The obligations of an Israeli real estate agent - Entrepreneur of the Week - Yossi Golan -Day 4

Entrepreneur of the Week Yossi Golan # Post 4

The obligations of an Israeli real estate agent

This post will deal with the field that we all experience and know both from personal experience and if not then certainly from the experience of family circle or friends.

The Israeli mediator - points to contact. Because knowledge is power.

Okay, so you decided to sell the apartment.

You have been debating whether to try to market the property yourself or enlist the help of a professional.

You decided and applied for professional service from a realtor.

You have signed brokerage agreements with him on all your obligations. But wait ...

As part of this engagement, does the broker also have obligations to you?

the answer -

Certainly yes and right and it is important that you get to know them.

What is the requirement of the law and regulations?

Section 9 (a) of the Law provides:

"A real estate broker will not be entitled to a brokerage fee unless the client has signed a written invitation to perform real estate brokerage activities, which included all the details determined by the Minister of Justice, with the approval of the Knesset's Constitution, Law and Justice Committee."

From this we learn that a broker can charge a brokerage fee only if he has signed a brokerage order form with you and only if the form includes all the details determined by the Minister of Justice.

What are the details that must be on the form?

Regulation 1 of the Real Estate Brokers Regulations (Written Order Details) 5777 - 1997 provides:

"In a written invitation to carry out a real estate brokerage operation pursuant to section 9 (a) of the Law, at least the following details shall be included:

(1) names, addresses and identification numbers of the broker and the client;

(2) the type of transaction in respect of which the broker's action is requested, such as: "lease", "sale";

(3) a description of the property subject to the brokerage operation;

(4) the approximate transaction price;

(5) The agreed amount of the brokerage fee or the rate of the agreed brokerage fee ... "

The question arises - are these all his duties? Signing a form in which these details appear?

What about his very mission - marketing the property to potential buyers?

And the answer - of course these are not all his duties.

Section 14 of the Act provides:

"A real estate agent will be entitled to a brokerage fee from a client if all of the following are met:

(1) He was a licensee under this law while engaged in mediation ...

(2) he has complied with the provisions of section 9 (written order including all the details specified by law)

(3) He was the effective factor that led to the parties entering into a binding agreement. "

To sum up,

In order to be eligible for brokerage fees -

The broker must sign you for ordering brokerage services,

He is obligated to fill in all the details,

He is required to have a valid brokerage license at this time

And most importantly it should be the “effective factor” that led to the engagement between the parties.

Okay. The broker who signed the agreement, has a brokerage license and was the effective agent. This. Are we done? Does he have additional debts?

The answer - yes, he has. The law imposes additional obligations on him:

He may not mediate in a transaction if he has a personal interest in the real estate or transaction, unless he has disclosed this to the client and obtained his written consent.

He must not disclose to a person information that came from the customer and without his consent.

He is not allowed to engage in legal actions, such as drafting a memorandum of understanding and more.

Confused? maybe a little ?

this is fine.

The best, safest and most correct way, as always, is to surround yourself with professionals who are experts in their field and straight through who will guide you.

It will be clarified and emphasized that the author of this post is not an attorney and of course that legal advice is required before making a transaction. The purpose of the post was to balance the equation between you investors and the realtor.

In the next post, we will leave the Holy Land and return to the world of real estate in the United States and discuss various and unique issues in real estate.

 

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