Lease Agreements, Lawyers` Fees and Real Estate Agents` Fees

As in the United States, the signing of contracts is not a simple thing, and the implications are usually long term and not always positive.

One of the sins of the Internet era (among others) is the possibility of finding any kind of draft contract in many languages.

No doubt, drafts are always useful, but they are like a new pair of shoes. Shoes may or may not fit your feet. Sometimes the size is right, but the shoes are extremely uncomfortable once you put them on.

The same thing happens with medicine. You go to the drugstore and ask for the antibiotics that your neighbor took that healed him! What if you are allergic to this type of antibiotic and the consequences are serious?

Lease agreements are especially problematic for the lessee, but also for the landlord. The question is to balance the diverging interests of both parties: the landlord and the lessee.

We all want to save money and one of the ways to reduce expenses in the lease may be by not paying lawyers` fees and real estate agents` fees. If you can find your perfect apartment without the help of a real estate agent, you won`t need to pay for the services of an agent, of course.

Once the real estate agent, after signing an agreement with you (signing or "verbally signing"), showed you or even just mentioned a certain apartment to you, which you ended up renting (with or without his help), you are bound by law to pay him every cent, even if he has never shown you the apartment. There is no way around it.

Who has the obligation to pay for the fees? Usually, lawyers` fees are due by both parties. Each one pays his share, which may be up to the amount equal to one month of rent. It may happen that the same lawyer represents both parties, but in this case, if you don`t know Hebrew very well, you should not agree to it or sign anything at all. This may cause you devastating implications in the future. Before signing, seek an explanation in English!

As for the real estate agent fees, it`s all negotiable. Sometimes the agent charges just one party and sometimes both parties. Usually each party pays for their own and it`s a lot more common to find agents that do not charge the landlord, but charge the lessee.

Sincerely,

Tzvi Szajnbrum, Attorney at Law