An enduring power of attorney for property owners can identify who will manage an apartment, rental income and property liabilities in Israel if the owner can no longer understand those matters. A practical document distinguishes routine management from decisions requiring specific authority or additional approval. In particular, a direction allowing an apartment to be sold does not replace the approval required by law.
This guide focuses on: planning for the letting, sale and day-to-day management of Israeli real estate under an enduring power of attorney. For an introduction to the document and its preparation, read our general guide to enduring powers of attorney; for its place alongside other planning tools, see common mistakes in family wealth management.
If you are still at the earlier stage of deciding whether and when to prepare the document at all, see also when an enduring power of attorney is needed.
What should a property owner’s enduring power of attorney address?
An investment apartment or commercial property still needs attention during illness or a decline in decision-making ability: renewing a lease, repairing a leak, collecting rent and paying the bank. Planning gives the appointed representative, known as the attorney-in-fact, clear instructions while keeping the appointing person’s wishes and needs central.
Start by mapping the assets and rights: sole or joint ownership, mortgages, unregistered rights and commitments to tenants or co-owners. The power of attorney covers the appointing person’s affairs. It does not authorize representation of other owners or replace separate corporate authority where a company owns the property. An asset outside Israel also requires advice on local law and recognition of the document.
Property instructions should fit the person’s wider care arrangements. For example, will rent fund care at home, and what should happen if that income is insufficient? Set workable priorities without trying to predict every future expense.
Routine management, authority and approvals
This table is a starting point for a planning discussion. Authority in each case depends on the document, its legal effect, the nature and scale of the transaction and the law when it is carried out.
| Action | What to plan | What to check before acting |
|---|---|---|
| Collecting rent and paying routine bills | The receiving account, expenses and records | Property authority, the document’s instructions and bank identification requirements |
| Granting or renewing a lease | Duration, terms, security and the person handling it | The term, renewal options, protected tenancy and any approval requirement |
| Maintenance and renovation | Budgets, urgent repairs and choosing contractors | Cost, document restrictions and statutory authority or approval requirements |
| Selling an apartment | The purpose, alternatives, valuation and use of proceeds | Approval through the appropriate process; family agreement alone is insufficient |
| A mortgage or refinancing | The purpose, repayment capacity and risk | Authority to borrow and charge the property, approvals and bank requirements |
| A gift or transaction with a relative | Whether the owner intends it and on what limits | Special rules, conflicts of interest and required approvals |
Can an apartment be sold under an enduring power of attorney?
An attorney-in-fact can pursue an apartment sale within their authority and subject to the required approval. Acceptance of the deposited document, its entry into effect and approval of the property transaction are separate steps. An express instruction permitting a sale does not exempt the transaction from approval.
As of September 2026, applications to approve transactions listed in section 32F(d) are submitted to the Administrator General under section 74A, introduced by Amendment 21 with effect from 8 August 2025. The law and circumstances determine whether administrative review or referral to court applies; neither an automatic court application in every case nor automatic approval should be assumed. See Amendment 21 to the Legal Capacity and Guardianship Law (PDF, Hebrew) and the Legal Capacity Online application portal (Hebrew).
What sale instructions are worth considering?
Consider when a sale should be explored, whether continued letting is a reasonable alternative, when to obtain a valuation and whom to consult. Explain how the proceeds should serve the appointing person’s needs. A fixed minimum price intended to last for many years can become impractical as markets change; the decision process should suit the property and the person’s wishes.
Before a transaction, review registered rights and the documents needed to complete registration, charges, existing tenancies and tax consequences. If the asset was inherited, consider the specific issues concerning capital gains tax on an inherited apartment with building rights. Using a power of attorney does not itself create a tax exemption.
A sale to a child or to the appointed representative
Appointing a child to manage an asset does not give them unrestricted permission to buy it personally or transfer it to a relative. Such a transaction requires consideration of conflicts of interest, the appointing person’s interests and the applicable special rules. Agreement between siblings does not replace legal authority or approval.
Planning the management of a rented apartment
Identify who will communicate with the tenant, sign a renewal, choose contractors and receive income into the appropriate account. Keep the lease, security documents, insurance policy and property manager’s details accessible to the authorized person.
