The record of the system for returning inherited land to the State: what land was rejected or not approved

The key point: About three and a half years after its enforcement on 27 April 2023 (Reiwa 5), the system for returning inherited land to the State shows, per the Ministry of Justice statistics (as of 30 September 2026, provisional; published 19 October 2026), that against 6,125 applications, 3,231 lots were approved to return to the State, with 86 rejections, 103 non-approvals and 1,162 withdrawals. At the application stage, what is rejected is land with a building on it, land with a security interest, land whose boundary is unclear, and the like—the Act specifies in advance the "land that cannot be applied for" (Act on the Escheat of Ownership of Land Acquired by Inheritance, etc. art. 2(3)). At the review stage, what is not approved is land with a cliff requiring excessive cost or effort to manage, land with structures or trees on the ground, land with buried objects below, land that cannot be managed or disposed of without litigation, and the like (art. 5(1)). Once approved, you pay a contribution corresponding to part of the State's management costs. Land that is rejected or not approved—or land for which selling or leasing leaves more in hand than letting go by paying a contribution—is examined for a different exit such as sale or donation by real estate (us). Preparing the approval-application documents is a certified administrative scrivener's role; the review the Legal Affairs Bureau's; the boundary (demarcation) survey a land and house investigator's; capital-gains and other tax a tax accountant's. We connect you to each as an independent business contracted with separately (no referral fees are exchanged).

For heirs searching for an exit for inherited land they cannot sell (distant, moorland, forest, or hard-to-manage land), this article checks the system's operational record—how much it has been used, and what land was rejected or not approved—against the Ministry of Justice statistics, and organises the different exits if a case is rejected or not approved, in the order of the law and public materials. This is general information; the final judgment on whether a particular lot will be rejected/not approved, the contribution amount, and the application of tax rests with the Legal Affairs Bureau and professionals.

Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社), based in Bunkyo, Tokyo, provides surveys, valuation and sale brokerage for inherited real estate. You can consult us from the stage of "should I apply for escheat to the State, or is selling better".

How much has the escheat-to-the-State system been applied for and approved so far?

The Ministry of Justice publishes statistics on the system's operation periodically. The latest (published 19 October 2026; as of 30 September 2026, provisional) is as follows. When weighing the choice, knowing that "a certain share of applications end in withdrawal, rejection or non-approval" makes the outlook clearer.

Item	Count (as of 30 September 2026, provisional)
Applications	6,125
Escheat (lots approved to return to the State)	3,231
Rejections	86
Non-approvals	103
Withdrawals	1,162

By land category, applications were highest for paddy/field (2,372), then residential land (2,135), forest (928) and other (690). Of the 1,162 withdrawals, the reasons include "a prospect of effective use arose" (595) and "it turned out to be a rejection/non-approval" (415). In other words, a considerable number apply, then find another exit or withdraw on realising the requirements are not met. For choosing between systems (comparing escheat, donation and sale), see the existing article letting go of inherited land—comparing escheat, donation and sale; this article narrows its subject to the operational record (the types of rejection and non-approval).

What land is "rejected" at the application stage? (Act art. 2(3))

Rejection means being turned away before the review, as "land that cannot be applied for in the first place". Art. 2(3) of the Act provides that land falling under any of the following cannot be applied for.

Land that is rejected (art. 2(3))	Content
Land with a building	Land on which a building stands
Land with a security interest, etc.	Land on which a security interest such as a mortgage, or a right for use/profit, is set
Land where others' use is planned	Land including that defined by Cabinet Order as land where others' use, such as a passage, is planned
Contaminated land	Land contaminated by designated hazardous substances under the Soil Contamination Countermeasures Act
Land whose boundary is unclear	Land whose boundary is unclear, or where the existence/attribution/scope of ownership is disputed

In the Ministry of Justice statistics, the reasons for the 86 rejections (as one case may have multiple reasons, the total by reason does not match the number of rejections) include: no attached documents submitted (37), boundary unclear (23), used as a passage (22), application by a person without authority (11), and a building on the land (4). That an unclear boundary and use as a passage are actual grounds for rejection is worth checking while still looking at the property. Boundary demarcation is a land and house investigator's field, and the flow is to do a demarcation survey before applying.

What land is "not approved" at the review stage? (Act art. 5(1))

Non-approval means that although the application is accepted, the review concludes it is "not appropriate to escheat to the State". Art. 5(1) provides that land falling under any of the following is not approved. Separate from the rejection requirements (whether the land can be applied for), this stage looks at whether "it requires excessive cost/effort for ordinary management/disposal".

