In the purchase, inheritance, and use of land,“land category (chimoku)”is a basic item that must always be checked. The land category can significantly affect whether a building may be constructed, a financial institution's lending terms, and the amount of fixed asset tax, and overlooking it can lead to major problems later. This article provides a practical explanation of land categories, how to check them, and the procedures for changing them.
What is a land category?
A land category is the classification of a land parcel's “primary use” determined by a registrar under the Real Estate Registration Act. It is divided into 23 types and is recorded in the heading section of the land register (certificate of registered matters).
The key point is thatthe “registered land category” and the “actual use” may differ. Registration records reflect the information at the time of registration, and it is not unusual for them to differ from the current situation. It is necessary to confirm both the actual condition of the land and the land category shown in the registry.
Main land categories and their characteristics
Residential land
The land category that is easiest to use for residential, retail, and factory sites. Vacant residential land does not qualify for the special fixed asset tax treatment for residential land, so leaving it unused can increase the tax burden, making effective use economically rational.
Rice fields and dry fields (farmland)
These are subject to the Agricultural Land Act, and conversion to residential land requires permission from the Agricultural Committee (Articles 4 and 5 of the Agricultural Land Act).Farmland conversion procedures are complex, and obtaining a home loan while the land remains farmland is almost impossible. In practice, asking an administrative scrivener to handle the matter is the standard approach.
Forest land
Construction is possible, butthere are overlapping restrictions under the Forest Act, the City Planning Act, and the Building Standards Act. In some sediment disaster warning zones, construction may be prohibited, so checking the applicable regulations before acquisition is essential.
Miscellaneous land
Land that does not fall under any other land category (such as parking lots or material yards).Construction is possible, but financing from financial institutions often requires changing the land category to residential land.
Wilderness and others
Wilderness land (undeveloped land) can also be built on, but it is usually handled after being changed to residential land. Specific land categories such as pasture, shrine and temple precinct land, and protected forest are subject to strict use restrictions.
Under the Real Estate Registration Act, which land categories allow house construction?
Among the 23 land categories,residential land, forest land, wilderness land, farmland, and miscellaneous land can be used for house construction. However, forest land and wilderness land often need to be changed to residential land, and farmland requires prior farmland conversion permission.
How to check a land category
- Obtain a certificate of registered matters: It can be obtained at a Legal Affairs Bureau counter, by mail, or through the Ministry of Justice's “登記・供託オンライン申請システム.” A formal certificate (PDF not accepted) is required for a home loan application.
- Check the fixed asset tax notice: The land category is stated on taxation certificates and valuation certificates. This is a convenient way to check it, but note that the tax land category may differ from the registered land category.
Procedures for changing a land category and key points
A land category change registration is made by submitting an application to the Legal Affairs Bureau with jurisdiction over the land. No registration and license tax is required, and the procedure can be completed with only actual expenses such as transportation costs.
| Case | Procedure | Recommendation |
|---|---|---|
| Typical land category change (such as conversion to residential land) | Submit an application and location map to the Legal Affairs Bureau → site inspection → registration completed | Possible to do yourself if you have time |
| Farmland conversion (rice field/dry field → residential land) | A separate permission application to the Agricultural Committee is required | Recommended to ask an administrative scrivener |
| When inheritance or parcel subdivision is involved | Registration other than the land category change is also required | Ask a judicial scrivener or land and house investigator |
The obligation to apply for a land category change is within one month from the date the change occurred(Article 37 of the Real Estate Registration Act). If you fail to do so without a justifiable reason, an administrative fine may be imposed.
Related reading
- The relationship between land category types and land use | 23 land categories investors should know and the procedures for converting land to residential use
- Why you should not purchase a property without a certificate of inspection: Hidden risks in real estate investment
- What is land fraud by impersonation? Fraud methods in real estate transactions and five ways to protect yourself
FAQ
Q1. What is the difference between a land category and a zoning district?
A land category is the classification of “the land's current use” under the Real Estate Registration Act. A zoning district is the regulatory classification of “the types of buildings that may be constructed” under the City Planning Act. They are based on different laws, and even if the land category is residential land, zoning restrictions still apply.
Q2. What happens if I do not change the land category?
You must apply within one month from the date the change in land category occurred (Article 37 of the Real Estate Registration Act). If you fail to do so, an administrative fine of up to 100,000 yen may be imposed.
Q3. If I inherit farmland, can I convert it to residential land immediately?
From the application for permission from the Agricultural Committee to the change of land category to residential land, it takes about three to six months even in a smooth case. Because conversion of farmland in urbanization control areas may be restricted, prior confirmation is necessary.
Q4. What should I watch out for when purchasing miscellaneous land and building a house on it?
Construction itself is possible, but in most cases a change of land category to residential land is required to use a home loan. In addition, development permission under the City Planning Act may also be required, so we recommend checking with the relevant administrative office in advance.
Q5. How much does it cost to ask a professional to handle a land category change?
For a simple land category change alone, fees of several tens of thousands of yen are a general guide when asking an administrative scrivener or land and house investigator. In more complex cases involving farmland conversion or inheritance and parcel subdivision, the cost may reach roughly 100,000 to 300,000 yen.
