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Contradictory real estate transactions – December 2010

Article 9 to the Israeli real – estate law, 1969 stipulate that a contradicting transaction is a situation where one has obligated towered someone to make a transaction in real – estate and before that transaction was concluded with registration he has returned and obligated towered someone else with a contradicting deal.

The law determines that the right of the first possessor is favorable. However if the second possessor was operating in good faith, paid and the transaction was registered while he was acting in good faith his right is preferable.

One of the main verdicts in contradictory real estate transactions is CA 2643\97 Gans Shlomo VS British & colonial co’ INC & others.

In this case the Supreme Court has explained the meaning of article 9 and the importance of the second possessor clean hands and good faith in order for him to enjoy preference.

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