You inherited the house, but the land is leased — when the landowner's consent is needed, and in what order to sell

In short: inheriting a building that stands on leased land does not itself require the landowner's consent (Civil Code Article 896 — universal succession). Consent is required when you sell that building to a third party (Civil Code Article 612, paragraph 1). Where the landowner withholds consent, there is a route to ask the court for permission in place of it (借地借家法, Act on Land and Building Leases, Article 19, paragraph 1).

You are clearing out a parent's house and a "land lease agreement" turns up in the papers. The building belonged to your parent; the land was rented — a shakuchi, a land leasehold. It is one of the least explained situations in Japanese inheritance. This article is for anyone who has inherited a building on leased land, or is thinking of selling one.

Does inheriting a leasehold require the landowner's consent?

No.

Article 896 of the 民法 (Civil Code, Act No. 89 of 1896) provides that "an heir succeeds, from the time of commencement of inheritance, to all rights and obligations attached to the property of the decedent." A land leasehold is among those rights. Inheritance is not a transfer by the parties' intention; it is universal succession by operation of law.

There is therefore no statutory basis for a consent fee charged simply because an inheritance has occurred. Telling the landowner that the name has changed is a separate matter, and worth doing: the rent is now payable by you, and any renewal will be negotiated with you. Send written notice once the inheritance registration is done.

So when is consent required?

When you sell — and, if the contract says so, when you rebuild.

Article 612, paragraph 1 of the 民法 provides that "a lessee may not assign the lessee's rights or sublease the leased thing without the lessor's approval." Paragraph 2 allows the lessor to terminate where the lessee, in breach, lets a third party use or profit from the property.

Selling a building on leased land moves the land leasehold with it, because the buyer needs that right in order to use the building. A sale of the building carries an assignment of the land leasehold — and Article 612 bites.

Situation	Landowner's consent	Basis
Succeeding by inheritance	Not required	Civil Code Art. 896 (universal succession)
Selling to a third party (building + leasehold)	Required	Civil Code Art. 612 (1)
Renting the building out (not a sublease of the land right)	Depends on the contract	Check the lease clauses
Rebuilding or extending	Depends on the contract	Check the lease clauses

For rebuilding and extensions the statute imposes no blanket consent requirement; the obligation usually comes from the land lease contract itself. Read that clause first.

What if the landowner will not consent?

There is a route to the court.

Article 19, paragraph 1 of the 借地借家法 (Act on Land and Building Leases, Act No. 90 of 1991) provides that where a leaseholder intends to transfer the building on the leased land to a third party, and the acquisition of the leasehold by that third party would not be disadvantageous to the lessor, yet the lessor refuses consent, "the court may, on the petition of the leaseholder, grant permission in place of the lessor's consent."

The same paragraph continues that the court may, where necessary to balance the parties' interests, order a change to the leasehold terms conditional on the transfer, "or make the permission contingent on a payment of property." What practitioners call a shodakuryo (consent fee) is that payment, where the court sets one.

This petition — the shakuchi hishō procedure — is a court proceeding. Whether permission is granted, and how much any payment is, are decided by the court case by case. We do not judge either. These matters go to an attorney, engaged by you directly.

There is also a provision seen from the buyer's side. Article 14 provides that where a third party has acquired the building but the lessor refuses to consent to the assignment, that third party may demand that the lessor purchase the building at its market value.

Which statute governs the leasehold — the old one or the new one?

The 借地借家法 was enacted to replace the old 借地法 (Land Lease Act, Act No. 49 of 1921) and related statutes, which it repealed (Supplementary Provisions, Article 2). Supplementary Provisions Article 4 states that the Act applies "also to matters that arose before its entry into force, except as otherwise specially provided in these Supplementary Provisions." The default is the new Act.

But there are special provisions.

