Today, we will explain what kind of building can be constructed or operated in which area under the Building Standards Act. First, below are the details for each of the important restricted areas. Thirteen categories of Land Use Zone provide a pattern for land-use zoning in each type of urban area. These can be generally categorized into residential, commercial and industrial uses. Each Land Use Zone has specifications concerning the uses of buildings which can be constructed in the zone. Land Use Zones Category I exclusively low-rise residential zone Category II exclusively low-rise residential zone Category I mid/high-rise oriented residential zone Category II mid/high-rise oriented residential zone Category I residential zone Category II residential zone Quasi-residential zone Rural residential zone Neighborhood commercial zone Commercial zone Quasi-industrial zone Industrial zone Exclusively industrial zone Special Land Use District A Special Land Use District is designated as a supplement to the land-use regulations on the Land Use Zone. It is designated within a Land Use Zone aiming at specific purposes, such as achieving more effective land use or a more pleasant environment. Regulations under Land Use Zone are applied uniformly nationwide. However, in the Special Land Use District, Land Use Zone regulations can be modified by municipal bylaw. In correspondence with the local characteristics, each municipality can stipulate the strengthening or relaxation of Land Use Zone regulations. Land Use Zone and Building Regulation Land Use Zone controls volume, height of buildings as well as use of them under provisions of the Building Standard Law. These regulations are designed to prevent a mixture of buildings used for different purposes in one area, and to ensure the suitable environment for the specified type of land use. Control of Building Use by Land Use Zones Next time, we will explain the building coverage ratio and floor area ratio.
We had a meeting today because the tenant of the property we are managing will move out at the end of the month. This is an Okonomiyaki restaurant that has been operating for over 40 years. An elderly lady was operating by herself, but the restaurant was open from midnight until 5:00 and 6:00. It's a real Shin'ya Shokudō, known in English as Midnight Diner. At the beginning of this year, she was a little sick and had to take a break. Then the coronavirus attacked there, and due to the self-restraint of going out and the request of self-restraint of business, it became impossible to foresee the future, then she decided to shut down her business. This time, with the cancellation of the lease agreement, the procedure will basically follow the terms of the contract and the delivery conditions at the time of cancellation. Since it has been operating for over 40 years, neither the current owner nor the management company can understand the initial state. The points to keep in mind this time were the following. 1. 2 months notice of cancellation 2. When the lessee hands over the property, the lessor refunds the deposit 3. The lessee shall make a skeleton at his/her own expense and hand it over to the lessor. When we were first consulted about cancellation, we followed the prescribed procedure and received a written notice of cancellation and the tenant's signature. We were notified of the cancellation by phone, but it is necessary to make sure to put it in writing, otherwise it will be said or unsaid afterwards.
The lease agreement this time was an agreement using the system called Guarantee Money and Non-refundable Restoration Fee. Therefore, we will calculate the security deposit to be refunded according to the number of years of the contract and refund it after receiving the delivery of the property. The most difficult part of the process is the passing the property by the skeleton state. The condition of the skeleton is often the case when renting a property for commercial use, meaning that everything will be removed. The removal of fixtures, walls, floors, ceilings, etc. installed by each tenant until the building's structure can be seen is called the handing over of a skeleton. Therefore, we had a meeting today with the lessee and the construction company, and decided the scheduled construction date and the confirmation date of the progress. After all, it is not possible to confirm how far the skeleton can be made without removing the stuff, so it is necessary to confirm in the middle. Possibly, it may be sharing the block fence with the next store, so ask them to return to the skeleton state while watching the progress. The above is today's meeting and the procedure for cancellation. As a management company, we will need to confirm that the building has been vacated, and prepare for repairs, such as recruiting new tenants and waterproofing the building so that it can be used by the next tenant. Since this is an earning property, we will be making detailed adjustments to obtain rental income as soon as possible, at what rent and under what conditions, while considering the cost effectiveness of the property. Today, we will talk about the information on the building registration certificate. The first is a copy of the registration certificate of a wooden 2-story building, and the second is an explanation of the registration certificate of a condominium. First of all, it is a case of a two-story wooden detached house. The content is similar to the land, only the content of the title part is different. ① Location: Location of the building; xxx Town, xxx ward, Kyoto City ② Housing number: #xxx ②-① type of building: residential, apartment, dormitory, store, etc. ②-② structure: structure of building, type of roof (shape of roof) and stories of building ②-③ floor size: floor size of each floor, in ㎡ unit ③ Right Department (Section A) (matters related to ownership): Order of registration, purpose of registration, date of receipt, right holder and other matters. (Reason for registration, owner's address, owner's name) *If there is an underline, the content has been changed and the registration has been deleted. As mentioned above, there are many items that are similar to land, and the Section A (matters related to ownership) and Section B (Matters related to rights other than ownership) of the Rights Department have the same contents. Now, let's check the building registration certificate of the apartment, even though it is the registration certificate of the same building. In the case of a condominium, unlike a detached house, there is an indication of a single building, an indication of an exclusive building, and a further indication of the right of site. Please see below.
