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What is Tama 38

Tama 38 National Land Planning

Tama38 is a national master plan which within legal hierarchy has the same status as a binding law.

Tama 38 had gone through several modifications and updates during recent years. Initially it offered the option of additional floor against supporting the building against earthquakes. In addition it allows expanding the present apartments with additional 25 square meters.

Amendment No. 1 to Tama 38 added the option to block the open-sided pillar floor.

Amendment No. 2 to Tama 38 enables demolition of the old building and building a new one in its place.

On the 1/5/12 the national committee authorized the version of amendment No. 3 to Tama 38 and decided to recommend its approval by the government.

The main addition of amendment No. 3 to Tama 38 is the right to add up to 2.5 additional floors to the building, which will support it against earthquakes.

Tama 38 contract is the document which regulates the full scope of relevant issues related with the relations between the flat owners and the entrepreneur. It is important to bear in mind that the contract must refer to every aspect of the deal in all its scope, since any matter which will not be settled properly might form a cause for future disagreements and disputes between the parties.

The Tama 38 contract must be attached with the technical specifications and plans included in the version the parties have agreed upon. It is highly recommended to hire the services of a construction engineer already at the negotiations stage, in order to assist the flat owners in their negotiations concerning the various technical and engineering aspects of the project, and to request the entrepreneur to bear the costs of his wage.


  1. Securities – the entrepreneur must be demanded to provide the flat owners with a bank guarantee. This bank guarantee will serve the flat owners in circumstances where the entrepreneur goes bankrupt and/or halts the works due to any reason whatsoever. The issue of guarantees is one of the most important issues in the Tama 38 contract.
  2. Net transaction – it must be specifically clarified that all the expenses related with the project are to be paid  by the entrepreneur only, including expenses paid for planning, taxes, fees, levies, attorney and supervisor fees and any other payment and/or expense.
  3. Flat owners rewards– the rewards the flat owners are entitled for must be specifically clarified. In addition, such circumstances in which the planning entities do not approve the execution of the present flats’ expansion which the entrepreneur commit to in the contract, must be referred to.
  4. Schedules – schedules must be set for the execution of each and every stage in the project, starting from the planning stage, through the execution stage and down to the Condominiums Order amendment, as well as suitable mechanisms which enable the flat owners to annul the agreement under circumstances in which the entrepreneur fails to keep the agreed schedules.
  5. Liability – it must be specifically determined that the entrepreneur alone is strictly liable for any physical and/or property damage which may be caused within the building grounds during the execution of the project.
  6. Insurances – It must be verified that prior to construction initiation the entrepreneur will acquire all the according demanded insurances that cover all the various risks in the project.
  7. Building supervisor – the entrepreneur must be demanded to cover the flat owners’ costs paid for hiring a certified building supervisor, whose job is to verify that the entrepreneur completes all tasks according to the construction permit specifications, the contract specifications and in accordance with all his liabilities toward the flat owners.

It is important to clarify that it is not recommended to sign a Tama38 contract with an entrepreneur without close guidance of an experienced lawyer with proven expertise in this field

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