JAPAN Law and Practice Contributed by: Satoru Hasumoto, Takahiro Sato and Fuyuki Uchitsu, Mori Hamada & Matsumoto
4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning While the City Planning Law is the main source of planning and zoning regulations, local ordi - nances are also relevant. 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 to develop a new project or complete a major refurbishment. The detailed requirements for this confirmation, including the steps to be taken vis-à-vis third parties, may dif - fer under the relevant local ordinances.
According to a notice issued by the Ministry of Environment, even if the borrower assigns its land to a lender for the purpose of security ( joto-tampo ), the borrower but not the lender is deemed to be the “owner” of the land and will be responsible for any investigations and counter - measures under the Soil Contamination Coun- termeasures Law. 3.9 Effects of a Borrower Becoming Insolvent The creation of a security interest by a financially distressed borrower may be invalidated (by the insolvency trustee or the debtor-in-possession under the theory of bankruptcy avoidance) if the security interest was created to secure existing debt after the filing of an insolvency petition with respect to the borrower. The perfection of a security interest may also be avoided even where the creation of a security interest itself may not be avoided, pursuant to these criteria. The requirements of this avoid - ance include the perfection being made after the suspension of payments or the filing of an insolvency petition. The perfection of the secu - rity interest may also not be made within 15 days of the creation of the security interest. 3.10 Taxes on Loans There are no recording or similar taxes in con - nection with mortgage loans or mezzanine loans related to real estate in Japan. Regarding the registration and licence tax required for regis - tration of a mortgage, please see 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security .
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