Fraud In Land Deals

There are very clear rules in Jewish Law that deal with the subject of fraud in money matters. The term for this is אונאה. There is a verse in the Torah that instructs us not to defraud our brother. The Torah uses the words, לא תונו, “Do not defraud.”

This applies primarily when we sell various commodities. There is a limit of שתות, or one sixth, that we are allowed to charge above the accepted market price. A deal can be canceled if there was such overcharging.

The exception to this rule is when one sells קרקע, or real estate. The Halacha is, אין אונאה בקרקעות, there is no such thing as overcharging in land deals.

Our case in point is the purchase of Avraham Avinu of the Cave of Machpeila. He knew on a spiritual level that this must be the burial place of his beloved wife, Sara. He knew that Adam and Eve were already buried there. And he also knew that the path to Gan Eden was through this location.

He needed to purchase this property because it had exceptional value to him.

The seller, Efron, took advantage of Avraham’s obsession with this burial spot. The four hundred shekels of silver that Avraham paid, was way above the going rate for real estate in that area.

Despite Efron’s taking advantage of the situation, Avraham had no recourse. There is no Halacha of fraud when it comes to land deals.

Avraham’s personal experience demonstrated the truth and beauty of Halacha. We are absolutely forbidden from overcharging another Jew with basic staples and commodities. But the rules regarding land are totally different.