Caselaw

Appeals Committee (Haifa) 26310-08-21 Ashdar Construction Company Ltd. v. Haifa Real Estate Taxation Administration - part 76

February 5, 2026
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1.3.       The developer will report to the office once a month on the sale of the apartments. 

1.4.       Without derogating from the provisions of this contract, the parties agree that in cases where the developer sells the apartments in a manner that is not in accordance with the provisions of the contract, the Ministry will take all steps at its disposal against him, including forfeiture of guarantees, payment of agreed compensation, preparation of a new assessment of the land and disqualification of the developer from participating in the Ministry's and ILA's tenders, and in accordance with the details in the table below..."

  1. The contractual system signed by the appellant includes – both in the tender documents and in the construction contract – detailed provisions that if the appellant violates them, she will be obligated to pay compensation to the state in amounts ranging from NIS 20,000 to NIS 450,000. Thus, for example, the sale of a Mehir LaMishtaken apartment to someone who does not lack an apartment or improves housing; construction of a Mehir LaMishtaken apartment in an average area that exceeds the average area defined in the terms of the tender; the construction of a Mehir LaMishtaken apartment in specifications that are inferior to the mandatory specifications; failure to register a warning note with the Land Registrar within 30 days of signing the contract; Collecting payment from the buyer for changes in the specifications of the Mehir LaMishtaken apartment, or for addition to the specifications, from the date of signing the sale contract until the date of occupancy of the apartment, and more.  See clause 10 of the Tirat HaCarmel tender and clause 1.4 of chapter B of the construction contract.
  2. In view of all this, the Respondent, for its part, relied mainly on the fact of signing a "lease contract", in which it was stated that the lease period is for 98 years from the date of winning the tender, with an option for an additional 98 years. In addition, in the opening of the Tirat HaCarmel tender, under the title "Invitation to Receive Proposals", it is stated:

"The Israel Land Authority (hereinafter: the "Authority" or "ILA") and the Ministry of Construction and Housing (hereinafter: the "Ministry") hereby invite proposals for the signing of a direct lease contract from capital (without a development agreement) for a period of 98 years with an option for an additional period of 98 years under the conditions that were customary in the Authority at the time of renewal (hereinafter: the "Lease Contract") and the signing of a construction contract and the completion of the development (hereinafter: the "Building Contract") for the areas whose details at the time of publication of the tender are as detailed in Section 1 (hereinafter:  "Complex" or "Complexes")."

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