Therefore, the court accepted Koffler's version that he did not purchase the property at all, and that the property was not purchased by "anyone on his behalf" (but rather by Kestenbaum and the company he owns), and therefore this necessary condition for obligating Koffler to pay brokerage fees under the brokerage agreement was not met. The court also ruled that the prescribed condition was not fulfilled In the section 14(A)(3) to the Realtors Law, according to which the right to brokerage fees is contingent on the realtor "The effective factor that led to the parties entering into a binding agreement", since no binding agreement was entered into between Koffler and the owner of the property.
The court rejected the claim of Yaacobi and the company he owns that Kestenbaum acted as an agent of Koffler, when he purchased the property. It was determined that Kestenbaum was indeed Koffler's agent in conducting the negotiations, but these negotiations did not mature into Koffler's purchase of the property, and instead Kestenbaum purchased the property for himself, and not as Koffler's agent. The court ruled that Kestenbaum "acted in deviation from his authority as an agent, and this may have an effect on Gonen's liability [Kestenbaum – 10:20], However, as far as Koffler was concerned, it was determined that the purchase was not made for him or as an agent".
- On the other hand, with respect to the charge of Kestenbaum and the company he owns for the brokerage fees, the court accepted the claim of Yaacobi and the company he owns.
The court noted that Kestenbaum was exposed to the details of the property, as Koffler's attorney. In this context, the court emphasized that Kestenbaum introduced himself to Yaacobi as Koffler's attorney, and that is how he behaved in practice. The court ruled that even though the brokerage agreement was not transferred to Kestenbaum, and there is no dispute that he did not sign it, Kestenbaum knew that Koffler had signed the brokerage agreement, had not yet purchased the property, and even knew the amount of the high brokerage fees that had been agreed, and nevertheless chose to purchase the property.