What Is the Real Estate Brokers Law (1996) in Israel?

The Real Estate Brokers Law, 1996 (חוק המתווכים במקרקעין) regulates who can legally act as a property broker in Israel. It's illegal to work as a broker without a valid license issued by the Ministry of Justice, which requires passing an exam and meeting other qualifying conditions.

The law also sets rules for how brokers earn commission: to be entitled to a fee, a broker generally must have a signed engagement letter with the client and must have been the effective cause of the deal. Standard commission in Israel is typically around 2% plus VAT from each side, though this is negotiable.

Why it matters for a buyer: before working with anyone presenting themselves as a broker, verify their license and get the commission terms in writing before viewings begin. An unlicensed "broker" has no legal standing to claim a fee and offers you none of the law's consumer protections.

Source: Real Estate Brokers Law, 5756-1996 (חוק המתווכים במקרקעין)