In Israel, the real estate market appears to be saturated with agents, but the reality is quite the opposite. There is a scarcity of professional real estate agents who adhere to high standards, possess self-discipline, follow a proper code of ethics, and maintain a strong work ethic that is essential for thriving in the real estate industry. Being a real estate broker in Israel requires not only possessing these skills but also obtaining a real estate brokerage license, a mandatory requirement for anyone engaged in real estate brokerage.
A real estate broker has the option to work independently or as part of a brokerage firm. Freelance brokers need to open a file with the VAT offices and the income tax offices. While independent brokers may have the potential to earn more, those working for brokerage firms enjoy several advantages, such as an established reputation in the local market, a vast customer base, connections with key players in the industry, and opportunities for collaboration with other brokers within the firm.
Obtaining a Brokerage License
The first and crucial step to enter the profession of real estate brokerage is to acquire a brokerage license, particularly in a job market where demand for real estate sales and rentals is driven by ever-increasing housing prices. This license is granted after passing an examination covering theoretical and legal aspects of the field. Conducting real estate transactions without a valid license is a violation of the law in Israel.
Conditions for Obtaining the License
To be eligible for a real estate brokerage license, one must fulfill six threshold conditions as per Section 5(a) of the Realtors Law:
- The candidate must be a citizen or resident of the State of Israel or hold a legal permit to work in Israel as a foreign resident.
- The candidate must be at least 18 years old.
- The candidate must not be bankrupt.
- The candidate must not have been convicted of a scandalous offense within the last five years before applying for the license.
- In the case of serving a prison sentence (excluding non-disgraceful work), at least three years must have passed since completing the sentence before applying for the license.
- The candidate must successfully pass the examination for the real estate brokerage license.
Application Process For Real Estate License in Israel
The real estate brokerage law exam is conducted quarterly. Interested candidates need to fill out a registration form and pay the exam fee to apply for the exam and the subsequent license. The registration form and fee can be submitted either online through the government payment service or via mail, providing the required details and a photocopy of an ID card.
To excel in the exam, aspiring brokers should familiarize themselves with the tools and practices used by real estate agents. Practice tests from previous years can be found, and enrolling in a professional mediation course offered by major mediation networks is also beneficial.
The exam results are typically communicated within 30 days. Passing the exam requires a score of at least 60 points. Successful examinees receive an application form for the license, which must be submitted by mail.
Once the license application form is completed, it must be submitted by mail. The registrar of brokers then proceeds to review the application, which includes conducting a background check with the integrity certificate department at the national headquarters of the police and the official collector. Based on the examination results and the fulfillment of all requirements, the registrar of realtors determines whether the candidate qualifies to be granted a real estate brokerage license.
Upon approval, the license is sent to the candidate along with a one-time fee payment voucher for the license and registration in the register.
Payment of the fee can be made through various channels, including the government payment website, the website of the Ministry of Justice/Registrar of Realtors, or any Post Bank branch. If the payment is made through the website, the payment confirmation is directly transmitted to the brokers’ registrar. In the case of payment at the postal bank, the original signed payment voucher must be mailed to the brokers’ registrar.
Once the fee payment is confirmed, the license itself is dispatched to the candidate by registered mail. Simultaneously, the candidate receives a mobile license card that includes a photo. However, issuance of the mobile license is contingent on confirming the fee payment and receiving a recent passport photo.
Applicants seeking a license with a photo must attach the photo to the payment confirmation and submit the information to the Registrar of Realtors between January and March 31 each year. Those who make the payment after this date will receive plastic cards without an ID photo.
This process ensures that licensed real estate brokers possess the necessary qualifications and that their credentials are regularly updated and verified, contributing to maintaining a professional and reliable standard within the industry.
License Issuance and Renewal
To keep the license valid, an annual renewal fee must be paid to the brokers’ registrar before March 31 each year. Failure to pay the fee on time will result in the suspension of the broker’s license until the fee, along with any applicable fines, is paid. Additionally, brokers must ensure they still meet the eligibility criteria set by the law for holding a brokerage license.
While many clients may not explicitly request to see a broker’s license, it is essential to renew the license annually. Operating without a valid license is not only illegal but also jeopardizes the broker’s payment and reputation. Major brokerage networks require their brokers to hold a valid license, which serves as a testament to their professionalism and reliability.
In conclusion, obtaining and maintaining a real estate brokerage license in Israel is a fundamental requirement for entering and succeeding in the real estate industry. Through proper preparation, adherence to the law, and consistent renewal, aspiring brokers can establish themselves as reputable professionals in the competitive Israeli real estate market.
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