Étape 5 : négocier les clauses essentielles avec le promoteur

This clause details what owners receive for granting the developer the building rights: a new apartment or alternative housing solution (in TAMA 38/1 — what area is added: safe room, parking, balcony, storage, laundry alcove and more), rent funding through the interim period, funding the move, the owners' attorney's fee, a maintenance fund helping with the new building's committee fees for a limited period, and the taxes, payments and levies arising after the engagement. A specification is attached completing the compensation clause — the technical spec of the apartments (the owners' and the developer's alike). Crucially, the contract must state that all the project's ancillary costs fall on the developer alone.

• Pinui-binui and TAMA 38/2 (demolish-rebuild): an enhanced Sale-Law guarantee, at the value of the new apartment.
• TAMA 38/1 (reinforcement): an autonomous (unconditional) bank guarantee for the project's execution.

Realizing a renewal deal depends on several factors, so the agreement's entry into force is conditioned on cumulative conditions precedent — miss one within its timeframe, and the agreement is treated as never having come into force. The common ones:

• Consent of the required majority for the project;
• A new zoning plan for the complex, approved and published for validity, with rights sufficient to build the new buildings (in pinui-binui);
• Designation as a 'pinui-binui complex' — the gateway to the tax benefits (in pinui-binui);
• The building permit for the project;
• A financial-accompaniment agreement signed with the project's financier.

The law lets the developer offer elderly owners dedicated compensation alternatives for their existing apartment — and if the developer failed to present the alternatives the elder is entitled to, the elder may refuse to join the project, and the refusal is deemed reasonable. Who qualifies? Two age categories — 70+ and 75+ — for an owner who lived in the apartment for at least two years at the signing of the building's first renewal deal. Two further categories may refuse if not offered similar alternatives: the terminally ill, and those entitled to nursing benefits at levels 5–6 who lived in the apartment at the first signing.

At 70+/75+, the developer must offer the 'compensation apartment' — a home in the renewed building. Beyond it: for a 70+ owner, the developer must offer at least one of the following (developer's choice); for a 75+ owner, the developer MUST offer the choice among Alternative 1's options (and may add 2–3):

• Alternative 1.1 — moving to a retirement residence, with the difference to the compensation apartment's value paid in cash;
• Alternative 1.2 — purchase of an equivalent alternative apartment, located as near as possible to the elder's home if so requested;
• Alternative 1.3 — a cash amount at the compensation apartment's value, for the owner to buy an alternative apartment with all or most of it.