in Israel is a long-term residency agreement with a licensed protected-housing facility (Diur Mugan) regulated under the Protected Housing Institutions Law (1965) and Ministry of Health licensing rules. These contracts typically involve substantial entry deposits (Pikadon), complex refund provisions, and ongoing service obligations. Contractual terms that reduce residents' statutory rights are void by law regardless of signature. The Law Office of Adv. & CPA Shoshi Arbib reviews assisted-living contracts for elderly clients and their families before any commitment is made.
What Is a Diur Mugan Contract?
Assisted living (Diur Mugan) contracts in Israel are governed by the Protected Tenancy Law and specific Ministry of Health regulations. These contracts are long-term, often involve very large deposits (Pikadon), and are notoriously difficult to exit. Understanding the contract before signing is far easier than challenging it afterwards.
Key Clauses to Examine
- Deposit amount and return conditions: How is the deposit returned if the resident leaves or dies? Is it linked to a CPI index? Are deductions permitted?
- Monthly fees and escalation: Are monthly fees fixed or can they increase? What triggers a fee increase? Is there a cap?
- Services included vs. charged separately: What is included in the monthly fee — medical, nursing, meals, social activities? What costs extra?
- Termination rights: Under what conditions can the facility terminate the contract? What rights does the resident or their family have to object?
What the Law Requires
Israeli regulations mandate specific minimum standards for assisted living contracts — including written form, cooling-off rights, and disclosure obligations. A facility that fails to meet these standards may have an unenforceable contract. Review by an attorney specialising in elder law before signing is strongly recommended.
Can I cancel an assisted living contract after signing in Israel?
Yes — Israeli regulations provide a cooling-off period after signing an assisted living contract, during which the resident or their family may cancel without penalty. After this period, cancellation terms are governed by the contract itself and applicable law. The deposit return process can take months and is a frequent source of disputes. Legal advice before and at the point of signing protects all parties.
What the Law Requires?
Israeli regulations mandate specific minimum standards for assisted living contracts — including written form, cooling-off rights, and disclosure obligations. A facility that fails to meet these standards may have an unenforceable contract. Review by an attorney specialising in elder law before signing is strongly recommended.
Official References: National Insurance Institute of Israel · Israel Ministry of Justice · Israel Ministry of Justice — Lasting POA · Israeli Courts Administration · Israel Land Authority
Steps to Reviewing an Assisted-Living Contract
- Obtain the full contract — Request the complete residency agreement, including all annexes, internal rules, and service price lists, before signing.
- Examine deposit provisions — Verify that the deposit is secured under the Supervised Housing Law, understand repayment conditions, and check protections against insolvency.
- Understand cancellation and exit terms — Clarify cancellation fees, notice periods, and how partial refunds are calculated.
- Legal review before signing — Have an elder-law attorney examine the contract for problematic clauses and negotiate amendments in the resident's favour.
Shoshi Arbib Law Office — Attorney | CPA | Mediator, Netanya, Israel.
