Court Dismisses Pardes Hanna Seller's Bid to Cancel Property Deal
The Haifa District Court dismissed a seller's lawsuit seeking to cancel a 2.35 million NIS property sale in Pardes Hanna, ruling that the seller breached the contract by failing to register rights on time.
The Haifa District Court recently dismissed a lawsuit filed by a home seller from Pardes Hanna seeking to cancel a real estate transaction due to non-payment of the full purchase price. Judge Ehsan Canaan ruled that the buyers did not breach the contract; rather, it was the seller who failed to register the property rights on time.
Contract and Dispute
In June 2020, a contract was signed for the sale of a plot of land with a private residential house in its final stages of construction for 2.35 million NIS. It was stipulated that if the necessary approvals for transferring the rights were not provided by the time of possession handover, 100,000 NIS from the remaining balance would be placed in escrow. In his lawsuit, the seller claimed that the buyers failed to pay the 100,000 NIS and subsequently registered the property rights in their name fraudulently, without his knowledge or consent. He requested to cancel the transaction, return the property to his possession, and demand the agreed compensation.
The buyers argued in response that they acted in accordance with the agreement and deposited a check for 100,000 NIS with the seller's attorney, but she was negligent and failed to deposit it into an escrow account. They added that the seller himself breached the contract by failing to register the rights within the prescribed period and by not addressing construction defects discovered in the house.
Court Ruling
Judge Canaan accepted the buyers' position, ruling that the seller was obligated to ensure the registration of rights within six months of signing the agreement.
"This is a result-oriented obligation, the non-achievement of which constitutes a breach of the agreement," the judge wrote.
The court also rejected the seller's claim that the COVID-19 pandemic caused delays in resolving the betterment tax, noting that when the correction request was finally submitted in May 2021, it was resolved within days. The judge dismissed claims of fraudulent registration, concluding that the seller was aware of the actions and consented to them. Consequently, the lawsuit was dismissed, and the seller was ordered to pay 40,000 NIS in legal expenses.