Issue	Leasehold created before entry into force	Basis
Renewal of the contract	Governed by the prior law (the old 借地法)	Suppl. Prov. Art. 6
Extinction by decay of the building	Governed by the prior law	Suppl. Prov. Art. 5
Extension of term by rebuilding after loss	Governed by the prior law	Suppl. Prov. Art. 7 (1)

In other words, the renewal rules are where the old Act still bites on older leaseholds. That is what the question "is ours an old-law or a new-law leasehold?" is really about. The term itself is set by Article 3: thirty years, or longer if the contract so provides. Article 5, paragraph 1 provides that where a building stands and the leaseholder requests renewal, the contract is deemed renewed on the same terms unless the lessor raises an objection without delay.

The dividing line is the date the leasehold was created. Look at the date on the contract first. The Act was promulgated on 4 October 1991; Supplementary Provisions Article 1 sets entry into force at "a date specified by Cabinet Order within a period not exceeding one year from the date of promulgation" (see the note at the end of this article).

There are also fixed-term types with no renewal: Article 22 (fixed-term land leasehold, 50 years or more, the special provision made in writing such as a notarial deed or by electromagnetic record) and Article 23 (fixed-term land leasehold for business use, 30 to under 50 years, for buildings used exclusively for business). Inherit one of these and it ends when the term expires. Check whether the contract says "fixed term" or "no renewal."

Is a leasehold usually unregistered?

Yes — and it is still protected.

Article 10, paragraph 1 provides that "a land lease right may be asserted against a third party, even without registration of that right, where the leaseholder owns a registered building on the land." The foundation is the registration of the building, not of the land right.

That fixes the order of work. If the building is still registered in the deceased's name, the foundation is shaky. Complete the inheritance registration of the building first. It is the precondition for a sale.

It is also an obligation. Article 76-2, paragraph 1 of the 不動産登記法 (Real Property Registration Act, Act No. 123 of 2004) requires a person who acquires ownership by inheritance to apply for registration of the transfer "within three years from the day on which the person becomes aware of the commencement of the inheritance and of the acquisition of that ownership." The application itself is the work of a judicial scrivener.

The interaction with a sale is covered here, and what to do when the title deed cannot be found here.

What should be gathered before a sale?

Document	Where from	Why
Land lease agreement	Home, safe deposit box, landowner	Date created, term, renewal, rebuilding and assignment clauses
Certificate of registered matters for the building	Legal Affairs Bureau	Registered owner; whether registered at all
Certificate for the land, and the cadastral map	Legal Affairs Bureau	Landowner's name and the extent of the plot
Records of ground rent paid	Bank book, receipts	Arrears; the current rent
Records of renewal or consent fees	Bank book, receipts, memoranda	Past practice frames the negotiation
Construction documents (confirmation and inspection certificates)	Home, administrative authority	Legal compliance and whether rebuilding is possible

A missing contract is common. Even then, the ground-rent payment record and the building registration often give you a thread to follow. Look at the bank book before concluding there is nothing.

Where a rented apartment building sits on leased land, the leasehold issues overlap with the succession of tenancies — see this article — and the question of selling versus keeping is covered here. See also inherited property.

Who should you consult?

Property investigation, how to think about price, structuring terms with a buyer, brokerage and the sale contract are handled by Yotsuba Real Estate Co., Ltd. (licensed real estate agent, Tokyo Governor (1) No. 113304). Preparation of documents concerning rights and obligations, and documents for submission to public authorities — an estate division agreement, for instance — is handled by Yotsuba Administrative Scrivener Office.

These are two independent business entities, engaged separately and directly by you. We neither pay nor accept referral fees or introduction commissions.

Inheritance registration of the building is for a judicial scrivener; inheritance tax valuation of the leasehold and the filing are for a licensed tax accountant; a dispute with the landowner, and the court petition, are for an attorney — each engaged by you directly. Consultation is free of charge.

