Sellers Fined $38,000 for Contract Breach in Delayed Apartment Sale
Translated & summarized from Ynet by baba
Four siblings were ordered by a Beersheba court to pay NIS 140,000 in damages for breaching a contract to sell an apartment. The siblings significantly delayed the apartment's registration by failing to remove liens for over a year. The court found the sellers responsible for the delays, rejecting their claims that the buyer caused them. The siblings must also pay NIS 30,000 in legal fees.
The story in 5 lines · by baba
- Four siblings must pay NIS 140,000 for breaching an apartment sale contract.
- The sellers significantly delayed the apartment's registration by over a year.
- Liens from tax authorities and the municipality prevented ownership transfer.
- A Beersheba court found the sellers fundamentally breached the sales agreement.
- The siblings are also ordered to pay NIS 30,000 in legal fees.
A Beersheba Magistrate's Court has ordered four siblings to pay NIS 140,000 (approximately $38,000) in compensation to a buyer after they breached a sales agreement and significantly delayed the apartment's registration. The buyer and his partner purchased a second-hand apartment in Beersheba in January 2021 for NIS 1.4 million, with possession and clear title expected by July 2021. However, the sellers, who inherited the apartment, delayed signing mortgage documents, and possession was only transferred in November 2021. It later emerged that liens from the Israel Tax Authority and the Tel Aviv Municipality were placed on the property due to one sibling's debts, preventing the transfer of ownership. Despite repeated requests from the buyer's legal team, the siblings delayed resolving these debts. One lien was removed after nine months, and the second after about 1.5 years. The apartment was finally registered in the buyer's name in May 2024.
The buyer sued for NIS 140,000 in agreed-upon damages for the breach and an additional NIS 20,000 for emotional distress. The sellers denied breaching the contract, claiming the buyer caused delays by missing payment deadlines and asserting they acted quickly to resolve the debts. Judge Rachli Tiktin-Adlam ruled that the siblings had fundamentally breached the agreement, noting they were obligated to remove liens within 14 days, and the actual delays of months were unacceptable. She criticized their conduct, particularly that three siblings did not proactively settle their brother's debts, questioning why they waited so long to pay the municipal debt. The court rejected the sellers' argument that the buyer could have paid the debts himself to expedite the process, stating the responsibility lay with the sellers as per the contract. The judge upheld the agreed-upon NIS 140,000 compensation, adding NIS 30,000 for legal fees and court costs, while dismissing the claim for emotional distress damages.