How far should a Chinese-speaking buyer check a used condominium's management rules and repair plan?

In short: when introducing a used Japanese condominium to a Chinese-speaking buyer, the thing to read before the general important-matters checklist is the management association's operating risk. Specifically four points: (1) whether a long-term repair plan exists and when it was last revised, and whether a rise in the repair-reserve contribution or a lump-sum levy is planned; (2) the use restrictions in the management rules (a ban on housing-accommodation business = minpaku, pets, the use of the exclusive-use part); (3) arrears of management fees and reserve (arrears pass to the buyer — the special successor — under Condominium Ownership Act Art. 8); (4) the history of management-company changes and major repairs. These also become matters explained in the important-matters explanation, as the amount of management fees, reserve and arrears (Building Lots and Buildings Transaction Business Act Art. 35(1)(6) and its Enforcement Regulation Art. 16-2), but a professional buyer should not wait for the explanation just before the contract — reading the materials first is safer. The important-matters explanation and the sale contract are a licensed real estate agent's (ours); the tax agent for the fixed-asset and city-planning tax after acquisition, and the tax return, are a licensed tax accountant's — each an independent entity, engaged separately.

This is for the real estate and buyer's agents (professionals) in mainland China, Taiwan and Hong Kong who handle Japanese used sectional-ownership condominiums. It sets out, not the general important-matters checklist, but the view for reading the management association's operating risk before the contract, drawing on the Act on Building Unit Ownership, etc. (Condominium Ownership Act), the Building Lots and Buildings Transaction Business Act, and Ministry of Land materials. On the premise of reading in Traditional/Simplified Chinese, it maps the statutes to the materials. We handle the Japan-side property introduction, investigation, important-matters explanation and brokerage; the tax after acquisition is routed to a licensed tax accountant. This article does not guarantee an individual investment decision or whether the management state is good.

Why read the management rules and long-term repair plan before the important-matters explanation?

In a used condominium, how the management association runs the whole building — not just the exclusive part (the unit) — governs the post-acquisition burden and the exit value. The important-matters explanation (Building Lots and Buildings Transaction Business Act Art. 35) is a statutory step in which a licensed transaction specialist explains, in writing, before the contract is formed; but a professional buyer should not wait for the explanation just before the contract — reading the management rules, long-term repair plan, general-meeting minutes and the arrears status in the materials first is safer.

In a condominium, the important-matters explanation adds items specific to sectional-ownership buildings. Building Lots and Buildings Transaction Business Act Art. 35(1)(6) and its Enforcement Regulation Art. 16-2 list, among others, these as matters to be explained.

Matter explained (sectional-ownership building)	What it reveals
Rules on the common parts (including a draft)	The scope and use rules of the common parts
Rules on the use and other restrictions of the exclusive part	Whether minpaku, pets, office use, etc. are allowed
Rules on exclusive-use rights	Treatment of parking, balcony, exclusive garden, etc.
Rules on the repair reserve and the amount already accumulated	The level and balance of the reserve
The amount of the ordinary management cost	The monthly management fee
The management-commission recipient, if commissioned	The management company
The record of the building's maintenance and repair	The history of major repairs

These reflect not the "property itself" but the "management association's operation." The base of the management rules is the Ministry of Land, Infrastructure, Transport and Tourism's "Standard Management Rules for Condominiums (single-building type)," on which each condominium's rules are built. The general important-matters check is set out in the points of the important-matters explanation to read before introducing a Japanese income property to a Chinese-speaking buyer; this article is confined to the management side.

Where can the "rise and lump-sum levy" of the long-term repair plan and reserve be found?

The long-term repair plan estimates the timing and cost of future major repairs (external walls, rooftop waterproofing, supply/drain pipes, elevators, etc.) and derives the needed reserve. The Ministry of Land shows a guide for drafting it in its "Long-Term Repair Plan Drafting Guideline." If the reserve falls short against the plan, it leads to a rise or a lump-sum levy, bearing directly on the post-acquisition burden.

The materials to read before the contract, and the points to look at there, are as follows.

Material to read	Points to look at
Long-term repair plan	Whether a plan exists, when it was last revised, the timing and estimated cost of future repairs, planned future rises in the reserve
Reserve balance / accounting materials	The current balance, surplus/shortfall against the plan, whether there is borrowing
General-meeting / board minutes	Agenda/resolutions on raising the reserve or a lump-sum levy, decisions on major repairs
Investigation report on important matters (issued by the management company)	The amount of management fees and reserve, the arrears, an outline of the repair plan

Note that a currently low reserve does not necessarily mean a "good property." If the reserve is held below reality, a large rise or a lump-sum levy may eventually be needed. On the reserve and arrears of a tower condominium after acquisition, If you sell an inherited tower condominium also touches on the settlement of management fees and reserve. We obtain and organise these materials from the management company and seller, and we also support materials in Traditional/Simplified Chinese.

How do the management rules on a minpaku ban, pets and use restrictions affect the investment?

