Act on Building Unit Ownership

As members of the association prescribed in Article 3, unit owners must cooperate with one another so that the management of the building and its grounds and attached facilities (or, in the case referred to in the second sentence of that Article, the private common area) is carried out properly and smoothly.

Within the scope necessary to preserve or improve an exclusively-owned area or a common area, a unit owner may request to use the exclusively-owned area of another unit owner or to use a common area not under their ownership, or to preserve these areas themselves. In such a case, if another unit owner incurs damage, the requesting unit owner must pay them compensation.

If a unit owner does not have, or will cease to have, an address or residence in Japan (or, for a corporation, its head office or principal office; hereinafter the same applies in this paragraph and paragraph (3)), the unit owner may appoint an administrator from among persons who have an address or residence in Japan, to have the administrator perform the affairs concerning the management of the unit owner's exclusively-owned area and common areas.

An administrator appointed pursuant to the provisions of the preceding paragraph (referred to as a "domestic administrator" in the following paragraph and paragraph (4)) has the authority to perform the following acts:

an act of preservation;

an act for the purpose of using or improving the exclusively-owned area, to the extent that it does not change the nature of the exclusively-owned area;

receipt of a convocation notice for a meeting;

exercise of voting rights at a meeting; and

performance of obligations owed to other unit owners with regard to the common areas, the grounds of a building, or attached facilities of the building other than common areas, or of obligations owed to other unit owners based on the bylaws or a resolution at a meeting.

If a unit owner has appointed a domestic administrator pursuant to the provisions of paragraph (1), and there is a manager or an incorporated management association exists, the unit owner must notify the manager or the incorporated management association without delay of the fact that they have appointed a domestic administrator, and of the name and the address or residence of the domestic administrator.

Beyond what is prescribed in paragraph (2), the relationship between a unit owner and the domestic administrator is governed by the provisions on mandate.

Changes to a common area (excluding those that do not involve significant changes to the shape or function of the common area) are decided by a resolution ; the same applies in paragraph (5)) are decided at a meeting adopted by at leastwhich a three-fourths majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph and paragraph (3)) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights; provided, however, (or, if a higher proportion is specified in the bylaws, at least that this quorum of unit owners may be reduced proportion), are present, by resolution by at least a three-fourths majority (or, if a lower proportion (limited to a majority by proportion exceeding one-half) is specified in the bylaws, that proportion) each of the unit owners present and of their voting rights.

In the case of making changes to a common area by a resolution under paragraph (1), if there is a special provision in the bylaws, an act of preservation of an exclusively-owned area, or an act for the purpose of using or improving an exclusively-owned area to the extent that it does not change the nature of the exclusively-owned area, that becomes necessary in connection with the changes to the common area (referred to as an "act of preservation of an exclusively-owned area, etc." in the following paragraph and paragraph (4) of the following Article) may be decided at a meeting at which a majority of the unit owners (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by resolution by at least a three-fourths majority (or, if a lower proportion (limited to a proportion exceeding one-half) is specified in the bylaws, that proportion) each of the unit owners present and of their voting rights.

When adopting a resolution referred to in the preceding paragraph, if matters concerning the manner of the act of preservation of an exclusively-owned area, etc. or the sharing of expenses are to be specified, equity in the interests among unit owners must be ensured by taking into consideration the status of use of the exclusively-owned area subject to the resolution by its unit owner, the price paid by the unit owner for the act of preservation of an exclusively-owned area, etc. concerning that exclusively-owned area, and any other circumstances.

For the purpose of applying the provisions of paragraph (1) and paragraph (3) to changes to a common area that become necessary for removing a defect in the installation or preservation of the common area in the case where the rights or legally protected interests of others are infringed or are likely to be infringed due to the defect, or to changes to a common area that become necessary in order to improve the convenience and safety of the movement of, or the use of facilities by, elderly persons, disabled persons, etc. (meaning elderly persons, disabled persons, etc. as prescribed in Article 2, item (i) of the Act on Promotion of Smooth Transportation, etc. of Elderly Persons, Disabled Persons, etc. (Act No. 91 of 2006)) by reducing the physical burden relating to their movement or their use of facilities, the term "three-fourths" in those provisions is deemed to be replaced with "two-thirds".

Entering into a non-life insurance contract forIn the case of managing a common area is deemed to be a matter by a resolution under the main clause of paragraph (1), if there is a special provision in the bylaws, an act of preservation of an exclusively-owned area, etc. that concerns becomes necessary in connection with the management of the common areasarea may be decided by a resolution at a meeting.

The provisions of paragraph (4) of the preceding Article apply mutatis mutandis to a resolution referred to in the preceding paragraph.

Entering into a non-life insurance contract for a common area is deemed to be a matter that concerns the management of the common areas.

