Have a question about real estate?
We’ve gathered a list of frequently asked questions and their answers for you.
These are two processes where an old building is demolished and replaced with a new one. The main difference lies in legal and tax aspects, as well as the need for extensive planning approval in evacuation-reconstruction projects, which generally take longer and come with higher costs for the developer. On the other hand, TAMA 38 projects tend to be smaller in scope and don’t usually require planning approval. The key distinction, however, is that in evacuation-reconstruction, the project includes not just residential buildings, but also playgrounds, public facilities, and improvements to neighborhood infrastructure.
At a later stage in the process, the tenant representative in the complex will be able to recommend a law firm specializing in tenant representation for urban renewal projects to represent you throughout the project.
The company and the bank funding the project cover all costs from start to finish. This includes contracting with lawyers, architects, and consultants, as well as payments to contractors, professionals, rent, transportation costs, and an inspector on behalf of the tenants.
As is standard in urban renewal projects and in accordance with the requirements of the banks financing evacuation-reconstruction projects, the company will provide each tenant with a set of guarantees issued in their name by the project’s lending bank:
- Sales Law Guarantee – A guarantee for the value of the new apartment
- Rent Guarantee – Coverage for rent throughout the construction period
- Registration Guarantee – Guarantee for registration in the land registry and the condominium register
- Inspection Guarantee – Ensures inspections are carried out
For a project to move forward, the consent of at least two-thirds of the apartment owners (67%) is required, which constitutes the necessary majority. Additionally, an urban plan is needed, detailing aspects such as building height, the number of apartments, public spaces, public buildings, and all related urban infrastructure.
The process of vacating a building requires patience and perseverance. On average, it takes about seven years from the moment tenants sign the agreement until they move into their new apartment. This includes approximately two years for planning the urban plan, two years to obtain the building permit, and an average of three years for construction.
