Act on Building Unit Ownership

In the case prescribed in the main clause of paragraph (1) of the preceding Article, notwithstanding the provisions of Article 64-6, a resolution to the effect that all of the buildings in the housing complex and their grounds are to be sold collectively (hereinafter referred to as a "resolution to sell buildings in a housing complex and their grounds" in this Article) may be adopted at a meeting of the association prescribed in Article 65 that consists of the unit owners of the buildings in the housing complex who are the co-owners of the grounds of the buildings in the housing complex, or at a meeting of an incorporated housing complex management association, by at least a four-fifths majority of the unit owners of the buildings in the housing complex (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) and at least a four-fifths majority of the voting rights; provided, however, that this does not apply if, at that meeting, with regard to any one or more of the buildings in the housing complex, more than one-third of its unit owners or persons who hold voting rights exceeding one-third of the total voting rights prescribed in Article 38 opposed the resolution to sell buildings in a housing complex and their grounds.

For the purpose of applying the provisions of the main clause of the preceding paragraph in the case where all of the buildings in a housing complex fall under any of the items of Article 62, paragraph (2), the term "four-fifths" in that paragraph is deemed to be replaced with "three-fourths".

The provisions of Article 69, paragraph (2) apply mutatis mutandis to the voting rights of each unit owner referred to in the main clause of paragraph (1). In such a case, the phrase "the land on which the specific building is located (including rights related to that land)" in paragraph (2) of that Article is deemed to be replaced with "the grounds of the buildings in the housing complex (meaning the land on which the buildings in the housing complex are located and the land that has been established as the grounds of the buildings in the housing complex pursuant to the provisions of Article 5, paragraph (1), including rights related to them)".

A resolution to sell buildings in a housing complex and their grounds must establish the following matters:

the name of the person who is to be the counterparty to the sale;

the expected amount of the price from the sale; and

matters concerning the method of calculating the amount of money that each owner of a building in the housing complex may acquire through the sale.

The provisions of Article 62, paragraphs (5) through (10), and Articles 63 through 64-4 apply mutatis mutandis to a resolution to sell buildings in a housing complex and their grounds. In such a case, the phrase "item (iii) and item (iv) of the preceding paragraph" in Article 62, paragraph (5) is deemed to be replaced with "Article 71, paragraph (4), item (iii)"; the phrase "Article 35, paragraph (1)" in paragraphs (6) and (7) of that Article is deemed to be replaced with "Article 35, paragraph (1) as applied mutatis mutandis pursuant to Article 66"; the term "bylaws" in the proviso to paragraph (6) of that Article is deemed to be replaced with "the bylaws referred to in Article 30, paragraph (1) as applied mutatis mutandis pursuant to Article 66"; the phrase "reconstruction of the building" in paragraph (7), items (i) and (ii) of that Article is deemed to be replaced with "sale of the building and its grounds (including rights related to them)"; the phrase "Article 35 and Article 36" in paragraph (9) of that Article is deemed to be replaced with "Article 35 and Article 36 as applied mutatis mutandis pursuant to Article 66"; the phrase "in the reconstruction" in Article 63, paragraphs (1), (2), and (4) through (6), Article 64, and Article 64-2, paragraph (1) is deemed to be replaced with "in the sale"; the phrase "demolition work on the building has not commenced" in Article 63, paragraph (7) is deemed to be replaced with "there has been no transfer of rights to the building and its grounds (including rights related to them) under a sales contract (hereinafter referred to as a 'transfer of rights to the building, etc.' in this paragraph and the following paragraph)"; the phrase "not commencing the demolition work on the building" in the proviso to that paragraph is deemed to be replaced with "there having been no transfer of rights to the building, etc."; the phrase "the commencement of demolition work on the building" in paragraph (8) of that Article is deemed to be replaced with "the transfer of rights to the building, etc.", and the phrase "demolition work on the building has not commenced" in that paragraph is deemed to be replaced with "there has been no transfer of rights to the building, etc."; and the phrase "implement the reconstruction" in Article 64 is deemed to be replaced with "implement the sale".

