Have you heard of the term "Set-back"? It may be a word that people who are living in a new condominium do not hear. In areas such as Asakusa and Kanda in Tokyo, Kyoto and Kanazawa in local cities, which have been forming urban areas for a long time, there are many narrow roads where cars can barely pass, and some land faces a road less than 4 m wide. This set-back becomes a big problem when the owner of such a land rebuilds a building. This time, we will explain about what is this set-back, what should owner do when owner need a setback on the land you bought or owned, what happens to the property tax when set-back.
What is a Set-back?
Set-back means to "retract" the boundary line of the road to your site in order to secure a width of 4m or more that is in contact with the building. Under the Building Standards Act, road width must be at least 4 m. This is the same for private road. However, in some buildings before the law was set, the road width that touches them is less than 4 m. In this case, it is not necessary to move the existing building, and it will be treated as a road under the Building Standards Act (Article 42 Paragraph 2 Road) even if it is not 4 m wide. Instead, when rebuilding a building, it is stipulated that the road width of 4 m will be secured in the future by building a building with a slight retreat. Depending on how far you are going to retreat, you need to keep 2 m from the center line of the road. In other words, if the road is 3 m and the center line is in the middle, you need a set-back of 1 m in total, so you need to setback 50 cm each for your land and the land opposite.
What should you do for Set-back?
As mentioned above, a set-back is a road with a width of less than 4 m, and is required when rebuilding a building facing the land. Therefore, it is not necessary when remodeling a building that is already standing (not rebuilding) or when building on a land that has already been set back. To find out if the land where you think about architecture has already been set back, you need to check the center line of the road at the city hall.
And when you set back, the part that retreats to the site side is regarded as a road. It is also important to note that the applicable area is not included in the building coverage ratio or floor area ratio. For example, we have to think that if 20 ㎡ of 200 ㎡ must be set back, if the building coverage ratio is 60% (200 ㎡ - 20 ㎡) x 60% = maximum floor size is less than 108 ㎡ , if the floor area ratio is 200% (200 ㎡ - 20 ㎡) x 200% = maximum total floor side is less than 360㎡. In addition, it is impossible to build anything other than a building, as the exteriors such as gates will also obstruct traffic.
By moving the site back, the setback will expand the aisle and help the residents in the surrounding area, but many people do not feel much benefit in terms of cutting their own land. For that reason, the local government has prepared benefits for those who performed the set-back.
Taxes are cheaper with Set-back
By doing a setback, the land becomes a road and is not covered by private rights (use is restricted, but ownership remains), so anyone can pass. In that case, it is not fair that the tax is levied on that part like other sites, so the property tax and city planning tax are exempted on the part where the set-back is done. If 20 ㎡ of 200 ㎡ is the set-back area as in the previous example, the tax will be reduced by 10%. However, it is important to note that in order to receive such benefits, owner must go to the city hall or ward office where the land is located and submit the application form based on the format decided by each local government. Also, it is not the case that owner should submit this application after set-back. In order to apply for a setback, many local governments need to consult with the Building Guidance Division or the Road Management Division in advance, and only then can setback be done. Thus, there is an advantage that the tax is cheaper, but there are some procedures required.
In this way, there are advantages and disadvantages by performing setback, but it is a very important act to promote regional safety. If you have any questions, please contact us.
What are the new earthquake resistance standards after 1981? Explain the difference from the old earthquake resistance standards
Have you heard of the word (new Earthquake Resistance Standards have been adopted since 1981) as property information, or have you seen that it says new Earthquake Resistance Standards or old Earthquake Resistance Standards? Earthquake Resistance Standards is divided into new Earthquake Resistance Standards and old Earthquake Resistance Standards since 1981. How are these new and old Earthquake Resistance Standards different? Therefore, this time, we will explain the new Earthquake Resistance Standards since 1981, and the differences between the new Earthquake Resistance Standards and the old Earthquake Resistance Standards. If you would like to know more about Earthquake Resistance Standards, please refer to it.
Earthquake Resistance Standards are the criteria for the durable structure of a building against earthquakes during the design stage of the building. The Earthquake Resistance Standards have been revised and the Earthquake Resistance Standards applied after June 1, 1981 are now became to called “new Earthquake Resistance Standards” and the standards applied before that are called “old Earthquake Resistance Standards”.
