The Request for Real Estate Brokerage Services
The Israel Real Estate Law established in 1996, requires that a Form with some basic information regarding the details of a Real Estate Transaction must be documented in writing and signed by the Client who is being represented by a Real Estate Agent in Israel, if the Agent wants to get paid for his services.
Sample of the Israel Real Estate Commission Agreement
The "Request For Real Estate Brokerage Services" is the form typically used by Real Estate Agents in Israel to document that they assisted a Buyer or Seller with a Real Estate transaction. The same form is used for both buyers and sellers, landlords and tenants. The form requires certain basic information about the Client, the specific property or properties that would fall under the agreement, the rate of commission to be paid and obviously identifies the Company and Agent representing the party or parties.
If you are looking to rent or buy a property in Israel or sell or lease a property that you own, and you intend to use a Real Estate Agent, then expect to sign the "Request for Real Estate Services" form. Real Estate Agents will typically require that you sign this form before they show you a property or properties.
A few things to be aware of in general when dealing with the "Request for Real Estate Services" form, include (1) Do not sign an Agreement with 2 different Agents regarding the same property or you will have obligated yourself to pay 2 commissions. (2) Although a 2% Commission Rate is probably the predominant rate, commissions are negotiable. (3) The Real Estate Commission becomes due and payable upon the signing of a "binding agreement" between you and the other party. (4) On rentals, it is pretty typical to pay a commission at a rate that equals one month's rent on a twelve month rental agreement.
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