Frequently asked questions

Q. The landowner is asking for a consent fee now that I have inherited. Am I obliged to pay?
A. Inheritance is universal succession under Civil Code Article 896, not an "assignment" under Article 612, paragraph 1. There is no statutory basis for a consent fee charged for the inheritance itself. A specific clause in the contract, or an agreement about a name-change fee, would change the picture. Check the contract, then take the question of liability to an attorney.

Q. The landowner says there will be no renewal. What happens to the building?
A. Article 13, paragraph 1 of the 借地借家法 allows the leaseholder, where the term has expired without renewal, to demand that the lessor purchase the building at market value. For leaseholds created before the Act entered into force, however, renewal is governed by the prior law under Supplementary Provisions Article 6. Check the date on the contract, then consult an attorney.

Q. What is a building on leased land worth?
A. It depends on the level of the ground rent, the remaining term, the renewal and rebuilding conditions, the likelihood of the landowner's consent, and the state of the building. It is not uniform even within one neighbourhood. We read the contract and the rent record before putting a number on it. On comparing net proceeds, see this article.

Q. The landowner has offered to sell me the freehold.
A. If the leaseholder buys the freehold, the leasehold relationship ends and you hold full ownership — which widens the options for a sale, but requires funds. The reverse (selling the leasehold to the landowner), or selling both together to a third party, are also possible structures. Which is better depends on the terms; we set out the general options and the issues. Tax treatment is for a licensed tax accountant.

Q. There are several heirs. Can the building be sold while jointly owned?
A. Yes, provided all co-owners are sellers. That means confirming the intention of every one of them, with seals and seal registration certificates. Where an heir lives abroad, obtaining a signature certificate takes time. Whether to consolidate ownership through estate division first, or to sell while jointly owned, is decided by working back from the deadlines and the number of people involved.

Sources (primary)

• e-Gov "民法" (Civil Code) — Act No. 89 of 1896. Art. 612 (1) and (2) (restriction on assignment and sublease); Art. 896 (general effect of inheritance). Current text as amended by Act No. 45 of 2026, in force 24 June 2026. Accessed 22 August 2026.
• e-Gov "借地借家法" (Act on Land and Building Leases) — Act No. 90 of 1991. Art. 3; Art. 5 (1); Art. 10 (1); Art. 13 (1); Art. 14; Art. 19 (1); Art. 22; Art. 23; Supplementary Provisions Arts. 2, 4, 5, 6 and 7 (1). Promulgated 4 October 1991. Current text as amended by Act No. 48 of 2022, in force 21 May 2026. Accessed 22 August 2026.
• e-Gov "不動産登記法" (Real Property Registration Act) — Act No. 123 of 2004. Art. 76-2 (1), three-year deadline. Current text as amended by Act No. 46 of 2026, in force 24 June 2026. Accessed 22 August 2026.
• Ministry of Justice, amendments to the Civil Code and Real Property Registration Act — inheritance registration obligation in force 1 April 2024. Accessed 22 August 2026.

The entry into force of the 借地借家法 (commonly given as 1 August 1992) could not be confirmed on e-Gov, because the Cabinet Order fixing the date is no longer carried there. This article therefore treats that date as unverified and does not assert it. Which regime applies is to be checked against the date recorded in your own land lease agreement. No uniform, primary-source figure exists for consent fees, renewal fees, or the split between leasehold and freehold value, so no amounts are given here. The petition under Article 19 is a court proceeding, and both permission and any payment are for the court to decide; this article makes no assessment of any individual case.

This article is general information and does not offer a legal determination. Inheritance registration is carried out by a judicial scrivener, inheritance and capital gains filings by a licensed tax accountant, and disputes with the landowner by an attorney. Property investigation, brokerage and sale contracts are undertaken by Yotsuba Real Estate Co., Ltd. (licensed real estate agent); the preparation of estate division agreements and similar documents by Yotsuba Administrative Scrivener Office — two 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. Contracts, registrations and deadlines go on the same table. Full profile: author page.