In 1950, it is a standard set by the Building Standards Act for the purpose of protecting human life and property, and also sets standards for building sites, structures, and equipment. There is a rule that all buildings in Japan today must comply with this standard. The Earthquake Resistance Standards have been reviewed in response to the great earthquakes that occurred in the past. Due to the damage caused by such a great earthquake, the old Earthquake Resistance Standards were reviewed and the new Earthquake Resistance Standards were newly established.
Which buildings are built under the new Earthquake Resistance Standards?
Buildings that meet the new earthquake resistance standards are those that have been approved after the implementation of the new Earthquake Resistance Standards, to the best of our knowledge, it is said that the new Earthquake Resistance Standards have been applied to buildings completed after September to October 1981. However, there are cases where even the building built in 1982 was built with old Earthquake Resistance Standards. In the case of condominiums, the construction period is about one to one and a half years. Even if the building confirmation of the condominium was received in June 1981, it is considered that the new Earthquake Resistance Standards are applied to the building completed in the summer-autumn 1982 at the earliest.
What if you want to know whether the Earthquake Resistance Standards of a building is Old or New?
To find out whether the house you are currently living in or the building you are considering to buy is built with old Earthquake Resistance Standards or new Earthquake Resistance Standards, please check the date on which the building confirmation application for that building was accepted. If the date of issue of the building confirmation notice is June 1, 1981 or later, it is a new Earthquake Resistance Standards building, and if it is before May 31, it is an old Earthquake Resistance Standards building. If the property has a building confirmation, there is a building confirmation notice available. In the unlikely event that owner have lost the building confirmation notice, you will need to request the issuance of a certificate of the items listed on the confirmation ledger at the window of the local government or government office. Please note that if the property is too old, it may not be stored.
Difference between Old and New: Earthquake Resistance Standards changed to Seismic Intensity of 6
The big difference between new Earthquake Resistance Standards and old Earthquake Resistance Standards is the magnitude of seismic resistance standards. The old Earthquake Resistance Standards stipulates that "buildings will hardly be damaged by an earthquake with a seismic intensity of 5 or higher," and a standard was set to withstand medium earthquakes. However, the damage from the 1978 Miyagiken-Oki Earthquake was greater than expected, the earthquake resistance was reviewed as it is expected that the old Earthquake Resistance Standards will cause significant damage even if a large-scale earthquake does not occur. Focusing not only on preventing buildings from collapsing due to an earthquake but also on ensuring the safety of people inside the buildings, the new Earthquake Resistance Standards set up based on the standard of "withstanding an earthquake with a seismic intensity of 6 or more" and take measures against large earthquakes.
In addition, it is possible to reinforce the building of old Earthquake Resistance Standards to the same extent as new Earthquake Resistance Standards by renovation. However, since the structural design is different from the beginning, the idea is to strengthen it, and it is not always the same as the new Earthquake Resistance Standards. In the budget, please make a detailed discussion in the meeting about which part will be used to reinforce the building, which part will be replaced with new equipment and make it clean and beautiful property.
When considering the purchase of real estate, is it possible to make a judgment without looking inside the property? If the property is for investment and you know the expected yield, purchase price, age of the property, number of minutes walk from the nearest station, and local environment, you may not need a preview. However, if the real estate to be purchased is your own second house and you spend off in Kyoto, is it possible to make a decision without seeing it with your own eyes?
If real estate is ready-made goods such as cars, it may not be so difficult to make a decision if you know how it is based on the number of years that have passed. However, there is no one real estate in the world, the specifications of the building are various, is difficult to figure it out that the environment of the area, the atmosphere that the building emits, the slight slope, etc., unless you actually walk around and visit the property.
With that in mind, when buying a real estate, if the purpose of the real estate purchase is to come to Kyoto, enjoy a leisurely vacation, enjoy a different culture, and spend a new discovery, we would like you to see the real estate with your eyes and make a decision. For that reason, we were skeptical about remote guidance.
However, if the real estate you select is for investment purposes or if it helps narrow down the properties before coming to Kyoto, it is also good to remotely look inside the property or provide photos based on the floor plan with a 360° camera. Thinking about this, we decided to purchase new equipment and add new pages to existing sites for more details with 360° view properties, start taking new photos from this week.
