Caselaw

Appeals Committee (Haifa) 26310-08-21 Ashdar Construction Company Ltd. v. Haifa Real Estate Taxation Administration - part 111

February 5, 2026
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"The winner undertakes to sell all the apartments in the complex(s) that are the subject of this tender as Mehir LaMishtaken apartments to homeless residents of Israel who have a certificate of eligibility to purchase a Mehir LaMishtaken apartment (hereinafter: "the Eligibles"), in accordance with the conditions detailed below and in the building contract." 

Section 3.3.3.  For the Tirat Carmel tender, it states:

"The winner undertakes to sell the Mehir LaMishtaken apartments to those who will choose a lottery process in accordance with the rules to be determined by the Planning and Development Committee, and in accordance with the conditions detailed below and in the building contract."

An identical clause is also found in clause 6 of the appendix to the special conditions, as well as in clause 8(b) of the construction contract, where it is stated:

"The developer will sell the Mehir LaMishtaken apartments to homeless people who will win a lottery to be held by the Ministry, and in accordance with the rules they will determine."

  1. In the opening of the building contract, it was also explicitly stated:

"Whereas, according to the terms of the tender, the developer is obligated to build all the housing units that he has won as Mehir LaMishtaken apartments, and sell them to homeless residents of Israel who have a certificate of eligibility to purchase a Mehir LaMishtaken apartment and/or for housing improvers, all in accordance with the decisions of the Israel Lands Council regarding Mehir LaMishtaken, which will be in effect at the time of publication of the tender and as detailed in this contract and its appendices."

In addition, it should be noted that in clause 2 of the appendix to the Special Conditions, the provisions of which will be considered a fundamental breach of the "lease" contract, which will give the ILA the right to cancel it, and inter alia, it was determined in clause 2(b) that a breach of the condition regarding the sale of the apartments as specified in the construction contract will constitute a fundamental breach that will give the ILA the right to cancel the winning of the tender.

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