Paid 785,000 Shekels and Left Without Money or Land
A couple fulfilled their obligations in a real estate deal, but received only a cautionary note that was later deleted. The court ruled in their favor, ordering a full refund including legal fees.
"A gross and serious breach of a real estate sale agreement": this is how the recent verdict from the Tel Aviv Magistrate's Court described the case of land buyers who never received title to their property despite paying the full price.
Judge Aharon Orenstein ruled that the buyers' decision to cancel the deal after a long ordeal was lawful. Consequently, he ordered the return of all paid funds, along with substantial legal expenses.
The affair began in June 2023, when the plaintiffs signed an agreement with a company called "Karkanet" to purchase a 100-square-meter plot. The contract stipulated that a cautionary note would be registered in their favor within three days, with any breach of this clause considered fundamental. The buyers were instructed to transfer the full payment of 785,000 shekels directly to another company, "Agiv Capital".
Contrary to the agreement, the cautionary note was registered with a significant three-month delay and was subsequently deleted, leaving the buyers without their money or their land. In January 2025, they formally canceled the deal and initiated legal action against "Karkanet," its director, "Agiv Capital," and "K.M.S. Real Estate Investment Center," which had presented itself as the seller to tax authorities.
Judge Orenstein emphasized that the buyers were justified in canceling the contract. "The plaintiffs found themselves in a difficult situation," he wrote. "They paid the full consideration for the land, but the land was not registered in their name, and they do not even have a cautionary note." The court noted that the director of "Karkanet," described as the "driving spirit of the deal," failed to provide any solution even 18 months after the signing. The judge concluded that the reasonable time for fulfilling the contract had long since passed.
All defendants were held jointly and severally liable for the restitution, including the director of "Karkanet," who had personally guaranteed the transaction in messages to the plaintiffs. The court awarded the buyers approximately 900,000 shekels, covering the land price, legal fees, and court costs. Additionally, the court granted the plaintiffs the right to file a future lawsuit should they fail to recover the purchase tax from the state.