Also, if you would like to get a remote preview, we can guide you on WhatsApp, Skype, Messenger, Hangout, WeChat and Line.
Since there are restrictions on the times and days of the week that we can inform you, if you would like to visit remotely, please contact us in advance and we will adjust the schedule. If you have a property that you would like to visit, please contact us.
When signing the contract, the buyer and seller will each show their ID. In the case of an individual, it is a driver's license, and in the case of a corporation, it is a certified copy of the company register and identification of the representative. Although it was not a difficult case, the seller's corporation originally registered the head office in Kyoto. When the seller moved to Tokyo to expand his business, he closed the corporation in Kyoto and registered a new head office in Tokyo. The owner's name in the real estate registry is the same, but the address is different.
What needs to be corrected this time is to change the address of the seller's corporation in the real estate registry to Tokyo. Also, since the content of the registered corporate seal is different, as a solution,
・Use the existing seal as it is and change the name of the seller in the contract
・Delay the contract until a new seal is created, and sign the contract at a later date
・Use the existing seal as it is, change the representative of the seal certification, and sign the contract as it is.
When the head office was in Kyoto, there was only one representative director. When they moved to Tokyo, the original representative did not have permanent residence and he wanted to use a bank loan, so thye invited another director and added one representative director. This is the reason why the name of another officer is written on the seal certificate.
What we thought this time is that the seller should finish the contract safely without the seller having to do much work, and let the buyer purchase the real estate with peace of mind. To correct the name on the contract, recreate a new document and ask the buyer to re-sign it. Or, correct the part with a double line and stamp the correction mark and re-enter correctly. It takes about a week to make a new seal, even seller place an order in a hurry. In the meantime, the buyer will have to wait, but buyer feel uneasy when we think about it. The buyer has just finished imprinting the seal on the contract and is depositing the down payment with the real estate agent, but if the seller does not sign it, it will naturally cause anxiety.
Therefore, as a result of consultation with the seller, seller will use the current stamp as it is to sign and seal, and in parallel, change the representative listed on the seal stamp certificate at the Legal Affairs Bureau. By doing so, each buyer and seller will sign and seal the contract, and the name of the legitimate representative will also be printed on the seal certificate that will be acquired at a later date. Originally, seller appointed another representative only to use the bank loan, so they will have this contract take the opportunity to change it to the correct form.
As a real estate agent on the seller side, we will explain the above to the real estate agent of the buyer so that they will understand and proceed with the procedure. For future plans, we will meet with the seller on Monday to complete the contract. First of all, we will do this firmly, next we will get other documents stamped by the seller and proceed with the procedure for settlement such as public certificate. We will discuss the movement of furniture locally and prepare for the delivery at the end of July.
Intermediating the buying and selling of real estate causes various problems each time. Agreement of contract contents, acceptance of payment, delivery status, preparation of required documents, etc. We will try to find a solution each time, make the seller feel comfortable selling, and let the buyer imagine the future after purchase, and make a pleasant transaction. We sincerely wish the buyer a pleasant life in Kyoto with this transaction.
We have encountered a problem in a case related to the column we posted the other day.
This time, we are working as an agent of the seller and are proceeding with the contract procedure. The real estate is a refurbished property in Kita Ward, originally used for a guest house. As part of the asset consolidation, seller stopped the operation of the guest house, and when it was for sale, an individual customer in Tokyo applied for the purchase.
We are an agent of the seller, and a customer in Tokyo was found by another real estate agent and applied after the property inspection. The buyer is an individual, and the seller is a general corporation in Japan. First of all, if there are two real estate agents, the seller's real estate agent will do the research of the real estate, the preparation of the explanation of important matters, and the preparation of the contract. In this case, it's us.
Since the real estate agent of the buyer guided the property on Sunday, applied for it on Monday, and had price negotiations, the seller presented a counter offer on Monday, and on Tuesday morning, the buyer confirmed the consent and confirmed to the seller. Then, the price of the mutual agreement was decided. The buyer's desired contract date is Thursday. Generally, the contract is concluded within 1 week to 10 days after applying. This is because the real estate survey needs to be done, so a contract two days after the agreement is a very short term.
