Sderot Apartment Buyers Sue Developer for 3.5 Million NIS Over 19-Month Delay
Forty-six apartment buyers in Sderot have filed a 3.55 million NIS lawsuit against developer Toren HaBayit Shecha for severe delivery delays exceeding 19 months.
Forty-six apartment buyers owning 25 units in the "HaBustanim" project in Sderot have filed a 3,554,220 NIS lawsuit at the Beersheba District Court against the development and contracting company "Toren HaBayit Shecha Ltd" based in Netivot. According to the statement of claim, the company allegedly breached the delivery date stipulated in the purchase contracts.
The project comprises 98 housing units across six buildings, including 58 units under the government's "Target Price" (Apartment on Discount) program. The lawsuit states that the contractual delivery date for most buyers was set for January 31, 2025. Approximately 19 months have elapsed since then, and the apartments have still not been delivered.
The plaintiffs, represented by attorney Israel Ziskind from the Osaditcher law firm in Bnei Brak, argue that for over a year, the company sent at least five updates to the buyers, none of which included a delivery date, not even an estimated one. In June 2025, the company reported that the plumbing contractor hired for the site refused to work during wartime. In February 2026, it cited unexpected obstacles that delayed construction. By July 2026, some 17 months past the contractual deadline, the company announced it would present an updated timeline within two to three weeks. According to the plaintiffs, that estimate has never been provided.
The lawsuit asserts that months past the official delivery deadline, company updates still described basic infrastructure work such as electrical grids, sewage, retaining walls, and aluminum installation, rather than finishing work. The plaintiffs claim the delays stem from managerial and operational failures, including the replacement of contractors and labor shortages, rather than the "Swords of Iron" war. Consequently, they argue, the company cannot rely on a "force majeure" defense, pointing to a July 2025 High Court of Justice ruling that rejected a petition to force the state to recognize the war as a frustrating event exempting developers from late-delivery compensation.
The claim relies on Amendment No. 9 to the Sale (Apartments) Law, which increased statutory compensation for buyers. Under the amendment, starting from the 11th month of delay, the buyer is entitled to compensation equal to 1.5 times the rental value of a comparable apartment, without the need to prove damages. The claimed amounts range from approximately 67,000 NIS to 205,000 NIS per family, depending on the apartment size and the duration of the delay.
