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Defects and Warranty After Handover of a New Israeli Apartment

Q: Can I withhold payment until defects are fixed

Withholding contractual payments can put you in breach. Discuss any holdback with your lawyer, who may negotiate an agreed arrangement with the developer instead.

Q: Does the warranty transfer if I sell the apartment

Rights under the Sale Law generally attach to the apartment and may pass to a later buyer, subject to the contract and the timing. Your lawyer can confirm this for a specific sale.

Q: Do I need an engineer's report to make a claim

For simple issues a written notice with photographs is usually enough at first. For disputed or significant defects, a qualified engineer's report is strongly advisable.

Q: What if damage was caused by my tenant

Damage caused by use rather than construction is not covered. Clear records help distinguish construction defects from wear or misuse.

It is common for a new apartment to reveal problems in its first seasons: a leak after the first heavy rain, cracks as the structure settles, a shutter that jams or a drain that backs up. Israeli law recognizes this. The Sale Law for apartments defines an inspection period and a warranty period, which vary according to the type of defect, and it gives the developer both the right and the obligation to repair. For American owners who may be abroad when a problem appears, understanding the process and documenting everything in writing is essential. This page explains the framework in qualitative terms, without replacing legal advice.

Two Kinds of Protection

The law distinguishes between an initial inspection period, during which the burden is on the developer to show that a defect is not its responsibility, and a longer warranty period, during which the buyer must show that the defect results from design, workmanship or materials.

The length of each period depends on the component involved, such as plumbing, waterproofing, structure or finishes. Your lawyer can tell you which period applies to a given issue.

Visible Versus Hidden Defects

Defects visible at handover should be recorded in the handover protocol. Defects that could not reasonably be discovered at that time, such as hidden leaks or structural movement, may be reported when they emerge, subject to the relevant periods.

Where the apartment does not match the specification, for example a different type of tile or a missing fixture, this is a nonconformity and can be raised under the contract and the law.

How to Report a Defect

Send the developer a written notice describing the defect, its location and when it was discovered, with photographs or video. Many developers have an online system or a dedicated customer service address. Keep copies of everything you send and receive.

The developer is entitled to a reasonable opportunity to inspect and repair. Allow access, and if you are abroad, arrange for a trusted person to coordinate visits.

Clear written description of the problem
Photographs showing location and extent
Date of discovery
Available times for access
Reference to any earlier related reports

When the Developer Does Not Respond

If repairs are not carried out within reasonable time, or are carried out poorly, the law allows the buyer in certain circumstances to have the work done by others and claim the cost, or to seek compensation. Repeated failed repairs of the same defect strengthen the buyer's position.

An independent engineer's opinion is usually necessary at this stage. Consult your lawyer before hiring a contractor, so that you do not lose rights by acting prematurely.

Common Property Defects

Problems in the lobby, the roof, the parking garage or shared systems affect all owners. These are usually handled by the house committee or building management together with the developer, sometimes through a joint engineering report.

Participate in residents' meetings or appoint someone to represent you. Coordinated claims are more effective and share the cost of professional advice.

Protecting Your Position From Abroad

Set up a simple folder for each defect with notices, responses, photographs and inspection reports. If you rent the apartment out, ask your tenant to report issues promptly and in writing, and include access for repairs in the lease.

Time limits apply, so do not wait until your next trip to Israel to report a problem.

A local property manager or a relative living nearby can be a practical point of contact. Give that person written authority to open the door for technicians and to confirm, with photographs, that each repair was actually completed.

Frequently asked questions

Can I withhold payment until defects are fixed

Withholding contractual payments can put you in breach. Discuss any holdback with your lawyer, who may negotiate an agreed arrangement with the developer instead.

Does the warranty transfer if I sell the apartment

Rights under the Sale Law generally attach to the apartment and may pass to a later buyer, subject to the contract and the timing. Your lawyer can confirm this for a specific sale.

Do I need an engineer's report to make a claim

For simple issues a written notice with photographs is usually enough at first. For disputed or significant defects, a qualified engineer's report is strongly advisable.

What if damage was caused by my tenant

Damage caused by use rather than construction is not covered. Clear records help distinguish construction defects from wear or misuse.

Elkayam Group

From Rival Street 37 in Tel Aviv, our team works in Hebrew, English and French and can help American owners structure defect reports that developers can act on.

Dealing with defects in a new apartment from overseas. Ask our team how to organize your reports.

+972-53-658-4252 · support@kobielkayamrealestateltd.com · Rival St 37, Tel Aviv