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1. In this law -

"Apartment" - a room or set of rooms intended for habitation, business or any other purpose;

"Sale" - including leasing for a period of 25 years or more, an undertaking to sell or to lease as aforesaid, and bringing about a sale or a lease as aforesaid, and an association act, as defined in the Land Appreciation Tax Law 1963;

"Seller" - a person who sells an apartment built or to be built by him, whether by himself or through another on land owned by himself or another, in order to sell it, and it includes a person who sells an apartment bought by him from the person who built it or is to build it as aforesaid in order to sell it, but does not include a person who sells an apartment not built by himself or for the sale of which he has received no consideration from the purchaser;

"Building Regulations" - within the meaning of that term in the Planning and Building Regulations (Requesting a Permit, Its Conditions and Fees) 1965;

"Standard" and "Official Standard" - as defined in the Standards Law 1953.

Definitions (Amended 1990)

2. (a) The seller of an apartment must attach a specification to the contract of sale and deliver a copy of it, signed by himself, to the purchaser.

(b) Every amendment of the specification requires the signatures of both parties.

Duty to Deliver Specification

3. (a) The specification will be in the form prescribed by the Minister of Housing by order, which will be brought to the attention of the Knesset Economic Committee before its publication in Reshumot. The order may be general or in respect of a particular category of apartments, and it will come into effect three months after its publication in Reshumot, unless a later date is prescribed therein.

(b) The specification may, in addition to the apartment sold, relate to other parts of the building in which the apartment is located, except other housing, and to the land on which that building stands, as may be prescribed in the order.

(c) The seller must complete the particulars of the specification in precise detail, and if any particular does not apply under the circumstances of the case he will indicate that fact.

(d) If any particular of the specification relates to a matter prescribed by Building Regulations or by a standard, the form may be completed by reference to that regulation or standard.

Particulars of Specification (Amended 1990)

4. (a) The seller fails to fulfill his obligations towards the seller if:

(1) the apartment or anything in it (hereinafter: the apartment) fails to conform to the specification or to any building regulation or official standard;

(2) within the compliance examination period a non-conformity is found, unless the seller has proven that the non-conformity was caused by an act or omission by the purchaser.

(3) within the warranty period a nonconformity is found, which the purchaser has proven to originate from the planning, workmanship or building materials.

(4) a fundamental non-conformity is found, even after the warranty period, as a result of which the apartment is not to fit for its intended purpose.

(5) as the circumstances of the case may be, the seller must warn the purchaser of special traits of the apartment or special maintenance or usage instructions, and they were not given, or if inadequate instructions were given.

(b) Any failure to fulfill an obligation as aforesaid in Subsection (a) will be regarded as non-conformity, within the meaning of that term in the Sale Law 1968.

(c) For the purpose of this Section -

"Fundamental Non-conformity" - A nonconformity in parts of the building holding or carrying loads of any kind on the grounds supporting the building, or concerning any part securing the stability and safety of the building.

"Compliance Examination Period" - A period set in the Addendum, beginning when the apartment is handed over to the disposal of the purchaser.

"Warranty Period" - A period of three years beginning at the end of the Compliance Examination Period.

Non-conformity (Amended 1990)

4A. (a) The purchaser is entitled to rely on non-conformity - 

(1) that could have been detected at the time the apartment was put to his disposal, and  if he notifies the seller thereof within a reasonable time and not more than one year from the said time;

(2) If the nonconformity could not have been detected by a reasonable examination at the time the apartment was put at the buyers disposal, and  if he informed the seller of it within a reasonable time after having detected it.

Notice of Non-conformity (Added 1990)

4B. The purchaser must give the seller a proper opportunity to rectify a non-conformity or fundamental non-conformity which can be rectified, and the seller must rectify the non-conformity within a reasonable time.

The Right to Rectify a Non-conformity (Added 1990)

5. (a) A seller who has not delivered a specification to a purchaser in accordance with Section 2 is deemed, notwithstanding anything provided in the sales contract, to have undertaken to hand over the apartment to the purchaser with everything that is required to be specified in the specification conforming to what is customary under the circumstances of the case.

