Power of Attorney for Israeli Property Transactions: A Guide for Non-Resident Buyers

Most foreign buyers do not realize how much of an Israeli property transaction requires a physical signature in Israel. The purchase contract must be signed. Payments are wired through Israeli bank accounts. The Land Registry requires a personal appearance or a properly authenticated POA for title transfer. Someone may need to collect apartment keys, deal with contractors, or sign with a property management company. When you are in New York, London, or Sydney, the only practical solution is a well-drafted power of attorney in favor of someone you trust in Israel — usually your Israeli attorney.

Used correctly, a POA is safe and efficient. Used carelessly, it can hand a stranger broad control over your most valuable asset. This guide explains how the Israeli POA system works, what to include, and how to protect yourself.

What a power of attorney means under Israeli law

Israeli agency law is governed by the Agency Law (*Chok Hashlihut*) 5725-1965. Under Section 1, an agency relationship is created when one person (the principal) authorizes another (the agent) to act on their behalf, and the agent accepts that authority. For real estate, the relevant property statute is the Land Law (*Chok Hakarka*) 5729-1969, and the Land Registry (*Misrad Rash'am Hamekarkein*, commonly called Tabu) operates under the Land Registration Ordinance.

A real property POA authorizes the agent to take legally binding steps in your name. That means the agent's signature on a purchase contract is your signature. A deed the agent registers at Tabu is your deed. If the agent makes a mistake, you bear the legal consequences.

Israeli law distinguishes between:

• A specific POA — limited to one transaction, one property, and often one date range. This is the standard form for a property purchase.
• A general POA — covers all property dealings, banking, and potentially other legal acts. Banks and the Land Registry sometimes require additional verification for general POAs because their breadth raises fraud risk.
• An irrevocable POA — normally prohibited under Section 14 of the Agency Law, because an agency terminates on the principal's death or incapacity. An exception exists where the POA is granted as security for an obligation — for example, a lender may require an irrevocable POA as part of a mortgage arrangement. These require specific legal drafting and should not be used in ordinary purchase transactions.

When non-residents actually need a POA

Not every foreign buyer needs a POA from day one, but the following situations almost always require one:

• Signing the purchase contract — If you cannot travel to Israel to sign in person, your agent signs for you. Many buyers execute a POA before departure so their Israeli attorney can proceed while they are mid-flight or still organizing travel.
• Opening an Israeli bank account — Foreign buyers of new apartments typically need an Israeli account to pay the developer in Israeli currency. The account opening requires a physical bank visit, which an attorney-in-fact can handle with a bank-specific POA.
• Land Registry appearance — Final registration of title at Tabu requires either your physical presence or the filing of a POA together with all transaction documents.
• Tax authority filings — Purchase tax (*mas rechisha*) declarations must be filed with the Israel Tax Authority within 30 days of signing, and the tax paid within 60 days. If you are abroad, your attorney files using a POA.
• Managing the property after purchase — Signing a lease, instructing contractors, engaging a property management company (*chevrat nihul*), or voting at a building owners' committee meeting all require someone with legal authority to act.

There are situations where a POA is not strictly needed. If you can attend the signing in person and return later for registration, you avoid the formality for the first step. Some buyers time their trips to coincide with the key signature dates. In practice, though, most diaspora buyers find a transaction POA worth the small cost and effort.

How to execute a POA outside Israel

The authentication chain for a foreign POA has four steps. Each step must be completed before the next:

1. Draft the POA in Hebrew (or bilingual) — Your Israeli attorney provides the Hebrew text. Read an English translation carefully before signing anything.
2. Sign before a notary public in your home country — In the United States, any licensed notary can witness the signature. In the UK, a solicitor who is a notary public or a commissioner for oaths is typically used. The notary confirms your identity and witnesses the signature; they do not vouch for the legal content.
3. Obtain an Apostille — The Apostille is a certificate issued by a designated authority in your country (in the US, typically the Secretary of State for the state where the notary is licensed) confirming the notary's authority. Israel is a party to the 1961 Hague Apostille Convention, so an Apostille from any member state is accepted without further legalization.
4. Provide a certified Hebrew translation — If the POA is not already in Hebrew, a sworn translator must prepare and certify a Hebrew version. Your Israeli attorney usually arranges this.

