Indemnity type

Unlike a letter of guarantee, in a letter of indemnity, the signatories undertake to pay the landlord a monetary payment in case the tenants will have to pay but have not paid. In other words when the landlord has suffered financial damage. In comparison, those who sign a letter of indemnity are more exposed or take a higher risk, than those who sign a letter of guarantee.

The guarantors are caring for the tenants and even sometimes it is expected of them, to get into the tenants ‘shoes and continue to maintain the tenants’ charges.
Not so the signatories to the indemnity letter.

Here the signatories are further away from the tenants and do not have the privileges that the guarantors have. Here they are a ‘check’ move (similar in this sense to a bank guarantee) which will require them to make a payment if the conditions stated in the indemnity letter are met.

0 +
Apartments in Israel
0 nis
Average price for a 4 room apartment in Tel Aviv
0 %
Rise in the price index of input in residential construction from the year 1956 to 2021
Scroll to top