Agent’s personal interest
- Buying an apartment in Israel
- The real estate broker
The law considers, not in good faith, an agent that contravenes Section 10 of the Realtors Law, and therefore the sanction is the denial of the brokerage fees, which may only be a first dose after which another claim will be filed under the Contracts Law and the Damages Law.
In case of doubt, the agent will do well to admit that he has written permission from the client to proceed with the transaction in circumstances where there is a conflict-of-interest concern.
Brokerage fees from both parties: Does the fact that an agent receives brokerage fees from the other side of the transaction constitute a ‘personal disclosure of personal interest’?
It should be noted that according to the law, the agent is permitted to represent in the same transaction both a seller and a buyer and will be entitled to brokerage fees from both parties.
In this regard, it was ruled that according to the country’s customs, the agent is entitled to work in principle for both parties and receive brokerage fees from the other side without needing special permission from the client.
On the other hand, the fact that an agent is entitled to brokerage fees on the one hand for a transaction, let’s say from the seller, does not require the conclusion that he is entitled to brokerage fees from the other side transaction, from the buyer.
These conditions are not necessarily the same. Also, it was determined that even though the agent served the buyers as an agent, no sellers owed his salary.