Paid 785,000 Shekels but Left with No Money or Land — Details of the Fraud

The Tel Aviv Magistrate's Court ordered developers to refund buyers about 900,000 shekels for land they paid for but never received. The buyers transferred 785,000 shekels to 'Agiv Capital' for a 100 sq m plot, but the caveat was filed late and then removed. Judge Aaron Orenstein deemed the breach substantial, and the buyers canceled the contract in January 2025.

The Tel Aviv Magistrate's Court ordered developers to refund buyers about 900,000 shekels for a land plot they paid for but never registered. In June 2023, the plaintiffs signed a contract with 'Karkanet' to purchase a 100-square-meter plot. Under the agreement, a caveat in their favor was to be registered within three days, and breach of this clause was considered substantial. The buyers transferred 785,000 shekels, the full price, to the account of 'Agiv Capital'. However, the caveat was registered about three months late and later removed entirely. As a result, the buyers were left with neither money nor rights to the land, and in January 2025 they canceled the contract and turned to the court. The defendants were 'Karkanet', 'Capital', 'K.M.S. Real Estate Investment Center', and the director of 'Karkanet'. Judge Aaron Orenstein called the incident a gross and serious breach of the real estate purchase agreement. He stated that the buyers lawfully canceled the agreement and are entitled to a full refund. The defendants could not provide clear explanations for the delay. The court ordered all defendants, including the director who gave personal guarantees, to jointly pay about 900,000 shekels. This amount includes the plot's value, legal fees for registration, and court costs. The plaintiffs also retain the right to file a future claim if the state does not refund their purchase tax.