Israel’s real estate industry has undergone a significant transformation with the introduction of the Real Estate Brokers (Ethics and Professional Duties) Regulations, 2024, which took effect on March 8. These long-overdue reforms aim to enhance transparency, accountability and professionalism in the sector. Key changes include mandatory disclosure of dual representation, comprehensive property information requirements, stricter advertising guidelines, and a prohibition on unauthorized fees. These reforms align Israel’s real estate practices with global standards, offering greater protections for buyers while maintaining high professional standards for brokers. Read on to learn more about the impact of these new regulations and what you should expect from your agent in Israel.

(Courtesy of Buyitinisrael) Israel’s real estate industry has long operated within a regulatory framework, but oversight of brokerage practices has been inconsistent. While real estate agents in Israel are required to hold a license, there have been gaps in transparency, ethical standards and professionalism. Unlike in countries such as the U.S. and the U.K., where strict regulations govern property transactions, Israel’s system has left room for improvement in areas such as disclosure, fair representation and accountability.

During a discussion held last year by the Knesset’s Interior and Environmental Protection Committee, numerous complaints about real estate brokers in Israel were revealed. Among the issues raised were cases where homebuyers were required to pay brokerage fees despite not using brokerage services, and renters being dissatisfied with the services they received. These findings were highlighted in a survey by the Ministry of Justice, which pointed to significant discrepancies in satisfaction levels between sales and rental transactions.

A New Era for Real Estate Agents

Recognizing these challenges, the Ministry of Justice has introduced new regulations for real estate agents, set to take effect on March 8, 2025. These reforms, known as the Real Estate Brokers (Ethics and Professional Duties) Regulations, 2024, aim to improve service for the public and clearly define the role of a real estate broker. The regulations address complaints regarding unfair practices, misinformation and unjustified payment demands while creating a more professional and ethical marketplace.

“The industry has undergone a revolution,” Dr. Arik Ariel, a real estate and brokerage law specialist and lecturer in real estate law at Ono Academic College, told Buyitinisrael. “There was even a proposal to abolish the brokerage license completely, but we fought to ensure higher standards instead of deregulation. The new regulations will bring much-needed accountability and transparency to the profession, aligning it with global standards and protecting both brokers and consumers.”

Ariel was appointed as project manager by the Ministry of Justice to draft the new ethical regulations. His book, “Real Estate Brokerage Law,” explores ethical guidelines in Israel and other countries, providing in-depth insights into the evolving standards of the profession.

What’s Changing? More Transparency, Fewer Surprises

One of the most significant changes is that brokers must now disclose, in writing, if they represent both the buyer and the seller in a transaction. This dual representation—common in Israel—has often led to confusion, especially for international buyers unfamiliar with the practice. Now, buyers will know exactly where their agent stands.

Agents must also provide official, written property information, including ownership details, property size, the number of rooms, and any structural or legal issues. This will help buyers make informed decisions and avoid unexpected problems after purchase. Additionally, if a tenant occupies the property, agents must disclose when the tenant is expected to vacate and when possession will be transferred to the buyer.

Brokers must keep records of all agreements and key documents related to a transaction for at least seven years, ensuring accountability and traceability. For buyers, this means there will be a clear record of all property details and agreements, which can be helpful for any disputes or clarifications down the line.

Another critical change is that brokers can no longer charge upfront fees—including reservation fees or “good faith” deposits—unless explicitly agreed upon in a contract. Similarly, agents cannot bundle brokerage services with other professional services (such as mortgage advice or legal assistance) unless there is a clear separation of services and fees.

New Consumer Protections for Buyers

Buyers will now have access to more comprehensive property disclosures. Agents will be required to obtain a written disclosure form from the property owner covering:

Potential issues like water leaks, illegal construction, or significant infrastructure defects (water, electricity, gas, sewage, etc.).

Any ongoing legal disputes or claims related to the property.

Whether the home has been classified as unsafe or uninhabitable.

The agent must inform the buyer if the seller refuses to provide this disclosure. This requirement is meant to prevent surprises and hidden issues arising after purchase.

Additionally, if a property is being sold through foreclosure, a court order or a receiver, the broker must disclose this information, ensuring buyers understand any potential legal complications.

Greater Accuracy in Listings And Advertising

A common complaint among buyers has been misleading or outdated property listings. The new regulations now require that brokers cannot advertise a property without the written consent of the owner, ensuring that every listing is legitimate. If a property is unavailable, the broker must remove or update the listing immediately.

Previously, some buyers encountered “bait-and-switch” tactics, where agents advertised attractive properties that weren’t for sale only to steer buyers toward other listings. These kinds of practices will no longer be permitted.

Additionally, any property advertising must now clearly include the agent’s name, status as a licensed broker, and license number. This ensures that all advertisements are legitimate and come from authorized professionals.

Holding Agents to Higher Professional Standards

The new regulations also impose stricter limits on the role of real estate agents.

Brokers can no longer draft contracts or preliminary agreements (such as a Memorandum of Understanding). Buyers must consult a lawyer for legal paperwork, ensuring that brokers stay within their role and do not overstep into legal matters.

Brokers must allow buyers and sellers to communicate directly if they wish. Some agents have previously tried to control communication, but now, buyers have the right to engage with the seller freely.

Agents must disclose any commissions or financial benefits they receive from third parties, such as mortgage brokers, appraisers or lawyers. This ensures full transparency about potential conflicts of interest.

“A lot of agents are panicking about the changes and new expectations that go into effect this month,” said Abie Dayan, Founder and CEO of Platinum Realty Group Jerusalem. “These reforms are pushing agents to raise their standards, but in the long run, they will create a more ethical and transparent industry. Buyers and sellers will benefit from higher service levels and greater protections, while agents will gain increased public trust and a fair, more competitive market.”

A Positive Step for the Market

The new regulations are expected to enhance public trust in real estate brokers while reducing transaction errors that often lead to legal disputes. Additionally, they will allow for stricter oversight of broker conduct and raise service standards for clients. These reforms mark a significant step toward improving public service and establishing clear, enforceable professional standards for brokers.

These reforms are set to make buying a home in Israel more transparent, ethical, and secure. With clearer information, higher service standards, and stronger protections against misinformation, buyers can move forward with greater confidence.

If you’re considering a property purchase, these changes will help ensure a smoother and more reliable experience. Whether you have questions about the new regulations, need expert guidance on the buying process, or are looking for a trusted real estate agent in a specific area, Buyitinisrael is here to assist you.

Buyitinisrael: Supporting Agents and Buyers Alike

Real estate agents must be prepared to embrace these changes by adhering to the new ethical guidelines and upholding transparency and fairness in every transaction. To support English-speaking agents, Buyitinisrael has compiled a comprehensive document written by industry experts. This in-depth guide to the new regulations equips agents with the knowledge and tools needed to provide exceptional, compliant service for both buyers and sellers.

To access the document, go to https://www.buyitinisrael.com/forms/?id=73

For inquiries, email [email protected].

The contents of this article are designed to provide the reader with general information and not to serve as legal or other professional advice for a particular transaction. Readers are advised to obtain advice from qualified professionals prior to entering into any transaction.