Translation Notice — This is an English translation of a Hebrew law and may contain inaccuracies. In any dispute or legal matter, the original Hebrew text as published in Reshumot (ספר החוקים) is the sole authoritative and legally binding version.

Law

Rental and Loan Law, 5731-1971

חוק השכירות והשאילה

Section F: Residential Lease Contract

Definitions – Internal

25a.

In this Division –

"apartment" – a room or suite of rooms used for residential purposes;

"the leased apartment" – the apartment leased under a residential lease contract, including the parts of the common property attached to it by way of attachment as defined in Section 55(a) and (c) of the Real Property Law, which have been leased as aforesaid;

"apartment unfit for habitation" – an apartment in which one of the conditions listed in the First Schedule is met;

"residential lease contract" – a lease contract under which a leasehold right in an apartment is granted for the purpose of residential use.

Form of Residential Lease Contract

25b.

[Amendment: 5777]

A residential lease contract shall be made in writing and signed by the lessor and the lessee; however, non-compliance with this provision shall not derogate from the validity of the contract; a signed copy of the contract shall be delivered to each of the parties.

Content of Residential Lease Contract

25c.

[Amendment: 5777, 5783]

A residential lease contract shall include, inter alia, the particulars listed in the Second Schedule; the Minister of Justice, with the approval of the Interior and Environmental Protection Committee of the Knesset, may, by Order, amend the Second Schedule.

Standard Contract – Completion

25d.

[Amendment: 5777]

(a)The Minister of Justice may prescribe by Regulations a standard residential lease contract (in this Section – standard contract).

(b)Where the Minister has prescribed a standard contract, the following provisions shall apply:

(1)If a residential lease contract was not drawn up in accordance with the provisions of Section 25b, and the parties have not agreed otherwise, the standard contract shall be deemed the residential lease contract entered into between the parties;

(2)If a provision that is required to be included in a residential lease contract pursuant to Section 25c was not included therein, and the parties have not agreed otherwise, the corresponding provision contained in the standard contract shall be deemed part of the residential lease contract entered into between the parties.

Apartment Suitable for Habitation

25e.

[Amendment: 5777]

The lessor shall deliver the leased apartment in a condition suitable for habitation; delivery of an apartment that is not suitable for habitation in contravention of the provisions of this Section shall be subject to the provisions applicable to non-conformity.

Apartment Fit for Habitation

25f.

[Amendment: 5777, 5783]

(a)The lessor shall deliver the leased apartment in a condition fit for habitation; an apartment in which one of the conditions listed in the First Schedule is met shall be deemed an apartment that is not fit for habitation; the Minister of Justice, in consultation with the Minister of Construction and Housing and with the approval of the Interior and Environmental Protection Committee of the Knesset, may, by Order, amend the First Schedule.

(b)Where the lessor delivers the apartment in a condition not fit for habitation, such delivery shall be deemed a breach of contract.

Delivery of the Leased Apartment

25g.

[Amendment: 5777]

(a)The lessor shall deliver the leased apartment to the lessee, and the lessee shall receive the leased apartment into his possession, at the time agreed upon by the parties under the residential lease contract.

(b)Delivery of the leased apartment to the lessee shall be made when the apartment is vacant of any person or property, except for property that was agreed to remain in the apartment at the time of delivery.

(c)The lessor shall provide the lessee, no later than the time of delivery of the leased apartment, with maintenance and use instructions in connection with the apartment, its installations and the property therein, to the extent that such instructions are required.

Repair of Defects and Faults in the Leased Apartment

25h.

[Amendment: 5777]

(a)(1) The tenant is responsible for every fault in the leased apartment, including a defect, caused by unreasonable use of the leased apartment.

(2)The tenant shall repair, at their own expense, a fault as referred to in paragraph (1), unless the parties have agreed otherwise.

(b)Notwithstanding the provisions of Section 7, the landlord shall repair, at their own expense, every other fault or defect in the leased apartment that is not as referred to in subsection (a) and is not trivial, within a reasonable time and no later than 30 days from the date on which they received a demand to that effect from the tenant; and if the defect was one whose repair is urgent – the landlord shall repair the defect within a reasonable time and no later than three days from the date on which they received such a demand; for this purpose, "a defect whose repair is urgent" means a defect that does not allow reasonable habitation of the apartment; nothing in the provisions of this subsection shall derogate from the provisions of Section 9(c).

(c)If the landlord has not repaired a fault or defect, pursuant to the tenant's demand, within the period referred to in subsection (b), the provisions of Section 9(a) and (b) shall apply, with the necessary modifications.

Ongoing Payments Borne by the Tenant

25i.

