Breach of Purchase Agreement Claim in Petah Tikva

What is a Breach of a Purchase Agreement in Real Estate Transactions?

A purchase agreement is a legal contract that binds a buyer and seller in a real estate transaction. It specifies the obligations of each party — on the seller's side: delivery of the property in proper condition, vacation of the property from previous tenants or claims, and payment of taxes and debts; on the buyer's side: payment of the price in accordance with the agreed schedule. When one of the parties fails to fulfill this obligation, it constitutes a breach of the purchase agreement.

Breach of a purchase agreement can manifest in many ways: a seller who does not deliver the property on the agreed date, a buyer who does not pay the full price, a seller who delivers a property with material defects unknown at the time of signing, or a buyer who cancels the transaction without justification. Each of these breaches may lead to a legal claim in court.

In Petach Tikva, as elsewhere in the country, purchase agreement breach claims are civil claims handled in district and regional courts, depending on the claim amount and specific legal aspects. Mendelbaum, Gor, and Witzman-Gor attorneys in Petach Tikva (8 Yoni Netanyahu) represent buyers and sellers in such claims and provide comprehensive legal advice and full representation in proceedings.

Types of Breach of Sales Contract and Damages

Breaches by the Seller

The seller may breach the sales contract in various ways. One of the most common breaches is failure to deliver the property on the agreed date. This often occurs when the seller finds another buyer offering a higher price, or when there are delays in the evacuation process or settlement of liabilities. Another breach is delivery of the property with material defects — for example, illegal construction, water infiltration, problems with electrical or plumbing systems, or the existence of third-party rights on the property (such as a lien held by a previous tenant). Another significant breach is failure to vacate the property from previous tenants or debtors, preventing the buyer from using the property. Additionally, the seller may breach the contract by failing to pay taxes and fees that he was obligated to pay, or by transferring the property while bank liens or other legal encumbrances exist on it.

Breaches by the Buyer

The buyer, in turn, may breach the sales contract by failing to pay the agreed price in full or according to the schedule. This may be partial non-payment at signing, or cessation of payments thereafter. Another breach is unjustified cancellation of the transaction — for example, when the buyer changes his mind or finds another property on better terms. Additionally, the buyer may breach the contract by failing to accept the property on the agreed date, or by presenting new or unreasonable demands prior to accepting the property (such as a demand for repairs not included in the agreement).

Types of Damages and Compensation

When a sales contract is breached, the injured party may claim compensation. Damages may be direct — such as the difference between the agreed price and the current market price of the property, or the cost of repairing defects discovered after delivery. Damages may also be indirect — such as costs of temporary housing when the buyer cannot use the property, legal expenses, interest on funds not returned, or loss of investment opportunities. In some cases, the injured party may claim cancellation of the contract and return of all payments made, in addition to further compensation for damages resulting from delay or non-performance.