Price Fraud by Land

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The Gemora rules: If an outsider (who was not the adjoining neighbor) bought the land for two hundred, and its value was actually only one hundred, they thought to say that he (the adjoining neighbor) is entitled to say to “the purchaser,” “You were sent for my benefit, not for my detriment.” [The neighbor can thus render the sale null and void. The purchaser will return the land and receive a refund, and the neighbor can go and buy the land.]

Mar Kashisha, the son of Rav Chisda, said to Rav Ashi: The Nehardeans said in the name of Rav Nachman: The rules for “price cheating” do not apply to real estate (and the sale stands, unless he wants to pay the higher price).

The Ri”f rules (and this seems to be Rash”i’s opinion as well) that the principle that there is no “price fraud” by land is only if the discrepancy was exactly a sixth; however, if the discrepancy was for more than a sixth, the deal is void. [This would seem to be problematic from our Gemora.]

Rabbeinu Tam holds that there are no rules of “price fraud” by land as long as the discrepancy is not by more than half of its value; however, if the discrepancy was for more than half of the land’s value, the deal is void.

The Baal Hameor writes that if the discrepancy is for exactly half of its value, there is no rule of “price fraud”; however, if the discrepancy was for more than half of the land’s value, the deal is void.

The Rambam, however, rules that there are no halachos of “price fraud” by land at all, and the transaction is never voided. This is because there is no limit to the price of land.

The Rosh writes that it is evident from our Gemora that there is no price fraud by land even if the discrepancy is for double its value, for it was worth a hundred and he sold it for two hundred.