Amendment 9 to the Sale Law: Indexation and Late Delivery of an Apartment

The law will apply to contracts signed from this date onward. Amendment 9

The proposed amendment includes four main components: first, providing that a delay in delivering an apartment will be excused only where the delay was caused solely by an act or omission of the buyer. Second, limiting indexation to the Construction Inputs Index to the construction component only, and prohibiting indexation of the other components of the transaction. Third, providing that indexation of the apartment's price will apply only up to the delivery date stated in the sale contract. Fourth, providing that legal expenses may not be collected from an apartment buyer.

Limiting indexation

1. The sale contract may link the apartment price to the Construction Inputs Index only, so that at most half of each payment is linked to that index, except for the first 20% of the apartment price, which will not be linked to the index at all.

2. In any case, the apartment price may not be linked to an index published after the delivery date set in the contract, unless the payment was made late for a reason the buyer is responsible for, or the contract was frustrated due to extreme circumstances that could not have been foreseen.

3. Other than the above, a seller may not collect from the buyer any linkage differentials to any index or interest, except for late-payment interest that the buyer will pay if they are more than seven days late with a payment.

Compensation for late delivery of the apartment

If the seller is late in delivering the apartment by more than one month, the buyer will be entitled to compensation as follows:

1. For the period of delay from one month after the delivery date up to four months: compensation equal to the rent of an apartment similar in size and location (a "similar apartment") for each month, including part of a month, starting from the second month after the delivery date set in the contract;

2. For the fifth through tenth months of delay: compensation equal to 125% of the rent of a similar apartment for each of those months, including part of a month;

3. From the 11th month onward: compensation equal to 150% of the rent of a similar apartment for each of those months, including part of a month;

4. The compensation will be paid at the end of each month for that month;

5. Notwithstanding the above, the seller will not be required to pay the buyer compensation if the buyer caused the delay in delivery or the contract was frustrated due to extreme circumstances that could not have been foreseen.