43 Yirmiyahu Street, Jerusalem

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144 Menachem Begin Road, Tel Aviv

Protected Tenancy and Rent Control Lawyer in Israel
Professional Legal Guidance

Looking for legal help with a protected-tenancy or key-money transaction? You have come to the right place. Adv. Avital Horef is a licensed attorney with wide experience in sale and rental transactions and in protected tenancy and key-money matters.

Selling Protected Tenancy Rights? Facing an Eviction Claim? Contact an Attorney Today

Whether you are looking to sell protected tenancy rights, are facing an eviction claim before the Rent Tribunal, or are dealing with another legal issue relating to a key-money property, contact an attorney who specializes in this field and can provide a professional opinion and assist you with the matter.

We are a law firm headed by Avital Horef, a qualified attorney and mediator specializing in real estate law, purchasing, selling, protected tenancy, family law, administrative and civil law, and we offer reliable, professional, first-class service.
Attorney Horef has extensive experience in various areas of law, including protected tenancy and the procedures involved in these transactions.

At Attorney Avital Horef’s office, we listen to you, study the matter in depth, and help you reach the best possible outcome for your circumstances. We are happy to assist you.

What Is Protected Tenancy, and What Are the Rights and Obligations of a Protected Tenant?

Purchasing a property for key money is a real estate transaction that combines elements of a purchase and a rental.

The Tenant Protection Law (hereinafter: “the Law”) grants a protected tenant an economic right in a property that is not registered in the Land Registry (Tabu), protecting the tenant from eviction for the duration of the tenant’s life, subject to statutory exceptions. The rent the tenant is required to pay is reduced.

Generally, the tenant pays approximately half of the apartment’s value at the time of entering the property. Thereafter, throughout the tenancy, the tenant pays particularly low rent. In many cases, this amounts to only a few hundred shekels per month.

The Law establishes the obligations and rights of landlords and tenants. It applies to any tenant holding an apartment or business premises acquired in exchange for key money.

Under the Law, a protected tenant differs from an ordinary tenant because the protected tenant enjoys additional rights and protection against eviction as long as the statutory provisions and the agreement are observed.

As part of the tenant’s obligations, the tenant must comply with the terms of the agreement signed at the beginning of the tenancy, pay the agreed amount on time, and must not abandon the property. Abandoning the property may put the tenant’s rights at risk.

The tenant must also bear their share of expenses required to repair the property, while the landlord is responsible for maintaining the property in proper condition.

The tenant and the tenant’s family members are the persons permitted to live in the apartment. They may not make changes to the apartment, such as renovations involving demolition of walls, enclosing a balcony, and similar work, without the property owner’s approval.

Changes such as painting, shutters, and similar improvements are permitted when carried out as part of renovations to the building as a whole.

Who Is Considered a Protected Tenant Under the Law?

A protected tenant may be one of the following:

  1. A tenant who paid the property owner key money and actually holds the apartment or business premises (offices, shops, etc.).
  2. A tenant who received the tenancy right in a shared property where the tenant lived together with a first-degree relative who passed away.
    If the property is a business premises, a protected tenant is a person who continued the business of the deceased tenant.
  3. A tenant who was entitled to hold the property until August 20, 1968, where the tenancy agreement did not expressly state that the Tenant Protection Law did not apply.
  4. A tenant who entered the property after August 20, 1968, and whose tenancy agreement states that the tenant would receive protected-tenant status.

 

 

Sale of Protected Tenancy Rights

Under the Law, if the rights holder wishes to sell the rights in the property, the landlord has priority to purchase the protected tenancy right before any other person.

This raises the question of whether there is demand for such rights. The answer is yes. For example, some people wish to live in an apartment in a central location in the city by paying key money, which is significantly lower than the price of an apartment that is not subject to key money.

The right may also be sold to a family member who wishes to live in the property under protected-tenancy conditions.

The Tenant Protection Law contains detailed provisions governing the sale process. First, affidavits from the seller (the outgoing tenant) and the buyer (the incoming tenant) must be sent to the property owner. As noted, the property owner has priority to purchase the right. However, if the owner does not wish to purchase it and is also unwilling to approve the sale, it may be necessary to apply to court. The appropriate forum is the Rent Tribunal.

Whether the outgoing tenant’s right is transferred to another tenant or possession of the property returns to the owner, the tenant is entitled to receive the tenant’s share of the key money.

A professional and experienced attorney specializing in protected tenancy can assist you throughout the process and, where necessary, represent you before the appropriate legal authorities.

 

Eviction of a Protected Tenant

As noted, a protected tenant is protected against eviction from the property. Only in limited circumstances can a protected tenant be evicted from an apartment or business premises.

The grounds for eviction are defined by law. When one of these grounds applies, eviction may be sought. The principal grounds include:
* The tenant has stopped paying the rent required under the tenancy.
* The tenant intentionally caused damage to the rented property.
* The tenant used the property for an unlawful purpose.

* The tenant failed to comply with a tenancy condition whose breach gives the landlord the right to seek eviction.

* The tenant made changes to the property contrary to the tenancy agreement.

* The tenant abandoned the property.

Sometimes a landlord needs the apartment and seeks to evict the tenant not on one of the grounds above, but in order to rebuild the property, for example as part of a TAMA urban-renewal project. Under the Law, eviction may be possible provided that the tenant is given notice and alternative accommodation is found for the tenant.

A property owner wishing to file an eviction claim will generally apply to the Rent Tribunal. Each Magistrates’ Court has jurisdiction to hear Rent Tribunal matters.

The Rent Tribunal does not grant an eviction claim lightly. It examines the circumstances and balances the property owner’s needs against the expected consequences for the tenant if evicted. Even if the property owner proves a ground for eviction, the Tribunal may determine, depending on the circumstances, that eviction would cause the protected tenant substantial harm and dismiss the claim. Alternatively, the Tribunal may accept the claim and award compensation to the protected tenant.

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