Tama 38 Specification Guide — How Not to Lose Your Rights

What is Tama 38 Specification and Why Is It So Important?

The Tama 38 specification is a critical legal and technical document in every urban renewal project in Israel. It is essentially the detailed agreement between the buyer (the existing tenant or new purchaser) and the developer, describing precisely what the buyer receives: the apartment size, location, upgrades, payments, rights, and obligations. Every word in it matters — even a small error can lead to a loss of tens of thousands of shekels or even the loss of essential rights.

At Mendelboim, Gor, Witzman-Gor & Partners, Law Offices, we see year after year cases of buyers who signed a Tama 38 specification without thorough review, thereby losing rights to parking space, storage, apartment improvements, or even a larger apartment. The purpose of this guide is to lead you step by step through reviewing the specification, understanding your rights, and ensuring that you have not missed anything.

Why Is In-Depth Review of Tama 38 Specification a Legal Obligation?

Under Israeli real estate law, a buyer is considered a sophisticated party who is expected to review all transaction terms before signing. Unlike consumer protection laws in other fields, in real estate disputes there is no automatic "right of withdrawal." If you signed a Tama 38 specification that did not include a certain right, or if the right is limited in a way you did not notice, it is very difficult to reverse the decision. Therefore, professional review before signing is the best investment you can make.

Additionally, the Tama 38 specification is a document subject to legal interpretation. Wording that appears clear to an untrained eye may have an entirely different meaning to a court or to the developer. A real estate attorney with experience in this field knows how to identify such risks and propose amendments or clarifications before the document becomes a final contract.

Components of TAMA 38 Specification That You Must Check — Point by Point

1. Apartment Size and Square Meter Description

It is not just a number. Check the square footage of the apartment itself, the balcony (if applicable), the storage unit, the parking lot, or parking space. Every square meter affects the apartment's value and also the appreciation tax you will pay in the future. Additionally, check whether a particular square meter is included or excluded from the base price. Sometimes, the storage unit or parking space requires an additional payment, and this is not always written clearly.

2. Parking Rights and Apartment Registration

Parking rights are one of the issues where we frequently see disputes. Check:

• Are you receiving mandatory or optional parking?
• Where is the parking located (basement level, ground floor, distance from the apartment)?
• Is it a specific parking space or "any parking" from your level?
• Is the parking registered in the Tabu (ownership) or only for use?
• What is the monthly or annual payment for parking maintenance?

If it is not written clearly, you may encounter a problem when you try to sell the apartment — the next buyer will not be able to use your parking space, or you will be forced to pay an additional cost.

3. Storage Rights and Size

A storage unit is an asset of value. Check the exact size, location, access, and terms of use. Can you use it for storing equipment, tools, or only for small items? Is there light and electricity? What happens if the storage unit is shared with other neighbors?

4. Payments — Base Price, Price Adjustment, VAT, Construction Payments

This is where many buyers get confused. Check:

• Base price: The basic price of the apartment, usually without VAT.
• Price adjustment: Is the price adjusted according to a price index, bank interest, or a fixed percentage? How much can this increase the final cost?
• VAT: Is it included in the price, or added later?
• Construction payments: How many payment stages are there? What are the dates? What happens if construction is delayed?
• Additional costs: Registration fees, engineering costs, construction insurance, purchase tax — all of these may be included in the agreement or additional.

5. Critical Dates — Delivery, Construction Completion, Payments

Check all dates in the agreement. When is the project supposed to be completed? When will you be able to enter the apartment? What happens if construction is delayed? Is there a penalty for delay? Do you receive interest or a discount if the project is completed early? All of these change the financial value of your transaction.

6. Rights in Common Areas — Roof, Courtyard, Green Space

In TAMA 38 projects, there are sometimes common areas where not all residents receive equal rights. Check:

• Do you have the right to use the roof or courtyard?
• Is the right to the roof ownership (registered) or only use?
• What is the annual payment for maintenance of common areas?
• What is the procedure if you want to change something in the common areas?

7. Apartment Upgrade — What Is Included and Buyer Obligations

In TAMA 38, sometimes the developer upgrades the apartment (painting, flooring, finishes) and sometimes this is at the buyer's expense. Check:

• What exactly is included in the apartment upgrade?
• Who pays for the upgrade?
• Is there an option for a different upgrade (for example, a "raw" apartment in exchange for a discount)?
• What is the standard for the quality of the upgrade? Who inspects it?

8. Future Building Rights and Apartment Improvement

Check whether you have the right to expand the apartment, add a window, add a balcony, or upgrade something in the future. Such rights can be of high value, and if they are not written clearly, you may encounter opposition from the developer or other residents.

