Selling an inherited tower apartment? The Reiwa-6 new valuation of residential condominium property and the selling steps

In short: For residential tower apartments inherited, bequeathed, or gifted on or after 1 January 2024, the National Tax Agency's guideline "On the valuation of residential condominium property" (28 September 2023) changed the inheritance-tax valuation. For units where market price and assessed value diverge widely, the value is raised to roughly 60% of market price. But this is a matter of the inheritance-tax valuation framework and is separate from the price you can actually sell at. Valuation and filing go to a tax accountant, inheritance registration (title change) to a judicial scrivener, disputes over estate division to a lawyer, and the sale brokerage to us — each a separate contract. We do not calculate specific tax amounts.

This is written for those who inherited a tower apartment in Reiwa 6, heirs weighing whether to sell or hold after the valuation change, and real estate staff handling inheritance cases. We organize the points of the valuation guideline (only the valuation framework) and the selling steps, including settling management fees and the repair reserve. We handle property and sale information and brokerage; valuation/filing, registration, and disputes are each referred to the appropriate professional.

What changed with the Reiwa-6 "valuation of residential condominium property" guideline?

A correction that closes the gap with market price was added to the inheritance-tax valuation of condominiums (residential units under sectional ownership). It applies from inheritances, bequests, and gifts on or after 1 January 2024.

The National Tax Agency issued the guideline "On the valuation of residential condominium property" dated 28 September 2023, changing to a method that multiplies the former value by a "sectional-ownership correction rate" for residential condominium property acquired by inheritance, bequest, or gift on or after 1 January 2024. For high-floor or newer tower apartments, the former inheritance-tax value often fell well below market price, and this corrects that gap.

The mechanism is as follows (the formula is from the guideline and NTA tax answer).

Element	Content
Valuation divergence rate	A + B + C + D + 3.220. A = building age × −0.033; B = total-floors index (total floors ÷ 33, capped at 1.0) × 0.239; C = floor on which located × 0.018; D = narrowness of land right (land-use-right area ÷ exclusive-portion area) × −1.195
Valuation level	1 ÷ divergence rate
Direction of correction	If the level is below 0.6, the value is raised; above 1, lowered; between 0.6 and 1, no correction

Valuation level	Sectional-ownership correction rate	Effect
Below 0.6	Divergence rate × 0.6	Raises the value to roughly 60% of market price
0.6 to 1	No correction	Former valuation stays
Above 1	Divergence rate	Lowers the value

Higher floors and newer buildings tend to have a lower valuation level and are more likely to be raised. The specific value and tax amount are calculated by a tax accountant. We limit ourselves to information on the framework and do not calculate tax. For the overall picture of valuing and dividing inherited real estate, see Valuation and sale when dividing inherited real estate by compensatory division.

How does the new valuation relate to the decision to sell? (assessed value vs. sale price)

The inheritance-tax assessed value and the actual sale price are different things. The valuation change concerns "how much inheritance tax you pay," while "how much it sells for" is decided by the market. Keep the two separate.

This is easily misunderstood. The guideline is a method of valuing property to calculate inheritance and gift tax, not a method of setting the transaction price. Even if the assessed value is raised, the sale price does not rise. Conversely, the sale price is decided by location, floor, view, management condition, and the market.

What to compare	Decided by	Who handles it
Inheritance-tax assessed value	Property Valuation Basic Guideline + Reiwa-6 sectional-ownership correction rate	Tax accountant (valuation/filing)
Actual sale price	Market (location, floor, view, management, conditions)	Real estate company (appraisal/brokerage)

Whether to sell or hold is judged by weighing both "the inheritance-tax burden (based on assessed value)" and "the net proceeds from sale (based on market price)." Because valuation is the tax accountant and appraisal is the real estate company, approaching both early and lining up the numbers makes the decision easier. The wall when selling an inherited pre-1981 condominium is in Can you sell an inherited pre-1981-earthquake-standard condominium? New seismic standards and the buyer's mortgage wall; disposing of a villa or resort condominium in Disposing of an inherited villa or resort condominium.

What to confirm before selling — arrears and settlement of management fees and the repair reserve

For a condominium, if management fees or the repair reserve are in arrears, the unpaid amount is carried over to the buyer (the "specific successor"). Confirm the arrears at the time of inheritance and the per-day settlement at handover before selling.

Article 7 of the Act on Building Unit Ownership grants the management association a statutory lien, and Article 8 provides that the claim for management fees etc. may be exercised against the specific successor (such as the buyer) of the debtor unit owner. In other words, management fees and the repair reserve the former owner left in arrears can be billed by the management association to the buyer, however the sale contract provides. If the inherited unit is in arrears, the heir first succeeds comprehensively, and settlement is needed at sale.

