Real Estate & Property Law · Legal briefing
Property Memorandums: Binding or Preliminary?
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
You find the right flat. The seller mentions other buyers and proposes a short memorandum to secure the price. What commitments does that signature create?
The legal position
A memorandum may be binding, but its title or signature alone is not decisive. Intention to contract, sufficiently definite terms and the writing requirement in section 8 of the Land Law 1969 matter. Civil Appeal 158/77 Rabinai v Man Shaked examines wording, conduct and the relationship to a later agreement. A binding transaction may trigger reporting under section 73 of the Real Estate Taxation Law, generally within 30 days. Neither enforceability nor compensation is automatic. Official source 1 Official source 2
Your next step
Have the wording, title documents and transaction terms reviewed before signing. If already signed, preserve correspondence and the signing date, and check enforceability and reporting promptly. An absent detailed contract does not necessarily permit withdrawal without consequences.