blog.cat.realestate6 min read9/30/2026

A Real Estate Agent Found an Apartment, but There Is No Contract: Must a Commission Be Paid in Israel?

Simply showing an apartment does not automatically create a right to a commission. In Israel, a real estate agent generally must prove three circumstances at once: a valid license, a signed written order, and that the agent’s work was the effective cause of the transaction.

Numbers and facts

•3 cumulative conditions for a commission
•Section 9(a): mandatory written order
•Section 14(a)(3): effective cause of the transaction
•64,350 shekels demanded without a signed order
•5,550,000 shekels—the price of the house in this dispute

Three Conditions Instead of One Handshake

The right to a commission is governed by the Real Estate Agents Law, 1996. Under Section 9(a), the client must sign a written order for brokerage services, while Section 14(a) requires a valid license and status as the effective cause of the transaction’s conclusion. These conditions are cumulative: merely introducing the buyer to the apartment is not enough. The law does not set the commission amount—the parties agree on it and specify it in the written order.

Why Correspondence Does Not Always Replace a Contract

The order must specify the parties and their addresses, the property, the type of transaction, and the agreed commission amount or the method for calculating it. In Case 3384/16, the Supreme Court of Israel distinguished between two situations: a written contract exists but lacks a particular detail, or there is no written contract at all. In the first situation, the court may sometimes fill the gap using other documents and circumstances. In the second, the approach is much stricter: an oral promise, a recording of a conversation, or messages expressing willingness to pay generally do not replace a signed order. Departure from this rule is discussed only in exceptional circumstances, such as actual fraud by the client.

What Is the Effective Cause of a Transaction?

Even a flawless form does not guarantee a commission: the real estate agent must show that the agent’s actions actually led the parties to a binding transaction. The court considers not only who first sent the address, but also how the contact developed, participation in negotiations, and the connection between the agent’s work and the final agreement. If the agent merely provided the seller’s telephone number, while the substantive negotiations and agreements took place independently, proving an effective role is more difficult. However, concluding the transaction directly or without the agent’s knowledge does not automatically eliminate the obligation to pay if the agent’s work actually led to the result.

When an Error in the Form Costs the Entire Commission

The absence of a document and a defective document are not the same, but material omissions are also dangerous for the real estate agent. In a dispute heard by the Petah Tikva Magistrate’s Court, the client signed a form providing for a 2 percent commission, but it did not state the transaction price or the agent’s details. The court rejected the commission claim, emphasizing the professional agent’s duty to prepare the order correctly. A minor technical defect can sometimes be remedied, but the absence of the price, the agent’s details, or a clear remuneration amount may deprive the agent of payment.

What a Dispute over Tens of Thousands of Shekels Looks Like

In one of the cases described, a real estate agent demanded approximately 64,350 shekels after the purchase of a house for 5,550,000 shekels. The agent claimed to have introduced the property and connected the buyers with the seller; the correspondence and a conversation recording discussed reducing the commission from 2 to 1 percent plus value-added tax. However, no written order was signed at all, and personal trust alone proved insufficient. If a demand has already been made, it is useful to request a copy of the signed order, license details, the commission calculation, and a list of the agent’s actions, and then set out the objections in writing and preserve advertisements, messages, and the negotiation history.

FAQ

Must payment be made if the real estate agent only showed the apartment?

Not necessarily. In addition to showing it, the agent must prove a valid license, a signed written order, and that the agent’s actions were the effective cause of the transaction’s conclusion.

Can a messenger message replace a contract with a real estate agent?

Correspondence generally does not remedy the complete absence of a signed written order. The situation may be different when a written document exists but lacks a particular detail: the court then evaluates the other documents and the parties’ conduct.

What must be specified in an order for a real estate agent’s services?

It must include the parties’ details and addresses, a description of the property, the type of contemplated transaction, and the agreed commission amount or its proportion of the price. Material omissions may result in rejection of the payment claim.

Can payment be avoided if the apartment was purchased directly from the owner?

A direct transaction does not by itself resolve the issue. If the other conditions were met and the real estate agent’s work actually led to the agreement, the agent may retain the right to a commission; if the agent’s involvement was merely formal, the claim may be challenged.

What should be checked after receiving a demand for a commission?

You should check for your signature, the mandatory details in the order, the agreed commission amount, the real estate agent’s license, and evidence of the agent’s actual contribution to the transaction. It is important not to limit the dispute to a telephone conversation, but to preserve the documents and record your position in writing.

What to do next

First, collect the signed forms, correspondence, advertisement, and chronology of negotiations, then compare them against the three conditions: a license, a written order, and the agent’s effective role. If the demand already states a specific amount or a lawsuit has been filed, it is advisable to obtain an individual assessment of the documents promptly, without automatically admitting the debt or ignoring procedural deadlines.