An association is a not-for-profit corporation – a legal entity incorporated by a number of members, that was established, registered and is managed pursuant to the specific law that deals with this type of corporation, and for the purpose of achieving the objectives for which it was established. A building association is an association established by its members in order to set up a residential area for its members. In the case of competing in a tender, the association signs up members to the association in the period prior to the final date for submitting a bid for the tender, with the aim of signing up at least as many members as the number of housing units that can be built on the same plot of land. The association purchases the land in trust for its members (the “beneficiaries”) and enters into various agreements as trustee (through its Executive Committee), in order to further its objectives, and included in this are agreements with planning consultants, building contractors, management companies, financing banks, and so forth.

A purchase group is the organization of private individuals for the joint purchase of real estate and building of a residential project. The Company professionally accompanies the group from the stage when the members begin to join, through the purchase of the plot of land and the construction of the project, and up to receiving the keys to the apartments. The group appoints representatives from among the group members, who work together with the Company for advancing the project. The building contractor of the project is chosen after issuing a tender for contractors, in which the Company, together with the group’s representatives, assess the bids that have been submitted with respect construction quality, financial stability, meeting milestones and price. The contractor provides the group with a performance guarantee and commits to a time schedule for completing the project. In the event of delay, the contractor must compensate the group’s members with a relative rent fee.