Providing brokerage services through a limited company
- Buying an apartment in Israel
- The real estate broker
I have often been asked whether an agent broker agency has come together as an Ltd.
A company can provide brokerage services.
In other words, should a brokerage license be granted to a person only and not to a corporation?
The law treats this question vaguely.
Although the law emphasizes that a ‘person’ is entitled to receive a license to engage in mediation, a corporation is not a person.
On the other hand, the law also defines a person as a “corporation,” i.e., a company Ltd.
The court also ruled that whether a corporation can engage in property brokerage should be left for discussion.
However, in another ruling, the court ruled that the legislature allowed brokerage services through a corporation.
I believe that the same result can be achieved differently.
While the corporation will not present itself as a brokerage corporation, since a brokerage license under the Realtors Law is given to persons and not to corporations, the agent active in the transaction will wipe out his rights to receive brokerage fees for that company Ltd.
It should also be said, in my opinion, that the Realtors Law did not seek to prohibit corporations from publishing themselves as property brokerage services, but rather sought to prohibit impostors who do not have a license to present themselves as a licensed agent, and this does not prevent corporations from providing brokerage services and collecting brokerage fees.