A person bought a used vehicle at a dealership and received the vehicle after paying the full consideration and an additional fee for the transfer of ownership process. The vehicle was under a lien of the bank who financed the acquisition by the person who set the vehicle to be sold at the dealership (and did not receive payment). The dealership did not transfer the payment to the original owner and went insolvent. The purchaser moved the Court to declare him as the owner even though the ownership was transferred at the car registry and the car was subject to a lien.
The Court held that in under the Israeli Marché ouvert (or, Market overt) principal if a movable property is sold by a person who carries on the sale of property of the kind of the thing sold and if the sale was made in the ordinary course of business, then ownership passes to the buyer free of every charge, attachment or other right even if the seller is not the owner or is not entitled to transfer the asset, all provided that the buyer bought it and took possession of it in good faith and after paying consideration. A negligent or even grossly negligent buyer might still be considered as acting in good faith and the buyer has no obligation to perform tests unless circumstances may arouse suspicion.
In this case the car license shown to the buyer specifically listed the ownership in the true owner and specifically registered the lien, but despite this Court held that the buyer believed that ownership will be transferred by the dealership and the lien removed and therefore the buyer has acted in good faith and is entitled to receive the vehicle free of rights of others.