Explanation of Important Matters (Jūyō Jikō Setsumei) in Japan: A Checklist for Foreign Buyers

If you’re buying a house or land in Japan—especially an akiya (vacant home)—you will likely receive a document called the Jūyō Jikō Setsumei (重要事項説明), often translated as the “Explanation of Important Matters.”

For foreign buyers, this is one of the most important steps in the entire purchase. It’s where many deal-breaking issues (road access, rebuilding restrictions, hidden risks, usage limits, etc.) are revealed—sometimes in Japanese legal terms that are easy to miss.

This article gives you a practical, plain-English checklist to review before you commit.

Note: This is general information, not legal advice. Every property is different, and you should get a professional review for any contract or disclosure documents.

What is the Jūyō Jikō Setsumei (Important Matters Explanation)?

In Japan, a licensed real estate professional explains key legal and practical facts about the property—often before the final contract signing. The explanation typically covers:

• Legal restrictions on the land/building
• Access roads and rebuilding eligibility
• Infrastructure and utilities
• Disaster risks and zoning
• Known defects and management issues
• Transaction conditions and special clauses

Think of it as Japan’s “disclosure + risk briefing” document.

Why foreign buyers should pay extra attention

Foreign buyers often face these pitfalls:

• The document is long and written in technical Japanese
• Some risks are described indirectly (or in footnotes)
• “You can rent it out” does not automatically mean you can run Airbnb/minpaku
• Road access rules can make a property unrebuildable
• Seller liability may be limited by contract clauses

A careful review can save you from buying a property that cannot be repaired, rebuilt, rented, or resold.

Checklist: What to verify before signing

1) Identity & basic property facts

Confirm these match what you believe you are buying:

• Address, lot number(s), and building details
• Land category and registered use
• Size and boundaries (and whether boundaries are confirmed)
• Whether the building is legally registered as a residence
• Any unregistered extensions or renovations

Red flag: “The building area in reality differs from registry” or unclear boundary lines.

2) Road access & rebuilding eligibility (接道 / 再建築不可)

This is one of the biggest risks for akiya and rural properties.

Check:

• Does the land meet road access requirements?
• Is the property marked 再建築不可 (saikenchiku-fuka)?
• Is the access road public or private?
• If private, who owns it and who is responsible for maintenance?
• Are there easements or written agreements for road use?

Why it matters: If a property is “unrebuildable,” you may not be able to rebuild after major damage or demolition.

3) Zoning, land use, and building restrictions

Verify:

• Zoning designation (用途地域)
• Building coverage ratio (建ぺい率) and floor area ratio (容積率)
• Height limits and setback requirements
• Restrictions on renovations, extensions, or change of use
• Agricultural land rules (if farmland is involved)

Red flag: You plan to renovate or expand, but zoning or ratios make it impossible.

4) Utilities & infrastructure (water, sewage, gas, electricity)

Confirm:

• Water source: public water, well, or both
• Sewage: public sewer, septic tank, or other
• Gas: city gas, propane, or none
• Electricity capacity and any upgrade limitations
• Internet availability (important for long-term rentals)

Red flag: Expensive upgrades needed for sewer/septic, water piping, or electrical work.

5) Disaster & hazard risks

Look for:

• Flood risk areas (flood map zones)
• Landslide warning zones
• Earthquake and liquefaction notes
• Coastal risks if relevant
• Past disaster history (if stated)

Tip: Hazard risk doesn’t always mean “don’t buy,” but it should affect price, insurance, and renovation plans.

6) Defects, repairs, and “hidden issues”

Check the sections about:

• Known defects (leaks, termites, structural issues)
• Past repairs and renovation records
• Whether a building inspection was done
• Whether the seller discloses any issues “to the best of their knowledge”

Red flag: No inspection + very old property + vague disclosure language.

7) Psychological stigma (心理的瑕疵) and disclosure

In Japan, certain events can affect buyer perception (for example, death in the property). The document may include related notes if legally required or if the seller/agent knows relevant facts.

Red flag: Evasive language, or the agent refuses to answer direct questions in writing.

8) Seller liability and special clauses

Your contract may limit seller responsibility.

Watch for clauses like:

• Seller is exempt from liability for defects
• “As-is” sale (現状有姿) with limited remedies
• Short deadlines to claim defects
• Buyer acknowledges all risks after explanation

Red flag: Liability waiver + no inspection + overseas buyer unable to re-check property.

9) Rental use, long-term leasing, and property management

If you plan to rent out long-term:

• Any restrictions on leasing
• Whether the building is suitable for tenants (safety, utilities, legality)
• If there is a management contract, what the manager is responsible for
• Repair approval rules and emergency decision authority while you are abroad

Red flag: Management contract gives broad power without reporting requirements.

10) Minpaku (Airbnb) possibility (if you want the option later)

A common misunderstanding: “I can rent it out” ≠ “I can do Airbnb.”

Check:

• Local rules and zoning expectations
• Building type and compliance considerations
• Whether the area has restrictions for short-term rentals
• If the agent makes any promises, get it in writing

Best practice: Treat minpaku as “requires separate confirmation,” not a guarantee.