Legal Updates

An apartment purchaser is entitled to compensation for late delivery even if requested to make changes to the apartment

September 8, 2019

A contractor refused to pay compensation to apartment purchasers for a delay of about eight months in delivery of possession, inter alia, because the purchasers requested many changes to the apartment.
The Court accepted the claim and held that the contractor must compensate for late delivery. A contractor who delivers an apartment to the purchaser more than sixty days of the date of delivery stipulated in the contract is obliged to pay the purchaser compensation under law, unless it proves that the delay was caused by circumstances beyond its control and the risk of occurring and their consequences are not on it. Here, the apartment was not ready for delivery prior to the actual delivery date regardless of any changes requested by the purchasers, because at that date there was no Form 4 (license to populate the building). Thus, it was not the changes that caused the delay, but the failure of the contractor to obtain Form 4. Therefore, there is no exception that exempts the contractor from its obligation to pay compensation to the purchaser.