When one party fails to fulfill their obligations under an apartment sale contract, the other party has legal remedies available. Understanding what constitutes a breach, what remedies are available, and how to protect yourself is essential in real estate transactions.
Types of Breach in Apartment Sales
Common breaches by sellers include: failing to vacate and hand over the apartment on time, delivering the apartment in a different condition than agreed, failing to provide clear title, and misrepresenting material facts about the property.
Common breaches by buyers include: failing to make payments on time or at all, failing to obtain financing when that was a condition, and refusing to complete the transaction without legal justification.
Fundamental vs. Non-Fundamental Breach
Israeli contract law distinguishes between fundamental breaches, which allow the innocent party to cancel the contract immediately and claim full damages, and non-fundamental breaches, which require the innocent party to give notice and an opportunity to cure before cancellation is possible.
Whether a breach is fundamental depends on the nature of the obligation breached and the impact on the innocent party.
Remedies for Breach
Available remedies include: cancellation of the contract with return of all payments made plus compensation, damages for the difference between the contract price and market value, specific performance requiring the breaching party to fulfill their obligations, and other compensation for losses suffered.
The appropriate remedy depends on the circumstances and the innocent party’s objectives.
The Importance of Contractual Provisions
The strength of your remedies in a breach situation depends heavily on how the contract was drafted. A well-drafted contract with clear remedies provisions, adequate deposits, and proper documentation of all terms gives the innocent party strong legal tools.
An attorney who drafted or reviewed the contract will be best positioned to advise on available remedies.