④ The house number of the unit (the lot number and the room number of the entire condominium are listed). ⑤ Title section (display of one building) ⑥ Location: Address and lot number of the land where the building is located. ⑦ Name of the building: condominium name ⑧-① structure: structure of building, type of roof (shape of roof) and stories of building ⑧-② floor size: floor size of each floor, in ㎡ unit ⑨ Title section (Display of land, which is the purpose of site right) ⑨-① Land code: Number starting from 1 ⑨-② Location and lot number: Land address, lot number ⑨-③ Classification of land category: Type of land (residential land) ⑨-④ Acreage: Size of land ⑩ Title Section (Indication of Building in Exclusive Area) ⑪ House number: town name + house number + room number ⑫ Building name: Room No. ⑬-① Type: Residential, etc. ⑬-② Structure: Structure of the building, number of floors in the exclusive portion (1 floor) ⑬-③Floor area: Number of floors, size of inner room ⑭Title section (display of site right) ⑮-① Land code: Number starting from 1 ⑮-② Type of site right: ownership, leasehold right, etc. ⑮-③ Ratio of site right: ○○/○○○ (unit size of proprietary wall core/square meter of entire site) As mentioned above, the contents of the building registration certificate are also very different between detached houses and condominiums. Generally, land for condominiums has a land right, and if you purchase the exclusive part of the building, you will also get the land right as a set. The reason why the land is set is to prevent the building and the land from being purchased separately, and to reduce the complexity. If you have any questions, please contact us individually. Today, we would like to change from yesterday and explain what kind of information can be obtained from the registration certificate. First, the following is an example of a registration certificate of the land registry. We will explain the important contents according to the numbers.
① Location: Location of the land; xxx Town, xxx ward, Kyoto City ②-① Lot number: #xxx ②-② the Classification of Land Category: Type of Land (residential land) ②-③ Acreage: Land Size ③ Right Department (Section A) (matters related to ownership): Order of registration, purpose of registration, date of receipt, right holder and other matters. (Reason for registration, owner's address, owner's name) *If there is an underline, the content has been changed and the registration has been deleted. ④ Right Department (Section B) (Matters related to rights other than ownership): creation of mortgage and revolving mortgage, etc. ⑤The order of registration, purpose of registration, date of receipt of registration, right holder and other matters (reason for registration, amount of claim, interest, debtor, etc., Mortgagee's address, mortgagee's name and catalog number) ⑥ Common Warranty Catalog: If mortgages are to be set for buildings as well as land, joint common warranty will be made. The above items are important confirmation items. When purchasing real estate, it is necessary to confirm whether the lot number is correct and whether the land area is correct. Regarding the rights department (Section A), it is necessary to first confirm whether there is seizure. In addition, if there are multiple owners, it is necessary to confirm whether the seller has all the ownership rights, in the case of a large number, all of them are sellers and whether there is a power of attorney. If there is underlined to the mortgage, it has already been deleted, so it is necessary to confirm it as well. The right department (Section B) has mortgages and revolving mortgage when the seller has a loan. Elimination of mortgages is often done at the same time when the settlement is delivered, and the judicial scrivener confirms the legitimacy of the erasure procedure and confirms that the remaining amount can be paid. This is also the same as above, and if it is underlined, the mortgage has been deleted. The common warranty catalog will be detailed in this section if, for example, you purchase land and a building and mortgage both real estates. The symbol and number of the common warranty catalog will also appear on the mortgage holder and other matters. Old deleted information remains as history, but if there is an underline as well, it has already been deleted, so you can trade with confidence. Tomorrow, we will explain the the building registration certificate. It’s our try of working from different situation, is good opportunity to work at off situation but same as working at office. We listed new properties on our website, received several calls from agents, sent Fax to agent, sent latest listings of for rent to over 80 agents at different situation. As of different situation but same working conditions with family and good friends, we can keep continuing the work and have more wealthy Life and Work time now. Let’s see how we can keep the situation and try more different opportunities.
Today, we would like to explain the initial investigation when we were asked to sell real estate.
