Three years after selling an apartment, they received a lawsuit for half a million - and here's why

November 14, 2021   

The sale of an apartment usually ends with the sellers handing it over to the new buyers. However, in the case before us, an elderly couple who sold their apartment in Nof HaGalil found themselves sued by the buyers - and dragged into a tedious legal process. The story began about three years ago: A couple, residents of Nof HaGalil, sold their six-room apartment for 1.25 million shekels to their partner, who has 6 children. However, the sellers were recently surprised to discover that the buyers had filed a lawsuit against them, alleging construction violations. The lawsuit claimed that the building permit, as approved by the local committee, does not match what exists on the ground. They attached an appraiser's opinion to their lawsuit, who claimed that it was possible to try to eliminate the discrepancies by submitting a local master plan, which would allow for the increase in living space and the receipt of an updated building permit. But the appraiser estimated the cost of the procedure at approximately 240,000 shekels, to which he added various levies and payments. In total, the sellers are being sued to pay the buyers compensation in the amount of more than 400,000 shekels. In their distress, the sellers hired the services of Attorney Regev Elkayim from the Sharaf Elkayim & Co. law firm to represent them in the lawsuit. According to Attorney Elkayim, in the sales agreement, the sellers informed the buyers of the changes they had made to the apartment, and made it clear to them that there was no MAMD in it, and that the warehouse was not built according to a permit. According to Attorney Elkayim, the sellers even suggested to the buyers that since the warehouse was built without a permit, they would dismantle it, but the buyers asked that the warehouse remain intact, and promised the sellers that if any problem arose with the authorities, they would take care of its demolition. The defense claims that the sellers were unaware of the existence of additional construction irregularities in the property itself, but in light of the property's planning and physical condition, they agreed to reduce its true value by more than 200,000 shekels. It is also claimed that in light of the internal changes made to the structure, the sellers told the buyers that they had to conduct the inspections themselves, and the buyers did so. Therefore, argues Attorney Elkayim, the construction irregularities were ostensibly well known to the buyers, as they received this information from the professionals (architect, real estate appraiser, and contractor) whom they had invited to inspect the property before purchasing it. "The defendants did not hide anything from the plaintiffs, and the condition of the property as it was known to them was communicated to the plaintiffs for their approval," argues Attorney Elkayim, adding that the filing of the lawsuit is puzzling, because the sales agreement expressly states that the sellers' rights in the property are clear and there is no impediment to the transfer of the rights, subject to the construction additions. Adv. Elkayim also claims a lack of good faith on the part of the buyers. "They purchased a property for a low price in accordance with its true condition, and now they are suing to receive its value, if it had been sold including all the additions, renovations and investments that they are seeking to make." According to him, "the plaintiffs' lack of good faith also arises from their choice not to sue the lawyer, who represented both parties in the transaction, and who allegedly failed to represent the buyers and secure their rights." Adv. Elkayim adds and claims that the lawsuit was born out of sin, since after receiving possession of the property, the plaintiffs divided the house in violation of the law, and are now renting part of it to third parties. According to Adv. Elkayim, the property was sold as one unit and not as several housing units, with all that this implies. In the defense, Adv. Elkayim asks the court to dismiss the sellers' claim and impose legal costs on them. The lawsuit is currently being heard in the Afula Magistrate's Court.