Real Estate Planning and Construction Lawyers
Construction-Evacuation - The Tenant's Guide
A construction-evacuation project involves the evacuation of apartment owners, demolition and rebuilding of the residential building. The tenants will thus have access to newer and larger apartments, which will improve their quality of life. In the end, they receive an apartment that is much more valuable financially than it had been previously. Before the process begins, what should tenants know?
By Igal Mor, Adv. & Notary
Accuracy in Legal Advice. Excellence in legal support.
What is construction-evacuation?
Similar to TAMA38, a building eviction involves, in essence, a combination agreement between apartment owners and a developer, who is granted construction rights in exchange for his services. However, unlike TAMA38, the purpose of this project is not strengthening or renovating an existing building, but rather demolishing and rebuilding an entire neighborhood / area. The apartment owners move to alternative apartments during the construction period. At the end of the project, they receive a new and larger apartment in a renovated neighborhood with all the benefits that accompany it. As a result of the scope of the project, it is necessary to obtain the consent of 80% of the tenants (as opposed to 66% in TAMA38).
Building representation
Buildings participating in the Construcion-Evacuation project must appoint a representative of the apartment owners who will oversee the project on their behalf. Representatives will select the professionals for the project, will maintain the ongoing relationship between the professionals and the apartment owners, and will ensure that their economic interests are protected throughout the process. According to the bylaws of the condominium, the representative will be elected at a general meeting of the building’s residents. For this to be conducted efficiently, one should not appoint too many deputies. In addition, it is important to divide the responsibilities among the representatives . As an example, one or two representatives will be responsible for communicating with the developer, another representative will communicate with the lawyer, and of course, a representative will be responsible for providing regular updates to the owners of the apartments.
A guide to choosing a tenant's lawyer
As we will explain in the following paragraphs, the success of a construction-evacuation project is heavily dependent on the quality of the legal representation provided to the apartment owners. The lawyer is responsible for handling the complex bureaucracy of the project before the various authorities, as well as negotiating the terms of the lease with the developer to ensure the best conditions for the tenants. During the course of the project, the lawyer will also protect the rights of the tenants. As such, it is very important to select the attorney carefully, so that he is knowledgeable in the field of real estate and has extensive experience representing tenants in eviction proceedings and construction projects. It is important to contact the lawyer at an early stage, as he can assist the tenants if they have difficulty raising the necessary majority for the project, as well as guide them in choosing the best developer.
Choosing a project manager
Apartment owners have been known to sign an agreement with the developer without conducting a thorough examination of the document. This can turn out to be a very costly mistake. As part of the evaluation process, it is essential to examine the reputation of the project manager team and their experience with urban renewal projects in general and construction-evacuation projects in particular. Asking previous clients about the Project manager team / developer’s services, including whether they were satisfied with his performance, and whether he fulfilled his obligations to them may be helpful in forming an opinion about the developer.
Important Points for the Agreement
Lawyers representing apartment owners are responsible for negotiating the terms of the contract and drafting it. A competent and experienced lawyer should be consulted by apartment owners to ensure that their interests are fully protected. Within the framework of the agreement, what should be taken into consideration? There are several aspects that should be noted, including the location of the apartments in the building, the size of the apartments, and what additional benefits may be available to the tenants. The agreement should clarify that all costs related to the project are the responsibility of the developer, including the tenants’ expenses for alternative housing and transportation during construction. A developer’s commitment to purchase appropriate insurance, to appoint a construction inspector, and to provide a detailed schedule for each stage of the project must be included in the agreement. In the event of any deviation from the schedule, the apartment owners will receive financial compensation.
Support From a Lawyer is Essential
There are many risks associated with a construction-evacuation procedure.
