Buyers Sue Developer for $3.5 Million Over Delayed "Discount Apartment" Project
Translated & summarized from Ice by baba
Forty-six buyers of apartments in the "Ha'Bustanem" project in Sderot are suing the developer "Turan Beitecha" Ltd. for over 3.5 million shekels due to significant delivery delays. The lawsuit claims the developer breached contracts for units, many under the "Apartment with a Discount" program, which were due by January 31, 2025. Buyers allege the delays are due to mismanagement, not the war, and are seeking compensation based on a recent law that mandates 1.5 times rental value for each month of delay.
The story in 6 lines · by baba
- 46 buyers are suing "Turan Beitecha" Ltd. for over 3.5 million shekels due to delayed apartment deliveries.
- The "Ha'Bustanem" project in Sderot has 58 units under the "Apartment with a Discount" program.
- Apartments were originally scheduled for delivery by January 31, 2025, but are now 19 months late.
- Buyers claim delays are due to mismanagement, not the war, rejecting a force majeure defense.
- Compensation is sought under a law mandating 1.5 times rental value for each month of delay.
- The uncertainty has disrupted buyers' housing, financial, and family planning.
Forty-six apartment buyers, who collectively own 25 units in the "Ha'Bustanem" project in Sderot, have filed a lawsuit seeking over 3.5 million shekels against the developer, "Turan Beitecha" Ltd. The lawsuit, submitted to the Beersheba District Court, alleges the company breached the agreed-upon delivery dates stipulated in the sales contracts. The project comprises 98 housing units, with 58 designated under the "Mechir LeMishtaken" (now "Apartment with a Discount") program. The original delivery date for most buyers was set for January 31, 2025, but the apartments remain undelivered approximately 19 months later.
This legal action follows similar cases where buyers have sued developers for delayed apartment deliveries, though typically for lower sums. The involvement of the state is more pronounced in "Apartment with a Discount" cases due to the government's role in initiating the program. In a comparable case in Mevaseret Zion, 33 buyers sued the developer for over 2.6 million shekels due to timeline breaches.
The plaintiffs, represented by Adv. Israel Ziskin, claim the developer sent at least five updates over more than a year, none of which provided a delivery date, even an estimated one. Updates cited reasons for delays such as a plumber refusing to work during wartime, "unforeseen circumstances" in February 2026, and a promised updated timeline in July 2026 that never materialized. The buyers assert that the delays stem from the company's managerial and operational failures, including contractor changes and staffing shortages, rather than the "Iron Swords" war, thus precluding a "force majeure" defense. They also reference a High Court of Justice ruling from July 2025 that rejected a petition to compel the state to recognize the war as a force majeure event for apartment delivery delays.
The lawsuit relies on Amendment No. 9 to the Sales Law (Apartments), which increased statutory compensation for buyers. As of the 11th month of delay, buyers are entitled to compensation equivalent to 1.5 times the rent of a comparable apartment, without needing to prove damages. The amounts claimed range from approximately 67,000 to 205,000 shekels per family, depending on apartment size and delay duration. The plaintiffs state they have received no compensation to date and that a warning letter sent in January 2026 was not addressed. They argue the uncertainty has disrupted their ability to plan housing, leases, school registrations, and financial matters.
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