Property Sale Agreements · Legal briefing
Competing Property Transactions & Priority
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
After buying a flat and paying a deposit, you discover a second sale to a higher bidder. Which purchaser has priority?
The legal position
Section 9 of the Land Law generally prefers the first transaction, unless the second purchaser acted in good faith, paid consideration and registered the transaction while still in good faith. A cautionary note is not title registration, but is an important safeguard under sections 126–127. Aharonov, Civil Appeal 189/95, addresses a purchaser’s rights against attachment; Ganz, Civil Appeal 2643/97, considers good faith and failure to register a note. Delay does not invariably defeat priority. Official source 1
Your next step
Check title near signing and payment, and establish a cautionary-note and escrow mechanism. If another transaction or attachment emerges, obtain urgent advice on priority and interim relief before making further payments.