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How Does TAMA 38 Begin?

TAMA 38 - Barnea- Real Estate lawyer

Dozens of TAMA 38 projects are never implemented for a variety of reasons. Here is a short overview of points to help you ensure your TAMA 38 project is put into practice.


Before initiating a project, first check if the building in question was built before 1980. This is the first condition of a TAMA 38 deal. If the building was built after 1980, the authorities will not approve it for a TAMA 38 deal.


Check the tenants’ agreement to carry out the TAMA 38 project. To strengthen the building according to National Outline Plan 38, you must reach the agreement of 66% of the owners of the rights to the apartments in the building. Moreover, to carry out a settlement evacuation transaction in the context of NOP 38, you must reach the agreement of 80% of the owners of the rights to the apartments in the building.

After securing tenants’ agreement, the residents must sign a consent form for the implementation of TAMA 38. The purpose of this document is for the tenants to express that they are interested in implementing a TAMA 38 project. However, countless tenants often find that despite their hard work they do not have the majority required to carry out TAMA 38. Thus, it is better to save time and aggravation at the beginning of the process.


Understand that you need legal advisory services. It is difficult to emphasize the importance of a lawyer and the tremendous significance of having an attorney to accompany the tenants of TAMA 38 projects. Legal services are important from the first meeting until the last day of the project.


If you have received proposals for projects for the implementation of National Master Plan 38, share them with your lawyer. If you have not received proposals for projects, the lawyer should contact several entrepreneurs/contractors for an organized proposal.


The next step is the examination and selection of a contractor to carry out the TAMA 38 project in the building. With the help of your lawyer, carefully examine the proposed contractor’s professional experience, knowledge, operational ability, and financial ability to carry out the project.

Make a comparison between the contractors and their ability, not just between the compensation they offer you. A reliable contractor with proven ability is preferred to entrepreneurs who offer proposals that in the end only remain on paper.


In the TAMA 38 agreement, dates must be specified for the submission of plans and the receipt of permits with which the contractor must comply. Make sure the agreement does not become a “shelf” contract with the contractor. If the contractor does not meet the dates specified in the contract, you can announce the cancellation of the agreement and the finding of another contractor that will put the TAMA 38 project into practice. After reaching a final and approved agreement, tax assessment reports will be submitted to the tax authorities.


Before the start of the work, make sure you have received the required bank guarantees and that the contractor has presented you with all the insurances required to carry out the TAMA 38 project. During the work, make sure a building inspector is present to regularly check on the work being done and to provide you with an updated report of the job.