The real estate deal that went wrong: Paid twice for the same mortgage and will be compensated

The Bat Yam Magistrate's Court ordered a Ramat Gan apartment seller to pay the buyer approximately 717,000 shekels, after the buyer paid her about 749,000 shekels to settle the mortgage on the property, but the seller transferred the money to her brother and various companies instead of to the bank. The buyer was forced to pay the bank an additional 756,000 shekels to release the apartment from the mortgage. Judge Meital Ben Basat ruled that the seller fundamentally breached the sales contract, but also that the buyer was negligent in transferring the money to a private account instead of directly to the bank, and therefore reduced the compensation by 30%. The seller claimed she was only a formal trustee for her brother, but the judge ruled that this does not exempt her from liability toward the buyer. The compensation includes reimbursement for the mortgage payment, agreed compensation, court costs, and attorney fees.