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.
