Ramat Gan Couple Must Pay Broker Commission Despite Selling Home 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 Herzliya Magistrate's Court, highlighting the extended reach of exclusivity agreements in real estate brokerage.

In January 2023, Amir and Van 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. In February 2023, they amended the contract to stipulate that commission would only be paid if the buyer paid at least 2 million shekels to the seller. In April 2023, they signed a conditional sale agreement for about 11.1 million shekels, which was canceled in May after the buyers failed to sell their own property.

Approximately nine months after canceling the first deal and ten months after the exclusivity period ended, the couple signed a new sale agreement with the same buyers for 10.5 million shekels without Baruch’s involvement. Baruch sued for 595,220 shekels, including commission, breach of exclusivity penalties, and reputational damage. 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, considering it a "direct continuation" of the original transaction under the legal concept of the exclusivity agreement’s "magnetic field."

The court rejected Baruch’s claim for additional breach penalties and reputational damages, criticizing his interpretation that exclusivity entitled him to collect commission from both buyer and seller. WhatsApp messages revealed Baruch pressured the couple not to close deals with buyers who did not come through him and sought to avoid photos revealing the house exterior, suggesting he did not always act in the clients’ best financial interest. Ultimately, the couple was ordered to pay Baruch approximately 247,800 shekels plus legal costs of 15,000 shekels.

This ruling underscores the risks sellers face with exclusivity agreements and the complex legal interpretations brokers may invoke to claim commissions even after exclusivity ends.