Wednesday, February 19, 2014
New law gives homebuyers more leverage with builders
Knesset Economics Committee approved a second and third reading of the bill for more transparency by the contractors and developers and more leverage to buyers. The full list of items to be priced from electric points to kitchens will be established by the Ministry of Housing within 90 days from the approval of the law. The law will apply to all new building projects approved that have yet to start construction.
A second important amendment to the sale laws puts a cap on lawyers fees. Up to now Israeli buyers financed through transfer payments the contractors' lawyers as well as their own, up to 2% of the sale value. The new law puts a cap of 0.5% or 5000 shekel (the lower of the two) on payments for lawyers fees for transfer agreements of apartments.