The manager has the right and the obligation to preserve the common areas and to preserve the building's grounds of the building and its attached facilities in the case prescribed in Article 21 (each of these is referred to as a "common area or co-owned grounds or attached facilities" in the following paragraph and Article 47, paragraph (6)), to implement meeting resolutions, and to engage in the acts specified in the bylaws.

The manager acts as the agent of the unit owners inIn connection with their duties. The same applies to (including claims for and the receipt of insurance money based on a non-life insurance contract under the provisions of Article 18, paragraph (46) (including as applied mutatis mutandis pursuant to Article 21), as well as compensation for damages arising in connection with a common area or co-owned grounds or attached facilities and monies to be returned due to unjust enrichment (hereinafter referred to as "insurance money, etc." in this Article and Article 47); the same applies in paragraph (4)), the manager acts as the agent of the unit owners (or, with regard to claims for and the receipt of insurance money, etc., of the persons who hold the right to claim insurance money, etc. (limited to unit owners or persons who were unit owners (excluding persons who were unit owners and who have manifested an intention to the contrary in writing or by electronic or magnetic means (meaning the means of using an electronic data processing system or of making use of information and communications technology that is specified by Ministry of Justice Order; the same applies hereinafter))); hereinafter the same applies in this Article and Article 47); the same applies in that paragraph).

Pursuant to the provisions of the bylaws or meeting resolutions, the manager may be named as plaintiff or defendant for a unit owner, in connection with their duties (including the matters prescribed in the second sentence of paragraph (2)).

IfIn the manager has been named as plaintiff or defendant pursuant tocases set forth in the following items, the bylaws under the preceding paragraph, they must notifymanager must notify the persons specified in the unit ownersrespective items of this without delay. In such a case, the provisions of Article 35, paragraphs (2) through (4) apply mutatis mutandis to the notice to unit owners.

if the manager has been named as plaintiff or defendant in connection with their duties pursuant to the bylaws under the preceding paragraph: the unit owners;

if the manager has been named as plaintiff or defendant in connection with claims for and the receipt of insurance money, etc. pursuant to the bylaws under the preceding paragraph: the persons who hold the right to claim insurance money, etc.; and

if the manager has been named as plaintiff or defendant in connection with claims for and the receipt of insurance money, etc. pursuant to a meeting resolution under the preceding paragraph: the persons who hold the right to claim insurance money, etc. (excluding unit owners).

The establishment, amendment, or repeal of the bylaws is effected by a resolution at a meeting adopted at which a majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in the first sentence of this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by at least a three-fourths majority of the unit owners present and of the voting rightsa three-fourths majority of their votes. In such a case, if the establishment, amendment, or repeal of the bylaws will have a special influence on the rights of some unit owners, their approval must be obtained.

The establishment, amendment, or repeal of the bylaws of all the unit owners concerning a matter prescribed in paragraph (2) of the preceding Article may not be effected if more than one-fourth of the unit owners who should have common use of the private common area, (excluding those who do not hold voting rights) or persons who hold more than one-fourth of those unit owners'the voting rights, connected with the private common area oppose itthe establishment, amendment, or repeal.

The place where If the bylaws have been prepared in the form of electronic or magnetic records, the person who retains the bylaws are retained must be posted somewhere conspicuous within pursuant to the provisions of paragraph (1) may, in lieu of allowing the buildinginspection under the preceding paragraph of the content of the data recorded in the electronic or magnetic records displayed in a means specified by Ministry of Justice Order, provide the data recorded in the electronic or magnetic records by electronic or magnetic means with the consent of the interested party who made the request under that paragraph, pursuant to the provisions of Ministry of Justice Order. In such a case, the person who retains the bylaws is deemed to have allowed the inspection under that paragraph.

The place where the bylaws are retained must be posted somewhere conspicuous within the building.

One-fifth or more of the unit owners (excluding those who do not hold voting rights; the same applies in paragraph (5)) who hold at least one-fifth of all of the voting rights may request that the manager conveneindicate a subject matter for a meeting, indicating the subject matter of the meeting and request that the manager convene one; provided, however, that this quorum may be reduced by the bylaws.

If there is no manager, persons who constitute one-fifth or more of the unit owners and who hold at least one-fifth of all the voting rights may convene a meeting; provided, however, that this quorum may be reduced by the bylaws.

The convocation notice for a meeting must indicate the subject matter of the meeting and the outline of the proposal and be sent to each unit owner (excluding those who do not hold voting rights) at least one week prior to the date of the meeting; provided, however, that this period may be extended or shortened by the bylaws.

If all of the unit owners (excluding those who do not hold voting rights) have given their consent, a meeting may be held without going through convocation procedures.

