A guide for sellers
Exclusivity in brokerage — what it actually means
Exclusivity (בלעדיות, bladiyut) is the first decision a seller is asked to make, and it is usually put to them without any explanation. Here is what the law sets out, and how it is worth thinking about. The figures here relate to the sale of a residential apartment (דירת מגורים, dirat megurim) — including a penthouse and a private house. For commercial properties and land the law sets different periods.
This guide describes Israeli law and practice as they apply to residential property. It is a translation provided for convenience: the Hebrew version is the binding text, and prevails wherever the two differ. Nothing here is legal, tax or financial advice — rules and figures change, and your own case may turn on details this guide does not cover.
“Exclusivity” sounds like giving something up. In practice it is an agreement with rules defined in law, one that imposes obligations on the broker (מתווך, metavech) no less than on the seller. They are worth knowing before you sign.
What the law sets out
The rules are set out across sections 9 to 14 of חוק המתווכים במקרקעין, התשנ״ו־1996 — Chok HaMetavchim BeMekarke’in, the Real Estate Brokers Law, 5756–1996 — and in the regulations made under it. These are the main points:
A separate document. Exclusivity is valid only if the seller confirmed it by signing a separate document, which also states the exclusivity period.
A cap on the period. For a residential apartment, the exclusivity period may not exceed six months from the date of the written brokerage order (הזמנה, hazmana). If no period is set in the document, exclusivity ends at the end of 30 days from the date the order was signed — so make sure the period is stated explicitly.
A duty to carry out marketing actions. The broker must actually carry out marketing actions (פעולות שיווק, pe’ulot shivuk). If they have not been carried out by the end of a third of the exclusivity period, the exclusivity ends of its own accord.
The presumption of effective cause. A broker who carried out the marketing actions during the exclusivity period benefits from a presumption that they were the “effective cause” (הגורם היעיל, hagoram hayail) of a transaction concluded in that period.
These are the main points of the arrangement in plain language. The binding text is that of the law and the regulations themselves. It is worth reading the document you are signing and making sure it matches.
What counts as “marketing actions”
תקנות המתווכים במקרקעין (פעולות שיווק), התשס״ה־2004 — Takanot HaMetavchim BeMekarke’in (Pe’ulot Shivuk), the Real Estate Brokers (Marketing Actions) Regulations, 5765–2004 — set out a list. The broker must carry out at least two marketing actions from paragraphs (1)–(6). Paragraph (7) also permits another marketing action not listed there, as agreed between the parties. These are the actions:
- Signage on the property or nearby, on a public notice board or at a community centre
- Advertising on a website, or publication to a particular customer base by electronic means
- Advertising in at least one widely circulated daily newspaper
- Advertising in a local newspaper or in a newspaper aimed at a particular audience
- Inviting potential buyers or additional brokers to visit the property
- Approaching at least five other brokers active in the locality where the property is situated, to cooperate in selling it
Note that the bar the law sets is a minimum. Two advertisements satisfy the legal requirement — they do not necessarily sell the property.
Why a broker asks for exclusivity
The honest answer is financial. A broker who invests in production, in a media budget and in time does so before knowing whether they will earn anything. Without exclusivity, that investment may end up benefiting another broker who closes the deal. With exclusivity, it becomes possible to invest seriously.
This is also why an agency that works without exclusivity will almost never invest in marketing beyond a listing on a classifieds board. It has no reason to.
What it gives the seller
- One message to the market. A property that appears in five places, at five prices and with five sets of photographs tells buyers that the seller is under pressure. That ends up in the price.
- One point of contact. You deal with a single party, rather than with calls from five agencies.
- Accountability you can act on. When there is an agreement, there is something to require — and someone to turn to if nothing happens.
What to check before you sign
- Exactly what will be done. Ask for a written list of the marketing actions, not a general promise.
- Who pays for what. Production and media budget — who bears them? This should be clear in writing.
- What happens at the end of the period. Who owns the marketing materials produced for the property?
- How you will know what is happening. The frequency of reporting and what it covers.
- The commission (עמלה, amla). The rate, when it is payable, and what happens if the transaction falls through.
Exclusivity does not make a broker better. It only allows a good broker to work seriously — and obliges them to do so.
In summary
The right question is not “exclusivity, yes or no”, but “what do I get in return, and how will I know that I got it”. If the answer is detailed and in writing, there is something to discuss. If it is general, it is worth carrying on asking.
The information in this guide is general and does not constitute legal advice. Before signing any document, it is worth reading it in full and, where necessary, consulting a lawyer.
Would you like to know what the figures say about your own property?
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