The management rules bind the use of the exclusive part. What a Chinese-speaking buyer especially wants to confirm for investment is whether a housing-accommodation business (minpaku) is allowed. Even where minpaku under the Housing Accommodation Business Act (Act No. 65 of 2017) may be run on notification in law, if the management rules provide to "ban the housing-accommodation business," it cannot be run in that building. The Ministry of Land's standard management rules, too, show the idea of providing in the rules whether to allow or ban a housing-accommodation business.

Rule restriction	Effect on the investment
Whether minpaku (housing-accommodation business) is allowed	An investment premised on minpaku operation does not hold if a banning rule exists
Whether pet-keeping is allowed	Affects tenant sourcing and the tenant profile for renting
Use of the exclusive part (residence-only, whether office use is allowed)	Confirm if office/SOHO use is contemplated
Treatment of exclusive-use rights (parking, etc.)	Whether parking is a separate contract, who bears the usage fee

The rules are set, changed or abolished by a resolution of at least three-quarters of both the unit owners and the voting rights (Condominium Ownership Act Art. 31(1)). That is, even if minpaku is allowed now, a future general-meeting resolution can turn it into a ban. It is safer to confirm, not only the current rules, but also the direction of the discussion at the general meeting from the minutes. If minpaku availability or use is premised in the investment, pin down the state of the rules and any move to revise them before the contract. The way of working with a local professional is set out in working with a local professional to handle Japanese real estate.

How to confirm arrears, management-company changes and the history of major repairs?

Arrears of management fees and the repair reserve are a risk hard for a buyer to see. Condominium Ownership Act Art. 7 grants the management association a statutory lien, and Art. 8 provides that the claim for management fees, etc. may be exercised against the special successor of the debtor unit owner (the buyer, etc.) as well. That is, the management fees and reserve the former owner had in arrears can be claimed by the management association against the buyer, however the sale contract is arranged.

Item to confirm	What to look at	Where to confirm
Arrears on the unit	The seller's (former owner's) arrears of management fees and reserve, late-payment damages	Management company / management association
Arrears of the whole association	Many arrears on other units affect the association's finances and repairs	Management company / accounting materials
Management company / management method	Full commission, partial commission or self-management; the history of management-company changes	Management company / general-meeting minutes
History and plan of major repairs	The timing and content of past repairs, the next plan and its funding	Management company / long-term repair plan

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Acquiring while arrears remain puts you at a disadvantage in price negotiation and settlement, because they pass to the buyer. Before the contract, inquire of the management company and association about the balance, and if needed arrange a settlement at completion. The important-matters explanation, too, explains the amount of management fees and reserve and whether there are arrears (Building Lots and Buildings Transaction Business Act Art. 35(1)(6) and its Enforcement Regulation Art. 16-2). We, as a licensed real estate agent, handle these inquiries, the organising, and the important-matters explanation.

To whom is the confirmed content handed over, and whom to consult after acquisition?

The Japan-side property investigation, the organising of the management rules, long-term repair plan and arrears status, the important-matters explanation, adjusting price and terms, brokerage and the sale contract are handled by Yotsuba Real Estate Co., Ltd. (licensed real estate agent, Tokyo Governor (1) No. 113304). The important-matters explanation is given by our licensed transaction specialist under Building Lots and Buildings Transaction Business Act Art. 35.

Who	What they handle
Yotsuba Real Estate Co., Ltd.	Property investigation, organising the management rules, long-term repair plan and arrears status, important-matters explanation, brokerage, sale contract
Local professional (mainland China, Taiwan, Hong Kong)	On-the-ground client service and supplementary explanation of materials in the local language
Licensed tax accountant (separate engagement)	The tax agent for the fixed-asset and city-planning tax after acquisition, the tax return and withholding for renting
Judicial scrivener	Registration of rights, such as transfer of ownership

The local professional, each professional, and we are each independent business entities. Where roles overlap, we make clear before the contract who does what, and you engage each separately. When a non-resident holds Japanese real estate, the fixed-asset and city-planning tax, and the tax return and withholding where it is rented, come in, and a tax-agent notification may be needed. These are the domain of a licensed tax accountant; we do not calculate the tax or judge whether withholding applies. Transfer-of-ownership registration is for a judicial scrivener — each engaged by you directly. We neither pay nor accept referral fees or introduction commissions. The whole picture of investment and business property is at investment and business property consultation. Consultation is free of charge.

Frequently asked questions

Q. The management rules and long-term repair plan are explained in the important-matters explanation — why read them first?
A. The important-matters explanation is a statutory step in which a licensed transaction specialist explains, in writing, before the contract is formed, and the amount of management fees, reserve and arrears are matters explained (Building Lots and Buildings Transaction Business Act Art. 35(1)(6) and its Enforcement Regulation Art. 16-2). But for a professional buyer, reading the management rules, long-term repair plan, general-meeting minutes and accounting materials first — grasping the planned rise in the reserve, the arrears and the use restrictions — and then entering price negotiation is more advantageous than hearing it just before the contract. We obtain and organise the materials from the management company and seller.

