Act on Building Unit Ownership

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.