Living in a Tidhar Home

A brand new apartment in a new building is not an off-the-shelf product. It is a complex and usually expensive residence, built manually over several years and specifically adapted to your needs. When buying an apartment “on paper,” you need to take into account the fact that the construction process usually takes a number of years. You will need to prepare for this lengthy period of time. Customers are not always aware of the commitment and hands-on involvement required during the entire construction process. This includes coordinating the design of the apartment, in which customers have to make various decisions about the apartment and its design, adapting the apartment to their requirements and personal tastes, as well as meeting with suppliers and touring showrooms. During the handover period, customers need to prepare for the handover, tour the apartment, and fulfill various obligations and payments, before actually living in the apartment during the inspection period and warranty years.

At Tidhar, we look at the relationship between the buyers and the developer as a kind of “marriage” – a long-term relationship that lasts for years and demands extensive trust, transparency, reciprocity, and partnership. It is therefore important to select a real estate developer that will be fully committed to complying with the terms of the agreement to the letter, with complete transparency, reliability, and responsibility throughout.

Like most real estate agreements, an apartment sales contract is long and complex, containing many meandering legal clauses that are not always clearly understood by those who are not professional insiders.

In general, the agreement is intended to govern the relationship between you (the buyer) and the project developer, coordinate expectations, and precisely define all the important details about the rights and responsibilities of each party.

Under the Sales (Apartments) Law, 5733-1973 (hereinafter: “the Law”), the sales agreement must include the detailed technical specifications of the apartment, as well as the apartment blueprints, the floor plan, and other plans as required by law. So the sales agreement is actually the most reliable and accurate source of information you have about your new apartment. If something does not appear in the agreement, then it is not binding upon you, or upon the other party. This is why we recommend consulting a professional real estate attorney who will guide and represent you through the purchasing process, including before you sign the sales agreement.

The price of the apartment does not usually equal the actual price stated in the sales agreement, because there are various other costs you need to be aware of and take into account, such as:

• Adjustments, Changes & Additions – We plan all of the apartments in each project in line with a certain finishing standard, which is detailed in the technical specifications attached to the sales agreement. The apartment price only includes what is guaranteed in the sales agreement and detailed in these technical specifications. It does not include any changes and additions you might want to make in order to adapt the apartment to your family’s needs and your personal taste. As a rule, our projects offer you very high quality specifications, but these are not final – everything depends on your own requirements, wishes, and taste. So when you select finishing materials other than those presented in the specifications, or want to make additions not included in the sales agreement and change various parts of the standard specifications, which involve certain costs and work hours, these are not included in the apartment price and must be considered separately.
• Index Linkages – When you sign the sales agreement, you should be aware that the apartment price is generally linked to various indices – mainly, the Building Cost Index – which can affect the final price of the apartment.
• Financing Costs – Costs associated with financing the purchase of your apartment, as well as the interest rates related to taking out a mortgage and various loans.
• Legal Advice – It is highly recommended to engage the services of an attorney who will represent you and protect your interests throughout the purchase process (see “How can we be sure that the sales contract protect us?” above). This is an additional expense that needs to be taken into account, should you choose to do this.
• Taxes – In Israel, there are various taxes related to real estate transactions, so it is very important to be aware of which taxes are applicable, in accordance with the law and tax planning options, as this has a direct impact on the cost of the purchase. We therefore strongly recommend that you consult a tax advisor before making the transaction, to ensure you understand the tax implications.
• Additional Expenses During & After Occupancy – When you move in, various other expenses must be taken into account that relate to payments to several parties, such as electrical meter, water meter, and gas connections. There may also be other required payments, such as payments to the homeowners’ association / management company, if any, and of course any necessary municipal fees.
• Additional Expenses When Moving – Buying furniture and equipment, moving costs, cleaning the apartment, installing certain items, and so on.

Note that the above list is not exhaustive, and we recommend evaluating each individual transaction according to its own unique circumstances, and engaging the services of relevant consultants and experts.

Currently, under the law, the prerequisite for receiving a loan (mortgage) for the purpose of purchasing your sole apartment is the provision of equity capital equal to at least 25% of the apartment price (subject to the circumstances of each buyer and the bank’s requirements in relation to each buyer). The mortgage is a loan, for which the ownership/lease rights are pledged in favor of the lender, that is, the mortgage bank, as security for repayment of the mortgage. You can take out a mortgage from any bank of your choice, subject to compliance with the conditions and requirements of the various mortgage banks.

For your convenience, we have spread the payments for your new apartment across the construction period, so that they will end 7 days before you receive the keys.

Upon signing the sales agreement, ensure that you comply with the payment schedule and payment conditions as detailed in the agreement. You must also continuously check the payment dates and other dates specified in the agreement in order to avoid incurring interest on arrears due to late payments and/or violating the provisions of the sales agreement.

The payment plans are adapted to each project and differ from project to project. You should therefore consult the sales office regarding which payment plans are offered for the project that interests you. At Tidhar, we usually offer two payment plans, such as:

(1) Fixed Payment Plan – You pay fixed amounts during fixed periods according to the payment schedule specified in the agreement.