Chapter III Penal ProvisionsMeasures in the Case Where a Building Has Been Destroyed

Section 1 Measures in the Case Where a Building with Exclusively-Owned Areas Has Been Destroyed

If a building with exclusively-owned areas has been destroyed, and the right to use the grounds pertaining to that building with exclusively-owned areas was ownership or any other right held by multiple persons, or multiple persons held shares of co-ownership in the attached facilities of the building with exclusively-owned areas (including rights related to them), the persons who hold those rights (hereinafter referred to as the "co-ownership interest in the grounds, etc.") (hereinafter referred to as "co-owners of the grounds, etc.") may hold meetings, establish bylaws, and assign a manager pursuant to the provisions of this Act, until the day on which five years have elapsed, counting from the day of the destruction.

If a person who convenes a meeting held by co-owners of the grounds, etc. (hereinafter referred to as a "meeting of co-owners of the grounds, etc.") cannot ascertain the whereabouts of a co-owner of the grounds, etc. (excluding one who has notified the place where they are to receive notices pursuant to the provisions of Article 35, paragraph (3) as applied mutatis mutandis pursuant to the preceding Article), the notice under Article 35, paragraph (1) as applied mutatis mutandis pursuant to the preceding Article may be given by posting it somewhere conspicuous within the grounds of the building pertaining to the destroyed building with exclusively-owned areas.

In the case referred to in the preceding paragraph, the notice is deemed to have arrived at the time when it was posted pursuant to the provisions of that paragraph; provided, however, that if the person who convenes the meeting of co-owners of the grounds, etc. was negligent in not knowing the whereabouts of that co-owner of the grounds, etc., the notice does not have the effect of arrival.

If a building with exclusively-owned areas has been destroyed, and the right to use the grounds pertaining to that building with exclusively-owned areas was ownership or any other right held by multiple persons, a resolution to construct a building on the grounds of the building pertaining to that building with exclusively-owned areas or on part of that land, or on land that includes all or part of the grounds of that building (hereinafter referred to as a "resolution to rebuild") may be adopted at a meeting of co-owners of the grounds, etc. by at least a four-fifths majority of the voting rights of the co-owners of the grounds, etc.

A resolution to rebuild must establish the following matters:

an outline of the design of the building that is to be newly constructed (hereinafter referred to as the "reconstructed building" in this paragraph);

the estimated amount of expenses necessary for the construction of the reconstructed building;

matters concerning the sharing of expenses prescribed in the preceding item; and

matters concerning the attribution of the unit ownership of the reconstructed building.

The matters referred to in item (iii) and item (iv) of the preceding paragraph must be established in a manner that does not undermine the equity of each co-owner of the grounds, etc.

Notwithstanding the provisions of Article 35, paragraph (1) as applied mutatis mutandis pursuant to Article 73, if a meeting of co-owners of the grounds, etc. whose subject matter is a resolution to rebuild is convened, the notice under that paragraph must be sent at least two months prior to the date of that meeting of co-owners of the grounds, etc.; provided, however, that this period may be extended by the bylaws referred to in Article 30, paragraph (1) as applied mutatis mutandis pursuant to Article 73.

In the case prescribed in the preceding paragraph, when a person gives the notice referred to in Article 35, paragraph (1) as applied mutatis mutandis pursuant to Article 73, they must also give notice of the reasons that necessitate the rebuilding, in addition to the subject matter of the meeting and the outline of the proposal.

The person who has convened the meeting of co-owners of the grounds, etc. referred to in paragraph (4) must hold an explanatory meeting to explain to the co-owners of the grounds, etc. the matters to be notified at the time of the convocation, at least one month prior to the date of the meeting.

The provisions of Article 35, paragraphs (1) through (3) and Article 36 as applied mutatis mutandis pursuant to Article 73, and the provisions of the preceding Article apply mutatis mutandis to the holding of an explanatory meeting referred to in the preceding paragraph.

In the minutes of a meeting of co-owners of the grounds, etc. at which a resolution to rebuild was adopted, whether each co-owner of the grounds, etc. was in favor of or against the resolution must also be entered or recorded.

