Fees in Real Estate Transactions

Buying an apartment in Israel - Fees in Real Estate Transactions

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I have often been asked why it is customary to determine a lawyer’s salary in real estate transactions as a percentage of the claim; after all, it is often asked, the amount of work required in the trade of NIS 1,000,000 is almost the same as the amount of work needed for a transaction of NIS 10,000,000.
Why let a lawyer earn more than a respectable one earns?

In a ten million deal, the lawyer is exposed to claims amounting to ten times more than a million ILS lawsuits.
And the responsibility given to a multi – capital transaction is more significant.
But also because in practice, and I do not know how to explain why, the higher the financial scope of the transaction, the higher the time investment.

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Average price for a 4 room apartment in Tel Aviv
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Rise in the price index of input in residential construction from the year 1956 to 2021
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