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LawCivil Law

Tenancy and Loan Law, 5731-1971

חוק השכירות והשאילה, תשל"א-1971

Published: 1971-08-05Consolidated Hebrew text as of 2026-04-02 · Last amended 2026-03-31✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

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Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

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Chapter I: Lease

Section A: General Provisions

Nature of a Lease§
1.

A lease is a right conferred for consideration (hereinafter – rent) to possess and use an asset other than permanently.

Application§
2.
(a)The provisions of this Chapter shall apply to a lease of real property and of movable property, and with the necessary modifications – also to a lease of rights.
(b)The provisions of this Chapter shall apply, with the necessary modifications, also to a sub-lease, and for that purpose the head lessee shall be regarded as the lessor and the sub-lessee as the lessee.
(c)The provisions of this Chapter shall apply where no other law contains special provisions for the matter in question and where no other intention is implied from the agreement between the parties.
Particulars Not Determined by Agreement§
3.

Particulars of a lease contract that have not been determined by agreement between the parties shall be in accordance with the custom that the parties to the agreement regarded as accepted between them in previous transactions between them, and where there is no such custom – in accordance with the custom that reasonable parties regard as applying to transactions of the same type.

Good Faith§
4.

An obligation arising from a lease contract must be performed in the customary manner and in good faith; and the same applies to the exercise of a right arising from the contract.

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Section B: Obligations of the Lessor

Delivery, Its Time and Place§
5.
(a)The lessor is obliged to deliver the leased property to the lessee by placing the leased property at the lessee's disposal.
(b)Where it has been agreed that delivery shall take place within a certain period, the lessor may fix the time of delivery within that period; where the time of delivery has not been agreed upon, delivery shall take place within a reasonable time after the conclusion of the contract; in these cases the lessor must give the lessee reasonable advance notice of the time of delivery.
(c)Delivery shall take place at the location where the leased property is situated at the time of the conclusion of the contract.
(d)Where it has been agreed that the lessor shall be responsible for transporting the leased property, the obligation of delivery shall be performed upon delivery of the leased property by the carrier to the lessee, at the place agreed upon with the lessor.
Conformity of the Leased Property and Reliance on Non-Conformity§
6.
(a)The lessor shall deliver the leased property in conformity with what has been agreed between the lessor and the lessee.
(b)The provisions of section 11 of the Sale Law, 5728-1968, shall apply, with the necessary modifications, to non-conformity of the leased property (hereinafter – non-conformity), whether the non-conformity in the leased property originates in the leased property itself or in its surroundings.
(c)The lessee is not entitled to rely on a non-conformity in any of the following cases:
(1)the lessee knew of the non-conformity at the time of the conclusion of the lease contract;
(2)the lessee did not notify the lessor of the non-conformity within a reasonable time after discovering it or after being required to discover it, with reasonable particulars of the non-conformity; this paragraph shall not apply if the lessor knew or ought to have known of the non-conformity;
(3)the lessee did not give the lessor a reasonable opportunity to inspect the leased property and did not give the lessor, to the extent that is reasonable in the circumstances of the matter, a reasonable opportunity to remedy the non-conformity.
(d)Notwithstanding the provisions of subsection (c), where the lessee has not discharged a burden as referred to in paragraphs (1) to (3) of that subsection, the lessee is entitled to rely on the non-conformity to the extent that the failure to discharge that burden did not prejudice the lessor.
Conformity of Rights in the Leased Property§
6a.
(a)The lessor shall deliver to the lessee the rights to possess and use the leased property free from any right that conflicts with the lessee's rights, including a right of a third party; where the lessor delivers to the lessee the rights to possess and use the leased property when they are not free from any such right, this shall be regarded as non-conformity, and the provisions applicable to non-conformity shall apply, with the necessary modifications; however, the provisions of section 6(c)(2) regarding non-conformity of rights of which the lessee did not give notice within a reasonable time after being required to discover it shall apply only in relation to a lease that requires registration pursuant to section 152 of the Tenant Protection Law [Consolidated Version], 5732-1972.
(b)The lessor shall prevent the existence of conflicting rights as referred to in subsection (a) throughout the entire term of the lease.
Obligation to Repair the Leased Property§
7.
(a)The lessor is obliged, within a reasonable time after receiving a demand to that effect from the lessee, to repair, in the leased property or in his asset that serves the leased property, anything that causes a material disturbance to the ordinary use of the leased property or to the use thereof in accordance with what has been agreed between the lessor and the lessee (hereinafter – defect), whether the defect existed at the time of delivery of the leased property to the lessee or arose thereafter, except for a defect for which the lessee is responsible under the Bailees Law, 5727-1967, or the repair of which, under the agreement or in accordance with what is customary in the circumstances, does not devolve upon the lessor.
(b)Where the leased asset or the asset serving the leased property is movable property, the lessor may perform his obligation under this section by replacing the asset with another asset, provided that this is reasonable in the circumstances of the matter.
(c)Where the leased asset or the asset serving the leased property is movable property and the repair of the defect entails an unreasonable disturbance to its use, the lessee is entitled to demand from the lessor the replacement of the asset instead of its repair.
(d)The costs of replacement under subsections (b) and (c) shall be borne by the lessor.
(e)The provisions of this section shall not apply to an asset that has been demised under a long-term lease within the meaning thereof in section 3 of the Real Property Law, 5729-1969 (hereinafter – the Real Property Law).
Exemption Clause from Liability for Non-Conformity or Defect§
8.

