Court Dismissed Construction Company’s Claim Due to a “Sham Agreement”
Below is a review of a significant ruling published in “Israel Hayom,” in which Vaknin Yariv Law Office represented the winning side in a complex real estate dispute.
The Nazareth District Court recently dismissed a claim by a construction company that sought to cancel an apartment sale agreement in Afula. The company argued that the apartment buyers, a couple who had since divorced, paid only the first installment and did not transfer the remaining consideration. However, the defendant, who was represented by Adv. Yariv Vaknin, presented an entirely different version that was accepted by the judges.
The defendant claimed that the apartment was given to the couple as a benefit by virtue of the husband’s work as the construction manager at the company. The parties therefore signed the agreement for technical reasons only, without any real intent to pay the full consideration stated in it.
The Court’s Determination: A Sham Agreement Is Not Binding
The court accepted the defense’s arguments and ruled that this was a sham sale agreement. This is an agreement signed externally only, but which does not reflect a real transaction or sincere intent between the parties.
Since the agreement did not reflect the actual understandings, the judge ruled that it has no binding effect on the defendants. As a result of the dismissal of the claim, the court ordered the construction company to pay legal costs of NIS 25,000.
Sham Real Estate Agreements and Their Implications
Sham sale agreements are sometimes common in family transactions or between business parties with trust relationships. However, such agreements may lead to serious legal disputes and far-reaching consequences. We therefore recommend consulting with an experienced real estate attorney before signing any legal document.
Professional legal advice ensures that:
- The sale agreement accurately reflects the parties’ wishes.
- The parties understand all the tax and legal implications of the transaction.
- You avoid situations in which agreements are declared void in the courts.
Why Choose Vaknin Yariv Law Office to Handle Real Estate Disputes?
Our firm specializes in representing complex real estate cases that require creative litigation strategy. We accompany our clients from our branches in Afula and Bnei Brak (BSR 4), and provide determined legal protection in the courts.
- Proven expertise: rich experience in cancelling or enforcing complex sale agreements.
- Personal accompaniment: thorough handling of every case, from document review through to the court ruling.
- Wide reach: available legal response in central and northern Israel.
Please note: the content on this site is intended for enrichment only. The information does not constitute binding legal advice and does not replace a personal consultation with an attorney.
Need legal advice in real estate? Do not sign agreements that may put you at risk. Contact Vaknin Yariv Law Office to schedule a professional consultation. Leave your details on the site or call now: 052-2288824.