If a unit owner cannot be identified or the whereabouts of a unit owner cannot be ascertained, the court may, at the request of the unit owners other than that unit owner (referred to as an "unknown or missing unit owner" in the following paragraph) (hereinafter referred to as "general unit owners" in this paragraph and paragraph (3)) or of the manager, make a judicial decision to the effect that a resolution at a meeting may be adopted by the general unit owners.

Notwithstanding the provisions of the preceding Article, a person who has been found to be an unknown or missing unit owner by the judicial decision referred to in the preceding paragraph does not hold voting rights at a meeting (or, if the building to which that judicial decision pertains has been destroyed, voting rights at a meeting held by the persons who hold the right to use the grounds pertaining to that building or who hold a share of co-ownership in the attached facilities of the building (including rights related to them)).

If the judicial decision referred to in paragraph (1) has been made at the request of general unit owners, those general unit owners must notify the manager of this without delay; provided, however, that if there is no manager, they must post a notice to that effect somewhere conspicuous within the building.

The proceedings of a meeting areA meeting's decisions are to be decided by a majority of the unit owners and of the present (excluding those who do not hold voting rights) and with a majority of their votes, except as otherwise provided for in this Act or in the bylaws.

Voting rights may also be exercised in writing or through an agent. In such a case, the number of unit owners who have exercised their voting rights in writing or through an agent is included in the number of unit owners present, and the number of those voting rights is included in the number of voting rights of the unit owners present.

Pursuant to the bylaws or a meeting resolution at a meeting, a unit owner may exercise their voting rights by electronic or magnetic means (meaning the meansin lieu of using an electronic data processing system or of making usethe exercise of voting rights in writing under the provisions of information and communications technology that is specified by Ministrythe preceding paragraph. In such a case, the provisions of Justice Order; the same applies hereinafter) in lieu of exercising their the second sentence of that paragraph apply by deeming the exercise of voting rights in writing under by electronic or magnetic means to be the provisionsexercise of the preceding paragraphvoting rights in writing.

If an exclusively-owned area is under the co-ownership ofco-owned by multiple persons, the co-owners must decide upon one person who is towill exercise thetheir voting rights, by a majority in accordance with the value of the share of each co-owner.

In the case prescribed in the preceding paragraph, the person convening who convened the meeting must, without delay after sending post the convocation notice pursuant to the provisionsdate and place of Article 35, post the meeting, the date and time, placesubject matter of the meeting, and subject matterthe outline of the meetingproposal somewhere conspicuous within the building without delay after sending the convocation notice pursuant to the provisions of Article 35.

If a resolution is required to be voted on at a meeting pursuant to the provisions of this Act or the bylaws and if all of the unit owners (excluding those who do not hold voting rights; the same applies in the following paragraph) consent, the resolution may be voted on either in writing or by electronic or magnetic means; provided, however, that the consent of the unit owners concerning a resolution voted on by electronic or magnetic means must be obtained pursuant to the provisions of Ministry of Justice Order.

If a unit owner of an exclusively-owned area cannot be identified or their whereabouts cannot be ascertained (or, if the exclusively-owned area is under the co-ownership of multiple persons, with regard to a share of co-ownership in the exclusively-owned area whose co-owner cannot be identified or whose co-owner's whereabouts cannot be ascertained), the court may, if it finds it necessary, at the request of an interested person, issue a disposition ordering management by an administrator of an exclusively-owned area with an unknown owner (meaning the administrator of an exclusively-owned area with an unknown owner prescribed in paragraph (4); the same applies in paragraph (3)), covering the exclusively-owned area or the share of co-ownership to which the request pertains (hereinafter referred to as an "order for management of an exclusively-owned area with an unknown owner").

The effect of an order for management of an exclusively-owned area with an unknown owner extends to movables located in the exclusively-owned area subject to that order for management of an exclusively-owned area with an unknown owner (or, if the order for management of an exclusively-owned area with an unknown owner was issued with a share of co-ownership as its subject, the exclusively-owned area that is the co-owned property) or in a common area, attached facilities, or the grounds of the building (limited to movables owned by the unit owner of the exclusively-owned area subject to that order for management of an exclusively-owned area with an unknown owner or by the person who holds the share of co-ownership), and to rights related to the common areas and attached facilities and to the right to use the grounds (in both cases, limited to those held by the unit owner of the exclusively-owned area subject to that order for management of an exclusively-owned area with an unknown owner or by the person who holds the share of co-ownership).