(2) Flexible Payment Plan – You pay around 20% of the apartment cost by the date the building permit is received. Then you pay the balance in flexible installments, according to your ability, and at a time convenient for you throughout the construction period.

Regardless of the plan you choose (as determined for each and every project), you must settle the payment in full at least 7 days before the apartment handover.

As of the time of writing, the Sales (Apartments) (Protecting the Investment of Purchasers) Law , 5735-1974, establishes several mechanisms that are designed to protect the interests of apartment buyers.

For example, under the above law, a developer who sells you an apartment is obliged to secure your money in collateral (such as a Sales Law guarantee issued by the bank backing the project). Most of the time, and certainly in all Tidhar projects, all funds paid by the buyers go to a designated account and are used for the construction of the project.

Regarding Tidhar’s projects, we remind you that Tidhar is one of the largest private real estate groups in Israel, listed among Israel’s largest companies by BDI and the country’s leading real estate companies by Dun’s 100. Tidhar is considered stable and reliable within the industry. Thanks to its financial resources, its economic strength, and the steady income from its income-producing assets, Tidhar enjoys significant capital raising capabilities and the support of most large financial institutions, which back its activities in Israel and around the world.

Tidhar is committed to quality and excellence in all areas of its activities, and takes every care to uphold these values throughout all planning, construction, and finishing processes. Similarly, Tidhar works tirelessly to improve its planning and construction processes, and to perform projects of the highest quality standard.

We only make available to you the suppliers and subcontractors who meet Tidhar’s high standards and quality indices, and build in accordance with the requirements of the law as well as the most advanced quality standards. Throughout the construction process, quality is controlled in accordance with the international ISO 9001 standard for the construction industry.

It is no wonder that our exceptional quality control system is considered the best in the industry. A QA inspector is appointed to each project, with the sole objective of ensuring that the work is performed at the highest level, in line with industry standards and Tidhar’s own requirements. By using tablets, we create standardization across the implementation of various construction tasks and maintain uniformly high quality.

Furthermore, Tidhar is the only company that uses advanced 3D BIM (Building Information Modeling) technologies, from the planning and permit stage, through construction and resident alterations, to the inspection period. These technologies, and others, enable us to provide you with the highest standards of planning, construction, and finishing within the shortest schedules, while also offering a convenient means of illustration throughout the entire construction process.

An apartment in a condominium is built in accordance with a precise architectural plan, based on the applicable standards and various engineering and planning constraints. Therefore, there are various changes that can be made to the apartment, such as moving, adding, or eliminating partitions and/or electrical outlets, moving the location of certain accessories, and so on. Similarly, there are other changes that cannot be made, such as altering the building facade or apartment perimeter, moving a protective wall in the safe room, or making changes related to the building’s central plumbing system, as well as changes that could harm the plumbing system and/or the structural integrity of the entire building, and so on.

When we plan a project, we determine standard specifications for each of the apartment types. These include finishing materials, such as paints, flooring, bathroom and kitchen wall tiling, and so on, as well as various accessories, like sanitary ware, kitchen cabinets, bathroom cabinets, and more.

As a general rule, Tidhar offers high quality specifications that give you a choice of various models and colors from different suppliers, so that you have great flexibility in designing your apartment according to your own tastes and preferences. However, some buyers wish to purchase accessories and finishing materials different from those offered in the project’s technical specifications. In these cases, they are able to do so from the project’s selected suppliers/subcontractors and will be required to bear the costs of the upgrades, and sometimes also the costs of the additional work involved in implementing the upgrades during the construction process.

We invite you to design your new apartment with us, inspired by your own unique requirements and dreams. Tidhar’s planning and service coordinator will be at your disposal throughout the construction period, ensuring your full partnership in the process with a commitment to offering the maximum possible flexibility, attention, and willingness to make changes and additions, as needed, subject to planning, construction, and legal limitations.

Please note: not every design dream can come true! Although there are changes and additions you can make without incurring any additional cost, other changes and additions will require additional payments for the materials and labor. There are also some requests that cannot be fulfilled due to engineering and safety restrictions, non-compliance with standards, schedule restrictions, and so on.

Once the project’s building permit is received, you will be invited to either a one-on-one meeting or a residents’ meeting, where you will receive an apartment file containing all the information you need for the planning coordination and resident alteration process, including a schedule for requesting changes. After you come up with your own general idea of the changes and adjustments you want to make in the apartment, you will be invited to another meeting with the planning coordinator. During this meeting, you can evaluate the feasibility of your own plan and decide on the actual changes to be made, such as moving walls, adding electrical outlets, systems, and so on, as well on the schedule for those changes to be implemented.

Having coordinated expectations at that meeting, you will then be invited to visit the showrooms of the project’s various suppliers over a period of several months, so you can select the finishing accessories (sanitary ware, kitchen cabinets, wall tiling, etc.) you prefer from the options offered in the project’s technical specifications – which you can also upgrade, if you wish, in accordance with your needs and capabilities.

