Realtor sued after promising landowners they could sell worthless land to Chinese buyers at inflated prices

Japan Land Scam 1114 landowners are seeking damages from an Osaka-based real estate company after claiming that they were encouraged to pay for land survey fees with the premise that they could sell their otherwise worthless forest land to Chinese buyers for high prices.

On November 28, a class-action lawsuit seeking 47 million Yen (390,000 USD) in damages was filed in the Osaka District Court against 13 employees of Mirai Tochi Corporation and two other related companies. According to the complaint, 114 people aged from 35 to 89 from across Japan were approached by the company between 2011 and 2014. They allege that they were encouraged to pay the company as much as 300,000 ~ 700,000 Yen in land survey and maintenance fees with the hope that the land could then be sold to Chinese buyers.

The company is also currently being prosecuted for fraud in the Nara District Court. According to the Nara prefectural police, the case, which also includes their predecessor Toshow Management, involves damages exceeding 1.36 billion Yen (11.3 million USD) and 5,000 victims in 36 prefectures across the country and overseas.Read more


Suginami-ku may soon have powers to forcibly widen roads

Setagaya Road setback

The local government in Suginami-ku, Tokyo, is considering amending local regulations which would give them the powers to carry out the road widening and street levelling on privately owned setback land. If the plans are approved, this would be the first local government in Japan to have these legal powers.

Approximately 30% of the roads in Suginami are less than 4 meters wide and pose a hazard to the local community in the event of a disaster, such as an earthquake, as emergency vehicles cannot navigate the narrow roads and lane ways. 

Under the Building Standards Act, owners of buildings that front onto a road less than 4m wide are required to shorten their block land in order to widen the road when the building is redeveloped.

Suginami’s local government currently provide financial assistance to help owners with the cost of removing any obstacles such as walls and gates in order to complete the required setback.  Although landowners are required to make the setback portion of land level with the road, many owners leave the raised curbing as is with garden beds and other objects still blocking vehicle access.

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Japan's hot spring towns could be hit hard by new building safety regulations

Wataya Besso Ureshino Saga
The Wataya Besso Ryokan in Ureshino, Saga Prefecture. The 12-storey tower to the right will be demolished as earthquake-retrofitting costs prove too expensive.

Since November 2013, large-scale buildings, such as hotels and hospitals, built to the old earthquake-resistant building codes (called ‘kyu-taishin’) are obligated to carry out building inspections to determine their level of earthquake-resistance. 

Inspections must be carried out by the end of 2015, after which the results will be made public.

Owners and operators of hot-spring resorts and inns are worried that these requirements could spell the end for their businesses. Towns in these onsen areas that rely on the tourist trade are also worried that this could have a direct impact on their local economy.Read more


Govt relaxes rules on building demolition voting rights and floor-area-ratios

Palace Akasaka

The Japanese House of Councillors have voted in favour and passed a revision to the apartment redevelopment law which will now allow an apartment building association to sell their building and land with approval from 80% of the apartment owners, rather than the previous requirement of 100%.

In addition, the maximum allowable floor-area-ratio (yosekiritsu) will be relaxed.

These changes will hopefully encourage the redevelopment of ageing and potentially dangerous buildings that do not meet current earthquake-resistant standards.Read more


Briton arrested for running illegal lodgings in Tokyo

Adachi Illegal Hotel

A British expat was arrested on May 16 for operating a short-stay hotel without a proper license. The 28-year old wanted to offer cheap accommodation for foreign tourists and rented out rooms and bunk-beds in a share-house in Adachi-ku.Read more


12 investors suing their 'dates' after elaborate apartment sales scam uncovered on dating site

Twelve men and women are suing Tokyo-based real estate agencies, apartment sales offices and lending institutions for 200 million Yen in the Tokyo District Court after purchasing over-priced investment apartments at the suggestion of their dates met through online dating sites.

Their 'dates' turned out to be real estate agents who concealed their occupation and allegedly sweet-talked the plaintiffs into purchasing apartments. After settlement, however, their dates ceased all communications.Read more


Cabinet decision to reduce voting ratio to sell apartment building & land

The Cabinet has approved a reform to the apartment redevelopment law which will lower the voting ratio required before an apartment building and land can be sold. Previously, 100% of apartment owners had to be in agreement before the building and land could be sold, but the revision will reduce this ratio to 80%. 

It is hoped that the loosening of the regulations will encourage the demolition and redevelopment of ageing buildings and reduce the number of buildings at risk of collapse in an earthquake. It could also open up opportunities for developers to re-purpose the use of the land from residential to commercial.

The decision will be submitted to the ordinary session of the Diet in mid-March and could be enacted within 6 months.Read more