Tel Aviv Court Awards Compensation Over Undersized Parking Spaces in Herzliya Apartment Project

The Tel Aviv Magistrate's Court recently ruled in favor of buyers of two apartments in a Tama 38 project in Herzliya, awarding them financial compensation after discovering their parking spaces were too small for family cars. Judge Maya Roizman-Eldor found that the developer breached the sales agreements by providing parking spaces that did not meet the dimensions specified in the building permit, resulting in a loss of property value for the plaintiffs.

The plaintiffs, a couple and a single buyer, claimed their parking spaces were unusable due to their narrow width and low height, unsuitable for vehicles taller than 1.55 meters, such as the couple's Mazda CX-5. A real estate appraiser confirmed the parking spaces deviated from the approved plans and were impractical for use. The plaintiffs sought either replacement of the parking facilities or monetary compensation.

The developer and its shareholder argued that the parking spaces complied with the building permit and legal requirements. However, the court concluded that despite the sales contracts lacking explicit parking dimensions, the developer was obligated to build according to the approved plans. The court was convinced by expert testimony that the parking spaces provided were significantly smaller than planned and did not allow reasonable use.

The court ruled that the developer violated the sales contracts and must compensate the buyers for the depreciation in their apartments' value. The compensation was set at 160,000 shekels for the couple and 96,000 shekels for the single buyer. Both companies involved were held jointly and severally liable. Additionally, the court ordered the developer and shareholder to pay the plaintiffs' legal fees totaling 45,000 shekels. A 20% reduction in damages was applied, recognizing that the parking spaces, while inadequate, were not completely unusable.