During the process, you will be invited to several more meetings with the planning coordinator, until the final selection of finishing materials and the creation of a work plan customized to your needs. Once this plan is approved, it will be put into practice.

Throughout its long history, Tidhar has always been careful to comply fully and strictly with its commitments, and in particular with all aspects related to scheduling. We make every effort to comply with our predefined schedules so you can prepare for the start of the school year, make arrangements for your current rental apartment, and so on. In addition, Tidhar is obliged to complete the registration of the apartment rights in your name, in accordance with the limitations of the law.

A building permit is a permit issued by the local Planning & Building Committee that enables you to carry out construction work or change the zoning of the land. Without it, you are not allowed to start building!

The process of issuing a building permit for a planned project may take several months, depending on the individual circumstances. When you sign the sales agreement, you should find out what the expected receipt date is. Also, pay attention to the sections in the agreement that are related to, or dependent on, the building permit.

As Tidhar advocates complete transparency with its customers, once the building permit is received, Tidhar will invite all customers who have already signed their sales agreements to a customer event or one-on-one meeting, where they will be updated regarding the start of construction work on the project.

Service is the central tenet of Tidhar’s corporate culture. Over the years, the Group’s activity has been defined by its revolutionary 360° service concept, which places the customer at the center of every project. Tidhar operates a large, high-quality service department that will accompany you every step of the way with professionalism, dedication, and care, from the purchase stage onward.

Even after you settle into your new apartment, meet the neighbors, and discover the coolest spots in the neighborhood, we will still be by your side. Tidhar places a customer service and inspection team at your disposal, who will support you from the day you move in, throughout all the inspection and warranty periods. We also have a unique urgent call center that is active 24/7 to handle any emergency quickly and efficiently.

If an issue arises, the inspection team will examine it and then explain the nature of the defect to you, as well as how it will be handled and the repair schedule, in the most transparent manner. We will make every effort to minimize the inconvenience associated with performing the required repairs.

Your new apartment is designed and built to the highest standard, in accordance with the most stringent industry quality standards, and it is only delivered to you after it has undergone a strict QA procedure and has been approved as meeting Tidhar’s high quality expectations.

That said, a new apartment in a new building that has just been constructed is a handmade product that includes many systems, most of which are hidden from view, and is subject to natural physical changes that take place in the building in the first few years. This is why, despite our best efforts, certain inconsistencies or defects may be discovered in the apartment after you move in, and sometimes even after several years.

In order to ensure that you receive the best value for your money and so that you can enjoy your new apartment for many years, we undertake to bear responsibility for defects discovered in the apartment in the period after you move in, and to repair any damage and/or defects and/or inconsistencies in the apartment during the inspection period and the warranty period, all in accordance with the type of defect and subject to the directives set forth in the Sales (Apartments) Law, 5733-1973.

According to the Law, as defined above, the seller of a new apartment bears responsibility for defects discovered during the delivery of the apartment, and for defects discovered in the apartment during the period after it is handed over to the buyer. Under the Law, the “inspection period” begins on the day the apartment is made available to the buyer and lasts between 1 and 7 years, depending on the type of defect, and in some cases even longer. If a defect is discovered in the apartment during the inspection period, we are obliged to repair it, unless it is proven that the defect is a result of incorrect or unreasonable use of the apartment, or is due to poor maintenance.

At the end of the inspection period for each type of defect, a 3-year warranty period begins. During this period, in order for the seller to be responsible for repairing a defect, the buyer must prove that the defect is due to the design, work, or materials used by the seller, and present the defect and the findings to the contractor.

For safety reasons, we only allow project and apartment tours from the final stage of the steel frame work onward. You can arrange a tour of your apartment, participate in the construction experience, meet and consult with the foreman, and – above all – breathe a sigh of relief. Your new apartment is taking shape!

Towards the end of the fitout work in the apartment, just before the big day when you can receive the key, book the movers, and safely enter your new home, we will invite you to a “pre-handover” tour of the apartment with the project manager. (This tour is conditional on compliance with the safety guidelines, as determined by the company periodically.) During this tour, you will get an impression of the apartment and the quality of the construction and fitout, and ensure that all the changes and additions you requested have been performed to your satisfaction. If any defects are discovered during this tour, they will be repaired, if possible, before the apartment handover date.

We emphasize that, among other safety requirements, any visit to the construction site is conditional on wearing a safety hat and high-top walking shoes. Children under 18 cannot be admitted to the site.

On this happy occasion, we pledge to:

• Make every effort to provide a complete, professional purchase experience, while ensuring quality service and, of course, building a top-quality apartment.
• Provide you with a “handover” and customer service call center that will answer all your questions and/or inquiries regarding the apartment handover, the process, and the necessary preparations.
• Deliver a clean apartment that is ready to live in, after it has undergone strict quality control processes and been certified as meeting Tidhar’s high standards.