Alternatively, you can sign the POA at the Israeli consulate in your country. Israeli consulates are authorized to notarize documents, and a consulate-notarized POA does not need a separate Apostille because the consulate stamp is recognized by Israeli authorities directly. Consulate appointments can be hard to obtain quickly, so check availability early if you prefer this route.

What powers to include and what to leave out

The single biggest mistake buyers make is accepting a broad form POA drafted to cover every conceivable act. Your Israeli attorney may present you with a standard form. Read it. Narrow it where you can.

Powers you typically need for a purchase transaction:

• Sign the purchase agreement for a specific property (identified by address and Land Registry block and parcel numbers)
• Sign and file the purchase tax declaration with the Israel Tax Authority
• Open and operate one Israeli bank account for the purpose of the transaction
• File a *hearat azhara* (warning note) at the Land Registry to protect the buyer's interest during the transaction
• Receive the keys and sign any handover documents
• Complete title registration at the Land Registry after all payments are made

Powers you usually do not need for a single purchase:

• The right to sell, mortgage, or encumber the property
• The right to sub-delegate the POA to a third party
• General authority over all your assets or finances in Israel
• Any authority extending beyond the specific transaction and property address

If you are granting a long-term property management POA after purchase, the scope is different. You will want to include authority to sign leases, collect rent, pay arnona (municipal property tax), authorize repairs, and interact with the building management company. Even then, limit the financial threshold: specify that no single expenditure above, for example, NIS 10,000 can be authorized without your written approval.

Risks and how to protect yourself

A POA is powerful precisely because the agent's acts bind you. The main risks for foreign buyers are:

• Unauthorized scope creep — An agent who holds a broadly worded POA can sign for obligations you never intended. Always review the Hebrew text with your own independent translator, not just your attorney's English summary.
• Agent insolvency or misconduct — If your attorney-in-fact misappropriates funds or acts negligently, you may have a claim against them personally, but recovering money from someone in financial difficulty is slow. Use a licensed Israeli attorney (Adv.) from the Israel Bar Association, who carries mandatory professional liability insurance.
• Stale POAs presented by third parties — If you granted a POA to a seller's agent in an earlier, failed deal, revoke it in writing immediately. An old, unrevoked POA can be misused.
• Death or incapacity — As noted above, an ordinary POA terminates automatically on your death. Ensure your heirs know which transactions are pending and where the original documents are.

Practical safeguards that reduce these risks:

• Grant a transaction-specific POA with explicit property identifiers (block, parcel, apartment number) and an end date 60 to 90 days after the expected closing date.
• Require your attorney to copy you on every step by email, including confirmation that each payment was received by the correct party.
• Verify the attorney's registration on the Israel Bar Association website (israelbar.org.il) before executing any authority.
• Retain the original POA yourself if possible and send a certified copy to Israel, so the agent cannot act beyond what you know they hold.

Revoking a POA

You can revoke a power of attorney at any time unless it was explicitly made irrevocable (a narrow exception discussed above). Revocation takes effect when it is communicated to the agent, under Section 14 of the Agency Law. For Land Registry purposes, however, communication to the agent alone is not sufficient protection.

To revoke a property POA completely:

1. Send a written revocation notice to the agent by registered mail and email, stating that all authority granted under the POA is cancelled immediately.
2. File a revocation note (*haarat bitull yipui koah*) at the Land Registry for any block and parcel covered by the original POA. This puts third parties on notice and prevents the agent from completing a Tabu transaction you have withdrawn authority for.
3. Notify any bank where the agent had account authority, in writing, and request confirmation of revocation.
4. If the original POA was registered or filed anywhere else (for example, with a developer or property manager), notify those parties in writing as well.

Using a POA to sell from abroad

Everything above applies equally when you sell Israeli property as a non-resident. The selling POA needs authority to sign the sale agreement, collect the proceeds, sign the deed of transfer (*shtar mekhar*), and submit the seller's betterment tax (*mas shevach*) declaration to the Israel Tax Authority. The agent may also need authority to clear any mortgage (*mashkanta*) registered against the property before title can transfer to the buyer.

One common trap: a buyer's attorney will insist on seeing the seller's POA before contracts are exchanged, and will scrutinize it carefully. A vague or underpowered POA on the seller's side can delay or kill a sale. Have the document reviewed by your Israeli attorney well before the signing date, not at the last minute.

Frequently asked questions

Adv. Eli Shimony

Israeli real estate and property law attorney. Advises foreign buyers, investors, and diaspora families on property acquisition, title, and management across Israel.

eshimony-law.com