Distinguish rent collection and ordinary repairs from a new long-term commitment or a transaction with special features. Calling an arrangement a “lease renewal” is not enough: its overall duration, options and applicable approval requirements must be examined.
Useful instructions may cover an expense reserve, records of quotations and periodic information for a designated informed person. Include a workable approach to urgent repairs so that consultation requirements do not become impossible to satisfy.
Hypothetical example: rent pays for care
A woman owns a rented apartment and uses its income to pay for care at home. Her planning can address collection, payments and a repair reserve, as well as what to do if the property becomes vacant. If a sale is later considered, the representative must examine her instructions, alternatives and the required approval. A need for funds does not replace that process. This is an illustration, not an account of a matter handled by the firm.
Choosing a representative, a replacement and oversight
Trust matters, but so do availability, the ability to deal with documents and banks, and a willingness to record decisions. More than one representative can be appointed, with instructions on how they act. Joint action adds oversight but can slow urgent decisions; allocating responsibilities requires clear boundaries.
Consider a replacement representative and a designated informed person who receives information as set out in the document. Match the arrangement to the family. Being a relative does not itself give someone decision-making authority.
Where ownership between spouses is relevant, coordinate with existing arrangements, including prenuptial agreements within family wealth planning. A power of attorney does not itself change who owns the property.
Several properties or a company-owned asset: what changes?
The number of assets, business ownership and their complexity affect the scope of planning. A portfolio calls for a combined view of income and liabilities: which property funds care, where a mortgage is outstanding, and what happens if several units are vacant at once. Identical instructions for every asset may overlook differences in ownership, tenancies and the owner’s needs.
If a company owns the property, distinguish the appointor’s shareholder rights from the company’s asset and the authority to act for the company. Bring company documents, shareholder agreements, signing arrangements and financing commitments to the meeting. A personal appointment does not automatically resolve all these issues. Complex circumstances call for full, holistic family wealth and intergenerational planning, involving other professional advisers where appropriate.
Documents to prepare for a planning meeting
- A list of assets, addresses, ownership shares and available registration extracts or rights confirmations.
- Leases, renewal options, security documents and property management contacts.
- Mortgage documents, balances and property-related liabilities.
- An overview of income, expenditure and the needs the assets are expected to fund.
- Relevant existing powers of attorney, wills and marital property agreements.
- Proposed representatives, replacements and decisions on which you want to give guidance or impose limits.
This is a practical preparation list, not a uniform list of mandatory filing documents. Your lawyer should identify what else your circumstances require.
Preparation, deposit and entry into effect
The appointing person must understand the document’s meaning, purpose and consequences when it is prepared. It is drawn up before a lawyer with the required training who has no personal interest in the power of attorney, and then deposited through the prescribed process. See the official service for statutory preparation and deposit requirements, Chapter Two1 (PDF) (Hebrew).
When the person can no longer understand the relevant matter, the conditions in the document and the required declaration and supporting documents must be addressed through the process for Administrator General guidance on activation and using the document (PDF) (Hebrew). Possession of a signed copy alone is insufficient.
For property matters, the document can also provide for earlier operation while the appointing person still understands the matter. During that period, the arrangement operates under the rules of the Israeli Agency Law. Its wording should therefore distinguish the intended start of assistance from the later stage when the person can no longer understand the matter.
Common questions from apartment owners
Does joint ownership allow one spouse to act for the other?
Joint ownership does not by itself authorize representation of the other spouse in every transaction. The registration, authority and requirements of the particular transaction must be checked.
Is a will enough to manage the apartment during the owner’s lifetime?
No. A will deals with succession after death. An enduring power of attorney addresses authority during the appointing person’s lifetime, subject to its applicable conditions. The documents should be coordinated and do not replace one another.
Does a general instruction to “manage all my property” cover every action?
Not necessarily. Certain actions require express authority or additional approval. More complex assets and liabilities make tailored instructions especially useful.
To discuss an enduring power of attorney tailored to your assets, contact the firm to arrange a consultation and prepare your property list and the decisions you want to address.
Disclaimer: The information in this article is provided for general informational purposes only and does not constitute legal advice, a legal opinion, or a substitute for individual advice from an attorney. Each case should be reviewed according to its specific circumstances, and it is recommended to consult an attorney before making any decision or taking action.