The provisions of Article 63 (excluding the second sentence of paragraph (5) and paragraph (6)) and Article 64 apply mutatis mutandis to a resolution to rebuild. In such a case, the term "meeting" in Article 63, paragraph (1) is deemed to be replaced with "meeting of co-owners of the grounds, etc. (meaning the meeting of co-owners of the grounds, etc. prescribed in Article 74, paragraph (1); the same applies in the following paragraph)", and the term "unit owners" in that paragraph is deemed to be replaced with "co-owners of the grounds, etc. (meaning the co-owners of the grounds, etc. prescribed in Article 72; the same applies hereinafter)"; the phrase "in the reconstruction" in that paragraph, paragraphs (2) and (4) of that Article, the first sentence of paragraph (5) of that Article, and Article 64 is deemed to be replaced with "in the rebuilding"; the term "meeting" in Article 63, paragraph (2) is deemed to be replaced with "meeting of co-owners of the grounds, etc."; the term "unit owner" in paragraphs (2) through (4) of that Article, the first sentence of paragraph (5) of that Article, and Article 64 is deemed to be replaced with "co-owner of the grounds, etc."; the phrase "purchase the unit ownership or the rights to use the grounds" in the first sentence of that paragraph is deemed to be replaced with "purchase the co-ownership interest in the grounds, etc. (meaning the co-ownership interest in the grounds, etc. prescribed in Article 72; the same applies hereinafter)", and the phrase "their unit ownership and the rights to use the grounds at their market value" in that sentence is deemed to be replaced with "their co-ownership interest in the grounds, etc. at its market value"; the phrase "demolition work on the building" in Article 63, paragraphs (7) and (8) is deemed to be replaced with "work for the rebuilding of the building"; the phrase "unit ownership or rights to use the grounds" in paragraph (7) of that Article and Article 64 is deemed to be replaced with "co-ownership interest in the grounds, etc."; and the phrase "implement the reconstruction" in Article 64 is deemed to be replaced with "implement the rebuilding".

If a building with exclusively-owned areas has been destroyed, and the right to use the grounds pertaining to that building with exclusively-owned areas was ownership or any other right held by multiple persons, a resolution to the effect that the land related to the co-ownership interest in the grounds, etc. (including rights related to it) is to be sold (hereinafter referred to as a "resolution to sell the grounds" in this Article and paragraph (1) of the following Article) may be adopted at a meeting of co-owners of the grounds, etc. by at least a four-fifths majority of the voting rights of the co-owners of the grounds, etc.

A resolution to sell the grounds must establish the following matters:

the name of the person who is to be the counterparty to the sale; and

the expected amount of the price from the sale.

The provisions of Article 63 (excluding the second sentence of paragraph (5) and paragraph (6)), Article 64, and paragraphs (4) through (8) of the preceding Article apply mutatis mutandis to a resolution to sell the grounds. In such a case, the term "meeting" in Article 63, paragraph (1) is deemed to be replaced with "meeting of co-owners of the grounds, etc. (meaning the meeting of co-owners of the grounds, etc. prescribed in Article 74, paragraph (1); the same applies in the following paragraph)", and the term "unit owners" in that paragraph is deemed to be replaced with "co-owners of the grounds, etc. (meaning the co-owners of the grounds, etc. prescribed in Article 72; the same applies in this Article and the one after it)"; the phrase "in the reconstruction" in that paragraph, paragraphs (2) and (4) of that Article, the first sentence of paragraph (5) of that Article, and Article 64 is deemed to be replaced with "in the sale"; the term "meeting" in Article 63, paragraph (2) is deemed to be replaced with "meeting of co-owners of the grounds, etc."; the term "unit owner" in paragraphs (2) through (4) of that Article, the first sentence of paragraph (5) of that Article, and Article 64 is deemed to be replaced with "co-owner of the grounds, etc."; the phrase "purchase the unit ownership or the rights to use the grounds" in the first sentence of that paragraph is deemed to be replaced with "purchase the co-ownership interest in the grounds, etc. (meaning the co-ownership interest in the grounds, etc. prescribed in Article 72; the same applies in this Article and the one after it)", and the phrase "their unit ownership and the rights to use the grounds at their market value" in that sentence is deemed to be replaced with "their co-ownership interest in the grounds, etc. at its market value"; the phrase "demolition work on the building has not commenced" in Article 63, paragraph (7) is deemed to be replaced with "there has been no transfer of rights to the land related to the co-ownership interest in the grounds, etc. (including rights related to it) under a sales contract (hereinafter referred to as a 'transfer of rights to the land, etc.' in this paragraph and the following paragraph)"; the phrase "unit ownership or rights to use the grounds" in that paragraph and Article 64 is deemed to be replaced with "co-ownership interest in the grounds, etc."; the phrase "not commencing the demolition work on the building" in the proviso to that paragraph is deemed to be replaced with "there having been no transfer of rights to the land, etc."; the phrase "the commencement of demolition work on the building" in Article 63, paragraph (8) is deemed to be replaced with "the transfer of rights to the land, etc.", and the phrase "demolition work on the building has not commenced" in that paragraph is deemed to be replaced with "there has been no transfer of rights to the land, etc."; the phrase "implement the reconstruction" in Article 64 is deemed to be replaced with "implement the sale"; and the term "rebuilding" in paragraph (5) of the preceding Article is deemed to be replaced with "sale".

