New Book on Legal Issues in Japanese Real Estate Investment
Explains the main legal issues in Japanese real estate. Most of the information appears in English for the first time.
Legal Issues in Japanese Real Estate Investment
Legal Issues in Japanese Real Estate Investment is a collection of twenty articles intended for both experienced real estate professionals and investors new to Japan. It provides a comprehensive overview of some of the most distinctive subjects in Japanese property, and most of the information appears in English for the first time. This book is designed to assist readers in acquiring a thorough understanding of the Japanese legal framework for real estate investing.
Jeff Wynkoop has lived and worked over 20 years in Japan and is fluent in spoken and written Japanese. He is a US attorney and certified public accountant(CPA). He is also one of a handful of Westerners who is a certified Japanese Real Estate Transaction Manager (宅建), and is currently the only American with a Masters (ARES マスター) certification from Japan’s Association of Real Estate Securitization (ARES).
Table of Contents
Chapter 1: The Real Estate Transactions Law.
Application of the Real Estate Transactions Law. Setting up a Licensed Business under the Real Estate Transactions Law. What is a certified Real Estate Transaction Manager? What roles do Real Estate Transaction Managers perform? Consequences for Violating the RETL.
Chapter 2: The Explanation of Important Matters
Chapter 3: The Registration of Rights in Real Estate.
The Heading Section of Land and Building Registers. The Act of Registration. Provisional Registrations. Registration in the Ownership Section of the Rights Section. Registration in the ‘Other Than Ownership’ Section of the Rights Section. The Trust Register.
Chapter 4: The Transfer of Rights.
The Significance of Registration. The Transfer of Rights Other than Ownership. The Quasi-Adverse Possession Exception. Other Exceptions to Registration. Relying on the Contents of Land and Building Registers. Basic Issues for Transferring Real Estate Loans.
Chapter 5: Japanese Trust Banks
Chapter 6: The Law on Measures against Soil Pollution.
The 2010 Legal Amendments. Soil Pollution in Real Estate Transactions. Soil Inspections.
Chapter 7: An Overview of the Building Standards Law.
Use Zones. Fire Prevention Districts. Floor Area Ratios and Building-to-Land Ratios. Roads and Adjacent Land. Height Restrictions.
Chapter 8: The Building Certification Process and Acts of Development.
The Building Certification Process. Criteria for Receiving the Construction Confirmation Certificate. The Completion of Building Inspection Certificate. Acts of Development.
Chapter 9: Building Standards for Earthquake Resistance
Chapter 10: Japanese Land Valuations and Real Estate Indices.
Public Valuations of Land. Private Valuations of Land. Japanese Real Estate Indices. Reference Chart of Japanese Real Estate Indices.
Chapter 11: Leasing in Japan.
Rules regarding Application of the Japanese Civil Code and the Law on Leasing Land and Buildings. Traditional Building Leases. Fixed-Term Leases. The Legal Right to Increase or Decrease Rent. Tenant Rights after Foreclosure on a Mortgage.
Chapter 12: Latent Defect Liability
Chapter 13: Selected Real Estate Transactions Law Topics.
The Role of Deposits in Japanese Real Estate Purchase Transactions. The Cooling-Off Period. Real Estate Broker Agreements.
Chapter 14: Japanese Common Ownership and the Law on Sectional Ownership.
Japanese Common Ownership. The Law on Sectional Ownership etc. of Buildings.
Chapter 15: Real Estate as Collateral.
Mortgages. Revolving Credit Mortgages. Pledges. Collateral Assignment Transactions. Sale and Right to Repurchase Transactions. Provisional Registration and a Sale and Commitment to Sell Back.
Chapter 16: The FIEL and its Impact on the Japanese Real Estate Industry.
Effects on the Japanese Real Estate Business. Impact of the FIEL on Asset Managers. Impact on Existing Investment Schemes. Exceptions to the FIEL Requirements.
Chapter 17: The Real Estate Syndication Law.
What is a Real Estate Syndication? What existed prior to the RESL? When does the RESL apply? Why are other investment schemes used more often than RESL structures? RESL Licensing and Operational Requirements.
Chapter 18: An Overview of Real Estate Collective Investment Schemes and a Discussion of GK-TKs.
A Short Overview of Collective Investment Schemes in Real Estate. What is a goudou kaisha (“GK”)? Why not use a kabushiki kaisha-tokumei kumiai (“KK-TK”)? What is a tokumei kumiai (“TK”) and why use one with a goudou kaisha? The Extent of TK Investor Rights. Example Chart of Waterfall for TBI Investment by a GK-TK.
Chapter 19: Tokutei Mokuteki Kaisha.
Structure of a TMK: Equity. Structure of a TMK: Debt. The ALP and Activities Ancillary to the TMK Securitization. Recent Amendments to the TMK Law. Bankruptcy Remoteness and a Description of ippan shadan houjin. Tax Merits of the TMK Scheme. GK-TKs versus TMKs.
Chapter 20: J-REITs.
Governance of J-REITs. Regulation and Set Up of J-REITs. Scope of Business. Delegation of J-REIT Business. Conflict of Interest Transactions. Disclosure of Information. J-REIT Tax Treatment. The Balancing Act of New Acquisitions. The Potential for J-UPREITs. A Brief Comparison of J-REITs, TMKs, GK-TKs and RESL Structures. Securitization Scheme Comparison.
Also included in the book is a convenience translation of the Japanese Real Estate Syndication Law and a list of main sources.