Land that is not approved (art. 5(1))	Content
Land with a cliff	Land with a cliff of a gradient/height defined by Cabinet Order, whose management requires excessive cost/effort
Land with objects on the ground	Land with structures, vehicles, trees or other objects on the ground that impede ordinary management/disposal
Land with objects below ground	Land with buried objects that must be removed before ordinary management/disposal
Land requiring litigation	Land that cannot be ordinarily managed/disposed of without litigation with the adjacent owner, etc., as defined by Cabinet Order
Other land requiring excessive cost/effort	Besides the above, land defined by Cabinet Order as requiring excessive cost/effort for ordinary management/disposal

In the Ministry of Justice statistics, the reasons for the 103 non-approvals include: objects such as structures, vehicles or trees on the ground impeding management/disposal (49), forest requiring additional development by the State (37), land that would bear a monetary obligation under law after escheat (12), land needing measures against disaster risk (11), and a cliff requiring excessive cost/effort (7) (as one case may have multiple reasons, the total does not match the number of non-approvals). That neglected structures and standing trees, and under-developed forest, are actual main grounds for non-approval is important record for heirs wanting to let go of forest or moorland. For how to think about the exit for forest, see selling inherited forest / having the neighbour buy it.

If rejected or not approved, how do I find a different exit such as sale or donation?

Even if escheat is rejected or not approved, the land's exit does not disappear. Rather, for some land, selling or leasing leaves more in hand than paying a contribution to have the State take it. The exits roughly split as follows.

Exit	When it fits	Who is mainly involved
Sale (market, neighbour, buy-up)	Demand is foreseeable, or the neighbour wants to buy up	Us (a real-estate transaction business)
Donation (to a municipality, corporation or individual)	Hard to sell but a taker exists	Us / the counterparty (acceptance depends on the other side)
Lease / use (car park, storage yard, solar, etc.)	There are building restrictions but another use works	Us / an operator
Re-apply after meeting requirements	Boundary demarcation or object removal can satisfy requirements	Land/house investigator, demolition contractor, administrative scrivener

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Before moving to escheat on the premise that it cannot be sold, the order is first to check whether it can be sold on the market, bought by a neighbour, or leased for another use. "Neighbour demand"—where the adjoining owner wants to buy up—can close more readily than the general market. For how to let go of hard-to-manage land generally, see can I sell inherited urbanisation-control-area land; for land with a vacant house, see sell inherited vacant house as cleared land or as land with an old house. We help with a read on whether it is likely to be rejected/not approved against the requirements (the final judgment is the Legal Affairs Bureau's) and with organising the different exits of sale, donation and lease.

From preparing the application documents to paying the contribution, whom do I consult?

The escheat-to-the-State system spans separate fields—the approval application (administrative scrivener / applicant), the review (Legal Affairs Bureau), boundary demarcation (land/house investigator), sale as an alternative exit (real estate) and tax (tax accountant). What a real-estate company handles is considering the alternative exit and the survey, valuation and brokerage.

Trouble	Who to refer to
Considering alternative exits (sale, donation, lease) on rejection/non-approval; survey, valuation, brokerage	Us (a real-estate transaction business)
Preparing/submitting the escheat approval application	Administrative scrivener
Reviewing the application and notifying the contribution amount	Legal Affairs Bureau (the competent (district) Legal Affairs Bureau)
Boundary (demarcation) survey, subdivision	Land and house investigator
Ownership-transfer and inheritance registration	Judicial scrivener / land and house investigator
Capital-gains and other tax	Tax accountant

These are each independent businesses, contracted with separately. We neither receive nor pay referral or introduction fees. On approval you must pay a contribution, calculated per category of state land considering ten years of standard management costs. In principle it is a flat sum regardless of area (300,000 yen), but some residential land or farmland in urbanisation-promotion areas and certain forests are calculated by area (Act art. 10 and the Enforcement Order; the specific amount follows the Legal Affairs Bureau's notice and the Order's calculation). Whether the approval application is possible and the documents are judged by an administrative scrivener; the review and the contribution amount by the Legal Affairs Bureau; boundary demarcation by a land/house investigator; registration by a judicial scrivener; tax by a tax accountant. If the inherited land is still in the deceased's name, inheritance registration (mandatory from 1 April 2024, Real Property Registration Act art. 76-2) usually comes before the application or sale, and this is a judicial scrivener's field. For how to proceed with inherited real estate, see the consultation desk for inherited real estate.