Actually, one owner contacted us today and asked us to sell the detached house. Therefore, we would like to explain what we do as an initial investigation first. Since it was in the evening when the investigation was begun, we examined the details today within the range which can be investigated on the internet. The first thing we did was to get the land and building registration transcripts. This can be investigated at the legal affairs bureau, but it is also possible to investigate on the internet. Since we are registered as a vendor, we used our login ID and password to search. Land is selected in the order of Kyoto Prefecture, Kyoto City, target ward, town name, and lot number. In the case of a building, the same procedure is used for a building, and in the case of a complete set of information, we will be charged 334 yen per piece of information. The land and building registration transcripts confirms the details of the owner, information about the property and the rights to the property. We then check to see if there are official maps and acreage survey maps of the land. Public maps can be found basically anywhere, but the acreage survey maps are not registered unless they have been surveyed. If there is no information available on the target land, we check the land adjoining the land on the public map in order to see if a survey map on the next land is available. In the case of a building, we also check if the building plan is registered. The next step is to investigate the type of street access. This can be investigated on the website operated by Kyoto City. This time, we found out that the type of road is Article 42, Paragraph 1, Item 5 of the Law. It is a road that can be rebuilt. Since we didn't have the acreage survey map, we will visit Kyoto City Hall to get information of street width and frontage, as well as a field survey. By the way, since city hall can only be visited during limited hours on weekdays, it is carried over to the following week. Next, we needed to investigate the zoning of the place where the subject property is located. This is also available on the website operated by Kyoto City. The site has become more and more convenient over the years, and we can check the zoning, building-to-land ratio, floor area ratio, and minimum site area for buildings. It is now possible to look up information on height district, landscape preservation, distant landscape, etc at ont place. The information on outdoor advertising, fire protection zones, built-up urban areas, housing construction control zones, and ruins maps are available on separated sites. Once the above investigation has been completed, the next step is disaster prevention. For disaster prevention, Kyoto Prefecture has a website dedicated to this topic. We can also check the flood, earthquake, and sediment disaster warning zones. If you would like to find out information about your location, please check the following sites Multi-Hazard Information Providing System http://multi-hazard-map.pref.kyoto.jp/top/top.asp The above is the main content of the information that can be investigated on the Internet. In addition, similar to the public maps, but property tax lot reference maps and building agreements can also be researched online. In fact, the above information will be used to survey the Legal Affairs Bureau, City Hall, Waterworks Bureau and the site. It is also possible to obtain information on the buried pipe status of the water supply system and the buried gas pipes via the internet. In addition, the above is only data information, and we will proceed with the survey including confirmation of boundaries, confirmation of crossing borders, building conditions, etc. This is a job for new buyers to understand the situation, to feel secure, to be satisfied, and to purchase real estate. If you have any questions, please contact us individually. Today, we will explain the stamp tax (stamp duty) that will be affixed to the contract when you make a purchase or sale of real estate. At the time of a real estate sales contract, both the buyer and the seller will sign and seal the contract, and store each part. At that time, it is obligatory to affix a stamp to the contract kept by each. You can pay the tax by purchasing the stamp tax, attaching it to the contract, and postmarking it. The documents that require stamp duty are the 1st document to the 20th document, and the real estate sales contract corresponds to the 1st document of the stamp tax list. There are four types of documents that correspond to the first document. 1 Real estate, mining right, intangible property right, ship or aircraft, or contract for transfer of business 2 Contract for setting or transferring land rights or land lease rights 3 Consumption loan agreement 4 Transportation contract Stamp tax is also explained as follows. Stamp tax is levied on certain documents such as contracts, bills and share certificates. As a rule, the tax is levied by affixing revenue stamps covering the amount equal to the stamp tax to those documents. However, in certain cases, such as when many taxable documents are processed repeatedly, taxpayers may, for convenience, choose self-assessment or payment in cash. Tax rates vary from 200 yen to 600,000 yen per document. Revenue stamps are also used for payment of registration license tax levied when registering the establishment or transfer of property rights and for payment of national examination fees. OUTLINE OF TAX ENFORCEMENT https://www.nta.go.jp/english/report2003/text/02/01.htm The table below shows the actual amount of stamp duty. The deadline for applying special measures for stamp duty reduction has been extended to March 31, 2022.
Reduction of Stamp Duty on Real Estate Sales Contracts https://www.nta.go.jp/law/shitsugi/inshi/08/10.htm Therefore, the amount of money stated in the real estate sales contract will be paid against the above table. Generally, agents will purchase it in advance at a post office and bring it with you at the time of contract. The buyer/seller will only pay and will also postmark when signing the contract. Today, we were contacted by a tax accountant and asked to tell him the approximate price of the land, so we will explain the method of simple price assessment. A field survey is indispensable for accurate price calculation, and it is calculated using public maps and geological survey maps. The shape of the land, the price correction by the depth of land shape, the condition of the adjacent building and the width of the roadway are also important indicators. This time, we will use the transaction case comparison method to output the assessment results.
