Real Estate Agents Law 2026 - What to Know in Jerusalem | חדשות נדל"ן | מרכז הנכסים

Real Estate Agents Law - Overview

The Real Estate Agents Law (1996) is the main law regulating the activities of agents in Israel. The law requires licensing, prohibits certain offenses, and defines the rights and obligations of the parties. In 2026, parts of the law were updated, and it is important for buyers and sellers in Jerusalem to be aware of their rights.

Licensing - The First Obligation

Every agent must have a valid license from the Ministry of Justice. Check: (1) that there is a valid license, (2) that it has not been restricted, (3) that there is professional liability insurance. Ways to check: ask to see the license, or search the Realtors registry website.

Written Agreement Requirement

An agent is not entitled to a commission unless there is a written brokerage agreement, signed by the client, which includes:

• Agent's details (name, license number)
• The property being brokered
• The commission amount or calculation method
• The commission payment date (usually at closing)
• The agreement period (exclusivity - duration and termination)

Commission - How Much and When

There is no law that sets a commission rate. The standard in Israel: 2% + VAT from each side (buyer and seller). Legal provisions: the commission is paid only at closing, not before. Partial early payment cannot be enforced.

Exclusivity - When It’s Advisable

An exclusivity agreement restricts the seller to work with only one agent for a defined period (usually 3-6 months). In return, the agent commits to: advertise, show, bring an appraiser if needed. For the seller: it creates an incentive for the agent to invest. The risk: an inactive agent may block the sale.

Cancelling the Agreement

A brokerage agreement can be canceled:

• At the end of the period (if there is a period)
• With 14 days' notice (if agreed)
• Due to a breach of the agent's fiduciary duty
• With notice within 14 days of signing ("cooling-off period")

Agent's Fiduciary Duty

• Not to favor one party's interest over the other without disclosure
• Not to buy/sell the property for themselves without disclosure
• Not to conceal material information
• Not to accept a commission from a third party without disclosure
• To act in good faith and with professional diligence

Misrepresentation and Non-Disclosure - Sanctions

An agent who misleads the client or conceals material information may lose their brokerage license, be liable for damages, and in severe cases, face criminal liability. Exception: knowledge of physical defects in the property - the duty of disclosure also falls on the seller (not just the agent).

What to Do If the Agent Breaches Their Duty

1. Complete documentation of the breach in writing
2. Written notice to the agent
3. Contact the Realtors Council (Realtors.co.il)
4. Seek legal advice - attorney specializing in real estate law
5. Civil lawsuit if no agreement is reached

Practical Tips for Buyers and Sellers

• Always sign a written brokerage agreement before visiting a property
• Do not pay any amount before closing
• Keep all communication in writing (SMS, WhatsApp, email)
• Request clarification on any unclear clause
• Negotiate the commission rate - it is not fixed

Working with the Property Center

The Jerusalem branch operates in strict accordance with the law - every agreement in writing, every commission declared, every commission only at closing. See Guide to Choosing an Agent and Complete Brokerage Guide.