Notwithstanding the provisions of the main clause of Article 256, paragraph (1) of the Civil Code (including as applied mutatis mutandis pursuant to Article 264 of that Code), the co-owners of the grounds, etc. pertaining to a destroyed building with exclusively-owned areas (excluding one that was demolished based on a resolution to demolish or the consent of all the unit owners) may not request partition of the land related to the co-ownership interest in the grounds, etc. or rights related to it during the period from the day following the day on which one month has elapsed, counting from the day of the destruction, until the day on which five years have elapsed, counting from the day of the destruction; provided, however, that this does not apply if co-owners of the grounds, etc. who hold more than one-fifth of the voting rights request partition, or if there are any other obvious grounds for finding that a resolution to rebuild, a resolution to sell the grounds, a resolution under Article 84, paragraph (1), or a resolution under Article 85, paragraph (1) cannot be adopted.

If a building with exclusively-owned areas has been demolished based on a resolution to demolish or the consent of all the unit owners, the co-owners of the grounds, etc. pertaining to that building with exclusively-owned areas may not, notwithstanding the provisions of the main clause of Article 256, paragraph (1) of the Civil Code (including as applied mutatis mutandis pursuant to Article 264 of that Code), request partition of the land related to the co-ownership interest in the grounds, etc. or rights related to it until the day on which five years have elapsed, counting from the day of the destruction resulting from the demolition. In such a case, the provisions of the proviso to the preceding paragraph apply mutatis mutandis.

Section 2 Measures in the Case Where a Building Located in a Housing Complex Has Been Destroyed

If all or some of the buildings in a housing complex are buildings with exclusively-owned areas, and the land or attached facilities located in the housing complex (including rights related to them) are co-owned by the owners of those buildings in the housing complex (or the unit owners, for buildings with exclusively-owned areas), and all or some of the buildings located in the housing complex have been destroyed, the owners of buildings in a housing complex of those buildings in the housing complex, the co-owners of the grounds, etc., and the persons who hold rights related to the grounds of a building or attached facilities that were held for owning a building, other than a building with exclusively-owned areas, that has been destroyed (hereinafter referred to as the "owners of buildings in a housing complex, etc.") may hold meetings, establish bylaws, and assign a manager pursuant to the provisions of this Act, until the day on which five years have elapsed, counting from the day of the destruction.

If a person who convenes a meeting held by owners of buildings in a housing complex, etc. (hereinafter referred to as a "meeting of owners of buildings in a housing complex, etc.") cannot ascertain the whereabouts of an owner of buildings in a housing complex, etc. (excluding one who has notified the place where they are to receive notices pursuant to the provisions of Article 35, paragraph (3) as applied mutatis mutandis pursuant to the preceding Article), the notice under Article 35, paragraph (1) as applied mutatis mutandis pursuant to the preceding Article may be given by posting it somewhere conspicuous within the housing complex.

In the case referred to in the preceding paragraph, the notice is deemed to have arrived at the time when it was posted pursuant to the provisions of that paragraph; provided, however, that if the person who convenes the meeting of owners of buildings in a housing complex, etc. was negligent in not knowing the whereabouts of that owner of buildings in a housing complex, etc., the notice does not have the effect of arrival.

In the case prescribed in Article 78, if the land on which a specific building among the destroyed buildings (hereinafter referred to as a "specific destroyed building" in this Article and Article 83) was located (including rights related to that land) is co-owned by the owners of buildings in a housing complex, etc. of the relevant buildings in the housing complex (including destroyed buildings; the same applies hereinafter), and, where the requirements specified in the following items for the categories of cases set forth in those items are satisfied, a resolution of approval (hereinafter referred to as a "resolution to approve rebuilding" in this Article) has been obtained by at least a three-fourths majority of the voting rights of the owners of buildings in a housing complex, etc. present at a meeting of owners of buildings in a housing complex, etc. consisting of the owners of buildings in a housing complex, etc. of the relevant buildings in the housing complex who are co-owners of that land (including rights related to it), at which owners of buildings in a housing complex, etc. who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws referred to in Article 30, paragraph (1) as applied mutatis mutandis pursuant to Article 79, at least that proportion) are present, the owners of buildings in a housing complex, etc. of that specific destroyed building may newly construct a building on that land or on land located in the housing complex that is managed or used together with that land (limited to land co-owned by the owners of buildings in a housing complex, etc. of the relevant buildings in the housing complex).

