Lack of a Written Fee Agreement

Buying an apartment in Israel - Lack of a Written Fee Agreement

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In the absence of a written agreement between the client and the lawyer regarding the lawyer’s fee, the court will tend to determine the cost according to the appropriate salary in the circumstances of the case.
As in any other professional who performed work without the parties agreeing on the professional’s salary.

The court may consider the ‘recommended minimum fee’ for the lawyer according to the rules of the Bar Association (the recommended minimum rate), but these rules are a recommendation for members of the bar. The lawyer’s fee may be significantly higher than the practice, and his fee may amount to one and a half percent of the transaction amount plus VAT.

Mention should also be made of the section of the Contracts Act which provides that where a service has been agreed upon, but the rate of payment has not been decided upon, “an amount which was due to be paid according to the circumstances at the time of the conclusion of the contract” must be paid.

Determining the proper salary of a lawyer will be done in each case according to the circumstances. How the fair wage and its rate are selected are not judicial knowledge, and the court must determine them based on the evidence before it.

The court will examine the time devoted by the lawyer to deal with the client’s case, its nature, the scope, and the complexity of the service, the value of the matter that is the subject of the service and the reputation of the lawyer, and the accepted method in the field.
In the case of real estate, the practice is to charge the fee as a percentage of the transaction.

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