(b) If the seller delivers to the purchaser a specification that does not comply with the provisions of Section 3, then Subsection (a) applies to all those matters, in respect of which the specification does not so comply.

(c) The onus of proving that a matter to which this section applies does conform to what is customary under the circumstances of the case is on the seller.

Seller Who Has Not Delivered a Specification

6. (a) When a person sells an apartment in a condominium or in a house intended to be registered as a condominium, and if the articles that apply or which he intends to apply to that house annul or change a provision of the model articles on one of the following matters, then he will include particulars of that matter in the specification or add them to the sale contract:

(1) exclusion of part of the common property;

(2) size of the share in the common property, which is linked to the apartment;

(3) rate of contribution to the expenses of the condominium and to the obligatory services connected with it;

(4) procedures for the adoption of decisions on the management of the condominium;

(5) any other matter prescribed by the Minister of Housing, by order, in the manner said in Section 3 (a).

(b) A seller who has not delivered particulars of one of the matters enumerated in Subsection (a) is deemed to have undertaken, notwithstanding anything provided in the sale contract, that the provisions of the model articles that relate to that matter will apply to the condominium.

(c) The terms of this Section will be construed in accordance with their meaning in the Land Law 1969.

Articles of Condominium

6A. (a) In this Section -

"Sale Contract" - including specifications, and an annexed contract re the maintenance. 

"Maintenance Person" - As defined in Section 71 (b) (1) to the Land Law 1969.

(b) A seller may not determine, whether by contract or articles, that the management and the maintenance of the common property, all or part thereof, will be conducted by the maintenance person, unless the sales contract details the particulars of the maintenance person, including the identity of the maintenance person and the means available to contact him. (This Subsection will not apply to sales contracts or articles of condominium made or set prior to 10 July 2002).

(c) There is no validity to a clause in the first contract made with a maintenance person according to subsection (a), that forbids or limits the power of the condominium representatives or of the apartment owners to end the contract after a period of more than three years, unless the apartment owners in a condominium have decided to limit the period of the contract, at the end of the said three years, to any other period determined by them, by a majority determined in Section 71 (b) (1) of the Land Law 1969. (This Subsection will not apply to a contract with a maintenance person made or set prior to 10 July 2002).

Determining Maintenance Person (Added 2002)

7. This law will not derogate from rights vested in the purchaser by any other law.

Saving of Rights

7A. The provision of this law stipulated against unless it be to the advantage of the purchaser.

A condition in favour of Purchaser (Added 1990)

8. (a) The State as seller will be treated like any other seller.

(b) The Israel Lands Administration or bodies represented by it will not, for purposes of this law, be regarded as sellers because it has received rent for an apartement from the purchaser.

The State

9. For purposes of this law, a person who sells an apartement which was occupied by another for less than one year after its construction was completed or in which he himself lived for less than six months after its construction was completed will, in the absence of proof to the contrary, be presumed to have built or acquired it in order to sell it.

Presumption

10. A person who knowingly does not comply with the provisions of Section 2(a), 3 or 6 is liable to a fine of IL 50,000.

Penalties

11. (a) The provisions of this law do not apply -

(1) to apartments in a building, construction of which was completed before this Law came into force;

(2) apartments in respect of which a sale contract was concluded before this Law came into force.

(b) The Sales (Apartments) Law 1990, will not apply to an apartment in a building which was built or the sale contract of which was made prior to the date of the amendment's publication (hereinafter: the publication date), to which  the Sale (Apartment) Law, as it was prior to the amendments, will apply.

Scope (Amended 1990)

12. The beginning of Section 6 will come into effect on 1st October 1973; The remainder of this law will come into effect on 1st January, 1975.

Commencement (Amended 1975)

13. The Minister of Housing is charged with the implementation of this law and he may instigate regulations on any matter that relates to its implementation. Regulations as aforesaid will be brought to the knowledge of the Knesset Economic Committee before their publication in Reshumot (The Official Gazette).

Implementation

Golda Meir

Prime Minister

Zeev Sharf

Minister of Housing

Efraim Katzir

President of the State