Can you sell an inherited pre-1981 condo? The new seismic standard and the buyer's mortgage wall

In short: an inherited old-seismic-standard condo can be sold, but the dividing line is "1 June 1981." A building given its building confirmation on or after that date is "new seismic," and whether the buyer's mortgage and tax reliefs apply turns on this. The key to selling is whether the buyer can borrow. Even with the old standard, the buyer pool widens depending on the registered date of construction and on the confirmation of seismic performance. Confirm the date of construction first, and set the schedule alongside the valuation.

You inherit a condominium unit from a parent and are told "it's old-seismic, so it's hard to sell." An old-seismic-standard condo is not unsellable, but whether the buyer can obtain a mortgage changes both how easily it sells and the price. This article is for heirs who have inherited a condo unit built before 1981 and are deciding whether to sell or keep it: where the boundary with the new seismic standard lies, and what changes in the buyer's mortgage and tax reliefs — set out from the law and the National Tax Agency's guidance. We do not calculate tax or act as your registration agent.

How, and where, do you confirm whether it is old-seismic or new-seismic?

The boundary is set by a clear date: 1 June 1981.

On that day, the Cabinet Order partially amending the Enforcement Order of the Building Standards Act (Cabinet Order No. 196 of 14 July 1980) came into force, greatly changing the structural standard against earthquakes. A building given its building confirmation on or after 1 June 1981 is "new seismic standard"; one before that is "old seismic standard" (accessed 24 August 2026). The new standard aims for almost no damage in a moderate earthquake and no collapse even in a large one.

The catch is that the "date" you confirm differs by context.

Which date	Where it is used
Date the building confirmation was given	The real division of "new / old seismic" (1 June 1981 is the boundary)
Registered date of construction	Judging the buyer's tax reliefs (see below; 1 January 1982 is the boundary)
Completion (竣工) date	The date you see in brochures and advertisements

Because a condominium takes a long time from start to completion, it may have received confirmation before June 1981 yet been completed in 1982 or later — and vice versa. So "age of the building" alone does not settle whether it is new-seismic or old-seismic. The starting points for confirmation are the certificate of confirmation and certificate of inspection, the building-plan summary (obtainable at the specified administrative authority), and the registered date of construction. This can be started together with the valuation. How the use zone and floor-area ratio move the pricing of land and buildings is covered at why Japanese land prices change with the floor-area ratio.

Can the buyer not get a mortgage if it is old-seismic?

Not "cannot," but "harder / more requirements." This is what most governs how easily it sells.

For the buyer to receive the housing-loan tax credit (special deduction for housing loans) on a second-hand home, the house must meet certain requirements. The National Tax Agency's guidance under Article 41 of the Act on Special Measures Concerning Taxation (No. 1211-3, for occupancy from 2022) sets this out (accessed 24 August 2026).

Date the house was built	Condition for the buyer to receive the housing-loan tax credit
Built on or after 1 January 1982	Meets the date-of-construction requirement (deemed to conform to the new seismic standard)
Built on or before 31 December 1981 (old seismic)	Within 2 years before acquisition, prove conformity to the seismic standard by one of: a seismic-standard conformity certificate, a copy of a construction-housing performance evaluation (seismic grade 1 or above), or a certificate of insurance for the existing-home sale defect warranty

In other words, if the registered date of construction is 1 January 1982 or later, the buyer receives the housing-loan tax credit without any extra proof. If earlier (old seismic), the buyer cannot receive the credit unless they prepare one of the above proofs.

Beyond that, old-seismic works against the mortgage screening itself. The long-term fixed-rate Flat 35 requires the property to meet technical standards, and private banks assess old, old-seismic property strictly for collateral. If the buyer cannot obtain a mortgage, the buyer pool narrows to cash buyers who do not use a loan, and the price tends to fall. That is why the "proof" in the next section is the fork in the road for a sale.

What changes in the sale if there is a seismic-standard conformity certificate?

The reliefs the buyer can receive change. With a seismic-standard conformity certificate (or a construction-housing performance evaluation / a certificate of the existing-home sale defect insurance), even an old-seismic condo lets the buyer meet the requirement for the housing-loan tax credit (Article 41; the same NTA No. 1211-3). Including whether it may qualify for reductions in registration and licence tax or real-estate acquisition tax, the buyer's tax burden changes, making it easier for them to choose the property.

But — for a condominium, obtaining this proof is often difficult.

