Q: When a Japanese condominium is constructed on "provisional replotment land" within a land readjustment project, how is the initial display registration managed, particularly concerning site rights?

Urban development in Japan frequently utilizes land readjustment projects (土地区画整理事業 - tochi kukaku seiri jigyō) to reconfigure and improve urban areas. These large-scale projects involve reorganizing numerous land parcels, creating new roads and parks, and ultimately assigning landowners new plots of land (換地 - kanchi) in exchange for their original holdings. During the often lengthy period before the final replotment is settled, project implementers can designate "provisional replotment land" (仮換地 - karikanchi) to allow landowners to use a new, albeit temporary, parcel. The construction of new buildings, including condominiums, on such karikanchi introduces unique complexities into the real property display registration (表示登記 - hyōji tōki) system, especially concerning the establishment and registration of site-use rights (敷地権 - shikiken) for the condominium units.

This article explores the specific procedures and considerations for the initial display registration of condominiums built on karikanchi, focusing on how the building's location is described, the requirements for site plans, the method of registering site-use rights, and the distinct treatment of condominiums built on "reserved land" (保留地 - horyūchi) within these projects.

Understanding Land Readjustment and Provisional Replotment (仮換地)

A Japanese land readjustment project is a comprehensive undertaking governed by the Land Readjustment Act (土地区画整理法 - Tochi Kukaku Seiri Hō). Its primary goal is to enhance urban functionality by improving public facilities like roads and parks and by making land parcels more regular and usable. Landowners contribute portions of their land (減歩 - genbu) for these public improvements and, in return, receive newly configured parcels (kanchi) that are, ideally, more valuable due to the improved infrastructure.

Provisional Replotment (仮換地 - karikanchi):
Given that land readjustment projects can take many years to complete, the Act allows the project implementer (施行者 - shikōsha) to designate karikanchi for the original landowners (or holders of other rights like superficies or leaseholds). The designation of a karikanchi has significant legal effects:

• The right to use and derive profit from the original land parcel (従前の宅地 - jūzen no takuchi) is suspended.
• The holder of the original land acquires the same rights of use and profit over the designated karikanchi as they had over their original land. This allows for the land to be used—for instance, by constructing a building—before the final kanchi shobun (換地処分 - final replotment disposition) legally formalizes the new land parcels.

Display Registration (表示登記) of Condominiums on Karikanchi

When a condominium is newly constructed on karikanchi, its initial display registration in the property registry must follow specific rules to accurately reflect its unique land tenure situation.

A. Building Location Description (建物の所在 - tatemono no shozai):
A key particularity is how the building's location is recorded. Instead of using the new (provisional) lot number of the karikanchi as the primary identifier, the registration is tied back to the original land parcel(s):

• The "Original Land" Principle: The primary location identifier in the building's display registration will be the lot number(s) of the original land (従前の土地 - jūzen no tochi, sometimes referred to as 底地 - sokochi, meaning underlying land) that corresponds to the karikanchi on which the building physically stands.
• Parenthetical Notation of Karikanchi Details: To reflect the actual physical location, details of the karikanchi are added in parentheses after the original lot number(s). This notation typically includes the name of the land readjustment project and the block and lot number of the karikanchi (e.g., "○市○町○番地（仮換地 ○土地区画整理事業地区内 ○街区 ○画地）").
• No Explicit Mention of "Karikanchi" Status Otherwise: The formal registration record for the building's location does not explicitly state "this is a provisional replotment" beyond this parenthetical addition; the reference to the original lot number serves as the link to the underlying, pre-replotment title.
• Rationale: This method maintains a clear connection to the existing land registry records of the original parcels until the kanchi shobun is completed and new, final land records are created. It ensures continuity of title and rights during the transitional phase.

B. Building Drawings (建物図面 - tatemono zumen) and Site Plan Displays:
The building drawings submitted with the display registration application must also adhere to specific requirements:

• The drawings for a building on karikanchi must accurately depict the shape and provisional lot number(s) of the karikanchi itself using solid lines.
• The position of the newly constructed condominium building must be clearly shown with solid lines within the boundaries of this depicted karikanchi.
• These drawings provide a visual record of the building's physical placement on the land being temporarily used under the karikanchi designation.

C. Implementer's Certificate (施行者の証明情報 - shikōsha no shōmei jōhō):
To ensure the accuracy of the relationship between the original land and the karikanchi, a certificate from the land readjustment project implementer is a mandatory attachment to the registration application.

• This certificate typically includes, or is accompanied by, an overlay map (重ね図付き - kasanezu-tsuki). This map visually demonstrates how the karikanchi (where the building is located) corresponds to the original land parcel(s) listed in the underlying registry.
• This document is vital for the registrar to verify the legal basis for constructing on and registering a building linked to the original land titles via the karikanchi.