Consult Yotsuba Real Estate about inherited land where you're torn between escheat and sale—initial consultation is free

In your message, write "inherited land escheat" and include the land's location (municipality), category (residential, paddy/field, forest, moorland, etc.), whether there are buildings, structures or standing trees, whether the boundary is fixed, and whether inheritance registration is done. Without presuming escheat or sale/donation/lease fits, we begin with a read on whether it is likely to be rejected/not approved (the final judgment is the Legal Affairs Bureau's) and with organising the different exits.

Frequently asked questions

Q. How much has the escheat-to-the-State system been used so far?
A. Per the Ministry of Justice statistics (as of 30 September 2026, provisional; published 19 October 2026), in about three and a half years since the April 2023 enforcement there were 6,125 applications, 3,231 lots approved to escheat, 86 rejections, 103 non-approvals and 1,162 withdrawals. There are considerable cases of applying, then finding another exit and withdrawing, or being rejected/not approved for failing the requirements. The figures are provisional; check the latest on the Ministry of Justice page.

Q. What land gets "rejected"?
A. Art. 2(3) lists land with a building, land with a security interest, land where others' use such as a passage is planned, contaminated land, and land whose boundary is unclear as "land that cannot be applied for". In the Ministry of Justice statistics, missing attached documents, an unclear boundary, and use as a passage are the top actual grounds for rejection. Boundary demarcation is a land/house investigator's field.

Q. What land gets "not approved"?
A. Art. 5(1) makes not approved: land with a cliff requiring excessive cost/effort to manage, land with structures/vehicles/trees on the ground, land with buried objects, and land that cannot be managed without litigation. In the statistics, objects on the ground, forest needing additional development, and land bearing a monetary obligation are the top grounds. Forest or moorland with neglected standing trees or structures tends not to pass without clearing or developing it.

Q. If rejected or not approved, can I no longer let it go?
A. Not so. For some land, selling or leasing leaves more in hand than paying a contribution to have the State take it. You can consider selling on the market, selling to the neighbour, donating to a municipality or corporation, or leasing it as a car park or storage yard. We help with a read on escheat (the final judgment is the Legal Affairs Bureau's) and with organising sale, donation and lease. Sale brokerage is real estate's; the application a certified administrative scrivener's; boundary demarcation a land/house investigator's—the roles are split.

Sources

The following public materials are starting points. Laws are amended, so check the current article, paragraph, item, enforcement date and latest amendment on e-Gov Law Search. The statistics are provisional and updated from time to time, so check the latest on the Ministry of Justice page. Whether a particular lot is rejected/not approved is judged by the competent Legal Affairs Bureau. Public materials were all consulted on 2 November 2026. The sources below are in Japanese.

• e-Gov Law Search: Act on the Escheat of Ownership of Land Acquired by Inheritance, etc. (Act No. 25 of 2021; in force 27 April 2023 (Reiwa 5); art. 2(3) = land that cannot be applied for [rejection], art. 5(1) = land not approved [non-approval], art. 10 = contribution)
• Enforcement Order and Enforcement Regulations of the Act on the Escheat of Ownership of Land Acquired by Inheritance, etc. (the Cabinet-Order delegation of rejection/non-approval requirements and the calculation of the contribution; check the article number and latest text on e-Gov Law Search)
• Ministry of Justice, "Statistics on the system for returning inherited land to the State" (as of 30 September 2026, provisional; applications, escheat, rejections, non-approvals, withdrawals, breakdown by land category and by reason. Published 19 October 2026; consulted 2 November 2026; as one case may have multiple reasons, the total by reason does not match the counts)
• Ministry of Justice, "Overview of the system for returning inherited land to the State" (the types of rejected/non-approved land and the idea of the contribution. Consulted 2 November 2026)
• e-Gov Law Search: Real Property Registration Act (Act No. 123 of 2004; art. 76-2 = duty to apply for inheritance registration [in force 1 April 2024])

This article provides general information and does not guarantee the conclusion of an individual lot's rejection/non-approval, the contribution amount, or the application of tax. Whether the approval application is possible and the documents are an administrative scrivener's; the review and the contribution amount the Legal Affairs Bureau's; boundary demarcation a land/house investigator's; inheritance and ownership-transfer registration a judicial scrivener's; capital-gains and other tax a tax accountant's—each judged and handled by them.

Joji Uramatsu (浦松 丈二), Representative Director and licensed real estate transaction specialist, Yotsuba Real Estate Co., Ltd. (四葉不動産株式会社). We provide surveys, valuation and brokerage for the sale of inherited real estate. Author profile

Updated: 2 November 2026