Construction Defects
Rights, Lawsuit & Compensation
By Adv. Liron Yitzhak Elmaliach | Updated: 2026 | Reading time: approx. 7 minutes
Buying a new apartment from a developer should be the beginning of a good story. When construction defects emerge — leaks, cracks, faulty systems, poor workmanship — the story can quickly become a legal dispute. Israeli law provides significant protection for buyers of new apartments under the Sale of Apartments Law (Chok Mechira).
Statutory Warranty Periods
The Sale of Apartments Law sets mandatory warranty periods by defect type. These cannot be reduced by contract — but can be extended:
These periods run from the date of apartment handover, not from the date of purchase. The warranty covers defects that existed at handover — not damage caused by tenant misuse.
How to Report Defects — Doing It Right
What Compensation You Can Claim
- Cost of repairing the defects (by an independent contractor if the developer fails to repair)
- Decrease in property value caused by defects that cannot be fully remedied
- Cost of the expert inspection report
- Costs of temporary housing if the apartment was uninhabitable during repairs
- General damages for the distress and inconvenience caused
- Legal fees in successful claims
In significant defect cases, total compensation can reach hundreds of thousands of shekels. The key is proper documentation from the outset.
Found defects in your new apartment?
Free initial consultation — we will advise you on the best approach and protect your rights against the developer.