Common Mistakes in Reading a Tama 38 Specification — and How to Avoid Them

Mistake 1: Not Reading the Fine Print (Special Conditions)

The specification consists of many pages, and some of the most important conditions are written in small paragraphs at the end or in appendices. Many buyers jump straight to the price section and do not read all the conditions. This is a critical mistake. Every part of the specification is important, and every special condition can affect the value of your apartment or your rights.

Mistake 2: Assuming That a Tama 38 Specification Is "Standard" and All Are the Same

Every developer, every project, and every specification is different. Even if you purchased an apartment in a similar project before, do not assume that the new specification is identical. Check each specification independently.

Mistake 3: Signing Without Legal Review

Some buyers agree to sign the specification "on condition that we check with a lawyer" — but they don't actually do it, or their lawyer does not have experience in real estate matters and also fails to identify issues. This is a huge risk. A lawyer with experience in Tama 38 and real estate can identify dangers that an ordinary buyer would not see.

Mistake 4: Not Checking Financial Conditions and Penalties

Carefully check all conditions related to late payment fees, construction delays, cancellation of the transaction, etc. If you cannot pay on time, what happens? Is there a penalty? Do you lose the apartment? These are critical questions.

Mistake 5: Not Checking the Developer's Future Building Rights

Check if the developer reserves the right to build more in the project in the future or to add floors. This can affect the value of your apartment (for example, if your apartment will be in shadow due to new construction).

Comparison Table — Common Scenarios in Tama 38 Specification Review

Note: This table presents common scenarios only. Each Tama 38 specification is unique, and there may be additional issues not listed here. Comprehensive legal review is essential.

Practical Example: A Case We Investigated in Our Office

A few years ago, a resident named Ruth approached us after signing a TAMA 38 specification for a project in Tel Aviv. She thought she had purchased an apartment with a mandatory parking space in a basement. However, when we carefully read the specification, we discovered that the parking space appeared as "optional" in a small section on page 7 of 12. In other words, Ruth could add parking for an additional cost of 80,000 shekels, but she was not required to include parking as part of the basic transaction.

Ruth did not notice this when she read the specification, and her first lawyer (who was not experienced in this field) also failed to point out the problem. When she discovered this later, she had already signed, and it was too late to change.

In this case, we approached the developer on Ruth's behalf and presented the issue. Because the wording was technically correct (but misleading), and because Ruth had already signed, the developer refused to make changes. In the end, Ruth was forced to pay an additional 80,000 shekels for the parking space or give it up entirely. It was an expensive lesson in the importance of a thorough review of the TAMA 38 specification before signing.

If Ruth had approached us before signing, we could have identified the problem, submitted a written request to the developer for correction of the wording, and negotiated to ensure that the parking space would be part of the basic transaction. There was a good chance the developer would have agreed, because the cost of correction is negligible compared to the value of the entire project.

This case illustrates why a thorough legal review of the TAMA 38 specification is so important. It can save you tens of thousands of shekels and a lot of headaches in the future.

How Mandelbaum, Gor, Witzman-Gor & Co. Helps with TAMA 38 Specification Review

At our office, we specialize in real estate and property law, as well as civil-commercial law. Since the firm was established in 2008 by Attorney Keren Mandelbaum, we have handled dozens of TAMA 38 cases and have deep experience in reviewing, drafting, and negotiating such specifications.

When you approach us for a TAMA 38 specification review, we do the following:

1. Thorough Reading of the Entire Specification

We read every page, every section, every appendix. We look for misleading wording, harsh conditions, missing rights, and anything else that could affect your rights or the value of the apartment.

2. Legal Review of Every Term

We review every term according to Israeli real estate law, case law, and industry practice. We identify terms that are unlawful or that raise legal issues.

3. Accurate Financial Calculation

We calculate the total cost of the apartment, including all payments, updates, VAT, and construction fees. We also assess the impact of potential delays or penalties.

4. Detailed Report with Recommendations

We provide you with a written report detailing all issues, risks, and our recommendations. We also suggest corrections or clarifications that you can submit to the developer.

5. Negotiation with the Developer

If you wish, we can negotiate on your behalf with the developer or their lawyer to obtain corrections or clarifications. We know how to conduct such negotiations in a way that leads to positive results.

6. Legal Support Throughout the Process

After signing the specification, we continue to support you — we assist with payments, potential claims, apartment inspection before receiving keys, and the registration process at the Land Registry in the future.

All of this is done in a way that brings peace of mind and protects your rights. And we do it in a personal and dedicated manner, because that is what we believe in.