Real Estate Scammers Steal Israeli Properties Using Forged Documents
A sophisticated real estate scam is operating in Israel, where properties are stolen through forged documents, with victims often discovering the theft years later when it's too late. The method involves creating fake inheritance orders, sometimes mimicking rabbinical court documents, to impersonate heirs and register properties under false names. These properties are then quickly sold to unsuspecting buyers, leaving both the original owners and the new purchasers in a devastating legal and financial predicament.
Two recent Supreme Court rulings highlight the severity and mechanics of this scam. In one case, a foreign individual used a forged inheritance order to claim ownership of land that had been inherited by a local resident. The scammer was registered as the owner in 2011 and subsequently sold the property, resulting in an estimated loss of nearly 1.4 million shekels. In another instance, a forged document falsely declared a living property owner deceased since 1998, appointing a fake heir who then sold the land.
The Supreme Court has begun to assign responsibility for these fraudulent transactions. In the case involving the 1.4 million shekel loss, the court allocated 50% of the damages to the lawyer who submitted the forged document, 30% to the state's Land Registry for failing to verify the document with the issuing court, and the remaining 20% to the victim for not registering their inheritance for a decade. The court emphasized that the Land Registry is a gatekeeper, not a rubber stamp, and that even a lawyer's certification of a document's authenticity does not guarantee its validity.
The rulings also clarify that the principle of market integrity, which protects bona fide purchasers, does not apply when the seller is a fraudster. Buyers who rely on forged documents, even if they appear legitimate on the surface, may lose both the property and their investment. The court stressed that a person cannot transfer rights they do not possess, and the buyer is left to pursue legal action against those involved in the fraudulent registration and the state.
To combat this growing threat, the article advises property owners to take proactive steps. These include promptly registering any inherited or purchased property, as an unregistered asset is an open invitation to scammers. Regularly checking property records, akin to monitoring a bank account, is also recommended, especially for those with vacant land or properties located abroad. Potential buyers are urged to investigate the history of a property, looking for red flags such as recent ownership transfers based on inheritance, a seller appearing desperate, or a price that seems too good to be true. Asking probing questions and verifying documents with their original issuing authorities are crucial steps to prevent becoming a victim.
