Real estate brokers in Israel: what the ethics rules forbid, and what you can demand

Real estate brokers in Israel: ethics rules — Abitbol & Associés

Buying or selling property in Israel almost always involves a broker (Metavech – מתווך). Since spring 2025, brokers’ conduct has been governed by binding ethics rules. For foreign buyers and sellers living abroad, knowing them tells you what you can demand — and which practices to refuse.

I. A framework that is now binding

The Real Estate Brokers (Professional Ethics) Regulations (תקנות המתווכים במקרקעין – אתיקה מקצועית), issued by the Ministry of Justice in 2024, took effect on 9 March 2025. They sit alongside the 1996 Brokers Law, which among other things requires a licence, and are overseen by the Registrar of Brokers (רשם המתווכים), where complaints can be filed.

II. Transparency about the property

A broker must inform the client clearly and in plain language, in particular about:

  • ownership and registration of the property, and its area, with the source indicated;
  • material findings from the viewing, including where the home is not considered fit to live in;
  • whether the sale is run by a receiver (Kones Nechasim – כונס נכסים) or a court;
  • a questionnaire for the owner to complete, documenting the property’s condition and legal situation.

This does not replace checking rights in the land registry (Tabu – טאבו) or having a lawyer review the permits, but it creates a written baseline if a dispute arises later.

III. Fees, conflicts of interest and benefits

  • A broker may collect only the brokerage fee: advance payments, “good-faith” deposits and renewal fees are prohibited.
  • They must disclose any benefit or payment received from a third party and whether they represent more than one side, so each party can consent knowingly.
  • They may not make their services conditional on buying another service, from them or from a third party.

IV. Advertising, offers and confidentiality

  • A broker may not market a property as if acting for the owner without the owner’s consent, or show a property that is not genuinely for sale or rent.
  • Each advertisement must carry the broker’s name and licence number, and the broker must show their licence on request from the first meeting.
  • They must pass every offer received on to the client.
  • They may not use a client’s details or information about a property for other purposes without explicit consent.

V. What the broker must not do in place of a lawyer

The rules also draw a line between professions: a broker must not appraise the property or draft purchase offers or memoranda of understanding (Memorandum – מזכר הבנות). A broker who is also a lawyer or appraiser may not provide those services in a deal they brokered. This matters: a document signed under the pressure of a viewing can bind a buyer more than they realise.

VI. Practical reflexes

  • Check the broker’s licence before exchanging any documents.
  • Ask in writing for the property information and the owner’s questionnaire.
  • Do not sign any memorandum or commitment before a lawyer has reviewed it.
  • Refuse any advance payment presented as “mandatory”; if in doubt, keep the messages and advertisements.
  • Find out about remedies: a complaint to the Registrar of Brokers or a civil claim, depending on the case.

This article sets out the broad lines of these rules from secondary sources; their application depends on each situation and it is not personalised advice.

Conclusion – Why work with an Israeli real estate lawyer?

A broker brings parties together; a broker does not protect your legal interests. A lawyer checks rights, permits and obligations before you commit, and drafts or reviews the documents a broker may no longer prepare.

This is why ABITBOL & ASSOCIES, with its expertise in Israeli real estate law, supports its clients at every stage of their purchases and sales. Our lawyers make sure your interests are protected and that every step is carried out safely.

Abitbol & Associés

Abitbol & Associés

Lawyers & Notaries · Jerusalem — Paris

Jerusalem

13 Shimon Ben Shetah St., 9414713
Tel. +972 (0)2 595 63 45
Fax +972 (0)2 591 63 26

Paris

13 Avenue Hubert Germain, 75116
Tel. +33 (0)1 78 90 03 73
Fax +33 (0)1 77 74 63 99

contact@abitbol-associes.com

Abitbol Associés – Lawyers & Notaries – Paris - Jerusalem

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