JAPAN Law and Practice Contributed by: Eriko Ozawa, Satoru Hasumoto, Takahiro Sato and Fuyuki Uchitsu, Mori Hamada & Matsumoto
4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction The Construction Standards Law is the primary law regulating the construction of new buildings and the refurbishment of existing buildings. The law establishes minimum standards concerning building sites, structures, equipment and build - ing use. 4.3 Regulatory Authorities Under the Construction Standards Law, the confirmation of authorised entities regarding the details of construction or refurbishment must be obtained for the construction of new buildings or any major refurbishment of existing buildings. Authorised entities include local governments such as cities, towns and villages, and private building agencies accredited by the government. 4.4 Obtaining Entitlements to Develop a New Project A building developer or building owner must apply for confirmation from the relevant local governments or government-accredited private building agencies. The detailed requirements for such confirmation, including the steps to be taken vis-à-vis third parties, may differ under the relevant local ordinances. 4.5 Right of Appeal Against an Authority’s Decision Theoretically, it is not impossible to litigate against an authority’s decision, although such litigation is not commonly seen in practice. 4.6 Agreements With Local or Governmental Authorities Unless the development project involves a prop - erty or facility that is currently or was previously owned by a governmental body, it is not com -
mon to enter into agreements with governmental bodies to facilitate a development project. 4.7 Enforcement of Restrictions on Development and Designated Use The contractor of a building under construc - tion in violation of the Construction Standards Law or the City Planning Law, or the owner of a building that has been thus constructed, may be ordered to suspend the construction or to demolish or refurbish the building, or otherwise to ensure compliance of the building with legal requirements. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Generally speaking, real property tends to be owned directly by joint stock companies ( kabu- shiki kaisha or KK), which is the most popular form of corporate entity available under the Companies Law. When it comes to real estate investment, there are three typical investment structures, each of which uses a different type of entity to acquire property: • the GK-TK structure; • the TMK structure; and • the J-REIT structure. Of these three structures, the GK-TK structure and the TMK structure are primarily used to acquire a specific asset or portfolio identified at the outset. The TMK structure is more often preferred by non-Japanese investors. However, the J-REIT is used as a going-concern vehicle for real estate investment, the asset port -
479 CHAMBERS.COM
Powered by FlippingBook