Lease Agreements · Legal briefing
Residential Lease Security & Legal Limits
By Adv. Yechiel Rachamim Menahemov & Adv. Assaf ShpigelPublished:
The practical dilemma
A landlord requests a security cheque, bank guarantee and personal guarantors. Are all safeguards subject to the same ceiling?
The legal position
For residential leases within the special regime, section 25J of the Rental and Loan Law 1971 limits combined safeguards involving a financial expense to the tenant to the lower of three months’ rent or one-third of total term rent. The ceiling does not apply identically to every cheque or personal guarantee. Realisation requires the statutory grounds, amounts, notice and reasonable opportunity to remedy. Sections 25I and 25O address charges and exclusions. Official source 1
Your next step
Compare the types, costs and combined amounts of security, and document the flat’s condition. Define realisation and repayment clearly. On a demand, review the ground, calculation and notice before paying or objecting.