This time, the contract will be carried around, and both parties will carry around the contract and get a signature stamp. Therefore, in this case, the buyer will first sign the contract on Thursday, and the seller will sign the contract later. It's a very short schedule. Also, real estate agents often have a off on Wednesdays, and the buyer's agent is also closed.
However, even if it is Wednesday, we need to complete and book the contract on the morning of the next day, so the contract will be prepared on Tuesday and the contents of the contract will be confirmed on the Wednesday.
During the day, we conducted field surveys of real estate, surveys related to government offices, and surveys that can be acquired on the Internet. We had to prepare the contract documents by the next morning.
The contents of the documents will be the contracts, document of explanation of important matters, equipment table preparation and status report, and boundary explanation documents. It will be completed in about 3 to 4 hours. We had confirmed in advance with the seller's corporate representative and secretary, but this corporation has two representative directors appointed, and we were hearing that the name of 100% investor will be used in the real estate sale contract.
After confirming the contract with the buyer, we bound the documents and delivered the documents to the agent office on Thursday morning and waited for the contract. During that time, we coordinated the necessary documents and interviews with the seller, and confirmed the necessary documents. And yesterday, Thursday, we asked the buyer to sign the contract safely, and received the 10% of sale value as deposit. The buyer's procedure is completed.
Then, we were contacted by the secretary today, and it became clear that the representative's seal stamp certificate was different from that of the representative stated in the contract. Yes, the seal was registered under the name of the other representative director. We can't prepare the seller's seal stamp certificate that is already written on the document signed by the buyer.
Today we will explain the practice of vacation house management. This column is creating a post during the patrol of vacation house management.
One of the practical tasks of vacation home management is patrol of properties. We also make patrols in detached houses and apartments, and also discard mail. Although it is an option, we will enter the house at the request of the owner and ventilate and pass water. Most of the mails do not require unnecessary leaflets, but if there are bills and usage details such as water and gas, etc., take a scan or discard them separately.
After arriving at the site, the first thing to do is to discard the mail. In the case of condominiums, there may be a trash can near the mailbox, but if there is no wastepaper basket, the trash will be taken back to the office. After entering the room, first open all windows. If a circuit breaker is turned off, turn on the power and check the room. Also, if there is a garden, check the planting situation and report to the owner if we need help of gardener. As it's still good at this time of year, but it gets hotter in August and September, so check whether the trees are growing well. After that, pass water to the kitchen, washroom and toilet piping. The pipe has an S-shaped drain trap, which prevents sewage from rising from the pipe when there is water. However, if the vacant term is long, this water dries and the smell of sewage spreads indoors. This is why the area around the washing machine often smells. If you do not install a washing machine nor do not use it, cover it with cellophane etc. to prevent the smell.
Basically, if water is passed for 3 minutes, the water in the drain trap can be replenished and the water in the pipe can be passed. Ventilation will be performed for 30 minutes in the room, so during this time, scan the various documents that have arrived in the mailbox and upload the necessary documents to the shared folder. Name each document by including the content and date of the document. Invoices, etc. are stated in the documents that have arrived from the last meter reading date to this meter reading date, so put them in the file name as well. By doing so, the owner can easily check what documents, when payments, etc. details are.
When we are visiting the condominium, if it is during the time when the manager is there, we greet them and talk about whether it has changed or when the owner will come next. By doing so, if there is something in the period of vacant, we will get in touch from manager immediately. Even while the owner is visiting Japan, they will be able to take care if there are any problems, and they will be able to help in the event of an emergency.
By the way, in many cases of vacant house management, we keep one set of keys. Trust is the most important base, so we store and manage the keys with care. As it will take time for the new tourist visa this moment, but we do this kind of work every month, and we look forward to the owner's arrival in Japan.
As we mentioned yesterday, the seller was changed to 3 choices of general individual, general corporation or real estate agent due to the revision of civil law. Today, we will explain about the case where the seller is General Corporation.
The revised Civil Code, which came into effect on April 1, 2020, established a "nonconformance liability" as a provision equivalent to the defect liability before the revision. In this "liability for non-conformance", in addition to the right to cancel and the right to claim damages, which were previously recognized under the liability for defects, the right to request completion (repair, replacement of the target object, delivery of the lacking part), reduction of the price, the claim right is recognized by civil law. In addition, if the reason is due to contract nonconformity related to type or quality, the buyer must notify the seller within one year from the time when he/she knows the contract nonconformity in order to pursue the seller's contract nonconformity ( Revised Civil Code Article 566).
