Lease of real estate in Japan, Shakuchi Shakka ho 借地借家法

In this page, I will explain about lease of real estate in Japan.
In Japan there is a law, named “Act on Land and Building Leases (借地借家法=Shakuchi shakka ho)”.

When people search for affordable real estate in Japan, they sometimes find very cheap real estate.

In some of them, buyer can purchase only building or house.
However, buyer can not obtain property right of lot, land.

Because, right on lot is land lease. The seller leases lot from ower of land, then built a house on it.

The seller has paid land owner rent money.

And now the seller wants to sell the house to someone.

In that case, we have to know about law related to land lease.

In Japan, “Act on Land and Building Leases (借地借家法=Shakuchi shakka ho)” stipulates this matters.

This law stipulates about lease of land, building, house.

Civil code also stipulates about lease right. But, as for lease of real estate, Act on Land and Building Leases is superior to Civil code.

In the case of lease of real estate, there are specific aspects.

When Mr Renter wanted to lease lot to build a house.

Then Mr Renter found suitable lot. Then he contacted land owner and made lease contract.
In this contract, it was stipulated that lease duration was 1 year.
At that time, Mr Renter could not find other suitable lot. So, he agreed the condition and signed the contract.

After 1 year, Land owner claimed that Mr Renter should remove the house.

But, it is very tough for Mr Renter. In order to avoid such situation, “Act on Land and Building Leases (借地借家法=Shakuchi shakka ho)” exist.

According to this Act, such short lease duration is void.

Of course, apart from lease of real estate, we can make short duration lease contract.

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