JERUSALEM (Jun. 18)
A bill will be presented in the Knesset shortly to protect apartment buyers against the failure of construction firms after they have made substantial deposits for flats that have yet to be built. The Cabinet approved the measure yesterday and recommended prompt action by the Knesset.
The bill was occasioned by the recent failures of several small construction firms which were unable to refund deposits made by their clients.
Under the proposed measure, vendors may not demand a deposit of more than 25 percent of the purchase price unless they provide a bank guarantee for the entire sum deposited, insure the deposit with a recognized insurance firm or mortgage the property for the benefit of the buyer.