Oshima Teru is a useful entry point for researching so-called accident properties in Japan, but it should not be used as the basis for a final decision. In Japanese sale and lease transactions, you need to check it together with the disclosure statement, important matters explanation, property management company confirmations, and the Ministry of Land, Infrastructure, Transport and Tourism guidelines.
Key Points of This Article
- Oshima Teru is reference information, not an official document for determining defects or stigma.
- Psychological defects, or shinriteki kashi (心理的瑕疵), are handled differently depending on sale or lease, cause of death, time elapsed, and whether special cleaning was required.
- For investment decisions, assess rent, leasing period, and the disclosure burden at exit.
- Because information may be inaccurate or outdated, verify it through multiple materials.
What Can Oshima Teru Be Used For?
Oshima Teru is known in Japan as a website where users can check posted information about accident properties. When evaluating a property, it is sometimes used as an initial way to identify the possibility of past incidents or accidents.
This is a Japan-specific due diligence issue. International investors may expect a centralized public record or standardized seller disclosure form, but Japan’s practice often requires combining broker disclosure, landlord or seller statements, management company interviews, and site-level checks.
However, the information shown on Oshima Teru is not an official government record. It is risky to judge the existence of a psychological defect or a disclosure obligation based only on whether a property is or is not listed.
Information Sources to Check in Accident Property Research
| Information Source | Role | Caution |
|---|---|---|
| Public information such as Oshima Teru | Entry point for research | May contain incorrect or unupdated information |
| Disclosure statement | Facts known by the seller or landlord | Confirm the scope of what is written |
| Important matters explanation | Transaction-level explanation | Keep a record of questions asked |
| Management company interviews | Occupancy history and neighborhood conditions | Must be documented |
| Site inspection | Local reactions and management condition | Visit at different times of day |
In an investigation, it is important not to rely on a single source. Combine entry-point information, explanations from transaction parties, site confirmation, and professional review.
The juyo jiko setsumei (重要事項説明), or important matters explanation, is a formal explanation given by a licensed real estate transaction specialist under Japan’s real estate brokerage framework. This may be more transaction-specific than what some overseas buyers are used to, where due diligence is often driven more heavily by buyer-side inspectors, title reports, or standardized local disclosure forms.
Relationship With the Psychological Defect Guidelines
Japan’s Ministry of Land, Infrastructure, Transport and Tourism has published guidelines on disclosure of a person’s death. Treatment differs depending on whether the transaction is a sale or lease, the cause of death, the time elapsed, whether special cleaning was performed, and whether the death occurred during ordinary use of the property.
These guidelines are useful in practice, but they do not automatically resolve every case. Circumstances that may materially affect the judgment of a buyer or tenant must be checked individually.
For English-speaking investors, the key point is that shinriteki kashi (心理的瑕疵) means a psychological or stigma-related defect, not necessarily a physical defect in the building. The investment issue is therefore not only legal compliance, but also whether future tenants, buyers, lenders, or brokers will accept the explanation.
Points to Watch When Evaluating as an Investment Property
Accident properties may trade at lower prices. However, buying simply because the price is low is dangerous. You need to assess rent decline, leasing period, tenant profile, neighborhood reaction, and the explanation burden at future sale.
Some properties can be repositioned, but a property that cannot be explained will create problems at exit. Before purchase, organize the disclosure wording, rent assumptions, holding period, and likely buyer pool at resale.
For global investors, convert the discount into a risk-adjusted return in USD terms, not only a percentage reduction from a Japanese asking price. A lower acquisition price is meaningful only if the rent, vacancy period, financing assumptions, and exit liquidity still support the investment thesis.
Confirmation Question List
| Question | Purpose |
|---|---|
| What happened, and when did it happen? | Identify the incident |
| Was special cleaning performed? | Disclosure judgment and market impression |
| Has there been occupancy afterward? | Market acceptance |
| Are neighborhood issues still present? | Leasing and resale risk |
| How should it be written in the disclosure statement? | Exit explanation |
Keep questions in email or written form. If a dispute later arises over what was or was not asked, the issue can become more serious than a price negotiation.
The disclosure statement, or kokuchisho (告知書), records facts disclosed by the seller or landlord. In Japan, the practical value is not only the content itself, but also the evidence trail showing what was asked, answered, and understood before the transaction.
A Research Approach That Does Not Overtrust Oshima Teru
It is too simplistic to say that a property is safe because it is not listed on Oshima Teru, or that a listed property can never be purchased. What matters is separating the facts from their market impact.
In INA’s practice, the priority is not to fear psychological defects themselves, but to avoid an unexplained condition. The investment decision depends on whether the issue can be investigated, documented, and translated into price, rent, and exit assumptions.
Compared with some markets where stigma may be handled informally or fade mainly through market practice, Japanese transactions require particular attention to whether the broker, seller, landlord, and manager can give consistent explanations. Inconsistent explanations are often a larger practical risk than the database listing itself.
Cautions When Using Listed Information in Price Negotiation
If you use information listed on Oshima Teru or similar sources in price negotiation, verify the facts first. If you strongly demand a discount based on unconfirmed information, you may damage trust with the seller or brokerage company and make it harder to obtain necessary additional information.
In negotiation, organize the content of the incident, time elapsed, disclosure method, and impact on rent or resale price, rather than focusing only on whether the property is listed. Psychological defects may look like an emotional issue, but in practice the work is to quantify explainability and market impact.
For an overseas investor, this also affects governance. Investment committee memos, lender questions, and future sale materials should be able to explain the issue in plain terms, including why the price, rent, and exit plan remain reasonable.
Frequently Asked Questions
If a property is not listed on Oshima Teru, does that mean it is not an accident property?
A. No definitive conclusion can be made. Even if there is no listing, you still need to check the disclosure statement and confirm with the management company.
Should properties listed on Oshima Teru always be avoided?
A. Not always. Make a comprehensive judgment based on the incident, time elapsed, rent, and exit explanation.
After how many years is disclosure of a psychological defect no longer required?
A. There is no uniform rule. It depends on the transaction type, incident details, whether special cleaning was required, and other factors.
What should I watch for when buying as an investment property?
A. Do not judge only by the low price. Check the leasing period, rent, disclosure wording, and explanation required at future resale.
Related Reading
- Due Diligence for Defective Properties: Four Categories and Investigation Steps
- Selling a Property Over the Building Coverage Ratio: How to Distinguish Violations from Existing Nonconformity
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