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Guarantees, securities & financial instruments

Broker Fee

A commission paid to a real estate broker or agent for helping locate an apartment and finalizing the lease agreement.

Broker fees are separate from security deposits, serving as a one-off payment for professional services. Standard practice in Israel sets this commission at one month's rent plus VAT (around 17%). Although tenants typically cover the whole fee, you can negotiate to share the expense with the landlord (for instance, a 50-50 split).

Always verify that your broker holds a current license from the Ministry of Justice. Payment is due only after the contract is signed and you officially receive the property keys. An agent demanding payment in advance may be acting unlawfully. Note that using a broker is never legally required, and many renters find apartments independently.

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The information in this glossary is for general informational purposes only and does not constitute legal advice. In the event of a dispute or a specific legal question, consult an attorney specializing in tenancy law.

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