Registering a cautionary note: types, cost and procedure

What is a cautionary note?

A cautionary note is an entry in the land registers giving notice that the holder of a right in a property undertook in writing to make a transaction in it, or to refrain from one. It does not transfer ownership, but while it is registered no conflicting transaction will be registered, except with the consent of the person in whose favour it was entered or by court order.

Put simply: anyone who checks the land registry extract sees that the apartment is already "taken" in your favour. We discuss how the note fits into the payment schedule, the trust account and the irrevocable power of attorney in Cautionary note and payment mechanism. Here we focus on registration itself: types, costs and procedure.

What types of cautionary notes are there?

The law defines a cautionary note by the content of the undertaking, not by the type of transaction. The undertaking may be in an agreement, an irrevocable power of attorney or another document, express or implied, absolute or conditional. In practice, these are the common types in apartment transactions:

Other notes in the land registers

• Note on the need for consent: when a transaction in the property is conditional, by statute, court order or the owner's written undertaking, on the consent of a third party.
• Note on restriction of capacity: when the legal capacity of the holder of the right has been removed or restricted by law.
• Note under a court order: a court may order a note to be registered in any proceeding concerning a right in land.
• Notes of planning authorities: for example a note for a betterment levy debt, or a note on a plan under the Planning and Building Law.

When you read an extract before buying, each of these notes needs to be clarified. A cautionary note in favour of someone else on the apartment you are about to buy is a stop sign.

How much does it cost to register a cautionary note?

In 2026 the fee for registering a cautionary note is ₪188, and the fee for deleting it at the parties' request is ₪127. The fees are set in the Land Regulations (Fees) and are updated on 1 January each year.

Three points about cost:

• Annual update: the amounts change on 1 January each year according to the consumer price index. The regulations also include a temporary provision for a discount on certain actions performed on the Ministry of Justice website, so the binding amount is the one shown at payment.
• Who pays: under the regulations, the fee is paid by the person in whose name the right is registered or the person requesting the service. The parties' agreement may provide otherwise.
• Beyond the fee: the application must be verified by a lawyer, and in most transactions registration is part of the legal service. See How much does a lawyer cost for buying an apartment. All the Land Registry fees are collected in Registration at the Land Registry: steps and fees.

How is a cautionary note registered, step by step?

1. A written undertaking. The basis is a document in which the holder of the right undertook to make a transaction or to refrain from one: a sale agreement, an irrevocable power of attorney or another document.
2. A signed and verified application. The application is signed by the person who gave the undertaking or by the beneficiary, and verified by a lawyer or registrar in the same way as a transaction deed.
3. Supporting documents. The written undertaking is attached. If the person giving the undertaking is not the registered holder, a consent of the registered holder, verified by a lawyer, is attached as well, together with identity documents of the signatories and, for a company, its corporate documents.
4. Filing and payment. The application is filed through the online service "Application to register or cancel a cautionary note" of the Land Registration and Settlement of Rights Authority, and the fee is paid as part of the filing. It can also be filed at the land registry office where the property is registered, by appointment.
5. Checking the extract. After registration, order an up-to-date extract and check that the note appears, in the correct beneficiary's name and on the correct share of the property.

Why not wait? Conflicting transactions

Section 9 of the Land Law deals with an owner who sold the same property twice. The rule is that the first buyer prevails. The exception: if the second buyer acted in good faith and for value, and his transaction was registered while he was still in good faith, he prevails.

The Supreme Court added another layer in the Ganz case (CA 2643/97 Ganz v. British and Colonial Company Ltd., PD 57(2) 385, 2003). It held that a first buyer who did not register a cautionary note may lose priority to a second buyer who acted in good faith and for value, even if the second buyer has not yet completed registration of ownership. The reasoning: failing to register the note may be a breach of the duty of good faith toward the second buyer, who checked the extract and saw no sign of the earlier transaction.

Later case law clarified that the rule is not automatic. If registration was delayed for reasons beyond the first buyer's control, or if the second buyer knew of the first transaction, the outcome may be different. But the practical conclusion is clear: the note is registered immediately, not "later".

Every day on which the extract does not show your transaction is a day on which someone else can rely on it.

When and how is a cautionary note deleted?

A cautionary note is deleted in one of three ways: by court order; with the consent of the interested parties; or when the registrar is satisfied that the ground for the note has lapsed, after notifying the parties in advance and giving them reasonable time to apply to court. A request for deletion by consent is filed with the office where the note is registered and verified by a lawyer or registrar.

In a cancelled transaction, deletion of the note is often the condition for returning the buyer's money. A good agreement therefore sets out in advance who signs the deletion request, when, and against what. A seller who finds an old cautionary note on the property, for example from a deal that fell through years ago, should deal with its deletion before signing a new transaction.

What about an apartment not registered at the Land Registry?

Not every apartment is registered in the land registers. Many apartments are recorded with the Israel Land Authority or with a housing company. In such cases there is no cautionary note in the classic sense, and the buyer's protection is built differently, for example by recording an undertaking with the managing body. Before signing, it is important to find out where the property is registered and what tool is available.

What does the law say?

A cautionary note is registered when the holder of a right has undertaken in writing to make a transaction or to refrain from one (section 126 of the Land Law). While it is registered, no conflicting transaction will be registered, and a later attachment or the seller's insolvency does not affect the beneficiary's rights (section 127).

• When it is registered: the registrar registers a note at the request of the person who gave the undertaking or of the beneficiary, whether the undertaking is in an agreement, an irrevocable authorization or another document (section 126 of the Land Law, Hebrew).
• Effect: no conflicting transaction will be registered except with the beneficiary's consent or by court order; a later attachment, liquidation order or receivership does not affect the beneficiary's rights (section 127).
• Other notes: note on the need for consent (section 128), on restriction of capacity (section 129) and under a court order (section 130).
• Deletion: by court order, with the interested parties' consent, or when the ground has lapsed, subject to prior notice (section 132).
• Conflicting transactions: the first transaction prevails, unless the second party acted in good faith and for value and his transaction was registered while he was in good faith (section 9).
• Procedure: an application signed and verified by a lawyer or registrar, and the documents to attach (regulation 21 of the Land Regulations (Management and Registration)); deletion by consent (regulation 22).
• Fees: item 13 of the Schedule to the Land Regulations (Fees); annual update under regulation 2.

Sources

• Land Law, 5729-1969: section 9, section 126, section 127, section 128, section 132. Hebrew.
• Land Regulations (Management and Registration), 5772-2011: regulations 21 and 22. Hebrew.
• Land Regulations (Fees), 5735-1974: the Schedule, as updated for 2026. Hebrew.
• CA 2643/97 Ganz v. British and Colonial Company Ltd., PD 57(2) 385 (Supreme Court, 5 February 2003).
• Land Registration and Settlement of Rights Authority: application to register or cancel a cautionary note (Hebrew).

The legislation and fees were checked on 14 November 2026.