Evicting a Company or Business: Commercial Eviction Proceedings in Israel

This guide provides general legal information for educational purposes only and does not constitute legal advice. Always consult a licensed attorney in Israel for advice specific to your situation. Information last verified: May 2026.

Evicting a family from a residential apartmentPreview unavailable is a headache accompanied by anomalous emotions, but evicting a company (B2B) is cold management of disconnecting an oxygen tube. The legal tools in Israel for forceful eviction, primarily governed by Rule 81 of the Civil Procedure Regulations, 5779-2018 (which came into effect on 1 January 2021), are faster and more ruthless against companies compared to private citizens. In many cases, the business owner "takes hold" of the property in a desperate attempt to save the company from crashing.

1. The Lethal Speed: 'Claim for Eviction of Leased Property' (Rule 81)

The famous legal "Fast Track" procedure in Israel (filing a claim and deciding within 60-90 days) is not reserved only for small residential apartments! The rulings of the courts in Israel explicitly clarified that Rule 81 of the Civil Procedure Regulations - 'Claim for Eviction of Leased Property' applies equally to leases of office towers, garages, and street shops!

• Separation of Claims: Under Rule 81(c), one cannot claim the missing 200,000 shekels for Arnona arrears and rent (Debt Collection) in this procedure. The sole desire of this process is to obtain an Order of Eviction that physically removes the company's equipment and employees. The monetary debt must be claimed concurrently in a routine civil / financial lawsuit.
• Response time: The commercial tenant company is given 30 days to file a statement of defense, immediately followed by the scheduling of a swift hearing in the Magistrate's Court (Beit Mishpat HaShalom).

2. Warning Letter of Fundamental Breach

The commercial contract is usually detailed to the minutiae regarding what is considered a breach, regulated broadly by the Hire and Loan Law, 5731-1971. A property owner keeping a notebook on the business tenant: a payment delay of once every two months, introducing a promotional sign not per the contractPreview unavailable, or establishing an un-licensed use - will issue an official letter regarding a "fundamental breach".

• In most modern supreme business contracts a clause is written: "A delay of more than 7 days in payment of any sum under this contract will be a fundamental breach without the need for warning."
• Nevertheless, law firms always send a 'warning letter prior to taking expedited proceedings' giving a 3-7 day lifeline to "rectify the breach and pay in full". If there is no response and no money in the bank on the eighth day - the case is filed mercilessly.

3. A Major Hurdle: When the Tenant Declares 'Liquidation/Stay of Proceedings'

Beware, here is a business trouble: A company that falls into massive liquidity difficulties may rush to the District Court and request an "order for a stay of proceedings" under Section 70 of the Insolvency and Economic Rehabilitation Law, 5778-2018. At this point, an "invisible" protective order falls on the company! Suddenly, the property owner finds himself stuck: The tenant continues to sit in your shop/office without paying you old rent bills, and a district judge's order prevents you from filing an 'eviction claim' against them (because this might cause pressure leading to the death of the company condemned to the mercy of a renewed settlement).

• The Solution: In such a case, the owner holds the bank guarantees or personal guarantees of the managersPreview unavailable which they wisely collected beforehand! An agile property owner might also submit an "Exceptional Request" to the insolvency court to approve eviction anyway to prevent ongoing damage (current front-end return).

How Landager Helps

Landager tracks lease terms, eviction process compliance, and important deadlines - making it easy to stay compliant with Israel regulations.

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