Warranties of the Builder on Newly Constructed Homes
Posted on 03. May, 2010 by buyitinisrael in Buying On Paper, Legal Matters
By Elana H. Billig, Advocate
©iStockphoto.com/Konstantin Sutyagin
Many people erroneously believe that their newly constructed home in Israel is under warranty for a mere twelve months, as the term “Shanat Bedek” (Inspection Year) is very loosely tossed around in the context of homes purchased from Kablanim. Shanat Bedek, which appears in many purchase agreements generally relates to the rounds that Kablanim commonly make towards the end of the first year that the newly constructed project is occupied whereby Kablanim typically attempt to make corrections to the project at one interval.
In an attempt to settle some of the confusion surrounding the warranties associated with new construction, a goal of this article is to provide the reader with some basic knowledge about the warranties that a Kablan is obligated to provide to a purchaser of new construction which are primarily set forth in the Sales Law (Apartments), 5733-1973 and the addendums thereto. The reader must be cautioned that this article is informational and not a summary of the law, and competent professional advice should be sought in each specific instance.
The Sales Law defines who is considered a “Seller” that is subject to the Sales Law, and while this definition is technical, the typical registered Kablan building a project is the one in mind as a focus of this article and such Kablan would be considered a Seller and would thus be obligated to provide the warranties set forth in the Sales Law. Your attorney can assist you in determining whether your builder is subject to these laws.
In reality, there are 2 phases of a “Warranty Period”. The first is called “Tekufat Bedek” (Inspection Period), and this period commences at the time that the unit is made available to the purchaser. It is vital to understand that the Inspection Period is not a single fixed amount of time, but rather, in accordance with the current law as set forth in the Addendum to the Sales Law, can vary from 1 to 7 years depending on the particular problem/item affected.
Examples of some of the items and time periods of their specific Tekufat Bedek currently set forth in the Addendum are:
- 2 years for piping including heating systems and drainpipes.
- 3 years for items such as boilers, peelings of coverings in stairwells, and sinking ground floor tiles.
- 5 years for cracks in the walls and ceilings.
- 7 years for recognizable peelings of the exterior coverings.
- 1 year for discrepancies that are not specifically listed in the Addendum that are not fundamental discrepancies (as defined in the Sales Law). Common examples are malfunctioning trissim, problematic windows, broken tiles, and so forth.
The Second Phase of the Warranty Period is called the “Tekufat Achrayut” (Warranty Period) which is a 3 year period that commences at the culmination of the Tekufat Bedek. This in essence means that your new home has a warranty on nature and quality of construction of a minimum of 4 years, and on certain items the warranty is 10 years (there are instances where the obligation of the Kablan can be extended beyond these time periods but this is beyond the scope of this article). While the Sales Law clearly makes the picture of warranties a lot more palatable than what the average person believes and is led to believe, it is important to keep in mind that even with the law in your favor, you may have to hound the Kablan to fulfill his/her duties and you may also need to spend money to obtain the expert opinion of an engineer to establish that the cause of the problems are the Kablan’s responsibility, and so forth.
The law sets forth the time frame to notify the Kablan of the need for corrections, which depends on whether the problems are known even before the apartment is made available to the purchaser, become visible shortly after moving in, or erupt over time.
So in conclusion, if at some point during the applicable warranty period you notice problems such as dampness around the window, a cracked tile, a blocked drain or light switches that are simply not connected to anything, rather than calling your “personal” handyman (Shiputznik) or electrician to correct these problems, it is imperative that you notify the Kablan of these defects and allow the Kablan to make the repairs. The provision in your purchase agreement relating to notices should be followed, as in many cases a registered letter is required. Beware of making repairs on your own to avoid voiding your warranty. (A discussion of when the purchaser can “take matters into their own hands” and make the repairs in the event of a delinquent or incompetent Kablan is beyond the scope of this article).
Finally, it should be noted that if you are purchasing a second-hand home that falls under the warranty period, you should make sure to receive an assignment of rights from the seller so that you can step into the shoes of the original purchaser from the Kablan.
This article is for informative purposes only and in no way is to be construed as legal advice or a legal opinion. Elana H. Billig, Adv. is an Associate at Gideon Koren & Co., Law Offices and Notary. Should you have any questions or comments regarding this article, feel free to contact Adv. Billig by email at elana@gkl.co.il.
© Copyright 2010
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