Real estate appendix

A-C

Area designated for urbanizatio Based on Urban Planning Act, street that will be urbanized within 10 years.
Assessed value of land Assessed value of land based on Ministry of Land, Infrastructure, Transport and Tourism.
Bank seal A seal that one uses to open bank account
Basic exemption Basic exemption from taxation
Building Lots and Buildings
Transaction Business Act
A Japanese law that ensure that real estate company qualify with proper license, follow the law, and operate legitimately. It is a law to protect buyer and make sure smooth transation.
CATV A system of delivering television programming to paying subscribers via radio frequency (RF) signals transmitted through coaxial cables or light pulses through fiber-optic cables. It is also a system that operate internet and phone.
Center line of wall Floor area calculated using the center line of wall. In the brochure, the calculation is from the center of columns and walls. However, registration floor area is calculating from the inner part. Therefore registration floor area will be slightly smaller than the area shows on the brochure.
Certificate of income and
withholding tax
Annual income and tax payment of this year
Certificate of Registration It is a certificate to show the detail of this property. For example, purpose of registration, inheritant, mortgage, loan, etc. will be listed in this certificate.
Compliance In Japanese, it is define as obey law. Company follows law and aviod any social inmoral behavior
condominium ownership One condominium has one ownership
Contract Based on Civil Law, both parties express their intention, such as “I want to sell” “I want to buy”, then an effective verbal contract is completed. However, to avoid possible conflict in the future, a written contract is established.

D-G

Deduction on home loan One who purchased a property with mortgage loan can deduct tax from yearly income tax.
Deposits for operation It is a system to protect consumer that one day if some incident ever happened, the deposit will be used as compensation. With this system, Real-estate transaction specialist’s credit is guaranteed.
Deputy One appointed as the substitute of another, and empowered to act for him, in his name or his behalf.
Disclosure statement It is part of the contract of real estate purchase.
Displayed address One way to display address. The purpose is to allow others to find the direction more easily.
Down payment It is a payment between seller and buyer. It is used in the context of the purchase of expensive items, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction.
Exemption for dependents If tax payer is supporting other dependents, then some exmeption can be granted.
Exemption for spouses You may claim the exemption if you have a spouse qualifying for exemption.
A qualified spouse is defined as one living in the same household as the taxpayer as of December 31st of the year concerned, (in the case they are deceased during the year, as of the day of decease) and whose total amount of income did not exceed 380,000 yen.
Floating interest rate Every two years interest rate, including interest and principal will be reexamine. Moreover, within 5 years, monthly repayment stays the same, however, from 6th years, the current loan balance can be used to calculate next 5 years’ monthly repayment. (max 1.25 times of previous repayment amount)
Floor area ratio It is the ratio of a building’s total floor area (gross floor area) to the size of the piece of land upon which it is built. The terms can also refer to limits imposed on such a ratio.
Floor space It is a building, architecture, and real estate term referring to the amount of area (measured as square feet or square metres) taken up by a building or part of it. The ways of defining “floor area” depend on what factors of the building should or should not be included, such as external walls, internal walls, corridors, lift shafts, stairs, etc. Generally there are 3 major differences in measuring floor area
Frontage It is the boundary between a plot of land or a building and the road onto which the plot or building fronts.
Group credit life insurance Group insurance coverage issued to creditors to reduce risk of default. Policy provides a guarantee that a borrower’s loans will be paid off in the event the borrower passes or heavily injured before making full payment on outstanding loans.

H-K

Highest price range When there are several properties for sale at the same time, the price range will be calculate by one million per unit. The highst price is know as the highest price range
Income appraoch A real estate appraisal method that allows investors to estimate the value of the property based on the income produced. The income approach is computed by taking the net operating income of the rent collected and dividing it by the capitalization rate (the investor’s rate of return).
Income from real estate Rent income, management fee income, common service income, key money, parking lot income, etc.
Income gains Income gains from property means having a property with stable income gains from rent income, etc.
Intermediate payment A payment that must be done after contract and before property transfer. It will become a part of the trading value.
Joint liability When two people are jointly liable, each is individually liable for whatever debt or obligation they have together.
Judicial scrivener Judicial scrivener is a national qualification. Person that qualified is allow to help others with ownership registration and submit official documents to government.
Key money It is a payment to owner thanking owner for lending his or her house.

