What is a caution note? A caution note (he’arat azhara) is a note registered in the land registry attesting that the holder of a right in the property gave a written undertaking to transact in it — or to refrain from transacting in it.
Common types of caution notes
- An undertaking to carry out a transaction
- An undertaking to refrain from a transaction
- An undertaking to register a mortgage
- Provisions under a court order or another competent authority requiring a third party’s consent
- An undertaking toward an urban-renewal transaction
How does a caution note help us in real life?
- No conflicting transaction can be registered in the land registry against the note’s content — so long as it isn’t erased, or the beneficiary consents, or a court orders otherwise.
- Where conflicting notes were registered — the party whose note was registered first prevails.
- A caution note prevails over attachments registered after it, and over charges, receivership and liquidation orders.
- Registration is public and accessible to all at the land registry — warning others off and preventing conflicting deals.
- A note can be registered so that a third party’s consent is required for any transaction (for example, a father buying an apartment for his son, whose consent is then required for any deal).
- A party who failed to register a note through omission or negligence may lose its right in a case of conflicting transactions.
Where does the caution note sit among property rights?
There are five proprietary rights in land — and the caution note is not one of them. Case law treats it as a quasi-proprietary right: it blocks third parties who were not part of the undertaking, yet it is not a full proprietary right — a registered note does not make its beneficiary the owner. It is a temporary instrument that limits the registered owner’s power to undertake a conflicting deal. To truly anchor your right, don’t rest on your laurels: complete the registration of the right itself in the land registry.
An example
Sarah signs a sale agreement undertaking to sell her apartment to Rivka. To anchor that undertaking, Rivka applies to the land registrar to register a caution note. If Sarah later undertakes to sell to Rachel, Rachel cannot register the apartment in her name — Rivka’s note, already on the registry, conflicts with it.
I’m buying an apartment. How does the note protect me?
The note anchors the buyer’s rights in the sensitive window between signing and final registration. In practice: at signing, Rivka’s first payment is held in trust with Sarah’s attorney for an agreed number of days, during which Rivka’s attorney registers the caution note in her favor. Only once the note is registered does Rivka’s attorney instruct release of the payment. Sarah is assured of her first payment; Rivka is assured her money doesn’t move until her right is anchored on the registry.
What should you be careful about?
Registering a note requires a written undertaking by the rights holder to transact (or refrain). It makes no difference whether the writing was an agreement, an irrevocable authorization or another document — express or implied, absolute or conditional. Example: Reuven meets Shimon at a café and signs a slip of paper undertaking to sell him his apartment. That writing may suffice to register a caution note in Shimon’s favor.
Buying or selling and want the sensitive window between signature and registration protected properly? We do exactly that, deal after deal.
The above is initial information only and does not constitute legal advice or a substitute for it. Consult an attorney specializing in the field before taking any action.
A question about this in your own file? Write to us — you will get an answer on the merits, not a brochure.
General information — not legal advice.