if the specific destroyed building was a building with exclusively-owned areas:a resolution to rebuild has been adopted for the specific destroyed building or the consent of all of the co-owners of the grounds, etc. of that specific destroyed building has been obtained; or

if the specific destroyed building was a building other than a building with exclusively-owned areas:the consent of the persons who hold rights related to the grounds of the building that were held for owning that specific destroyed building has been obtained.

Notwithstanding the provisions of Article 38 as applied mutatis mutandis pursuant to Article 79, the voting rights of each owner of buildings in a housing complex, etc. at the meeting of owners of buildings in a housing complex, etc. referred to in the preceding paragraph are to be in proportion to the value of the share in the land on which the specific destroyed building was located (including rights related to that land), even if it is otherwise provided for in the bylaws referred to in Article 30, paragraph (1) as applied mutatis mutandis pursuant to Article 79.

The owners of buildings in a housing complex, etc. of the specific destroyed building for which the requirements specified in the items of paragraph (1) are satisfied are deemed to have exercised voting rights in favor of the resolution to approve rebuilding; provided, however, that this does not apply to the exercise of voting rights held by the co-owners of the grounds, etc. pertaining to the specific destroyed building based on the right to use the grounds of, or the co-ownership interest in the grounds, etc. pertaining to, a building other than the specific destroyed building from among the buildings in the housing complex, in the case set forth in item (i) of that paragraph.

Notwithstanding the provisions of Article 35, paragraph (1) as applied mutatis mutandis pursuant to Article 79, when convening a meeting of owners of buildings in a housing complex, etc. referred to in paragraph (1), the notice under that paragraph must indicate an outline of the design of the building that is to be newly constructed (including the place in the housing complex where the building is to be located) in addition to the subject matter of the meeting and the outline of the proposal, and be sent at least two months prior to the date of that meeting of owners of buildings in a housing complex, etc.

In the case referred to in paragraph (1), if the rebuilding under a resolution to approve rebuilding will have a particular influence on the reconstruction or rebuilding of a building other than the specific destroyed building (including a destroyed building; hereinafter referred to as "the other building" in this paragraph), the rebuilding of the specific destroyed building may only be carried out if the persons specified in the relevant of the following items for the case set forth in that item are in favor of that resolution to approve rebuilding:

if the other building is a building with exclusively-owned areas:unit owners who hold at least three-fourths of the voting rights of all of the other building's unit owners at the meeting of owners of buildings in a housing complex, etc. referred to in paragraph (1);

if the other building is a destroyed building that was a building with exclusively-owned areas at the time of its destruction:co-owners of the grounds, etc. who hold at least three-fourths of the voting rights of all of the co-owners of the grounds, etc. pertaining to the other building at the meeting of owners of buildings in a housing complex, etc. referred to in paragraph (1);

if the other building is a building other than a building with exclusively-owned areas:the owner of the other building (excluding an owner who does not hold voting rights); or

if the other building is a destroyed building that was a building other than a building with exclusively-owned areas at the time of its destruction:the persons who hold rights related to the grounds of the building that were held for owning the other building (excluding those who do not hold voting rights).

In the case referred to in paragraph (1), if there are two or more specific destroyed buildings, the owners of buildings in a housing complex, etc. of those two or more specific destroyed buildings may, with the agreement of the owners of buildings in a housing complex, etc. of each specific destroyed building, bring the rebuilding of those two or more specific destroyed buildings collectively to a resolution to approve rebuilding.

In the case referred to in the preceding paragraph, if the specific destroyed buildings were buildings with exclusively-owned areas, a resolution to bring the rebuilding of those two or more specific destroyed buildings collectively to a resolution to approve rebuilding may be adopted, at a meeting of co-owners of the grounds, etc. for which the rebuilding of the specific destroyed buildings is the subject matter, by at least a four-fifths majority of the voting rights of the co-owners of the grounds, etc. pertaining to the specific destroyed buildings. In such a case, if the resolution is adopted, the agreement prescribed in that paragraph is deemed to have been reached by the owners of buildings in a housing complex, etc. of the specific destroyed buildings (limited to co-owners of the grounds, etc.).