Last updated: September 2026

Brokerage fee

In short: The brokerage fee is the payment to a licensed real estate broker for brokering a deal. Israeli practice: about 2% + VAT of the sale price from each side, and one month's rent + VAT for rentals. Payment requires a written order and the broker being the effective cause.

In short

The broker is paid only if the deal closed thanks to them and you signed a brokerage order form. The amount is agreed - there is no legal tariff - but 2% on a sale/purchase and one month's rent on a lease is customary.

The professional explanation

Under the Real Estate Brokers Law a broker is entitled to a fee only if: they hold a valid licence, the client signed a written order containing the details set in regulations, and the broker was the "effective cause" of the deal.

The fee is not set by law and is negotiable. In land and large commercial deals different rates are sometimes customary. VAT is added.

Fees paid are a recognised expense for capital gains tax (seller) and for the purchase value (buyer), so keep the invoice.

Example from the field

A buyer who viewed a plot with a broker and later closed directly with the owner was sued and paid the fee, because they had signed a written order and the broker was the effective cause.

Frequently asked questions

Is a brokerage fee paid on land too?

Yes. On land and plot deals a fee is customary, at the rate set in the order, usually around 2% + VAT.

When is the fee paid?

Usually on signing the binding contract (not the memorandum), unless agreed otherwise in the order.

Related services

Sell your propertySelling an apartment, house or plot in the Sharon: valuation, preparation, targeted marketing, buyer screening, negotiation and support through contract and registration. Free first consultation.Read more →Rent out your propertyMarketing apartments, houses and commercial property for rent in Hod Hasharon, Kfar Saba, Ra'anana and Herzliya: realistic rent, advertising, tenant screening and support to a signed lease.Read more →Land marketing & brokerageMarketing and brokerage of private land and plots in the Sharon and Central Israel: sourcing, rights and zoning checks, tax advice, negotiation and support through Tabu registration. Including exclusive off-portal listings.Read more →