Israeli Court Awards 80,000 Shekels Compensation for Apartment Without Hot Water

The Tiberias Magistrate's Court recently ruled to award approximately 80,000 shekels in compensation and legal expenses to a woman who purchased a five-room apartment on Moran Street in Tiberias, only to discover that it lacked hot water. The sale contract was signed in May 2024 for 1.63 million shekels. The buyer found out about the absence of hot water three days before taking possession, when she tried to shower and realized the building's hot water system was faulty.

Judge Efrat Heller determined that the sellers were aware of the malfunction in the building's hot water system well before the sale but failed to disclose it, breaching their duty of good faith during negotiations. Evidence included WhatsApp messages from the building's residents dating back to 2022, which showed repeated complaints about the hot water issue and the sellers' involvement in discussions to address it.

The sellers claimed ignorance of the problem, arguing they used a gas water heating system and did not rely on the solar water heater. However, the court rejected this defense based on the documented communications. The judge ruled that while the sellers must compensate the buyer, the compensation should be limited to one-third of the requested 200,000 shekels, as the defect was repairable.

Including legal fees, the sellers were ordered to pay the buyer about 80,000 shekels. The case was represented by attorneys Gali Danilov for the plaintiff and Yaakov Karni and colleagues for the defendants. The ruling highlights the importance of disclosure obligations in real estate transactions in Israel.