Ramat Gan Couple Must Pay Broker Commission Despite Sale After Exclusivity Ended

A couple from Ramat Gan sold their home for 10.5 million shekels nearly a year after their exclusive brokerage agreement expired, yet were still ordered to pay the broker a commission. The case was ruled on July 5, 2026, by Judge Eilat Harnof at the Herzliya Magistrate's Court, highlighting the extended reach of exclusivity agreements in real estate and the risks of overly broad interpretations.

In January 2023, Amir and An Almog signed a brokerage service agreement with Aaron Baruch, including a 2% commission plus VAT and an exclusivity clause requiring them to direct all potential buyers to Baruch. A handwritten amendment in February 2023 stipulated that commission would only be paid if the buyer paid at least 2 million shekels to the seller. In April 2023, a conditional sale agreement was signed for about 11.1 million shekels, but the buyers failed to sell their own property first, leading to cancellation in May 2023.

Despite the exclusivity period ending, the couple and the same buyers signed a new sale agreement about ten months later for 10.5 million shekels without Baruch’s involvement. Baruch sued for 595,220 shekels, including commission, breach of exclusivity penalties, and reputational damages. The court ruled Baruch was not entitled to commission on the first, canceled deal but was entitled to 2% commission plus VAT on the second sale, as it was a "direct continuation" of the original transaction under the legal concept known as the "magnetic field" of exclusivity.

The court rejected Baruch’s claim for additional breach penalties and damages, criticizing his interpretation that he could collect commission from both buyer and seller, which conflicted with his fiduciary duties. WhatsApp messages showed Baruch pressured the sellers not to close deals without him and sought to avoid external photos of the house, suggesting he did not always act in the clients’ best financial interests. Ultimately, the couple was ordered to pay about 247,800 shekels plus legal costs of 15,000 shekels, a relatively modest sum since most of Baruch’s claims were dismissed.