An order for management of an exclusively-owned area with an unknown owner may also be issued, in the case where an order for management of an exclusively-owned area with an unknown owner has been issued and that order for management of an exclusively-owned area with an unknown owner has subsequently been rescinded, if it is found necessary with regard to the property obtained by the administrator of an exclusively-owned area with an unknown owner through the management or disposition of, or any other cause relating to, the exclusively-owned area or share of co-ownership covered by that order for management of an exclusively-owned area with an unknown owner, the movables on which that order for management of an exclusively-owned area with an unknown owner has effect, rights related to the common areas and the attached facilities, and the right to use the grounds.

When issuing an order for management of an exclusively-owned area with an unknown owner, the court must appoint an administrator of an exclusively-owned area with an unknown owner in that order for management of an exclusively-owned area with an unknown owner.

If an administrator of an exclusively-owned area with an unknown owner has been appointed pursuant to the provisions of paragraph (4) of the preceding Article, the right to manage and dispose of the exclusively-owned area or share of co-ownership covered by the order for management of an exclusively-owned area with an unknown owner, the movables on which the order for management of an exclusively-owned area with an unknown owner has effect, rights related to the common areas and the attached facilities, the right to use the grounds, and the property obtained by the administrator of an exclusively-owned area with an unknown owner through the management or disposition of, or any other cause relating to, these (hereinafter referred to as the "exclusively-owned area, etc. with an unknown owner") is vested exclusively in the administrator of an exclusively-owned area with an unknown owner.

In order to perform an act exceeding the scope of the following acts, the administrator of an exclusively-owned area with an unknown owner must obtain the permission of the court; provided, however, that the lack of this permission may not be asserted against a third party acting in good faith:

an act of preservation; and

an act for the purpose of using or improving the exclusively-owned area, etc. with an unknown owner, to the extent that it does not change its nature.

If an order for management of an exclusively-owned area with an unknown owner has been issued, the administrator of an exclusively-owned area with an unknown owner is to be the plaintiff or defendant in an action concerning the exclusively-owned area, etc. with an unknown owner.

If an order for management of an exclusively-owned area with an unknown owner has been issued, litigation proceedings concerning the exclusively-owned area, etc. with an unknown owner to which the owner of that exclusively-owned area, etc. with an unknown owner (including a person who holds a share of co-ownership in it; the same applies in paragraph (5)) is a party are interrupted.

The administrator of an exclusively-owned area with an unknown owner may take over the litigation proceedings interrupted pursuant to the provisions of the preceding paragraph. In such a case, a petition for the taking over of the proceedings may also be filed by the other party.

If an order for management of an exclusively-owned area with an unknown owner has been rescinded, litigation proceedings concerning the exclusively-owned area, etc. with an unknown owner to which the administrator of an exclusively-owned area with an unknown owner is a party are interrupted.

The owner of the exclusively-owned area, etc. with an unknown owner must take over the litigation proceedings interrupted pursuant to the provisions of the preceding paragraph. In such a case, a petition for the taking over of the proceedings may also be filed by the other party.

The administrator of an exclusively-owned area with an unknown owner must exercise their authority with the due care of a prudent manager for the benefit of the owner of the exclusively-owned area, etc. with an unknown owner (including a person who holds a share of co-ownership in it).

If an order for management of an exclusively-owned area with an unknown owner has been issued covering the shares of co-ownership of multiple persons, the administrator of an exclusively-owned area with an unknown owner must exercise their authority in good faith and impartially for the benefit of all of the persons who hold the shares of co-ownership covered by that order for management of an exclusively-owned area with an unknown owner.

If the administrator of an exclusively-owned area with an unknown owner has caused significant damage to the exclusively-owned area, etc. with an unknown owner in breach of their duties, or if there are any other material grounds, the court may dismiss the administrator of an exclusively-owned area with an unknown owner at the request of an interested person.

The administrator of an exclusively-owned area with an unknown owner may resign with the permission of the court if there are legitimate grounds.

The administrator of an exclusively-owned area with an unknown owner may receive, from the exclusively-owned area, etc. with an unknown owner, advance payment of expenses and remuneration in the amount determined by the court.

Expenses and remuneration necessary for the management of the exclusively-owned area, etc. with an unknown owner by the administrator of an exclusively-owned area with an unknown owner are borne by the owner of the exclusively-owned area, etc. with an unknown owner (including a person who holds a share of co-ownership in it).

If the rights or legally protected interests of others are infringed or are likely to be infringed as a result of the inappropriate management of an exclusively-owned area by its unit owner, the court may, if it finds it necessary, at the request of an interested person, issue a disposition ordering management by the administrator of a poorly managed exclusively-owned area prescribed in paragraph (3), covering that exclusively-owned area (hereinafter referred to as an "order for management of a poorly managed exclusively-owned area").

