined in the law as follows: "Non-conformity in the parts of the building that carry and transfer loads of any kind to the ground that supports the building and that relates to ensuring its stability and safety." 
 
Additional points to note:
 
According to the law, if a correctable or fundamental non-conformity has been discovered, the contractor should be given an opportunity to rectify within a reasonable time. In following cases, the buyer may repair and require the contractor to bear the costs of the repair.
• The contractor neglected to repair the defect,
• They attempted to repair it once or more times in a period of two years from the date of the defect notice
• If the repair was urgent and the contractor did not repair.  
 
It is important to note that the contractor's responsibility for the periods of defects also passes to the subsequent buyer as soon as the first buyer has sold the apartment. 

‘Warning Note’ as Security For Buyers of New Apartments 

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