Money that is paid to reserve the right to close a deal. The entire amount would be refunded if the deal fell through. Otherwise, the deposit would be applied to a security deposit (shikikin) and/or key money (reikin).
important points explanation / real estate contract disclosure statement
A disclosure statement prepared by a real estate agent for protecting a prospective buyer or renter of real estate based on the Real Estate Brokerage Act. It discloses the rights of a buyer or renter, important contract clauses, and other essential factors regarding the contract.
condominium management association / condominium association or strata council
The association of the owners of condominium units within a condominium project. It is established in accordance with the Act on Building Unit Ownership, etc for the purposes of building maintenance and other managerial works. No condominium owners can give up their association membership.
licensed representative of condominium management company
A fee paid by a condominium owners association to its property management firm.
An analysis to test the presence of asbestos in a building. Although asbestos testing is not mandatory, a seller or landlord needs to disclose whether or not a testing was carried out for their property in the real estate contract disclosure statement.
warranty against defects / warranty against latent defects
A warranty to be provided to the buyer by the seller in a sale of property with latent defects (Article 570 of the Civil Code). A latent defect means a hidden flaw, weakness or imperfection in an article which the buyer cannot discover by reasonable inspection.
City Planning Area outside Urbanization Control Area. The smaller-scale City Planning Area is designated by the prefectural Governor in order to foster orderly real estate development for a specific district, such as an area around a planned highway exit.
The Building Registry includes the following three structural features of each registered building: (i) structure (e.g., steel-frame, reinforced concrete-frame); (ii) roof type (e.g., tile, deckroof); and (iii) number of stories.
A written document issued by the governing authority to certify that the completed building complies with the Building Standards Act. Other than some exceptions, newly-developed improvements that obtained building permit must receive a certificate of occupancy (inspection certificate) in order to occupy and use the premises for the intended purpose.
A building which is already built upon the enactment or before amendment of the provisions of the Building Standards Act or a building under constrcution, and which is not fully or partially conforming use under the provisions. In the case of an object under non- conforming use, the provision is not to be applied to the extent that it is under non- conforming use, and it is allowed to exist. However in the case of the extension or reformation of the obeject beyond a certain range, the part under non-conforming use must be corrected.
The parties of a lease agreement could agree to include a clause that stipulates a non-refundable portion of the security deposit (shikikin) in their contract. The non-refundable portion is usually used by the landlord for repairing the leased premises when the tenant moves out.
Money paid to the landlord by the tenant when a lease contract is signed. The money is used for offsetting unpaid rent, repairing damage caused by the tenant, and covering the tenant’s share of restoring costs when the tenant moves out. Upon the termination of the lease, the landlord must return the security deposit to the tenant if no violations of the lease occurred.
right to use the grounds / legal estate in land
Lawful right to hold the legal title of a building site (e.g., fee simple, superficies right of lease , etc)
In general terms, it means the parcel of land where the building is located. The Building Standards Act defines it as“a parcel of land where a building or more than two buildings that are inseparable in terms of its use are located”.
A written document issued by the governing authority to certify that the planned building complies with the Building Standards Act and has been granted building permit. Building permit is required before the beginning of the construction.
The fundamental act of the building laws and regulations of Japan. It was enacted in 1950 to enhance the citizens’ safety and health and to protect the value of their property. It sets regulations on structures, uses of buildings, building coverage ratio and others.
Urbanization is restrained in Urbanization Control Area based on the City Planning Act. The Area is created in order to prevent haphazard development. Buildings could be developed within the Area if the government granted permission.
Urbanization Promotion Area includes both existing urban districts and districts to be developed approximately within the next decade in a systematic manner and on a priority basis. It forms part of City Planning Area, which is created according to the City Planning Act. Zoning regulations are applicable in Urbanization Promotion Areas. The construction of building is allowed, but subjects to regulations.
registered building number
A land size based on surveying rather than its size recorded in the registry.