Handling of Site-Use Rights (敷地権 - Shikiken) for Condominiums on Karikanchi

The registration of shikiken (the integrated site-use rights inseparable from condominium unit ownership) also follows a specific logic when the building is on karikanchi:

1. Registration Against the Original Land (従前の土地):
   Despite the condominium physically standing on the karikanchi, the shikiken are legally established and registered in relation to the original land parcel(s) that the karikanchi provisionally replaces.
   • In the condominium building's display registration, the section detailing "the land that is the object of the site-use right" (敷地権の目的である土地の表示) will list the particulars (location, lot number, area, etc.) of the original land parcel(s).
   • Correspondingly, the "registration that it is a site right" (敷地権である旨の登記), which formally establishes the land as being subject to shikiken, is made in the land registry records for those original parcels.
2. Determining Statutory vs. Bylaw-Defined Sites:
   Often, a single karikanchi might be designated in place of several original land parcels, or vice versa. In such complex scenarios, whether the condominium's site constitutes a "statutory site" (法定敷地 - hōtei shikichi, i.e., land directly under and indivisible from the building by law) or a "bylaw-defined site" (規約敷地 - kiyaku shikichi, i.e., land designated as the site by the condominium's bylaws, such as an adjacent garden or parking area) is determined by the physical location and configuration of the building on the karikanchi.
   • This can lead to a situation where the registered location of the condominium (which includes the parenthetical karikanchi details) and the registered land subject to the shikiken (which are the original lot numbers) may appear disconnected or refer to different parcel descriptions in the interim. This is a unique but logical outcome of the karikanchi system, linking current use with underlying legal title.

Special Case: Condominiums Constructed on Reserved Land (保留地 - Horyūchi)

Land readjustment projects often involve the creation of "reserved land" (保留地 - horyūchi). This is land that the project implementer carves out during the replotment process. It is not directly returned to original landowners but is typically sold by the implementer to third parties (e.g., developers) to help finance the project or for public facilities. The implementer usually acquires formal title to this horyūchi only at the time of the public notice of the kanchi shobun. Condominiums built on horyūchi have distinct registration characteristics:

1. Building Location Registration on Horyūchi:
   • The location of a condominium built on horyūchi is registered using the designated lot number of the horyūchi itself. This horyūchi parcel effectively serves as the base land (sokochi) for the building.
   • A parenthetical notation is added, similar to karikanchi, indicating that it is "reserved land within the XX Land Readjustment Project Area" (e.g.,「○市○町○番地（保留地 ○土地区画整理事業地区内 ○街区 ○画地）」).
2. Building Drawings for Horyūchi:
   • The building drawings will show the shape and designated lot number of the horyūchi in solid lines, with the condominium's position marked within it.
   • If the horyūchi was formed from portions of what were previously original registered parcels, the outlines of those former parcels might be shown in dotted lines on the drawings for historical reference or context, while the horyūchi itself is in solid lines.
3. Non-Registrability of Shikiken on Horyūchi (During the Provisional Phase):
   This is a critical distinction. Generally, site-use rights (shikiken) cannot be registered for a condominium built on horyūchi before the final replotment disposition (kanchi shobun).
   • Rationale: During the provisional phase, the project implementer does not yet have formal, registered title to the horyūchi. Since shikiken represents a right in the land that is integrated with unit ownership, and this land right must be based on a valid, registered underlying title, shikiken cannot be properly established or registered against horyūchi until the implementer's title is perfected and then transferred to the condominium developer or owners.
   • Treatment: Consequently, condominiums built on horyūchi are treated as having no shikiken during the project's interim period. The registration of shikiken usually occurs only after the kanchi shobun is complete, the implementer (or a subsequent purchaser of the horyūchi) has clear title to the land, and this title can then form the basis of the shikiken for the condominium units.

Transition to Final Replotment (換地処分 - Kanchi Shobun)

The karikanchi system is, by its nature, temporary. The land readjustment project culminates in the final replotment disposition (kanchi shobun).

• Upon public notice of the kanchi shobun, the karikanchi designations cease to have effect. The newly defined and demarcated land parcels become the permanent legal reality.
• Real property registrations are then formally updated (often through a collective process managed by the Legal Affairs Bureau in coordination with the project implementer) to reflect the new lot numbers, areas, and configurations.
• For condominiums previously on karikanchi, their registered location and site-use rights (which were tied to the original lots) are officially transitioned to the new, finally replotted land parcels.
• For condominiums built on horyūchi, the kanchi shobun typically perfects the title of the horyūchi in the name of the project implementer, who can then legally transfer it to the developer or the condominium owners. It is at this stage that shikiken can be properly established and registered for units on former horyūchi.

Conclusion: Navigating a Temporary but Complex Registration Landscape

The construction and registration of condominiums on provisional replotment land (karikanchi) or reserved land (horyūchi) during Japanese land readjustment projects present a specialized area of property law and registration practice. The system is designed to allow for development and land use during the lengthy project period while maintaining a clear, albeit temporarily complex, link to underlying land titles.

Key takeaways include:

• The building's registered location on karikanchi references the original land parcels, with the karikanchi details in parentheses.
• Site-use rights (shikiken) for buildings on karikanchi are registered against the original land titles.
• Condominiums on horyūchi have their location registered against the horyūchi lot number but generally cannot have shikiken registered until after the final replotment and clarification of land title.
• The project implementer's certifications and accurate drawings are crucial for these registrations.

For developers, purchasers, lenders, and legal professionals involved with condominiums in areas undergoing land readjustment, a thorough understanding of these distinct registration rules for karikanchi and horyūchi is essential for ensuring compliance, securing property rights, and navigating the transition to final land titles upon project completion. The procedures, while intricate, aim to balance the practical needs of urban development with the fundamental principles of Japan's rigorous property registration system.