As a way of calculating a simple price, we will first refer to nearby sales examples. The information is based on general portal sites, REINS, current sales and past sales results. No two properties are the same, even though they are examples of neighbourhoods, so check each similar and different point and think about how it affected the original price and how it affects the property to be appraised. For example, if the property is located in Shimogyo ward, the target reference properties are limited to the same area. Set the same station as the nearest station and extract several to dozens of properties that are similar to the estimated price in advance. We then investigate the shape of the land, the access road, the shape, the proximity to the station and the characteristics of the area. This time, we have sent detailed links to each property along with the information below. Reference information 336-5 Land, Tenjinmaecho (corner lot) 156,000,000 yen (tsubo unit price 3.760 million yen) Taigoyama-cho land 59.8 million yen (tsubo unit price 3.207 million yen) Tourocho land 79 million yen (tsubo unit price 4.558 million yen) Takatsuji, Nishinotoin-cho, Land 161 million yen (tsubo unit price 2.987 million yen) Takatsuji Nishinotoin Land 174 million yen (tsubo unit price 3.004 million yen) Details of the actual property to be assessed are omitted, but the price was set at 4 million yen based on the width of the frontage, the shape of the land, and the ratio of frontage to depth. Since this is a simple desk assessment, the tax accountant will calculate the tax amount, cash flow, etc. referring to the above. Once we receive a formal assessment request, we will tell you how to calculate the details next time. Today, we would like to talk about the work of building management after the tenant has moved out.
First, the management company that receives notice of the cancellation will set up a date and time to be present with the tenant. The purpose of this is to check the condition of the room when it is handed over, and the person in charge of the management company and the tenant will check the room together on the day. At this time, the renter will be asked to arrange the delivery of all luggage, the disposal of garbage, and cancellation of water, electricity, gas, and internet in advance. By doing so, we will be able to check the empty room, and no one will receive bills for utility expenses after the fact. In the meeting, the damaged area is mainly checked. We will check the condition of the room and the burden of each, whether it is the damage due to the renter's responsibility or the burden on the lessor. Therefore, if there is damage due to the renter's responsibility, we will confirm whether he/she will compensate from the security deposit or pay additional repair costs. By carrying out this kind of work together, it is possible to prevent troubles at a later date, such as the fact that the security deposit was not returned and the requested repair cost was high. When the lessee vacates the room, the principle is to return it to its original condition. Therefore, without leaning unduly to one side or the other, be fair and determine who, what and to what extent will bear the burden. The next step is to restore the room to a leasable condition. For example, cleaning a room, repairing damaged areas, repairing or replacing damage or wear and tear due to age, upgrading equipment, or work to increase the value of a room. The only work actually done by the management company is to arrange for the work to be done by each specialist contractor. For example, cleaning and replacement of wallpaper is done by a cloth company. Cleaning is a cleaning company. Repairs depend on the location, but it is a water supplier, carpenter, or electrician. We will also ask a specialist Tatami shop to change the tatami mat. In addition, check the expiration date of the fire alarm, replace the faucet rubber packing at the water leak point, and replace the original plug of the washing machine with a new type. After that, a new key is exchanged and the tenant can move in anytime. These multiple tasks are from the move-out to the move-in of the new lessee. Even with all the preparations done so far, there are cases in which problems can be identified even after actually starting living. Even in such a case, by responding promptly, tenants can be reassured and trusted. Recognize a good relationship with the tenants, have them move in for a longer time, and make a good investment for the landlord. Today we would like to talk about the points to note when non-residents invest in real estate. When investing in real estate in Japan, it does not matter whether the buyer is Japanese, resident or non-resident. However, if you are a non-resident and you want to get rent from the property you invest in, then note the following: Cases other than the rent paid by individuals who rented the land and house for themselves or their relatives to reside in. So what happens in the case above? The National Tax Agency has the following information. No.12014 Real estate income of non-residents https://www.nta.go.jp/english/taxes/individual/12014.htm
In such a case, there are two points to keep in mind.
First, the lessee has to pay the withholding tax collected to the tax office every month. This puts a heavy burden on the lessee and results in complicated tax procedures. If the rent is high, there is a possibility that the corporation has a lease agreement, and inevitably additional corporate paperwork will occur. Due to this increase in processing, there is a possibility that the lease contract will be terminated. Therefore, the method of avoiding such complicated processing from the lessee is to change the contract so that we will enter into a sublease agreement with the landlord, enter into a lease through us, and we will be obligated to pay tax. By doing this, the original lessee will rent a room from us, so there will be no additional burden. Our additional operating costs are covered by normal property management fees and are not incurred separately. The second point is to make the tax accountant a partner of the tax advisor. Every year, you will be required to file a tax return for real estate income, and at the same time, please request a refund for the withholding tax. By doing this, you will be asked to refund the tax by accurately claiming the tax and overpaying the tax. The above are points to keep in mind when investing in real estate. These cases include special circumstances, so please consult us individually. We can also introduce tax accountants who are fluent in English and Chinese. Please contact us for more details. |
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AuthorArrows International Realty Corp. Archives
June 2023
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