A nationally-licensed preparer of legal documents to be filed at courts and other government offices, such as DA office, Office of Voluntary Deposit, and Land Registry Office. Based on the Judicial Scriveners Act, one must show his/her legal knowledge by successfully passing the national examination before getting licensed.
restoration to original condition / to repair leased premises to original conditions except for normal wear and tear
Restoration of damages that are caused by an intentional act, negligence, breach of duty of due care of a prudent manager or other unusual use of the tenant. The tenant of rental properties are obliged to restore the property to the original condition when the contract is terminated.
An issue who shall bear the risk of loss if something bad happens to the property between the time of contract closing and the transfer. In practice, a clause, which stipulates such a risk shall be borne by the seller, is usually included in a contract.
A tax levied on documents listed in the Stamp Tax Act . In terms of real estate transactions, the examples of such documents include real estate purchase and sale agreements, building construction contracts, and ground lease contracts. The amount of stamp tax depends on the contract value.
building unit owner / condominium owner
building unit ownership / condominium ownership
building that is a subject of unit ownership / condominium building
A sale in which payment is made in installments at certain intervals. The seller usually transfers the title of the property to the purchaser upon closing the contract of the sale after obtaining a collateral security for the installment payment.
マンション等の区分所有建物において、居住者がと もに使用するエレベーター等の共用部分の維持・管 理のために支出する費用。略称で CAM(common area maintenance charges)と表記されることが 多い。
common area maintenance charges
Charges billed to unit owners in order to cover maintenance fees for work performed on the common area (e.g., elevators) of a building. It is often abbreviated as CAM charges.
Those parts of a condominium complex that belong to all owners. For example, corridors, elevators, balconies, pipes and electrical systems (excluding those within condominium units), and on-site manager office are included in common elements.
A land sales contract based on its size recorded in the registry. It usually includes a clause that stipulates the sales price shall not be affected by the disparity, if any, between the registered size and surveyed size.
taxes and other public charges / real estate taxes
The Title Register plays a role in announcing the current interests in real estate of each parcel of land (including improvements) to the public. It also shows prior changes in those interests. As a result of this effect, an owner of real estate enjoys its exclusive ownership.
A legal principle, i.e., the Title Register is conclusive evidence that the person named as holding an interest in real estate is in fact entitled to that interest, and his holding is not subject to any condition or encumbrance other than those shown on the Title Register. The Japanese Title Register does NOT follow this principle.
land leasehold right / leasehold interest in traditional land lease contract
The leasehold interest of the tenant in a traditional land lease contract. In order to make the leasehold interest effective against third parties, it is required to register the building on the leased land at the Land Registry Office.
The Act on Land and Building Leases was enforced in 1992. The Act attempts to protect the rights of tenants in terms of the length of a ground lease agreement, the renewal of a building lease contract and so on.
An emergency fund set aside for major repairs and capital expenditures of a condominium building either for those occurred at certain intervals or for unforeseen events, such as disasters. Condominium owners usually pay their share of such a fund in addition to their monthly association fees.
The right of the borrower in a free use agreement. The borrower’s right shall terminate upon the death of the borrower. In case of a gratuitous loan agreement of real property, the contract is not regulated by the Act on Land and Building Leases.
A person who employs other for a certain business shall be liable for damages inflicted on a third party by his/her employees with respect to the execution of that business; provided, however, that this shall not apply if the employer exercised reasonable care in appointing the employee or in supervising the business, or if the damages could not have been avoided even if he/she had exercised reasonable care.
Rules prepared for the residents of a condominium project in accordance with its condominium association bylaws. The rules typically stipulate prohibited conducts, such as storing objects and carrying out construction works in common areas, and garbage disposal and recycling among other things.
An assessment on housing quality carried out by a registered inspection firm in accordance with the Housing Quality Assurance Act. There are two types of housing quality assessments: (a) assessment based on design documents before completion; and (b) assessment based on actual home inspection.