[Amendment: 5777]

(a)The tenant shall bear the following payments in respect of the tenancy period:

(1)rent pursuant to the residential lease contract;

(2)taxes applicable to the occupant of the apartment, including municipal rates (arnona);

(3)payments for the consumption of ongoing services provided to the tenant in the residential apartment, including water, electricity, gas and heating;

(4)payments for ongoing maintenance paid to the representative body of the jointly-owned building or to a party with whom a contract for the management and ongoing maintenance of the jointly-owned building has been entered into;

(5)a payment of another type prescribed by the Minister.

(b)The tenant shall not bear directly any payments not listed in subsection (a), including the following payments:

(1)a payment intended for the acquisition or improvement of fixed systems or installations serving the leased apartment, except for special adaptations or improvements requested by the tenant;

(2)insurance premiums for building insurance of the leased apartment;

(3)payments owed by the landlord to a third party that are not as referred to in subsection (a), including brokerage fees payable to a broker who acted on behalf of the landlord.

(c)Nothing in the provisions of this Section shall derogate from the tenant's obligation to bear the costs of repairing faults pursuant to Section 25h(a).

Security

25j.

[Amendment: 5777, 5786]

(a)In this Section –

"another guarantee provider" – [(effective from 30.9.2026):] a holder of a credit-granting licence, a holder of a licence to provide deposit and credit services, a holder of a stability payment services provider licence, or an insurer; for the purpose of this definition –

"holder of a stability payment services provider licence" – a person who holds a stability payment provider licence as defined in Section 36t of the Banking (Licensing) Law, 5741–1981;

"insurer" – as defined in the Supervision of Financial Services (Insurance) Law, 5741–1981;

"credit-granting licence" and "licence to provide deposit and credit services" – as defined in the Supervision of Financial Services (Regulated Financial Services) Law, 5776–2016;

"security" – security for the purpose of guaranteeing the tenant's obligations arising from the residential lease contract.

(b)Where the landlord has requested from the tenant one or more securities involving a monetary outlay for the tenant, including a bank guarantee, [(effective from 30.9.2026: a guarantee from another guarantee provider)] or cash, the aggregate amount of the securities shall not exceed the lower of the following amounts:

(1)the amount of rent that the tenant undertook to pay under the residential lease contract for one-third of the tenancy period;

(2)an amount equal to three times the monthly rent that the tenant undertook to pay under the residential lease contract.

(c)The landlord may enforce a security provided to them by the tenant only in the cases listed below and in the amounts set out alongside them:

(1)the tenant did not pay the rent on the date prescribed in the lease contract – up to the amount of the unpaid rent plus linkage differentials and interest pursuant to the terms of the contract;

(2)the tenant did not repair faults for which they are responsible under Section 25h(a) – up to the cost of the repair;

(3)the tenant did not pay the ongoing payments owed by them pursuant to Section 25t(a)(2) through (5) – up to the amount of the unpaid payments;

(4)the tenant did not vacate the leased apartment upon the expiry of the tenancy period – in an amount in accordance with the terms of the contract.

(d)The landlord shall notify the tenant a reasonable time in advance of their intention to enforce the security and shall allow them to remedy what requires remedying within a reasonable time.

(e)Upon the expiry of the tenancy period, the landlord shall return to the tenant the security or the balance thereof after enforcement pursuant to subsection (c), including its proceeds, within 60 days from the date of the return of the leased apartment to their possession or until the date on which the tenant's debts as referred to in subsection (c) have been discharged, whichever is later.

Notice of Transfer of Rights in the Apartment

25ja.

[Amendment: 5777]

Where the lessor has transferred his rights in the leased apartment to another pursuant to Section 21(b), he shall notify the lessee thereof in writing before the date on which he is required to transfer the apartment to the purchaser of the rights; the notice shall specify the particulars of the purchaser and the means of contact with him.

Extension of the Lease Period

25jb.

[Amendment: 5777]

(a)The lessor shall notify the lessee, a reasonable time before the end of the lease period under the residential lease contract, whether he wishes to extend the lease period and on what terms.

(b)Where the lessor has an option to extend the lease period under the residential lease contract, he shall notify the lessee, no later than 90 days before the end of the lease period, whether he wishes to exercise the option; and the lessor may exercise the option only if the contract provides in advance for the terms with respect to the extension period, and subject to those terms.

(c)Where the lessee has an option to extend the lease period under the residential lease contract, he shall notify the lessor, no later than 60 days before the end of the lease period, whether he wishes to exercise the option.

Clause for Termination Without Cause

25jc.

