Understanding Israel's preliminary purchase agreement: what to include and what to watch out for.
What is Zikhron Devarim?
Zikhron Devarim (זיכרון דברים) is a preliminary agreement signed by buyer and seller, often at the property viewing stage. While commonly treated as informal, Israeli courts have ruled it to be a binding contract — making it crucial to understand before signing.
Key Clauses to Include
A well-drafted zikhron devarim should include: property identification (address + gush/helka), agreed price, payment schedule, deadline for signing the full contract, and conditions precedent (mortgage approval, lawyer review). Always include a clause allowing attorney review within 48 hours.
Common Pitfalls
Never sign without your lawyer's approval — courts enforce zikhron devarim as binding contracts. Avoid vague language about included fixtures, parking, or storage. Specify the exact penalty for breach (typically 10% of the price).
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