Israeli contractor and his wife ordered to pay buyers 650,000 shekels

The Magistrate's Court in Petah Tikva recently ordered a significant compensation of approximately 550,000 shekels in favor of a family due to severe construction defects in an eight-room apartment on Reines Street in Netanya. The obligation to pay was imposed jointly on the contractor, his construction company, and his wife, in whose name the apartment was originally registered.

The dispute began shortly after the family moved into the apartment, purchased in 2014, when they discovered severe moisture issues, faulty aluminum work, and critical safety hazards, including water penetration into the electrical system that created a risk of electrocution and fire. According to the lawsuit, the buyers' repeated requests for repairs were ignored. The defendants argued that the apartment had been split into two units without a permit and that changes made by the plaintiffs to the plumbing caused the damage; they also cited the statute of limitations and a lack of opportunity to perform repairs.

The court rejected the contractor's version, determining that the majority of the defects were his sole responsibility and that the impact of the tenants' modifications was marginal. Judge Edna Yosef-Kozin ruled that the contractor had forfeited his right to repair the damages himself due to his initial refusal. The court also addressed a decisive legal point: the attempt to shield the contractor's wife—who was listed as the "seller" in the contract—from liability by claiming it rested solely with the company was completely rejected.

The court clarified that the Sale Law (Apartments) is a mandatory statute that does not allow for conditions to be set to the detriment of the buyer, and therefore, full personal responsibility was imposed on the wife as part of the joint venture.

In conclusion, the court ordered the contractor, his wife, and the company to pay the buyers:

• 363,529 shekels for the cost of repairs

• 46,320 shekels for alternative housing and moving expenses

• 30,000 shekels for mental anguish

• 111,082 shekels for legal expenses and attorney's fees

The verdict sends a sharp message to real estate developers, clarifying that attempts to evade responsibility through artificial legal structures will not stand up in court.