Why did the Ministry of Housing impose a financial sanction of NIS 800,000 on the fruit of real estate


In the past year has been conducted in the office of the Commissioner of Sales Law bMinistry of Construction and Housing, Amit Grady, an examination with Perry Real Estate, in which we will examine whether in some of the projects in which the company presents itself as an organizer Purchasing group Clients were misled into thinking that they were purchasing apartments in an entrepreneurial project. This test was performed due to commitments given by the company to defined schedules, final prices, and safety net, as is customary in entrepreneurial projects. As part of the outline for the amendment of eDefects, Set this morning (Monday), the company was required to sign an outline for correcting defects and a financial sanction in the amount of NIS 800,000.

Perry Real Estate is jointly owned by Eldad Perry and businessman Haim Hemo, a resident of Switzerland. The company is involved in the construction of about 3,000 housing units, along with office and commercial projects. Some of the projects are carried out as entrepreneurial projects, but most of the company’s activities are based on organization. Purchasing groups.

As part of a purchasing group, several members band together to purchase the land, and hire the services of a contractor and other professionals to build the project while they themselves act as developers. The method is perceived, by many, as a cheaper alternative to buying an apartment than from a contractor or developer. Organizers of purchasing groups are not subject to the Sale Law, and accordingly – are not required to provide collateral to group members and / or meet the other obligations set forth in the Sale Law.

As part of an examination of the adequacy of organizing a purchasing group, the degree of control of the organizing party in the project vis-à-vis the group members is examined, among other things. The goal is to determine to what extent control of the project, as it arises from the set of agreements underlying the project and / or the practice used in it, is that of the group organizer, and is not, in fact, in the hands of the purchasing group members.

In any case, the outline for correcting the defects of Perry Real Estate includes a financial budget that will be transferred to the purchasing groups for external legal advice; Name of members of the purchasing groups or registration of warning notes in the name of members of the purchasing groups; In projects where a financing agreement has not yet been signed, an independent consultant will be appointed to find financing for the project. Peri Real Estate will pay a financial sanction of NIS 800,000.

Elazar Bamberger, Legal Adviser, Ministry of Construction and Housing: “Not every project that presents itself as a purchasing group is indeed such, by its very nature. The test in this matter is not how the group is presented, but the legal relationship between all parties to the project. “Accordingly, there are cases where the organizer of a purchase group will be considered an entrepreneur selling apartments, within the meaning of this term in the Sale Law, for all that this implies. Organizers must be careful when it comes to organizing a purchase group since the boundary between a group member and a buyer is very thin.” .

Perry Real Estate said: “As reported in the media since 2018, Perry Real Estate is not organizing new purchasing groups. Recently, in light of the understandings with the Sales Law Commissioner at the Ministry of Housing, it is working to change the layout of old groups not yet given to tenants. Guarantee of sales law and final occupancy date. ”

In recent months, a number of meetings have been held between representatives of the Perry Group and the Commissioner of the Sale Law, and the conduct of some of the groups has been examined. The commissioner pointed out a number of issues that, according to him, should be rectified in the groups’ conduct, and accordingly the Perry Group chose to avoid conducting unnecessary administrative procedures and meet all the commissioner’s requirements, mild or severe, even though this required benefits of hundreds of thousands of shekels.


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