[Amendment: 5777]

(a)A clause in a residential lease contract that enables the lessor to cancel the contract other than on account of its breach is void, unless the lessee also has a right of cancellation as aforesaid.

(b)The lessor shall notify the lessee of the cancellation of a residential lease contract in accordance with a clause as referred to in subsection (a) at least 90 days in advance, and the lessee shall notify the lessor of the cancellation of the contract in accordance with such a clause at least 60 days in advance.

Prohibition on Derogation

25jd.

[Amendment: 5777]

Notwithstanding the provisions of Section 2(c), in a residential lease contract –

(1)the provisions of Section 25f may not be derogated from;

(2)the provisions of Sections 6, 8 to 10, 15, 21(b) and (c), 23 to 25e, 25h(a)(1), (b) and (c), and 25i to 25m may not be derogated from, except in favor of the lessee.

Limitations on Application

25if.

[Amendment: 5777, 5783]

(a)The provisions of this Division shall not apply to a residential lease contract as set out below:

(1)a residential lease contract for an apartment that is one of the following:

(a)an apartment in a hotel as defined in the Tourism Services Law, 5736–1976, or another apartment leased for vacation purposes;

(b)an apartment in a hostel as defined in the Supervision of Hostels Law, 5725–1965;

(c)an apartment in a sheltered housing facility as defined in the Sheltered Housing Law, 5772–2012;

(d)an apartment in student dormitories, pupil dormitories, or worker dormitories;

(e)an apartment to which the Tenant Protection Law [Consolidated Version], 5732–1972, applies;

(2)a residential lease contract whose tenancy period does not exceed three months and the parties have no option to extend it;

(3)a residential lease contract whose tenancy period exceeds ten years and the landlord has no option to cancel the contract at an earlier date;

(4)a residential lease contract under which the monthly rent exceeds 20,000 New Shekels or another amount prescribed by the Minister of Justice, with the approval of the Interior and Environmental Protection Committee of the Knesset; the amount under this paragraph shall be updated on 1 January of each year in accordance with the rate of change of the Consumer Price Index published by the Central Bureau of Statistics, as known on the date of the update compared with that index as known on 1 January of the preceding year, and shall be rounded to the nearest amount that is a multiple of 10 New Shekels; the Minister of Justice shall publish a notice of the updated amount in the Official Gazette;

(5)a residential lease contract of another type prescribed by the Minister of Justice, with the approval of the Interior and Environmental Protection Committee of the Knesset.

(b)The provisions of Section 25id(2) shall not apply to a residential lease contract entered into between a landlord and a tenant who is a relative of theirs; in this subsection, "relative" means a spouse, brother, sister, parent, grandparent, descendant and descendant of a spouse, and the spouse of any of the foregoing.

(c)Notwithstanding the provisions of Section 2(b), where the tenant has leased the leased apartment from the landlord for a period not exceeding ten years (in this subsection – the head tenant) and the head tenant has sub-leased the apartment, in whole or in part, to a sub-tenant, the following provisions shall apply:

(1)the landlord's rights under Sections 16a(a) and 20a shall continue to vest in the landlord, and not in the head tenant;

(2)the obligations under Section 25h(b) and (c) shall apply to the landlord, and not to the head tenant;

(3)payments that do not apply to the tenant pursuant to Section 25t(b) shall not apply to the head tenant.

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Chapter II: Loan for Use

Nature of Loan for Use

26.

A loan for use is the right to possess and use an asset not permanently, where such right was granted without consideration.

Application of Sections

27.

[Amendment: 5777]

The provisions of Sections 2 to 5, 11, 12, 16a, 17, 18, 20, 20a, 21 and 25 shall apply, with the necessary modifications, also to a loan for use.

Exclusion of Remedies

28.

(a)The provisions of Section 6 shall apply to non-conformity of the loaned asset; however, such non-conformity shall not serve as grounds for damages, unless the lender knew of it at the time of conclusion of the Contract and the borrower did not know of it.

(b)A breach of a loan-for-use Contract shall not serve as grounds for a claim of specific performance.

Termination of Loan for Use

29.

(a)The lender may cancel the loan-for-use Contract so long as the loaned asset has not been delivered to the borrower, and may terminate the loan for use within its term if the borrower has died or if the loaned asset is required by the lender for the lender's own needs, all upon giving the borrower reasonable advance notice.

(b)Where no term for the loan for use was agreed upon, or where the parties continued to perform it after the expiry of the agreed term without fixing a new term, either party may terminate the loan for use by giving the other party reasonable advance notice.

Transfer of Loan for Use

30.

The borrower is not entitled to transfer to another the right to possess and use the loaned asset, or to sub-lend it, except with the consent of the lender.

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