A clause in a lease contract exempting the lessor from liability for non-conformity or a defect, or limiting the lessor's liability as aforesaid, is void if the lessor knew or ought to have known of the non-conformity or the defect at the time of the conclusion of the contract or at the time of delivery of the leased property and did not notify the lessee thereof.

Remedies for Failure to Repair a Defect or Non-Conformity§
9.
(a)Where the lessee has demanded that the lessor repair the defect or the non-conformity and the lessor has not repaired the defect or the non-conformity within a reasonable time from the date on which the lessor received a demand to that effect from the lessee, the lessee may –
(1)repair the defect or the non-conformity and demand from the lessor reimbursement of reasonable expenses;
(2)reduce the rent, for so long as the defect or non-conformity has not been repaired, in proportion to the decrease in the value of the lease caused by the defect as against its value under the contract.
(b)Where the lessee wishes to repair the defect or the non-conformity, the lessee must give the lessor reasonable advance notice thereof.
(c)Where a defect or non-conformity is so urgent that it cannot be required of the lessee to wait for it to be repaired by the lessor, the lessee may repair it as referred to in subsection (a)(1) without a demand under section 7(a) or notice under subsection (b).
(d)Notwithstanding the provisions of section 16a, the lessee is entitled at any time to repair personally a defect whose repair is not the responsibility of the lessor, provided that the lessee has given the lessor a reasonable opportunity to repair the defect.
Defect Whose Repair Cannot Be Demanded§
10.

Where the defect is the result of circumstances of which the lessor was unaware and was not required to be aware at the time of the conclusion of the contract, or which the lessor did not foresee and was not required to foresee, and could not have prevented, and the repair of the defect in those circumstances is impossible or would impose on the lessor an obligation fundamentally different from what was agreed between the parties – the defect shall not constitute grounds for a demand for repair, damages or reimbursement of expenses as referred to in section 9(a)(1).

Undisturbed Use§
11.

The lessor is obliged to enable the lessee to use the leased property during the term of the lease in accordance with what has been agreed between the parties, without interference on his part or on his behalf.

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Section C: Obligations of the Lessee

Obligation to Take Possession of the Leased Property§
12.

The lessee is obliged to take possession of the leased property at the time and place referred to in section 5.

Rent§
13.
(a)The lessee is obliged to pay the lessor the rent.
(b)Where the amount of the rent or the manner of its determination has not been agreed upon, rent shall be paid at the rate that it would have been appropriate to pay in the circumstances at the time of the conclusion of the contract.
Time and Place of Payment§
14.
(a)Where the rent has been fixed at a specified sum for fixed periods, the lessee shall pay it at the beginning of each period.
(b)The rent shall be paid, in one of the customary modes, at the lessor's place of business, or where there is no place of business – at the lessor's place of residence.
Exemption from the Obligation to Pay§
15.
(a)Where the leased asset is real property and the lessee is prevented from using it for the purpose of the lease by reason of circumstances connected with the leased property or with the means of access to it, and the lessee has not rescinded the contract on that account, the lessee is exempt from payment of rent for the period during which the use was prevented as aforesaid; the lessor may, after a reasonable time in the circumstances of the matter, rescind the contract, unless the lessee has previously notified the lessor that the lessee waives the exemption from payment of rent.
(b)The said exemption shall apply only if at the time of the conclusion of the contract the lessee was unaware of the circumstances referred to in subsection (a) and was not required to be aware of them, or did not foresee them and was not required to foresee them, and could not have prevented them.
Use of the Leased Property§
16.

The lessee shall not use the leased property otherwise than in accordance with what has been agreed; however, if that use was not stipulated as exclusive use, the lessee may use the leased property for another purpose, provided that it does not cause harm to the leased property or impose a greater burden on the lessor than that which results from what has been agreed.