Regarding the contract non-compliance liability as described above, it's believed to be possible that to exempt the liability under civil law or to limit the scope of the liability and the exercise period by establishing a special agreement based on the agreement of the parties in the same way as the defect guarantee liability before the revision. However, since the purchase and sale of real estate is a large transaction, from the perspective of protecting the buyer, there are certain regulations in place to set special provisions to exempt or limit liability for nonconformance. In other words, the corporation, which was considered to be the same as the general consumer, was changed to a position which is more responsible than the general consumer from April.
The following are the actual required documents at the time of contract and property delivery when the seller is a general corporation.
Information for Registration Identification (title deed)
Certification of Registered Company Seal
Identity Verification Documents for Representative Director (person with the above certification)
Fixed Asset Evaluation Certificate or Fixed Asset Tax Statement
When establishing a corporation, it is possible to appoint multiple representative directors of the company. In that case, multiple persons will be registered as officers and representative directors in the certified copy of the company. In addition, when registering the representative seal of a corporation, the representative name of the corporation seal and the individual name of the representative director are registered as a set, so it is possible to register the representative seal of the corporation seal separately with multiple names. Therefore, when obtaining the above-mentioned company seal stamp certificate, it is necessary to have documents for verifying the identity of the person who has the seal stamp certificate. With this in mind, it is necessary to reconfirm the name of the corporation, which representative director's name is to be entered in the real estate sales contract, and which person's identification documents are required.
Today, we would like to explain the points to keep in mind when buying and selling real estate due to the revision of the Civil Code. First of all, due to the revision of the Civil Code in April of this year, the seller of real estate has changed from 2 choices of general or real estate agent to 3 choices of general individual, general corporation or real estate agent. In addition, the seller's liability for defect warranty has been changed to non-conformity liability. The details are as follows.
Due to the revision of the Civil Code, the word "defective" is no longer used and has been changed to "not compatible with the contract." In addition, as a result of being arranged as contract (default) liability, the provisions of liability for non-conformance of contracts are applied regardless of specific or unspecified items, and the target of non-conformance of contracts is not limited to primitive defects. In addition to the cancellations and damages that have been made up until now, buyers have also been granted additional completion claims and reduction claims. In addition, the claim for damages now requires the responsibility of the seller.
In other words, the protection of the buyer is stronger than ever before. In addition, the wording of the contract has been changed as follows.
When the delivered Property does not conform to the contents of this contract in terms of type or quality (hereinafter referred to as “conformance to contract”), the Buyer may request the Seller to repair the Property.
In this case, the seller or the buyer may request the other party to discuss the repair method.
2. If there is a contract nonconformity for the delivered property, the buyer, damages may be requested to the seller in place of or together with the repair.
3. When there is a contract nonconformity of the delivered property, the buyer shall set a reasonable period of time for the seller unless the contract nonconformity is minor in light of this contract and the social conventions of transactions. The buyer can cancel this contract after issuing a notice to repair the property.
4 If the buyer cancels this contract based on the preceding paragraph and the buyer has damage, except when the nonconformity of the contract cannot be attributed to the seller's blame in light of this contract and the social conventions of transactions, the buyer may claim damages against the seller. In this case, the penalties specified in the contract shall not apply.
5 When the delivered property has a contract nonconformity, the buyer notifies the seller of the repair of the property for a considerable period of time, the buyer can request a reduction in the price according to the degree of nonconformity of the contract, without depending on the claim for damages or the cancellation of the contract.
6 The buyer shall not be able to exercise the rights set forth in this article if the buyer does not notify the seller that there is a contract incompatibility with the property within one year after the delivery of the property.
A consumer contract in a real estate transaction is when the seller is a business operator other than the real estate agent and the buyer is a consumer (transaction to which the Consumer Contract Law applies). Tomorrow, we will explain the necessary documents etc. in case the seller is a corporation.
