New Apartment Owners in Herzliya Awarded Damages Over Unusable Parking Spaces
Buyers of two apartments in a TAMA 38 project in Herzliya sued the developer after realizing the parking facility was unusable. The court ruled that the value of the apartments had been impaired and awarded financial compensation.
The Tel Aviv Magistrate's Court recently ruled to award financial compensation to the buyers of two apartments in a TAMA 38 project in Herzliya, who discovered that the parking spaces provided were too small and unsuitable for family vehicles.
Judge Maya Roizman-Aldor determined that the developer breached the sales agreements and must bear the cost of the devaluation caused to the plaintiffs. A couple owning one apartment will receive 160,000 shekels, while the buyer of the second apartment will receive 96,000 shekels.
In the lawsuit, the buyer claimed that the parking device provided is unusable, as it is suitable only for very small vehicles with a height of less than 1.55 meters. Furthermore, the width is extremely narrow, preventing the opening of car doors. The plaintiff couple added that they were unable to fit their Mazda CX-5 into the space. A real estate appraiser confirmed that the device differs from the one indicated in the building permit and its dimensions do not allow for reasonable use.
The defendants—the developer and its shareholder—claimed the devices were built in accordance with the building permit and legal requirements. However, Judge Roizman-Aldor determined that the developer was committed to building the project according to the original plans. She noted that the defendants failed to prove that the deviations from the specifications were legally approved.
"I am convinced that the parking devices provided to the plaintiffs were contrary to their reasonable expectations as buyers of new apartments, as they were not presented in advance with any possible restrictions on the use of the parking devices," she wrote.
The court decided to "pierce the corporate veil" between the two companies, holding them jointly and severally liable. The damages were reduced by 20% on the grounds that the devices are not entirely unusable, but rather "inferior and difficult" to operate. In addition to the compensation, the developer and its shareholder were ordered to pay 45,000 shekels in legal expenses and attorney fees.
