Clerical Error in Tender Documents Leads to Overpayments in Ashkelon Housing Project

The construction of 2,526 apartments in Ashkelon has been marred by a clerical error in the tender documents, which were published in 2018. This mistake led to apartment buyers paying 10% more than they should have in the “Housing for New Residents” lottery, with some buyers overpaying by as much as 150 thousand shekels. The error was caused by setting the timing and volume of linking the cost of an apartment to the cost index of construction work, which differs from standard practices in the “Housing for New Resident” program.

The Land Authority’s tender committee found this mistake and ruled that it applied initially to the Peretz Bonei HaNegev company, which built 180 apartments in Ashkelon, including 126 that were part of the “Housing for New Residents” program. However, it is expected to impact other companies as well. The commission determined that the company acted in bad faith by concealing the error in documentation until customers raised complaints five years later.

This ruling highlights the importance of carefully reviewing all documents and promptly addressing any errors to avoid financial discrepancies or legal issues. Developers and buyers must take responsibility for ensuring that all documents are accurate and complete before signing any contracts or agreements related to real estate transactions.