Alterations to the Leased Property§
16a.
(a)The lessee is not entitled to make alterations to the leased property unless the lessee has obtained the lessor's consent to the alterations.
(b)Notwithstanding the provisions of subsection (a), and subject to the lease contract, a person holding under a long-term lease within the meaning thereof in section 3 of the Real Property Law is entitled to make alterations to the demised property that do not diminish the value of the asset, provided that the person restores the demised property at the end of the term of the long-term lease in accordance with the provisions of section 20a.
Inspection and Repair of the Leased Property by the Lessor§
17.

The lessee is obliged to allow the lessor, at any reasonable time, to inspect the leased property and to carry out repairs therein, provided that the lessor gives reasonable advance notice thereof and minimises as far as possible any disturbance to the lessee.

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Section D: Term of the Lease

Commencement of the Lease§
18.

The term of the lease shall commence upon delivery of the leased property to the lessee.

Termination of the Lease§
19.
(a)Where no term of the lease was agreed upon, or where the parties continued to perform the lease after the expiry of the agreed term without fixing a new term, either party may terminate the lease by giving the other party reasonable advance notice.
(b)(Repealed)
Return of the Leased Property upon Expiry of the Term of the Lease§
20.
(a)Upon expiry of the term of the lease, the tenant shall return the leased property to the landlord, vacant of any person or asset, except for an asset of the landlord serving the leased property.
(b)Where the tenant has returned the leased property as provided in subsection (a), the landlord shall accept the leased property.
(c)Where the leased property is an asset that is movable property, the tenant shall return the leased property at the place where the leased property was delivered to the tenant.
Return of a Leased Property in Which Alterations Were Made§
20a.
(a)Where the tenant made alterations to the leased property with the landlord's consent, the tenant is entitled to choose between returning the leased property as it is after the alterations were made and restoring the leased property to its original condition and returning it as it was prior to the alterations being made; where the tenant chose to return the leased property as it is after the alterations were made, the tenant is not entitled to consideration for the alterations made.
(b)Where the tenant made alterations to the leased property without having obtained the landlord's consent thereto, the following provisions shall apply:
(1)Where the landlord demanded that the leased property be restored to its original condition, the tenant shall return the leased property to the landlord as it was prior to the alterations being made; nothing in the provisions of this paragraph shall derogate from the provisions of the Unjust Enrichment Law, 5739-1979;
(2)Where the alteration made by the tenant to a leased property that is real property consisted of the erection of fixtures within the meaning thereof in section 21 of the Real Property Law, the provisions of Chapter IV of that Law shall apply.

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Section E: Miscellaneous Provisions

Rights of the Tenant against a Third Party§
21.
(a)Once the right of lease has been conveyed to the tenant, that right is effective against any person.
(b)The landlord may convey the landlord's right in the leased property to another (in this section – the purchaser); having done so, the purchaser shall step into the place of the landlord with respect to the rights and obligations of the landlord under the lease contract and under the law, even if the purchaser was unaware of the existence of the lease contract.
(c)A claim that the tenant has against the landlord by reason of non-performance of obligations that were imposed on the landlord prior to the completion of the conveyance as provided in subsection (b) shall also be available to the tenant against the purchaser.
Assignment of the Lease§
22.
(a)The tenant may not assign to another the right to possess and use the leased property, as well as the tenant's other obligations under the lease contract, or sublet the leased property, except with the landlord's consent; however, where the landlord withheld consent to the transaction on unreasonable grounds or made the consent conditional upon unreasonable conditions, the following shall apply –
(1)in a lease of real property – the tenant may carry out the transaction without the landlord's consent;
(2)in any lease – the court may authorise the transaction on such terms as it thinks fit; and in a lease of real property the court may do so notwithstanding anything in the lease contract.
(b)Consent under subsection (a), in the case of a lease of real property, shall be given in advance and in writing.
General Remedies for Breach of Contract§
23.

The remedies available to the parties under this Chapter are in addition to the provisions of the Contracts (Remedies for Breach of Contract) Law, 5731-1970, and shall not derogate therefrom.

Application of the Bailees Law, 5727-1967§
24.

For the purposes of the Bailees Law, 5727-1967, a tenant shall be regarded as a paid bailee for whom the purpose of safeguarding the asset is ancillary to the principal purpose of possessing it.

Set-off§
25.

Debts that the parties owe each other by reason of the lease are subject to set-off.

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LawCivil Law

חוק השכירות והשאילה, תשל"א-1971

Tenancy and Loan Law

Rental law Israel

Shkira v'She'ila

Tenancy law 1971

Israeli rental law

Lease law Israel

Landlord tenant law

Housing tenancy law

5731-1971