L-O

Land category Land usage.
Land right Land right of a condo. For example, detached house’s land right.
Lease contract Owner agrees to lend his or her property; the borrower pays money in return.
Legal seal Legal seal that one registered at the town one lives.
Lender Lender of the property. Mainly define as property owner or one who has right to lend this property.
Leverage effect It is any technique to multiply gains and losses. Most often it involves buying more of an asset by using borrowed funds, with the belief that the income from the asset or asset price appreciation will be more than the cost of borrowing.
Loan agreement An agreement to return money
Lot number A lot number is a number which is assigned to a lot of land within the context of a subdivision. Lot numbers are part of the so-called “lot and block” survey system, which is used to identify land which has been broken up into a number of smaller units. In many cases, it is different than home address.
Mortgage A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property free and clear. ” If the borrower stops paying the mortgage, the bank can foreclose.
Mortgage loan It is used by purchasers of real property to raise funds to buy real estate; or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged.
Notice of verification of building construction Based on Japan Building Standard Act, Notice of verification of building construction must be recieved by specific administration and Civilian agency before construction.

P-R

Personal seal It is a seal used for all kind of common documents. Ususally this seal only has one’s family name on it.
Private driveway Driveway that is used personally or by private group.
Property management It is the operation, control, and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition. This is much akin to the role of management in any business.
Property management company Apartment manage professional company
Property tax Every year’s January 1st until now, whoever own a property or land must pay tax
RC Reinforced concrete (RC) is a composite material. The reinforcement is usually, steel reinforcing bars (rebar) and is usually embedded passively in the concrete before the concrete sets.
Real Estate Transaction Specialist In real estate company, there are certain number of Real Estate Transaction Specialist must be placed in the company. Main job of Real Estate Transaction Specialist is to make important announcement during land or property purchase.
Registration fee A fee that must be paid in order to transfer ownership, register property or home loan procedure.
Residential area A land use in which housing predominates, as opposed to industrial and commercial areas.
Roadside land prices The National Tax Agency released the average roadside land price by announce one metre square price.

S-V

Seal registration certificate A registered seal and Seal Registration Certificate are necessary in Japan when you enter into a legal contract such as buying/selling land, houses, and automobiles. A personal seal that has been registered at a Ward Office is known as a registered seal. The document certifying that a seal is a jitsuin is known as a Seal Registration Certificate.
Seller Seller is someone who sign contract with buyer. In real estate, it is the one who sell lands and houses.
Special exemption for spouses If your total annual income is not more than 10 million yen and your spouse’s income exceeds
380,000 yen but is less than 760,000 yen. Income tax does not exceed 1,030,000 yen to 1,41,000 yen.
Spouse A spouse is a life partner in a marriage. The term is gender neutral, whereas a male spouse is a husband and a female spouse is a wife. In legal status it is called spouse.
Stamp duty Stamp Duty Stamp duty is levied on deed of contracts concerning transfer of real estate properties.
Strata title A form of ownership devised for multi-level apartment blocks and horizontal subdivisions with shared areas
Tax return During the tax period (1/1~12/31), all kinds of tax such as income, expenditure, medical insurance, extension structure, donation, tax exemption for dependents , etc to calculate one’s income tax. Based on the calcuation, one has to pay tax or have tax refund.
Taxation certificate It is a prove of income tax payment completion. It is also known as income certificate.
Transfer of registration One kind of real estate registration. Through buying and saling, as well as inheritance to transfer one’s right to another by this registration.
Tsubo It is one way to calculate area. 1 tsubo equals approximately 3.3058 square metre (=2 mat)
Unit of area Registered land

W-Z

Warranty liability If there is any hidden defect (eg. Termite problem, which cannot be seen outside, or leaky, etc ), seller has responsibility to buyer.
Zoning Zoning describes the control by authority of the use of land, and of the buildings thereon. Areas of land are divided by appropriate authorities into zones within which various uses are permitted. In general there are residential, business, and factory zone.