When buying real estate, we sometimes negotiate the price, but this time we will introduce the case that actually happened. I honestly don't know if the negotiations will work or not. There are reasons for the seller and reasons for the sale. If there is not one seller or the person who has the right to approve the price may differ, how to proceed depends on a case-by-case basis. Also, how much negotiation is possible changes depending on the negotiation price with respect to the selling price, the amount of negotiation and the negotiation rate. Instead of negotiating the price, we may negotiate the date of delivery or negotiate to leave the equipment. Therefore, negotiations are being negotiated under various conditions.
If the real estate price is 9.8 million yen, the price range is often limited. In this case, price reductions of 100,000 yen to 200,000 yen often settle down. If the price is 200 million yen, it may be possible to negotiate a price of 20 million yen. On the other hand, there are cases where the price cannot be reduced if the selling price is at the lower limit due to the seller's convenience.
In many cases, the negotiated price, the desire to leave the equipment, the contract and the payment schedule of the balance will be the basis for comprehensive judgment.
As a rule of thumb, there are different trends for sellers in Osaka and Kyoto, and for individual sellers and vendors that are very different. If the individual in Kyoto is the seller, there is little range of price negotiations. If the seller is a vendor in Kyoto or Osaka, the rate of price reduction is large if the seller is in a hurry to sell in a vacant house or land, and if there is no need to rush to sell for investment, the rate of price reduction tends to be small. Also, it is generally difficult to negotiate prices when real estate prices are rising and there is demand, and negotiations tend to be easier when demand decreases. However, if the price is already low, negotiations will be difficult no matter how much the demand decreases.
In April and May, there was little real estate movement and it was in a stalemate. But in June, inquiries and visits are gradually seen for sale and rent. We think that there is a range of price negotiations because the real estate owned by the agents needs to be sold. However, since there is no need to rush to sell the properties by individual, the price has not fallen at the moment and we don't think there will be much drop in price in the future. Although real estate prices may fall in the future, we think it will be limited to properties that require sale. Let's look at the whereabouts of the market a little more.
The other day, we received an application to rent a property at renovated Kyo-Machiya, where we manage the building. It is a renovated townhouse that was purchased by the owner last year. The house had been occupied since early fall of last year, but the tenants moved out this spring. Due to the effects of the COVID-19, the property has been vacant since then, but we were able to get an application the other day.
The contractor is an individual who lives in Tokyo, but he is going to start a new business in Kyoto while he keeps his current job. This time we will use 4C'S Co., Ltd. as a guarantor on contract. Today, we would like to introduce this company, which is also our partner company.
Company Name 4c’s Co., Ltd.
Business Real estate guarantor service
〒105-0004 4c's Shimbashi BLDG. 5-13-7, Shimbashi, Minato-ku, Tokyo Japan
〒530-0001 Osaka Ekimae Daiichi BLDG 5F. 1-3-1, Umeda, Kita-ku, Osaka-shi, Osaka Japan
Customer Support Center
〒812-0013 4c’s Hakata BLD. 1-9-5 Hakataeki Higashi, Hakata-ku, Fukuoka-shi, Fukuoka
TEL ： +81-92-433-3725
FAX ： +81-92-441-3726
Open Hours ： 10 a.m.-5 p.m. (Except New Year holidays)
4C’S GUARANTEE SYSTEM
4c’s guarantee system is the service that 4c’s will pay rent instead of tenants who made contract with 4c’s when they cannot pay their rent. Each country has different rules to rent a room. Today, it is general to use the guarantee system when people lease a room from a real estate agent in Japan. Most of landlords expect tenants to sign up the contract of guarantee system, and it is one of the important conditions to lease a room from real estate agents in Japan. In order to ensure untroubled living conditions for both of landlords and tenants, our guarantee system is necessary. 4c’s understand that it is hard to get used to different cultures and customs, so let us support you when you try to start new life in Japan. The following inset shows you how 4c’s guarantee system is concluded among landlords, tenants and 4c’s.
1. Object of contract
5. About guarantee system and warranty scope
7. About guarantee charge (initial cost) In order to use 4c’s guarantee system, it is necessary to pay guarantee charge. Basically, the charge amount is equal to the monthly rent (minimum charge is 35,000 yen); however, there is a few discount service.
The above are the contents of the guarantor company and the details of payment. When you sign a lease contract in Japan, a guarantor company is required in most cases nowadays.
Therefore, you will need to use one of the above mentioned companies or a similar company, please contact your brokerage for more information.
Arrows International Realty Corp.