The effect of an order for management of a poorly managed exclusively-owned area extends to movables located in the exclusively-owned area subject to that order for management of a poorly managed exclusively-owned area or in a common area, attached facilities, or the grounds of the building (limited to movables owned by the unit owner of the exclusively-owned area subject to that order for management of a poorly managed exclusively-owned area or by a person who holds a share of co-ownership in it), and to rights related to the common areas and attached facilities and to the right to use the grounds (in both cases, limited to those held by the unit owner of the exclusively-owned area subject to that order for management of a poorly managed exclusively-owned area or by a person who holds a share of co-ownership in it).

When issuing an order for management of a poorly managed exclusively-owned area, the court must appoint an administrator of a poorly managed exclusively-owned area in that order for management of a poorly managed exclusively-owned area.

The administrator of a poorly managed exclusively-owned area has the authority to manage and dispose of the exclusively-owned area covered by the order for management of a poorly managed exclusively-owned area, the movables on which the order for management of a poorly managed exclusively-owned area has effect, rights related to the common areas and the attached facilities, the right to use the grounds, and the property obtained by the administrator of a poorly managed exclusively-owned area through the management or disposition of, or any other cause relating to, these (hereinafter referred to as the "poorly managed exclusively-owned area, etc.").

Notwithstanding the provisions of the preceding paragraph, the administrator of a poorly managed exclusively-owned area may not exercise voting rights at a meeting.

In order to perform an act exceeding the scope of the following acts, the administrator of a poorly managed exclusively-owned area must obtain the permission of the court; provided, however, that the lack of this permission may not be asserted against a third party acting in good faith and without negligence:

an act of preservation; and

an act for the purpose of using or improving the poorly managed exclusively-owned area, etc., to the extent that it does not change its nature.

The permission referred to in the preceding paragraph for the disposition of the exclusively-owned area covered by an order for management of a poorly managed exclusively-owned area may not be granted without the consent of its unit owner.

The administrator of a poorly managed exclusively-owned area must exercise their authority with the due care of a prudent manager for the benefit of the owner of the poorly managed exclusively-owned area, etc.

If the poorly managed exclusively-owned area, etc. is under the co-ownership of multiple persons, the administrator of a poorly managed exclusively-owned area must exercise their authority in good faith and impartially for the benefit of all of the persons who hold the shares of co-ownership in it.

If the administrator of a poorly managed exclusively-owned area has caused significant damage to the poorly managed exclusively-owned area, etc. in breach of their duties, or if there are any other material grounds, the court may dismiss the administrator of a poorly managed exclusively-owned area at the request of an interested person.

The administrator of a poorly managed exclusively-owned area may resign with the permission of the court if there are legitimate grounds.

The administrator of a poorly managed exclusively-owned area may receive, from the poorly managed exclusively-owned area, etc., advance payment of expenses and remuneration in the amount determined by the court.

Expenses and remuneration necessary for the management of the poorly managed exclusively-owned area, etc. by the administrator of a poorly managed exclusively-owned area are borne by the owner of the poorly managed exclusively-owned area, etc.

If the rights or legally protected interests of others are infringed or are likely to be infringed as a result of the inappropriate management of a common area by the unit owners, the court may, if it finds it necessary, at the request of an interested person, issue a disposition ordering management by the administrator of a poorly managed common area prescribed in paragraph (3), covering that common area (hereinafter referred to as an "order for management of a poorly managed common area").

The effect of an order for management of a poorly managed common area extends to movables located in the common area subject to that order for management of a poorly managed common area (limited to movables owned by the owner of the common area subject to that order for management of a poorly managed common area or by a person who holds a share of co-ownership in it).

When issuing an order for management of a poorly managed common area, the court must appoint an administrator of a poorly managed common area in that order for management of a poorly managed common area.

The provisions of Articles 46-9 through 46-12 apply mutatis mutandis to an order for management of a poorly managed common area and an administrator of a poorly managed common area. In such a case, the term "poorly managed exclusively-owned area, etc." in those provisions is deemed to be replaced with "poorly managed common area, etc."; the term "exclusively-owned area" in Article 46-9, paragraph (1) is deemed to be replaced with "common area", and the phrase "movables on which the order has effect, rights related to the common areas and the attached facilities, the right to use the grounds" in that paragraph is deemed to be replaced with "movables on which the order has effect"; the term "exclusively-owned area" in paragraph (4) of that Article is deemed to be replaced with "common area", and the term "unit owner" in that paragraph is deemed to be replaced with "owner"; and the phrase "are borne by the owner of" in Article 46-12, paragraph (2) is deemed to be replaced with "are jointly and severally borne by the persons who co-own".

The association prescribed in Article 3 becomes a corporation by deciding, through a resolution at that it is to become a corporation and its name and office through a meeting resolution adopted by at a meeting at leastwhich a three-fourths majority of the unit owners and (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights, that it (or, if a higher proportion is to become a corporation and its name specified in the bylaws, at least that proportion), are present, by at least a three-fourths majority each of the unit owners present and officeof their voting rights, and by completingmaking a registration in the locality of its principal office.

