There are quite a few lands and buildings whose owners and whereabouts are unknown, and this has become a social problem. If the land and buildings are left with unknown owners, they will be left without proper management, which may lead to economic loss such as danger for nearby residents, as well as non-payment of property taxes and long-term neglect without effective use.
In order to solve these problems, the Civil Law and Real Estate Registration Act have been amended, and it becomes mandatory to apply for registration of transfer of ownership of real estate.
Mandatory Inheritance Registration
CONTENTS
1 What Is Mandatory Inheritance Registration?
2 When does the amended law come into force?
3 What are the penalties?
1．What is Mandatory Inheritance Registration?
Mandatory Inheritance Registration
At present (2022), there are no penalties for not changing the title of the deceased person’s real estate after inheritance.
However, in order to solve the problem of land and buildings with unknown owners, the Civil Law and Real Estate Registration Act have been amended to make it mandatory to apply for registration of transfer of ownership of real estate when an inheritance occurs.
How has the law been amended?
Under this amendment to the law, persons who acquire real estate by inheritance or bequest (limited to bequests to heirs) must apply for registration of the transfer of ownership within three (3) years from the date they learn that the inheritance has commenced for them and that they have acquired ownership of the property.
2. When does the amended law come into force?
Effective Date
The amended law making inheritance registration mandatory will come into force on 1 April 2024.
The mandatory inheritance registration is not limited to inheritances that commenced on or after the effective date.
Inheritances that started before that date will also be subject to mandatory registration.
In the case of inheritances that started before the effective date, the inheritance registration must be completed within three (3) years from 1 April 2024.
3．What are the penalties?
In case to fail to register an inheritance registration without any legitimate reason, administrative fine of up to 100,000 yen will be imposed.
In the run-up to the implementation of this amended law, we have seen an increase in the number of consultations on inheritance registration.
We believe this is an indication of people’s growing awareness of inheritance registration.
If you have any inquiry, please feel free to contact us.