Who hasn’t given or received a security check at some point?

Who hasn’t given or received a security check at some point? This practice is quite common, providing a sense of security to the recipient, who believes they are protected and can claim compensation for any damages or injustices they believe they have suffered. But, it's not that simple.

A security check is not a license to write any amount without a basis. A recent court ruling established that there must be a basis for cashing a security check.

The case began with a tenant who rented a villa in Beit Shemesh. The tenant agreed with the owner to renovate the house and make it accessible for her disabled mother. When signing the contract, the tenant gave the owner an open security check without an amount or a due date.

Several months later, the tenant and her family moved out of the villa. In response, the owner filled in the security check for 146,000 NIS and deposited it in the bank. The check bounced, and the owner submitted it for execution by the Enforcement and Collection Authority

?unexpectedly and did not provide replacement tenants. On the other hand, the tenant argued that many defects were discovered in the house, making it uninhabitable, and she had the right to leave without notice.

The plaintiff argued that the amount written on the check covered the cost of renovations, compensation for distress, and damages resulting from renting the property to other tenants at a lower rent.

Honorable Judge Hirschfeld dismissed all of the plaintiff's claims. Firstly, because the check was deposited immediately after the tenant left and not after the villa was re-rented. Additionally, she ruled that a security check is not a blank check and must be filled out in good faith and according to the contract's terms. She stated

The plaintiff was not entitled to fill in the check with any amount he wished, including self-compensation for distress or reimbursement for renovations that were never agreed to be reimbursed. A security check given as part of a rental agreement does not grant the landlord absolute freedom in filling out its amount. He must act according to the contract's terms and in good faith."

The judge dismissed the lawsuit and ordered the plaintiff, the property owner, to pay costs of 8,775 NIS.

Find this interesting? Feel free to share with those who might be interested

And don't forget to subscribe to our newsletter!

Feel free to contact me in any matter at 054-306-9722