An incorporated management association acts as the agent of the unit owners in connection(or, with its administrative affairs. The same appliesregard to claims for and the receipt of insurance money based on a non-life insurance contract under the provisions of Article 18, paragraph (4) (including as applied mutatis mutandis pursuant, etc., of the persons who hold the right to Article 21), as well as compensation for damages arisingclaim insurance money, etc.; the same applies in that paragraph) in connection with a common area or co-owned grounds or attached facilities and monies to be returned due to unjust enrichmentits administrative affairs (including claims for and the receipt of insurance money, etc.; the same applies in paragraph (8)).

Pursuant to the provisions of the bylaws or meeting resolutions, an incorporated management association may be named as plaintiff or defendant for a unit owner, in connection with its administrative affairs (including the matters prescribed in the second sentence of paragraph (6)).

If an incorporated management association has been named as plaintiff or defendant pursuant to the bylaws underIn the cases set forth in the following items, the incorporated management association must notify the preceding paragraph, it must notifypersons specified in the unit ownersrespective items of this without delay. In such a case, the provisions of Article 35, paragraphs (2) through (4) apply mutatis mutandis to the notice to unit owners.

if the incorporated management association has been named as plaintiff or defendant in connection with its administrative affairs pursuant to the bylaws under the preceding paragraph: the unit owners;

if the incorporated management association has been named as plaintiff or defendant in connection with claims for and the receipt of insurance money, etc. pursuant to the bylaws under the preceding paragraph: the persons who hold the right to claim insurance money, etc.; and

if the incorporated management association has been named as plaintiff or defendant in connection with claims for and the receipt of insurance money, etc. pursuant to a meeting resolution under the preceding paragraph: the persons who hold the right to claim insurance money, etc. (excluding unit owners).

WhenFor the purpose of applying the provisions of the main clause of Article 33, paragraph (1) (including as applied mutatis mutandis pursuant to Article 42, paragraph (5) and Article 45, paragraph (4); hereinafter the same applies in this paragraph) apply to , Article 34, paragraphs (1) through (3) and paragraph (5), Article 35, paragraph (3), Article 38-2, paragraphs (1) and (3), Article 41, and Article 43 in the case where an incorporated management association exists, the phrase "by the term "manager" in those provisions (excluding the main clause of Article 33, paragraph (1) and Article 38-2, paragraph (1)) is deemed to be replaced with "by the director at", the office ofterm "by the incorporated management association", and whenmanager" in the provisions main clause of Article 34, paragraphs33, paragraph (1) through (3) and paragraph (5), Article 35, paragraph (3), Article 41, and Article 43 apply to it, is deemed to be replaced with "by the director at the office of an incorporated management association", and the term "manager" in those provisions Article 38-2, paragraph (1) is deemed to be replaced with "directorincorporated management association".

If it is necessary in order to manage the building and its grounds and attached facilities, an incorporated management association may acquire the unit ownership of that building, or land that should be managed or used together with that building and the land on which that building is located, by a resolution adopted at a meeting at which a majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by at least a three-fourths majority each of the unit owners present and of their voting rights.

Even if an incorporated management association has acquired unit ownership pursuant to the provisions of the preceding paragraph, it does not hold voting rights at a meeting of that incorporated management association, notwithstanding the provisions of Article 38.

The resolution referred to in item (iii) of the preceding paragraph is adopted at a meeting at which a majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by at least a three-fourths majority each of the unit owners present and of thetheir voting rights.

TheA resolution referred to in the preceding paragraph is adopted at a meeting at which a majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by at least a three-fourths majority each of the unit owners present and of thetheir voting rights.

If a part of a building equivalent to one-half or lessup to half of the value of the buildingbuilding's value has been destroyed, each unit owner may restore the destroyed common areas and their own exclusively-owned area that have been destroyed; provided, however, that this does not apply to the common areas if athe resolution referred to in paragraph (3), paragraph (1) of the following Article, or Article 64-5, paragraph (1), Article 7064-6, paragraph (1), Article 64-7, paragraph (1), Article 64-8, paragraph (1), Article 70, paragraph (1), Article 71, paragraph (1), or Article 84, paragraph (1) has been adopted before the commencement of restoration work.

Except in the casecases prescribed in the main clause of paragraph (1), if a part of a building has been destroyed, a resolution to restore the destroyed common areas may be adopted at a meeting at which a majority of the unit owners (excluding those who do not hold voting rights; hereinafter the same applies in this paragraph) (or, if a higher proportion is specified in the bylaws, at least that proportion), who hold a majority of the voting rights (or, if a higher proportion is specified in the bylaws, at least that proportion), are present, by at least a three-fourthstwo-thirds majority each of the unit owners present and of thetheir voting rights.

