Rental Contracts, Lawyer’s Fees and Real Estate Broker’s Fees – 2015
Since we first published this article in 2009 the only real issue that had changed is the number of new immigrants having a hard time understanding the Israeli system and how to navigate it.
All it needs is a small help.
It is a truism everywhere that signing a contract is no small matter and the implications are long-term and not always positive.
One of the (many) “sins” of the Internet era is that one can find any sort of contract available in any language. There is no doubt that models are always welcome but it is just like a new pair of shoes. If you buy a pair of shoes through Internet or mail, without trying them out, they may not fit you. Even if the size is correct, they may be very uncomfortable on your feet.
The result can come out the same as a medication: you go to the drugstore and buy the same antibiotics that healed your neighbor. What if you are allergic to those specific antibiotics?
Rental contracts are especially troublesome either for the tenant or the landlord. The heart of the matter is finding a way to balance the conflicting interests of the parties – tenant and landlord.
We all want to find a way to save in a rental transaction; among these ways are: avoiding paying lawyer’s fees and avoiding paying real estate broker`s fees. If you can find your ideal place to live without being helped by a real estate broker, of course you won’t have to pay for their services.
From the moment a real estate broker – after signing a contract between you – has shown or just mentioned the existence of a place that you wind up renting, you must pay the broker’s fees down to the last penny, even if they never showed you that place. Generally, there is no manner of getting away from that.
Who must pay the lawyer’s fees? In general, lawyer’s fees are split between both sides. Each one pays his/her part and the amount can reach up to a month’s rent. It may be the case that the lawyer represents both sides, but if your Hebrew is not very good, please do not sign anything! This can bring about several problems in the future. First receive a full explanation in English!
About the real estate broker’s fees; everything can be negotiated. Sometimes the broker charges from one side, sometimes from both sides. In general, each side pays for his/her part.
The Real Estate Market in Israel looks like a volcano today and I guess it will look like a tornado tomorrow – There’s no stability on the horizon
