In a recent case, buyers purchased an apartment in Rishon LeZion for 1,500,000 ILS. After the first payment, a caveat note was registered in favor of the buyer, but before the second payment, a lien was registered on the apartment due to an enforcement case opened against the seller.

In this situation, whose rights take precedence – the buyer or the creditor?

The buyer’s rights will be preferred, but once a lien is registered against the seller’s rights, the buyer must act according to the instructions of the Enforcement Registrar. The lien may complicate the buyer’s ability to fulfill the commitments and register the rights in their name. The buyer must prove that the transaction was made in good faith and that they acted according to the terms of the agreement.