(live here in real estate) - The sales law commissioner of the Ministry of Construction and Housing signed with the developer Jeffrey Pitosi an outline for correcting the violations of the law in the "Steps" student dormitory project, on Hasan Shukri street in Hadar.
Note: There is no connection between the Steps dormitory project and the STEPS real estate company
This is very important news for the apartment buyers, as they will now be able to cancel the transaction or receive back the funds they transferred to the developer, in accordance with the law. Another meaning of this action is the proof that there will be supervision of the construction, and when a developer acts contrary to the provisions of the law, at least in some cases, there will be someone who will require him to correct.
In many cases, apartment buyers find themselves exposed to vulnerability from developers and contractors, and often stand helpless and lose a lot of money, when the developer or contractor who started the project runs into difficulties and cannot finish it. In such cases, the buyers who have already transferred their money will have a hard time protecting themselves and seeing the money back. The handling of the student dormitories in Hadar show that there are cases in which the regulator performs its duty and protects the citizens from such situations, so that they are not required to act alone against the developer.
Suspicion of violations of the sales law
As a reminder, at the end of October 2022, information was received in the Department for the Protection of Apartment Buyers at the Ministry of Construction and Housing, according to which a violation of the Sales Law was suspected in the student dormitory project at 5 Hassan Shukri Street in Hadar. Upon receiving the information, the sales law officer in the office opened an administrative procedure against the project developer.
This week the administrative procedure ended in the form of an outline to correct all the deficiencies and violations of the law and a financial sanction of NIS 271,000 was imposed on the developer. Besides the fine, the developer will have to correct all violations of the law and deficiencies found in the project.
The main achievement: every buyer in the project will be able to cancel the purchase and get their money back
The outline signed with the developer includes, among other things, a number of key components. First, the developer will allow every home buyer in the project to cancel the purchase and get their money back; After that, buyers who are interested in continuing to own the apartment will receive back from the developer funds that were collected from them and exceed 7% of the value of the apartment, the maximum amount that the law allows the seller of an apartment to have without giving the buyer security for the funds. This will be done by means of a written appeal to all buyers, which includes a calculation of the refund due to each buyer.
Moreover, the developer will return to all the buyers of the apartments in the project who canceled the purchase along the way, sums collected from them in excess with regard to legal expenses and in accordance with the maximum stipulated in the regulations; The developer should also contact the apartment buyers and update the sales agreements with the missing details in accordance with the provisions of the Sales Law.
"The developer took responsibility for the deficiencies and violations of the law in the project"
Sales Law Commissioner at the Ministry of Construction and Housing, Amit Grady: "Our concern is for the public interest and the apartment buyers. In this case, signing the outline with the developer is a solution to all the problems that arose in the contracts with the apartment buyers. On the one hand, the developer took responsibility for the deficiencies and violations of the law that were found and is working to correct all the contracts, by way of refunding money and providing options Cancellation of contracts without compensation, and on the other hand, the developer will pay a financial sanction, as stipulated in the law, which also aims to warn any apartment seller who wishes to circumvent the provisions of the Sales Law and harm the buying public."
the floaters
This is an unfeasible project. want to cancel
There is a high demand for residential apartments for students in this area, even more than the demand for housing for Buddhist priests. Anyone who will invest in what they see fit.
I just wanted to know - the project does not have permits. There is no likelihood of feasibility as presented to the buyers - a gym, a pool and all that. And it is not certain that they will even approve an unusual addition of floors.
Kudos to those who do the work and to the Sales Law Commissioner at the Ministry of Construction and Housing in particular. It is good to know that there is protection against the wealthy.