In the case prescribed in paragraph (5), if a resolution under that paragraph, paragraph (1) of the following Article, or Article 64-5, paragraph (1), Article 64-6, paragraph (1), Article 64-7, paragraph (1), Article 64-8, paragraph (1), Article 70, paragraph (1) , Article 71, paragraph (1), or Article 84, paragraph (1) has not been adopted within six months fromafter the day on whichof the part partial destruction of the building was destroyed, each unit owner may request that the other unit owners purchase the building and the rights to its grounds at their market value.

A resolution to demolish a building and construct a new building on the grounds of thatthe building being demolished or on part of thatits land, or on land that includes all or part of the grounds of thatthe building being demolished (hereinafter this is referred to as a "resolution to reconstruct"), may be adopted at a meeting by at least a four-fifths majority of the unit owners and of the (excluding those who do not hold voting rights) and at least a four-fifths majority of the votes.

A resolution to reconstruct must establish For the purpose of applying the provisions of the preceding paragraph in the case where the building falls under any of the following mattersitems, the term "four-fifths" in that paragraph is deemed to be replaced with "three-fourths":

an outline of the design of if the building does not conform to the building that is to be newly constructed (hereinafter referred standards specified by the Minister of Justice as being equivalent to as the provisions of the "reconstructed building" in this paragraph)Building Standards Act (Act No. 201 of 1950), or of orders or ordinances based on it, concerning safety against earthquakes;

if the estimated amount of expenses necessary for building does not conform to the standards specified by the demolitionMinister of the building and Justice as being equivalent to the constructionprovisions of the reconstructed buildingBuilding Standards Act, or of orders or ordinances based on it, concerning safety against fire;

matters concerning if the building falls under the sharing standards specified by the Minister of expenses prescribed in Justice as those under which there is a risk of harm being caused to the preceding item; surroundings by exterior walls, exterior materials, or other similar parts of the building peeling off and falling;

matters concerning if the building falls under the attribution of standards specified by the unit ownership Minister of Justice as those under which there is a risk that damage, corrosion, or other deterioration of the reconstructed water supply, drainage, or other piping facilities (limited to those specified by Ministry of Justice Order as facilities on which it is extremely difficult to carry out renovation work) will make the building. seriously harmful from a sanitary standpoint; or

if the building does not conform to the standards specified by the Minister of Justice as being equivalent to the building accessibility standards prescribed in Article 14, paragraph (5) of the Act on Promotion of Smooth Transportation, etc. of Elderly Persons, Disabled Persons, etc.

The matters referred to in item (iii) and item (iv) When establishing or changing the standards referred to in the items of the preceding paragraph must be established in a manner that does not undermine, the Minister of Justice is to consult with the equityMinister of each unit ownerLand, Infrastructure, Transport and Tourism in advance.

Notwithstanding the provisions of Article 35, paragraph (1), if a meeting whose subject matter is a matter for aA resolution provided for in paragraph (1) is convened, the notice under that paragraph must be sent at least two months prior to the date ofreconstruct must establish the meeting; provided, however, that this period may be extended by the bylaws.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 demolition of the building and 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.

In the case prescribedThe matters referred to in the preceding paragraph, when giving the notice under Article 35, paragraph (1), notice item (iii) and item (iv) of the following matterspreceding paragraph must also be given,established in addition to the outline of the proposal prescribed in paragraph (5)a manner that does not undermine the equity of that Article:each unit owner.

A person who has convened a meeting referred to inNotwithstanding the provisions of Article 35, paragraph (4) must hold an explanatory1), if a meeting to explain to the unit owners the matters of which notice is required to be given when convening the meeting,whose subject matter is a resolution to reconstruct is convened, the notice under Article 35, paragraph (1) must be sent at least one monthtwo months prior to the date of the meeting; provided, however that this period may be extended by the bylaws.

The provisions of Article 35, paragraphs (1) through (4) and Article 36 apply mutatis mutandis to the holding ofIn the case prescribed in the preceding paragraph, when a person gives the explanatory meetingnotice referred to in the precedingArticle 35, paragraph. In such a case, the phrase "extended or shortened" (1), they must give notice of the following matters, in the provisoaddition to Article 35, paragraph (1) is deemed to be replaced with "extended".the subject matter of the meeting and the outline of the proposal:

the reasons that necessitate the reconstruction of the building;

if it has been decided that the building will not be reconstructed, the amount of expenses necessary to maintain or recover the utility of the building (including securing the utility that a building normally should have), and the breakdown of the expenses;

if a plan for repairing the building has been established, the content of the plan; and

the amount of reserve funds reserved for the repair of the building.

