How Long is the Builder's Responsibility? Ensuring Quality in Real Estate - Ness Abitbol

Every year, dozens of new real estate projects emerge, and the purchase of a property under construction is a common transaction in Israel. Accordingly, Israeli law includes various provisions aimed at protecting the buyer’s interests, especially concerning the provision of financial guarantees by the developer, delivery timelines, and the builder’s responsibility regarding construction.

What is the Duration of the Builder’s Responsibility After Key Handover?

The amendment to the real estate transactions law, enforced since April 2011, aims to balance the power dynamic between the buyer and the real estate developer. Regarding construction defects, akin to the principle of the ten-year builder’s warranty in several Western countries, the Israeli legislature has stipulated that the builder’s responsibility extends beyond key handover for a period determined by law.

As a result, the Israeli legislature has defined two periods of the builder’s responsibility:

Verification Period: The verification period starts from the day of key handover to the buyer and varies between one and seven years, depending on the type of repair required. During this period, the builder is responsible for specific repairs:

During the verification period, the builder is responsible for these repairs unless they can prove that the defects were caused by the buyer. These timelines are set by law and cannot be shortened. In practice, except for urgent repairs, the builder typically intervenes in the weeks following key handover and at the end of the first year.
Warranty Period: Once the verification period concludes, the warranty period begins, lasting for three years. During this period, the builder’s repair obligation is limited to defects for which the buyer has proven they result directly from construction or materials. Generally, these are problems related to construction errors in the foundations or concrete skeleton of the building or defects that were not discoverable previously.