The reason is that a single condo unit cannot be seismically retrofitted on its own. Conformity to the seismic standard is decided by the structure of the whole building, and proving that an old-seismic condo conforms to the current standard presupposes a seismic diagnosis and any necessary reinforcement of the whole building. Without the management association's agreement and the funds, you cannot go there. A detached house can be retrofitted by the seller to obtain the proof, but for a condo unit this is often not realistic — build this difference into how you decide to sell.

	Detached house (old seismic)	Condo unit (old seismic)
Who does the seismic retrofit	The owner alone	The management association (not alone)
Obtaining the conformity certificate	Easier once retrofitted	Often difficult; depends on the whole building's performance
Realistic way to sell	Retrofit, obtain the proof, get the buyer's mortgage through	Sell as-is with price adjustment; appeal to cash buyers and investors

Judging the tax burden and whether the proof can be obtained varies with the property and the buyer. Registration and licence tax, real-estate acquisition tax, and capital-gains tax are calculated by a tax accountant — consult one directly. What we handle is the valuation, the sale activity, and the groundwork for the possibility of obtaining a seismic-standard conformity certificate (including inquiries to the management association and survey firms).

Can you use the 30-million-yen deduction on an inherited old-seismic condo?

Here is where misunderstanding is common. The "30-million-yen special deduction" for selling an inherited vacant home comes in two different forms, and for a condo unit one of them, as a rule, cannot be used.

One is the special deduction for the deceased's residential property (a vacant home) (Article 35, paragraph 3 of the Act on Special Measures Concerning Taxation). The NTA's guidance (No. 3306) lists, as requirements for the qualifying deceased's residential house, "built on or before 31 May 1981" and "not a building for which condominium ownership registration has been made" (accessed 24 August 2026). In other words — a building registered as condominium ownership, such as a for-sale condo, is, as a rule, excluded from this vacant-home deduction.

The other is the 30-million-yen special deduction for residential property when you sell a home you lived in (paragraph 1 of the same article); this can apply to a condo unit too, but where you inherit and sell without living there, the requirements differ.

	Vacant-home deduction (Art. 35(3))	Residential-property deduction (Art. 35(1))
Condominium unit	As a rule, excluded	Can qualify (premised on your own residence)
Date-of-construction requirement	Built on or before 31 May 1981	No date-of-construction requirement
Main situation	An inherited detached vacant home	Selling a home you lived in

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The vacant-home deduction has other requirements too: a sale price of 100 million yen or less; a sale by 31 December of the year that includes the day three years after the start of the inheritance; a sale by 31 December 2027; and a deduction of 20 million yen where there are three or more heirs. Judging which deduction can or cannot be used is a specialist judgment that goes straight to the tax, and it belongs to the tax accountant. We do not calculate tax or file returns. The decision to sell or keep is covered at sell or keep the family home you inherited; the mandatory inheritance registration and the order of a sale, at what the mandatory registration changed.

How do you put a poorly-managed condo, short of repair reserves, on the market?

For an old-seismic condo, not only the seismic standard but the state of management affects the price. A shortfall in the repair reserve, or arrears of management fees or reserves, becomes a source of unease for the buyer and can be seen negatively in the mortgage screening too.

Before putting it on the market, it is worth confirming the following.

What to confirm	Where to find it
Amount of management fees / repair reserve and any arrears	Management company / association (important-matters survey report)
Large-scale repair history and long-term repair plan	Management association
Whether a seismic diagnosis has been done; any study of rebuilding or site sale	Management association
Matters resolved at the general meeting (bylaw changes, special charges)	Minutes

These are also matters to disclose to the buyer in the important-matters explanation. Sorting them out and disclosing them up front, rather than hiding them, ultimately makes the buyer's unease smaller. How to sell a property with arrears of management fees / reserves is covered at can you sell with management fees in arrears; which parts of a lease to read, at reading a lease. The overall approach to inherited property is at inheritance and vacant homes.

Who should you consult?

Valuation of the property, investigation of the date of construction and seismic performance, sale activity, and the groundwork for the possibility of a seismic-standard conformity certificate are handled by Yotsuba Real Estate Co., Ltd. (licensed real estate agent, Tokyo Governor (1) No. 113304).

