Limitation on security redemption capability
Even before the amendment to the Rent Law, the legislature found a place to limit the possibilities of realizing the collateral on the part of the landlord. The law stipulates that the landlord may realize the collateral only in the cases specified in the law.
• In the event that a tenant has not paid rent, the landlord is allowed to use the collateral up to the amount of the unpaid rent, plus interest and linkage as stipulated in the lease.
• If a tenant has not repaired a defect caused by the tenant due to unusual and reasonable use up to the cost of the repair.
• If the tenant has not paid the current payments up to the amount of the debt.
• In the event that the tenant has not vacated the apartment on time, the landlord is allowed to exercise the collateral up to the amount stated in the lease.
The law further stipulates that the landlord shall notify the tenant a reasonable time in advance of his intention to realize the collateral, in order to allow the tenant to rectify the breach.