The High Court of Justice has ruled against the government’s request to enforce a compromise agreement between the state and construction contractors regarding the pricing of apartments under the subsidized discounted apartment program. The agreement would have allowed contractors to receive an additional 15 thousand shekels per apartment, with half of that cost falling on the buyers. However, the court ruled that apartment buyers were not obligated to comply with this agreement as they were not involved in its negotiations.
The decision was met with protests from apartment buyers who argued that they should not be bound by a deal they were not party to. In support of their stance, a professional opinion prepared on behalf of the Knesset also stated that the agreement was not binding on the buyers.
Despite this, the government sought to insist that buyers follow the agreement, even attempting to exclude their representatives from the hearings. However, High Court Judge Alex Stein firmly rejected the government’s claims and criticized them for trying to force the decision on the buyers and for preventing them from participating in the court proceedings.
As a result of this ruling, it is unclear whether contractors will receive compensation or if buyers will have to pay additional tens of thousands of shekels per apartment. It is likely that there will be further legal challenges as both parties continue to fight for what they believe is right.