Inheritance registration (the change of title) goes to a judicial scrivener; the judgment on and filing of capital-gains tax and the vacant-home deduction, to a tax accountant; and, where heirs cannot agree on selling and it turns into a dispute, the negotiation or mediation, to an attorney — each engaged by you directly. These are independent business entities, engaged separately from us. We neither pay nor accept referral fees or introduction commissions. We do not calculate tax or act as your registration agent. Consultation is free of charge.

Frequently asked questions

Q. I hear "1981" decides new-seismic or old-seismic — can I judge by the age of the building?
A. The real boundary is "whether the building confirmation was given on or after 1 June 1981," which may not match the age (year of completion). A condo has a long build period, so a case where the confirmation is old-seismic but completion is 1982 or later exists. Confirm with the certificate of confirmation, the certificate of inspection, the building-plan summary, and the registered date of construction. The buyer's housing-loan tax credit is judged by whether the registered date of construction is 1 January 1982 or later.

Q. Is an old-seismic condo unsellable?
A. It can be sold. But the buyer finds a mortgage harder, and without a seismic-standard conformity certificate the buyer cannot receive the housing-loan tax credit (Article 41). A condo unit cannot be retrofitted on its own, so the proof is often hard to obtain; you build the sale around an as-is price adjustment and an appeal to cash buyers and investors. Confirm the date of construction and the state of management first.

Q. Can I use the 30-million-yen vacant-home special deduction on an inherited old-seismic condo?
A. As a rule, no. The special deduction for the deceased's residential property (a vacant home) (Article 35(3)) requires that the building "not be one for which condominium ownership registration has been made," so a for-sale condo is excluded. Whether it applies, and the possibility of other deductions, is a specialist judgment that goes straight to the tax. Confirm with a tax accountant directly.

Q. Can a condo short of repair reserves still be sold?
A. It can, but a shortfall in the repair reserve or arrears of management fees is a source of buyer unease and is looked at in the mortgage screening. The amount, any arrears, the long-term repair plan and the large-scale repair history are also matters disclosed in the important-matters explanation. Sorting them out and disclosing up front makes the buyer's unease smaller.

Sources (primary)

• National Diet Library, Index of Laws, "Cabinet Order partially amending the Enforcement Order of the Building Standards Act" (Cabinet Order No. 196 of 14 July 1980) — the amending order that set the new seismic standard; in force 1 June 1981. A building given its building confirmation on or after that date is new seismic. Accessed 24 August 2026.
• NTA Tax Answer No. 1211-3, "Acquiring a second-hand home and occupying it from 2022 (special deduction for housing loans)" — basis: Article 41 of the Act on Special Measures Concerning Taxation. The house is "built on or after 1 January 1982," or, if earlier, conformity to the seismic standard is proved within 2 years before acquisition by a seismic-standard conformity certificate, a copy of a construction-housing performance evaluation (seismic grade 1 or above), or a certificate of the existing-home sale defect insurance. Accessed 24 August 2026.
• NTA Tax Answer No. 3306, "Special measure for selling the deceased's residential property (a vacant home)" — basis: Article 35, paragraph 3 of the Act on Special Measures Concerning Taxation. The deceased's residential house must be "built on or before 31 May 1981" and "not a building for which condominium ownership registration has been made," among other requirements. Sale by 31 December 2027; sale price 100 million yen or less; sale by 31 December of the year including the day three years after the start of the inheritance; deduction of 20 million yen where there are three or more heirs. Accessed 24 August 2026.
• Ministry of Justice, mandatory inheritance registration under the Real Property Registration Act — an heir must apply to register within 3 years of learning of the acquisition; in force 1 April 2024. Accessed 24 August 2026.

The new / old seismic division is decided by the date the building confirmation was given, while the buyer's housing-loan tax credit is judged by the registered date of construction (1 January 1982). These are different dates. This article does not assess any individual property. Whether a seismic-standard conformity certificate can be obtained varies with the whole building's seismic performance and the state of the management association; note that for a condo unit it is often difficult to obtain.

This article is general information. It does not judge or guarantee the feasibility or price of a sale of any particular property, or the application of a tax measure. The judgment on capital-gains tax and the vacant-home deduction belongs to the tax accountant. Valuation, investigation and brokerage are undertaken by Yotsuba Real Estate Co., Ltd. (licensed real estate agent). Inheritance registration goes to a judicial scrivener, tax to a tax accountant, and disputes among heirs to an attorney — independent business entities, engaged separately and directly. We neither pay nor accept referral 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. Property and paperwork are put on the same table. Full profile: author page.