The provisions of A person who has convened a meeting referred to in paragraph (6) of the preceding Article apply mutatis mutandismust hold an explanatory meeting to explain to the minutes unit owners the matters of which the person is required to notify them when convening a meeting that has adopted a resolution , by at least one month prior to reconstructthe date of the meeting.

The provisions of Article 35 and Article 36 apply mutatis mutandis to the holding of an explanatory meeting referred to in the preceding paragraph.

The provisions of paragraph (6) of the preceding Article apply mutatis mutandis to the minutes of a meeting that has adopted a resolution to reconstruct.

If a resolution to reconstruct has been adopted, each unit owner who was in favor of the resolution to reconstruct or each unit owner who has answered that they will participate in the reconstruction in accordance with the content of the resolution to reconstruct (including the successors of those unit owners), or any person who has been designated as the person who may request the termination of a lease with the unanimous consent of those unit owners, or the unit owner of an exclusively-owned area that is leased, may request that the lessee of that exclusively-owned area terminate the lease.

If a request under the preceding paragraph has been made, the lease of that exclusively-owned area terminates when six months have elapsed from the day on which the request was made.

If a request under paragraph (1) has been made, the unit owner of that exclusively-owned area must pay the lessee of that exclusively-owned area (including a sublessee; the same applies in paragraph (5)) compensation for the loss that normally arises from the termination of the lease.

A person who has made a request under paragraph (1) (excluding the unit owner of that exclusively-owned area) is jointly and severally liable with the unit owner of that exclusively-owned area to perform the obligation referred to in the preceding paragraph.

Even if the lease of an exclusively-owned area has terminated pursuant to the provisions of paragraph (2), the lessee of that exclusively-owned area may refuse to vacate that exclusively-owned area until they are offered the compensation under the preceding two paragraphs.

The provisions of paragraphs (1) and (2) of the preceding Article apply mutatis mutandis to the case where an exclusively-owned area is the subject matter of a loan for use (excluding the case prescribed in Article 598, paragraph (1) or (2) of the Civil Code).

The provisions of Article 64-2 apply mutatis mutandis to the case where a spouse's right to reside has been established in an exclusively-owned area (excluding the case prescribed in the proviso to Article 1035, paragraph (1) of the Civil Code).

A resolution to the effect that the renewal of the building (meaning making changes to the shape of the common areas in order to maintain or recover the utility of the structurally principal parts of the building (including securing the utility that they normally should have) and, in connection with this, making changes to the shape, area, or positional relationships of all of the exclusively-owned areas; the same applies in the following paragraph) is to be carried out (referred to as a "resolution to renew the building" in that paragraph and paragraph (3)) may be adopted at a meeting by at least a four-fifths majority of the unit owners (excluding those who do not hold voting rights) and at least a four-fifths majority of the voting rights.

A resolution to renew the building must establish the following matters:

an outline of the design of the building after the renewal of the building;

the estimated amount of expenses necessary for the renewal of the building;

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

matters concerning the attribution of the unit ownership of the building after the renewal of the building.

The provisions of Article 62 (excluding paragraphs (1) and (4)) and Articles 63 through the preceding Article apply mutatis mutandis to a resolution to renew the building. In such a case, the phrase "the preceding paragraph" in Article 62, paragraph (2) is deemed to be replaced with "Article 64-5, paragraph (1)"; the phrase "item (iii) and item (iv) of the preceding paragraph" in paragraph (5) of that Article is deemed to be replaced with "Article 64-5, paragraph (2), item (iii) and item (iv)"; the phrase "reconstruction of the building" in paragraph (7), item (i) of that Article is deemed to be replaced with "renewal of the building (meaning the renewal of the building prescribed in Article 64-5, paragraph (1); the same applies hereinafter)"; the phrase "reconstruction of the building" in item (ii) of that paragraph is deemed to be replaced with "renewal of the building"; 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 renewal of the building"; the phrase "demolition work on the building" in Article 63, paragraphs (7) and (8) is deemed to be replaced with "work for the renewal of the building"; and the phrase "implement the reconstruction" in Article 64 is deemed to be replaced with "implement the renewal of the building".

If the right to use the grounds is ownership or any other right held by multiple persons, a resolution to the effect that the building and its grounds (including rights related to them) are to be sold (referred to as a "resolution to sell the building and its grounds" in the following paragraph and paragraph (3)) may be adopted at a meeting by at least a four-fifths majority of the unit owners (excluding those who do not hold voting rights), at least a four-fifths majority of the voting rights, and at least a four-fifths majority of the value of the shares in that right to use the grounds (excluding shares held by unit owners who do not hold voting rights).

A resolution to sell the building and its 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