JAPAN Law and Practice Contributed by: Eriko Ozawa, Satoru Hasumoto, Takahiro Sato and Fuyuki Uchitsu, Mori Hamada & Matsumoto
6.23 Remedies/Damages for Breach In principle, there are no specific regulations or laws that limit the damages a landlord may col - lect, or remedies a landlord may pursue. How - ever, even if a lease agreement provides that the tenant will have to pay rent for the remaining lease term as a penalty in case of early termina - tion by the tenant without cause, the court may determine that the provision is against public order and morals and thus void because it allows the landlord to obtain an excessive amount of damages. Upon the execution of a lease agreement, the tenant is usually required to pay a deposit in cash as security for the payment of rent and other tenant obligations, although there are rare cases where the landlord may allow the tenant to provide a letter of credit in lieu of a cash deposit. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most typical construction price structure is the fixed price arrangement, whereby the par - ties agree on the price at the signing of the con - struction contract, taking into account estimated costs and expenses as well as the contractor’s profit. For a large construction project, the price adjustment mechanism may be implemented to reflect fluctuating procurement prices of materi - als or services linked to the cost element of the construction price. 7.2 Assigning Responsibility for the Design and Construction of a Project Typically, design and construction works are pro - vided under separate independent agreements – ie, the owner tends to enter into a design con - tract with a design company and a construc -
A leasehold interest in the land must be regis - tered pursuant to the real estate registration sys - tem in order for it to be perfected. However, if the lessee owns a building standing on the land, the lessee may perfect its leasehold interest in the land by registering its ownership of the building. A leasehold interest in a building could also be perfected by either registering it pursuant to the real estate registration system or upon the delivery of the subject building by the landlord to the tenant, in which case the tenant can assert its leasehold interest against any person who acquires the building after delivery. Registration of a leasehold interest is subject to a registration and licence tax at the rate of 0.4% of the Taxable Base of the property. 6.21 Forced Eviction In order to force a tenant to leave, the lessor must first obtain a court judgment ordering the tenant to vacate the leased property on the basis of the termination of the lease. If the tenant does not comply with the judgment, the lessor will need to file a petition for compulsory enforce - ment against the tenant to compel it to surrender the leased property. The length of time necessary to obtain such a judgment and to complete a compulsory enforcement largely depends on the tenant’s response in court hearings and the tenant’s reaction to the requirement to surrender, and varies from a few months to one year. 6.22 Termination by a Third Party Leases cannot be terminated by any third par - ty, including central government or municipal authorities.
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