Govt to Ease Rules for Selling Aging Buildings

Article excerpt

The government plans to ease regulations to allow for the sale of condominiums and land upon approval of about 80 percent of owners, rather than the current 100 percent, in an effort to promote the reconstruction of aging building with low quake-resistance capabilities.

It is considering submitting bills related to the deregulation as early as the next ordinary Diet session.

The move is also aimed at promoting redevelopment after old condominiums are demolished and revitalizing real estate markets.

Reconstruction of aging apartment buildings and redevelopment have made slow progress due to various laws and regulations. Under the current rules, an apartment building can be rebuilt upon approval of tenants and financial institutions that have collateral rights to some of the units and if 80 or more percent of votes, which are given to owners in accordance with the size of of their property, are in favor of rebuilding.

However, residents need to discuss procedures for rebuilding, which puts a heavy burden on them and thus makes swift action on such matters difficult.

Also, the Civil Code stipulates that agreement from all owners is required to sell apartment buildings and land or sell vacant land after demolition, which makes buying and selling difficult. …

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