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Ruling: [Last time we saw that the first agreement was a rental, not a sale. We started considering pl’s claim of mekach ta’ut (transaction based on misinformation) since pl did not know about the tax.]
P'ninat Mishpat (831)
Beit Din Eretz Hemda - Gazit
765 - Who Pays for an Unexpected Tax? – part I
766 - Who Pays for an Unexpected Tax? – part II
767 - Not Completed and Imperfect Renovation Job – part II
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Is lack of knowledge about building rights/taxes comparable to something missing/wrong with a property? Contemporary Acharonim dispute this matter. Rav Yehuda Silman (Hayashar V’hatov X, pp. 85-93) compares a case similar to ours to a blemish in a property. In both cases, the buyer can opt out of the sale. Along these lines, the Maharsham (III:181) says that if the seller did not know about a significant tax, he can nullify the sale. Rav Levin (Yerushalayim Rulings XI, p. 310) brings a machloket whether changes in rights are grounds for nullifying a sale, but concludes that if it was known that building rights were a possibility, not being aware of the tax considerations does not nullify the sale. Rav Nussbaum (Mekabtz’el XXX, p. 375), discussing a case where the buyer has to inform the seller of rights that the seller does not know about, opined that the lack of knowledge would not nullify the sale but the buyer would violate the prohibition of benefitting from mispricing and would be obligated to return the difference.
In our case, the first two opinions would say that pl can nullify the sale, and the third would say that he would be obligated to return the extra value of the property. In this case, pl is asking for less than that, allowing def to enjoy the new rights and asking only to reimburse for the fraction of that difference, to reimburse for the added tax, and he should be able to do so.
We will bring the final considerations next time.
Beit Din Eretz Hemda - Gazit
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P'ninat Mishpat A Commercial Rental for a Closed Business – part II
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P'ninat Mishpat P'ninat Mishpat: Undoing a Problematic Partnership – part II
based on ruling 84061 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Undoing a Problematic Partnership – part III
based on ruling 84061 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: A Contractor’s Leaving the Job in the Middle – part III
based on ruling 84013 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part II
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