Court Orders Seller to Pay 125,000 NIS in Real Estate Broker Fees
A Petah Tikva court ordered a seller to pay 125,000 NIS in broker fees and compensation, ruling the agent was the effective cause of a Ra'anana home sale.
A court in Petah Tikva has ordered a property seller to pay approximately 125,000 NIS in broker fees and compensation after he refused to pay commission following the sale of his house in Ra'anana for over four million shekels. Judge Edna Yosef-Kozin ruled that the real estate agent was the effective cause of the transaction and was entitled to his full fee.
Court Ruling on Broker Commission
In January 2020, the parties signed an exclusive brokerage agreement setting a 2% commission plus VAT. Although the exclusivity period ended, the relationship continued and the agent introduced a potential buyer in late 2020. The agent was heavily involved in drafting and negotiations until the contract was signed in June 2021.
The plaintiff found himself forced to conduct a long struggle to exhaust his rightful rights and to receive payment for work he had actually performed long ago, the judge noted.
Defense Arguments Rejected
The seller argued that the agent agreed to waive his fee, relying on an ambiguous text message exchange. However, the court ruled that the seller attempted to manipulate the agent into waiving the commission. The judge ordered the seller to pay 96,760 NIS in brokerage fees, plus 11,255 NIS in compensation and 17,500 NIS in legal fees.
