Tokyo Rental Disclosures: Mandatory Information for Tenants

Unlike some markets where a lease is signed with a quick handshake, Japanese real estate law—primarily established by the Building Lots and Buildings Transaction Business Act (effective August 1952)—imposes an incredibly formal and heavy burden of disclosure on the landlord and their representatives (licensed brokers). The cornerstone of this system protects tenants by forcing the absolute disclosure of all physical, legal, and "psychological" defects of a property before any contract is signed or money changes hands.

The Article 35 Document (Important Matters Explanation)

Under Article 35 of the Building Lots and Buildings Transaction Business Act (Takken Gyo-ho), a leasing transaction cannot be finalized until a state-licensed Real Estate Transaction Agent—known as a Takken-shi—formally provides a written Explanation of Important Matters (Juyo Jiko Setsumeisho) and explains it orally to the tenant. The Takken-shi must show their official photo ID and explain, face-to-face (or via a highly regulated video call structure known as "IT Jusetu"), the intricacies of the property. This explanation must occur prior to the conclusion (signing) of the contract, ensuring the tenant understands the risks before committing to the lease agreement.

Mandatory Disclosure Categories:

1. Title and Rights: Does the landlord actually own the unit? Are there any massive mortgages or foreclosures pending?
2. Infrastructure: The state of the electricity, gas, water, and sewage connections.
3. Zoning and Structural Limits: The zoning type (e.g., Category 1 Residential) and any building restrictions.
4. Financial Terms: Explicit breakdowns of security deposits, Key money, cancellation penalties, and renewal fees.
5. Building Rules: Specifically in Tokyo condominiums, any strict HOA (Management Association) rules regarding pets, musical instruments, or garbage disposal must be detailed.
6. The Tokyo Rule: Under the Tokyo Metropolitan Ordinance on Residential Tenancy Prevention of Disputes, brokers must provide a separate written explanation detailing the basic rules for restoration (Genzai Kaifuku) and cost allocation (Landlord for natural wear; Tenant for negligence).

If a landlord or broker provides false information or fails to disclose a material fact, the tenant can legally rescind the contract under Article 4 of the Consumer Contract Act and seek restitution in the Tokyo District Court (or Summary Court for claims under ¥1.4 million).

The Tokyo Rule (Prevention of Disputes)

In addition to national requirements, the Tokyo Metropolitan Ordinance on Residential Tenancy Prevention of Disputes is a mandatory, separate written disclosure required for all residential rentals in Tokyo. Brokers must provide this explanation to clarify the "basic rules" for restoration (Genzai Kaifuku) and who bears the cost of wear and tear:

• Landlord's Responsibility: Costs for restoration due to natural wear and tear or the passage of time.
• Tenant's Responsibility: Costs for restoration due to the tenant's negligence, willful intent, or failure to exercise proper care.

Natural Disaster Disclosures (Hazard Maps)

Following the 2020 amendment to the Enforcement Regulations of the Building Lots and Buildings Transaction Business Act, the national government legally mandated a new disclosure requirement. During the Article 35 explanation, the Takken-shi must present the tenant with the official Hazard Map (Hazado Mappu) issued by the local Tokyo municipality (e.g., Minato-ku or Shinjuku-ku). They must physically point exactly to where the apartment building is located on the map and disclose:

• Flood risk from nearby rivers overflowing.
• Inland flooding risk (poor drainage during heavy typhoons).
• Tsunami risk zones (for Tokyo Bay areas).
• Landslide risk areas.

Stigmatized Properties (Jiko Bukken)

Perhaps the most unique and legally precarious disclosure in Japan revolves around "Psychological Defects" (Shinriteki Kashi)—commonly referred to as Jiko Bukken or "Accident Properties." In 2021, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released official guidelines establishing clear rules for disclosure:

What MUST Be Disclosed:

• Suicides and Murders: If a suicide, murder, or suspicious death occurred inside the apartment (or in common areas like the lobby or elevator), this must be actively disclosed to prospective tenants for 3 years following the incident.
• Lonely Deaths (Kodokushi): If a natural death occurs and is not discovered promptly, requiring special cleaning (special sweeping) to address the condition of the room, this must be disclosed for 3 years following the incident.

What Does NOT Need to Be Disclosed:

• Immediate Natural Deaths: If a tenant dies peacefully of old age or illness and the body is removed promptly without damaging the room, there is no psychological defect, and the landlord is not required to disclose the death to the next tenant.
• Accidents in Daily Life: Deaths resulting from falling down the stairs or drowning in the bathtub (unless they remained undiscovered for a long time) do not generally trigger a disclosure obligation.

Note: Even after the 3-year statutory limit passes, if a prospective tenant specifically asks, "Did someone ever die in this room?", the landlord and broker cannot lie and must answer truthfully.

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