Q. I want to run it as a minpaku — if a notification can be made in law, can it always be done?
A. No. Even where a notification under the Housing Accommodation Business Act (Act No. 65 of 2017) can be made, if the management rules provide to "ban the housing-accommodation business," it cannot be run in that building. The Ministry of Land's standard management rules, too, show the idea of providing in the rules whether to allow or ban a housing-accommodation business. Further, the rules can be changed by a resolution of at least three-quarters of both the unit owners and the voting rights (Condominium Ownership Act Art. 31(1)), so confirm the current rules and the direction of the general-meeting discussion before the contract.

Q. Will the buyer have to pay the management fees the former owner had in arrears?
A. The management association can claim the management fees and reserve in arrears against the buyer (the special successor) as well (Condominium Ownership Act Art. 8). Late-payment damages can also be subject to it. Even if the sale contract puts it on the seller, in the relationship to the management association the buyer can be claimed against, so before the contract inquire of the management company and association about the arrears, and if needed arrange a settlement at completion. The important-matters explanation, too, explains whether there are arrears.

Q. Will the Japan-side real estate company handle the tax and filing after acquisition?
A. No. The fixed-asset and city-planning tax, the tax return and withholding where it is rented, and the tax-agent notification are the work of a licensed tax accountant. We handle the property introduction, investigation, important-matters explanation and brokerage, but do not calculate the tax or judge whether withholding applies. Tax is for a licensed tax accountant and transfer-of-ownership registration for a judicial scrivener — each, as an independent business entity, engaged by you directly. We do not deal in referral or introduction fees.

Sources (primary)

• e-Gov "建物の区分所有等に関する法律" (Act on Building Unit Ownership, etc.) — Act No. 69 of 1962. Art. 7 (the management association's statutory lien); Art. 8 (the special successor's liability — the succession of arrears of management fees, etc.); Art. 17 (change of common parts); Art. 30 (matters of the rules); Art. 31(1) (the rules are set, changed or abolished by a resolution of at least three-quarters of both the unit owners and the voting rights). Accessed 6 October 2026.
• e-Gov "宅地建物取引業法" (Building Lots and Buildings Transaction Business Act) — Act No. 176 of 1952. Art. 35 (important-matters explanation). The matters specific to a sectional-ownership building are under Art. 35(1)(6) and its Enforcement Regulation Art. 16-2 (common parts; use restrictions on the exclusive part; exclusive-use rights; the reserve and the amount already accumulated; the management cost; the management-commission recipient; the record of maintenance and repair). Accessed 6 October 2026.
• e-Gov "住宅宿泊事業法" (Housing Accommodation Business Act) — Act No. 65 of 2017. Notification, etc. for a housing-accommodation business (minpaku); it cannot be run in a building whose management rules ban the housing-accommodation business. Accessed 6 October 2026.
• Ministry of Land, Infrastructure, Transport and Tourism, "Standard Management Rules for Condominiums (single-building type) and the accompanying comments" — the standard for rules; the idea of providing in the rules the use of the exclusive part and whether to allow a housing-accommodation business. Accessed 6 October 2026.
• Ministry of Land, Infrastructure, Transport and Tourism, "Long-Term Repair Plan Drafting Guideline and the accompanying comments" — the guide for setting the long-term repair plan and the reserve. Accessed 6 October 2026.

The management rules, long-term repair plan, reserve and arrears status differ by condominium and by time. This article sets out a general view and does not judge or guarantee an individual property's management state or the merits of the investment. Confirm against the actual materials (rules, long-term repair plan, general-meeting minutes, accounting materials, the management company's investigation report). Whether minpaku (a housing-accommodation business) is allowed is decided by both the availability of a notification in law and the provision of the management rules and the by-law. Confirm before the contract, including the possibility of a future change by general-meeting resolution, not only the current rules; this article does not fix availability in an individual building. This article is general information and does not offer an individual legal or tax determination. The important-matters explanation, brokerage and the sale contract are by a real estate transaction business operator; the tax agent for the fixed-asset and city-planning tax after acquisition, and the tax return and withholding, by a licensed tax accountant; transfer-of-ownership registration by a judicial scrivener. Investigation, the important-matters explanation, brokerage and the sale contract on the Japan side are undertaken by Yotsuba Real Estate Co., Ltd. (licensed real estate agent), which proceeds with local professionals and each professional as independent business entities engaged separately. There are no referral or introduction fees.

About the author

Joji Uramatsu — licensed real estate transaction specialist (Tokyo Governor registration No. 293544) and administrative scrivener (registration No. 25087022). Representative Director, Yotsuba Real Estate Co., Ltd. (licensed real estate agent, Tokyo Governor (1) No. 113304); principal, Yotsuba Administrative Scrivener Office. Kohinata, Bunkyo, Tokyo, about five minutes' walk from Myogadani station. Supporting materials in Traditional and Simplified Chinese, for Chinese-speaking buyers and their local professionals, mapping the points of the management rules, long-term repair plan and arrears to the statutes and materials. Full profile: author page.