Real Estate Planning and Construction Lawyers
Legal Support for tenants in TAMA 38 transactions - a guide for tenants
Are you considering joining the TAMA 38 project? Here are the most important facts you should know about TAMA 38 before making a decision: what is it and why should you join? What are the key professionals involved in this project? The best way to deal with a reluctant tenant.
By Igal Mor, Adv. & Notary
Accuracy in Legal Advice. Excellence in legal support.
Introduction: What is TAMA 38?
To prevent the occurrence of a severe earthquake in Israel, the government developed TAMA 38 (a national outline plan) to strengthen all non-earthquake-resistant residential buildings. Buildings constructed before 1980 that have two stories or more are eligible for this program, which is implemented through a contract between the apartment owners and the developer. The apartment owners hand over their construction rights to the developer in exchange for extensive renovations to the building and apartments.
Is it worth it?
Aside from the strengthening, which is intended to prevent the building from collapsing during an earthquake, that is, to prevent the loss of lives and damage to property, TAMA 38 is also economically viable. This is due to the increase in the value of the apartments following the completion of the project, which can reach hundreds of thousands of shekels. The reason for this is that, in addition to strengthening against earthquakes, TAMA 38 also includes the renovation of the residential building itself as well as the construction of additions to the apartments. In addition to improving the quality of life, this usually involves adding a balcony, shelter, and parking area to each apartment. As a result, the owners of the apartments gain a prestigious property that increases in value without any financial investment on their part.
Professionalism is important
The TAMA38 project can be very beneficial to apartment owners, but its viability is highly dependent on the professionals who will lead it: the developer and the tenants’ attorney. Select a professional developer with extensive experience in TMA 38 projects who will adhere to the established schedule and execute the strengthening and renovation works to the highest standard. A lawyer’s role is to represent apartment owners throughout the project and to protect their rights as effectively as possible. Additionally, he will provide advice regarding the most suitable developer, negotiate with the developer while maximizing the benefits to the tenants, and handle the case of a reluctant tenant.
Selection of tenants' representatives
Every TAMA 38 project requires the appointment of a representative of the apartment owners, as managing the project individually is not possible. Those apartment owners who will be chosen for representation will choose the professionals and serve as their contacts. Apartment owners will be updated on the progress of the TAMA 38 process, changes, and other information by the representative. As a result, it is imperative to select the members of the delegation carefully, and to ensure that they have the appropriate skills, willingness and time to take on the task at hand. A representative should also represent all the population groups in the building, so, for example, if there are young apartment owners and elderly apartment owners, it is important for each of them to have a representative who will represent their interests.
Unwilling tenant
In order to join TAMA 38, a majority of 66% of the apartment owners are required. Many times, it has been difficult to achieve this due to opposition from tenants, but it is important to realize that there is still much work to be done. It is important to avoid entering into a conflict with the apartment owners, since this will only aggravate their opposition. Secondly, it is often the lawyer representing the client who, with his professional knowledge and experience, can resolve the objection. The best way to do this is to have a respectful and calm conversation with the tenants and explain in detail the project’s feasibility and the manner in which it will be implemented. If the majority is reached for the project, but there is still a reluctant tenant, the lawyer will submit a claim to the real estate inspector, who may decide that the project will proceed anyway.
