What is “Zichron Devarim”, and should I sign it?

If you’re buying property in Israel, you might hear about a document called Zichron Devarim. It’s an informal agreement that outlines the basic terms of a deal before the formal contract is signed. But is it safe to sign? And what happens if someone changes their mind after signing?

Zichron Devarim is a written summary of the terms both parties agree on, including the price, payment schedule, and property details. Although it’s not a full contract, Israeli courts may treat it as legally binding if it’s clear and includes all key elements of the deal. Zichron Devarim is often used to lock in terms quickly, especially in fast-moving markets or situations where a full contract isn’t ready yet. It also shows commitment without the same legal safeguards as a formal agreement.

Israeli law recognizes Zichron Devarim as binding if both parties sign it, if it clearly outlines the main terms of the deal, and if it shows intent to move forward. Even though it feels informal, it can have serious consequences. For example, there have been cases where courts forced sellers to honor the terms in a signed Zichron Devarim.

Signing a Zichron Devarim without legal advice can lead to problems:

  • It might be legally binding, even if you didn’t mean it to be
  • Key terms might be missing or unclear, leading to disputes
  • You could lose negotiating power for the final contract

Instead of signing a Zichron Devarim, you can ask your lawyer to prepare a preliminary agreement that’s more flexible but still protects your interests. If time is critical, focus on finalizing the entire contract quickly with legal support.

Tips for signing a Zichron Devarim

  • Don’t sign anything without consulting a real estate lawyer.
  • If it’s not meant to be binding, make sure this is written clearly.
  • Include all critical details to avoid misunderstandings.

A Zichron Devarim can be a useful tool for securing a deal quickly, but it’s not without risks. Before signing, take the time to understand its legal implications and seek professional guidance.

This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.

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