Deposit : How Much, When, and Under What Conditions (712)

When selling an apartment in Israel, a deposit (דמי רצינות, “earnest money”) is often used — a small sum that the buyer gives to the seller when signing the preliminary agreement.
The deposit confirms the buyer’s serious intentions and secures the terms of the future transaction.

This article explains how much the deposit usually is, when it is paid, and under what conditions.

What Is a Deposit

• A deposit is part of the apartment’s price that the buyer transfers to the seller when signing the agreement.
• It serves as a guarantee of the seriousness of the transaction and provides certain rights for both parties.

Deposit Amount

• Usually between 1% and 5% of the apartment price.
• The amount can be lower or higher depending on the agreement between the parties and market practice.
• A larger deposit increases the buyer’s responsibility but also raises the seller’s risks if terms are violated.

When the Deposit Is Paid

• Typically at the signing of the preliminary purchase agreement (Letter of Intent).
• Sometimes it is paid after all terms are agreed upon or when reserving an apartment, especially in new developments.

Deposit Conditions

1. Return or Forfeiture
   • If the buyer withdraws from the deal without a legal reason, the deposit stays with the seller.
   • If the seller breaches the agreement, the deposit is returned to the buyer in double the amount.
2. Written in the Agreement
   • All deposit conditions must be clearly stated in the preliminary agreement: amount, deadlines, and reasons for return or forfeiture.
3. Legal Protection
   • A lawyer ensures that deposit terms comply with the law and protect the seller’s interests.

Tips from Unehasim

• Never accept a deposit “verbally” — all terms must be officially documented in the agreement.
• Make sure the deposit amount aligns with market standards.
• A lawyer can draft deposit terms to minimize risks and accelerate the transaction.

A deposit is a tool for a secure transaction that protects both parties and formalizes obligations.

Contact Unehasim Specialists

If you plan to sell an apartment in Haifa and want to properly arrange the deposit (דמי רצינות), Unehasim specialists can help:

• Determine the optimal deposit amount
• Draft all conditions in the agreement
• Provide legal protection and transaction security

Supervise the process until the sale is complete