If there is a decision to forfeit a guarantee because of a delay in delivery, this will have an impact on the market, on the entire economy. You can't accept this event at all."
The question that needs to be decided:
- Once again, a question of principle arises that requires a decision.
What is the fate of a Sale Law guarantee that was given under the Sale Law (Apartments) (Securing Investments of Apartment Buyers) 5735-1974 (hereinafter: "the Apartment Sale Law") in the event of an extreme delay in the delivery of the apartment? When this extreme delay translates into the transfer of the project to its completion by a receiver.
In such a case, should it be said - as the financing authorities claim - that since there is a future expectation of completion of the project, even though it significantly exceeds the date promised to the purchasers at the time of the sale, the Sale Law guarantee that was delivered to them by virtue of that law is not operational, and that they are bound by the contract they signed until the completion of the project at a later date.
Or perhaps, it should be said - as the purchasers who wish to exercise guarantees and release from the contract - that the extreme delay in delivering the apartments according to the contract justifies the activation of the guarantee and the release of the purchasers from it, despite the appointment of a receiver and the actions taken by him to complete the construction to a distant future date.
The normative framework:
- The relevant legislation is a clause 2 to the Apartment Sale Law.
A collective dispute (1) to which a collective dispute refers (2) specifies the circumstances in which the guarantee can be exercised and the buyer can return his money.
See below:
"A seller shall not receive from a buyer, at the expense of the price of the apartment, an amount exceeding seven percent of the price, unless he does one of the following, and all notwithstanding what is stated in the sale contract:
(1) Provides the buyer with a bank guarantee to secure the return of all the monies paid to him by the buyer on account of the price, except for the VAT component, as defined in section 3c1, which is included in these funds, in the event that he is unable to transfer to the buyer ownership or other right in the apartment as agreed in the sale contract, due to a foreclosure imposed on the apartment or on the land on which it is being built, or due to a stay of proceedings order, an order to receive assets, A liquidation order or an order for the appointment of a receiver issued against the seller or against the said landowner, or due to circumstances in which there was an absolute impediment to handing over possession of the apartment, but the cancellation of the sale contract in itself will not constitute an absolute impediment in this regard; The Minister, with the consent of the Supervisor of Banks, may determine the wording of the bank guarantee in this regard; or the guarantee from another guarantor...