essentials

Investing in Japanese Real Estate through Mortgage Property Auctions: What Foreign Investors Need to Know

Investing in Japanese Real Estate: What Foreign Investors Need to Know

Japan is a country with a rich history and culture, and its real estate market is no exception.

With its unique blend of modernity and tradition,

Japan offers a wide range of investment opportunities for foreign investors.

However, investing in Japanese real estate can be a complex process,

and it is important to understand the legal and

cultural nuances before making an investment.

As a real estate agent based in Tokyo serving foreign investors,

I have seen first-hand the potential for growth and success

in the Japanese real estate market.

In this article, I will share some key information t

hat foreign investors should know before investing in Japanese real estate.

 

Understanding the Legal System

One of the most important things to understand

before investing in Japanese real estate is the legal system.

Japan has a civil law system, which means that the law is primarily

based on written codes and statutes.

This is different from common law systems,

such as those found in the United States and the United Kingdom,

where the law is primarily based on judicial decisions and precedents.

In Japan, there are several laws and regulations that govern real estate transactions.

For example, the Civil Code sets out the basic rules

for contracts, property rights, and other legal matters.

There are also specific laws that regulate real estate transactions,

such as the Building Lots and Buildings Transaction Business Act

and the Real Estate Specified Joint Enterprise Act.

It is important for foreign investors to understand these laws

and regulations before investing in Japanese real estate.

Working with a knowledgeable real estate agent

or attorney can help ensure that your investment is legally sound.

 

Cultural Differences

In addition to understanding the legal system, it is also important

to be aware of cultural differences when investing in Japanese real estate.

Japan has a unique culture that can impact the way business is conducted.

For example, in Japan, it is common for parties to engage in lengthy negotiations

before reaching an agreement.

This can be different from other countries

where negotiations may be more direct and straightforward.

It is important to be patient and respectful during these negotiations

to build trust and establish a good working relationship.

Another cultural difference to be aware of is the importance of

hierarchy and seniority in Japanese society.

In business dealings, it is important to show respect to

those who are older or more senior than you.

This can include using formal language and bowing when greeting someone.

Case Study: Mortgage Property Auctions

To illustrate some of the complexities of investing in Japanese real estate,

let’s look at a recent case involving a mortgage property auction.

In this case, a real estate company acquired a single-family home at auction

for resale purposes. However,

They discovered that the previous owner had rented out the property

and that the actual occupant was a subtenant who had sublet it without permission.

They demanded immediate eviction from the subtenant,

but they (the occupant) claimed that there was

a six-month grace period for eviction and refused to vacate.

This situation raised several legal questions

about the rights of the purchaser, tenant, and subtenant.

 

Under Japanese law, if mortgaged real estate subject to lease

is put up for auction, if a lease agreement was concluded before mortgage rights

were established and delivery was received by tenant,

then tenant’s lease rights take precedence over mortgage rights

and tenant can continue to occupy. However,

if tenant acquired lease rights after mortgage rights were established

and has been using or earning income from them before commencement

of auction proceedings, they are protected by six-month grace period

for delivery and do not have to deliver auctioned property to purchaser

(Civil Code Article 395(1)).

In this case, it was determined that no grace period for eviction

was granted to subtenants who had not obtained consent from their landlords (Civil Code Article 612).

As such, the real estate company was able to request eviction from the subtenant.

This case illustrates some of the complexities of investing

in Japanese real estate.

 

It is important for foreign investors to work

with knowledgeable professionals who can help navigate these complexities.

 

Conclusion

Investing in Japanese real estate can be a rewarding experience for foreign investors.

However, it is important to understand the legal system and cultural differences

before making an investment.

Working with a knowledgeable real estate agent or attorney can help ensure

that your investment is successful.

I hope this article has provided some useful information

for foreign investors looking to invest in Japanese real estate.

If you have any further questions or would like more information about investing in Japan,

please don’t hesitate to contact us.

 

Insight

Investing in Japanese real estate can be a great opportunity for foreign investors.

However, it is important to understand the legal and cultural nuances before making an investment.

Working with a knowledgeable real estate agent or

attorney can help ensure that your investment is legally sound and culturally appropriate.

If you are a foreign investor looking to invest in Japan,

don’t hesitate to take the first step.

Contact a real estate agent or attorney today to learn

more about the opportunities available to you.

With the right guidance and support,

you can successfully navigate the complexities of the Japanese real estate market

and make a profitable investment.

So why wait? Take action today and start your journey

towards success in the Japanese real estate market!

Source: 抵当不動産を競落した買受人は、無断で入居している転使用借人に対し、競落物件の引渡しを求めることができるか。

Safeguard Your Investment: Understanding Bait Listings in the Japanese Real Estate Market

 

 

 

 

 

Do you know ‘Otori-bukken’ ?

 

Truth be told,

 

We have to admit there are a number of

 

shady and dishonest real estate agents in Japan.

 

 

As a foreign investor considering investment opportunities

 

in the Japanese real estate market,

 

it’s crucial to be aware of the tactics some unscrupulous agents

 

 

employ to lure potential clients.

 

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Japanese real estate essentials: What is the Building Standards Law?

What is the purpose of the mission of the Building Standards Law?

The Building Standards Law (建築基準法)was created for the MLIT to provide basic rules for construction during a building and the stipulates minimum engineering safety requirements concerning fire earthquake and other natural disasters.

It also stipulates the types of buildings we can build according to each zoning district(用途地域)

under the city planning law.

A building not contracted to meet this requirement is regarded as an illegal building however a building previously constructed in compliance with a standard existing at the time of the construction but which no longer meet current construction standards is not considered as an illegal building but rather called non-conforming building. (既存不適格)

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When you find the cheap property, please make sure if it is a non-conforming building or not. It is not a fatal mistake to buy such a property, but you have to understand what you are running into beforehand. 

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Japanese real estate essentials: The city planning law : You need to understand before you buy a property in Japan

What is the purpose of the city planning law ?

The city planning law which is set by the Ministry of land infrastructure transport and tourism (MLIT)

exists to regulate urban development.

The law divide Japan into mainly two parts :

1.The city planning area which is regulated by the city planning law

2. The non-city planning area which is not regulated by this law

City planning area is mainly divided into urbanization promotion areas where development is promoted and urbanization restricted areas where the development is restricted.

Urbanization restricted areas consist of agricultural, forestry and fishery projects.

Urbanization restricted areas are not allowed to build residential, office and retail properties.

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For example, if you want buy a land in the agricultural areas, you may not able to build your own house.

Don’t forget to check the relevant law and regulation before you purchase such land.

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Essentials : How is the real estate ownership registered in Japan ?

Just the basics.

Today I am going to share some basic laws and regulations on the real estate in Japan.

1 How does the real estate registration work in Japan ?

The real estate registration system is governed by the real estate registration law (不動産登記法)

Properties are registered in the real estate register which gives the basic information of the property and its

rights/titles.

The registration record can be reviewed at the legal affairs bureau. (法務局)

The registration information can be accessed by the internet by paying a small fee (you can also

get a copy of registration at local legal affairs bureau.

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