Knesset member Yanon Azoulay's bill calls for limiting the brokerage industry in Israel (Photo: Walla! NEWS system, Israel Knesset)
Will the new government lead to the collapse of the brokerage industry in Israel, as senior executives in the industry claim?
Or is this a necessary move that will bring order to the brokerage industry and justice to the buyers and sellers, as the drafters of the law claim?
A bill by MK Yanon Azoulai from the Shas party, which was recently tabled in the Knesset, seeks to limit the brokerage market in Israel - so that the broker's salary will be limited to a percentage of the property's cost, or NIS 10,000, whichever is lower.
This is a proposal to amend the Law on Real Estate Brokers, Section 14, which promotes a limitation of the broker's fees, known as "brokerage fees".
According to the bill, the increase in housing prices is also due to the high brokerage fees, and sometimes the interested party is even forced to give up the deal, if only because of the high brokerage fees.
Similar proposals in the past were submitted by MK Nachman Shay.
Is this the end of the brokerage market?
Senior officials in the brokerage world claim that such a step could eliminate the brokerage industry in Israel and the viability of engaging in it.
"The bill stems from a lack of professional and legal knowledge," claims Ilan Tavetsnik, from the A.A. brokerage firm.
Real Estate, "The solution to lowering housing prices is not found in harming the livelihood of those involved in the real estate sector."
The speakers of the law claim, on the other hand, that the increase in housing prices and with them the brokerage fee, does not justify such a high payment.
The claim of the proposer is that the sale transaction is accompanied by excessive expenses, which burden the buyer of the land: "In the brokerage law there is no limit on the broker's salary, which sometimes reaches 2%," the bill states.
Real estate
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real estate