“We had savings. Not large. But understand, I'm an accountant, my husband has his own independent business, we have 6 children and education isn't cheap,” she said at the start of the meeting, and went on: “We took all the savings and bought the plot. The broker introduced us to the owner, arranged a local lawyer for us and accompanied us all the way. I made sure to ask for, and received, a report from the local lawyer showing that everything was in order. I received an information sheet from the municipality.” She pulled out the information sheet and the sale agreement and showed them to me.
“Excellent,” I said, “so what went wrong?”
“Well, that's just it - I relied on the broker who took us to the lawyer, and I didn't check and choose one myself.”
She took out another information sheet and showed it to me. The information sheet she was given before signing stated that a 4-story building could be built on the plot and that, under certain conditions, a permit for 6 stories could be obtained. To my surprise, the updated information sheet she presented stated that the plot is not for construction and is part of a green area. I was stunned. Speechless.
I convened the local team for a brainstorm. The understanding was that strategically we needed to bring about a situation in which the client could recover at least part of the investment. Three lawyers familiar with local law, each throwing out ideas and possible courses of action. We examined every possible angle until the tactic was set - to file a claim against the municipality. The first information sheet presented to us was an original, with the original signature of the mayor and the architect. Therefore, if the land is now not for construction and serves as a green area, then a change of designation had been carried out that harms the client's rights without her having been given the opportunity to argue against the change.
The proceeding lasted two years, and at its end the court ordered the municipality to compensate the client. True, the compensation set was lower than the price she paid for the plot, but we thought it was reasonable compensation.
The municipality appealed the judgment, and the panel of judges sent us to negotiate. The municipality offered to grant building rights on the plot instead of monetary compensation. When the lawyer called me during the hearing to tell me about the offer, I didn't even call to get the client's approval. I immediately gave our consent.
You can already imagine the client's reaction when she heard the news...
Stories are based on real situations, with identifying details changed. Not legal advice.
Translated from the Hebrew original. עברית