Homebuyers Sue Developer for Millions Over Delayed Deliveries and Deficiencies

Fifty-nine families who purchased apartments in the "Takoa" project in the Gush Etzion settlement bloc have filed a lawsuit seeking over 5.8 million shekels in compensation from the Gush Etzion Development Company. The buyers, who signed purchase agreements in 2021, were initially promised delivery by the summer of 2024. However, delays pushed the handover dates back by an average of 1.5 years, with some apartments only being delivered as late as July of this year.

During the extended waiting period, many buyers were forced to pay both mortgage installments on their new homes and rent for their temporary residences, or repeatedly extend their rental agreements. The lawsuit claims the average compensation for the delay amounts to approximately 145,000 shekels per apartment, calculated based on market rental rates for similar properties.

Beyond the delivery delays, the lawsuit also alleges the developer improperly charged residents for property taxes (arnona) starting in July 2022, long before they received their homes, totaling 780,000 shekels. Additionally, buyers are seeking compensation for missing or substandard apartment components, including shower stalls, a sink in the service balcony, and kitchen fixtures. Some buyers also claim they received a credit for kitchen upgrades without the accrued linkage to the construction input index.

Further claims involve the installation of lower-quality window profiles than specified in the contract. While the developer is being asked for financial compensation for most deficiencies, the buyers are demanding the replacement of the windows to meet the original specifications. The total claim includes damages for delays, improperly collected taxes, missing items, and expert witness fees, with the case filed at the Jerusalem District Court.