Item to confirm	Content
Whether in arrears	Whether the decedent left management fees / repair reserve unpaid. Query the balance with the association/management company
Successor's carryover	Under Article 8, arrears pass to the buyer; late-payment damages may also be covered
Settlement at handover	Management fees and the repair reserve are customarily settled per day as of the handover date
State of the repair reserve	Planned large-scale repairs, planned increases in the reserve, the long-term repair plan

Selling while leaving arrears puts you at a disadvantage in price talks because they pass to the buyer. The amount of management fees/repair reserve and whether there are arrears are also items of the important-matters explanation. Before selling, query the balance with the association/management company and, if needed, settle among the heirs first.

In what order do title change (inheritance registration) and the sale proceed?

As a rule, you change the title to the heir by inheritance registration, then sell. Inheritance registration has been mandatory since 1 April 2024 and cannot be skipped even if you intend to sell.

To sell real estate, the seller must be the registered title holder. While the title remains in the decedent's name, ownership cannot be transferred to the buyer, so you must first move the title to the heir by inheritance registration. Under Article 76-2 of the Real Property Registration Act, from 1 April 2024 the application became mandatory, to be filed in principle within three years of learning of the acquisition (past inheritances are also covered, with transitional measures).

Order	Procedure	Who
①	Estate-division agreement (who acquires it)	Heirs (a lawyer if disputed)
②	Inheritance registration (title to the heir)	Judicial scrivener
③	Brokerage agreement / listing	Real estate company (us)
④	Sale contract / handover / ownership transfer	Real estate company + judicial scrivener

For conversion division (sell and divide the cash), there is a method of registering the title in a representative heir's name and selling. Only a judicial scrivener may act on the registration application; we do not. The practice of the order of inheritance registration and sale is organized in The flow of selling inherited real estate by conversion division — title, registration, and apportioning transfer tax, including referral to a lawyer where estate division is not settled.

How to organize sale vs. hold/lease against the inheritance-tax payment funds

Toward the inheritance-tax deadline (in principle 10 months), design early whether to raise payment funds by sale or to hold/lease. The key is the balance between the deadline and the time a sale takes.

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Inheritance tax must be filed and paid in principle within 10 months from the day after you learn the inheritance began. Inheriting a high-value asset like a tower apartment makes how to raise the payment funds the practical focus. If you raise them by sale, work backward from the deadline, allowing for the months from listing to handover.

Option	When it fits	Points to note
Sell and use for payment funds	Payment funds short, no intent to hold	A sale takes time; start early, counting back from the deadline
Hold and lease	Good location with rental demand	Management fees, repair reserve, vacancy risk, tax on rent income
Sell part, hold part	Multiple heirs with differing wishes	Settle the division method and shares first

Which to choose is judged by weighing the inheritance-tax amount (the tax accountant values/calculates) against the net proceeds and the time required (the real estate company appraises). The way to set a sale schedule with payment funds in view is in A schedule for raising inheritance-tax funds through a sale. Specific tax amounts and payment methods (including installment or in-kind payment) are areas a tax accountant handles; we do not judge them.

For valuation, registration, and sale — who to ask for what (division of roles)

Inheritance-tax valuation and filing are the tax accountant; inheritance registration is the judicial scrivener; estate-division disputes are the lawyer; the sale's appraisal and brokerage are real estate (licensed agent). Where roles overlap, clarify before signing who handles what.

In the Yotsuba group, consultations on selling/using the tower apartment are handled by Yotsuba Real Estate Co., Ltd., and the preparation of permit-related documents accompanying inheritance by the affiliated Yotsuba Administrative Scrivener Office, under a separate contract. Valuation/filing, registration, and disputes are each referred to the appropriate professional.

Where to consult	What they handle
Yotsuba Real Estate Co., Ltd. (real estate brokerage)	Sale appraisal, brokerage of sale/lease, the practice of settling management fees etc.
Tax accountant	Inheritance-tax valuation (including the sectional-ownership correction rate), filing, payment (installment/in-kind)
Judicial scrivener	Inheritance registration (title change), ownership transfer registration
Lawyer	Negotiation/mediation/litigation where estate division is disputed
Yotsuba Administrative Scrivener Office (separate contract)	Preparation of documents submitted to public offices accompanying inheritance

We and our office, and the various professionals, are each independent business entities. Where roles overlap, we clarify before the contract who handles what, and you contract with each separately. We neither receive nor pay any referral fee or introduction commission. Consultations are free. For inherited real estate generally, see Inheritance consultations.

FAQ

Q. With the Reiwa-6 valuation change, does the inheritance tax on a tower apartment always go up?
A. Not always. A unit with a valuation level below 0.6 has its value raised to roughly 60% of market price, but between 0.6 and 1 there is no correction, and above 1 it is lowered. Higher floors and newer buildings tend to be more likely to be raised. The specific value and tax amount are calculated by a tax accountant.

Q. If the inheritance-tax value rises, does the sale price rise too?
A. No. The inheritance-tax assessed value is a price for calculating inheritance and gift tax and is separate from the actual sale price. The sale price is decided by location, floor, view, management condition, and the market. Valuation is the tax accountant and appraisal the real estate company, so approaching both and lining up the numbers makes it easier to decide whether to sell or hold.

Q. Can it be sold even with arrears of management fees or the repair reserve?
A. It can, but under Article 8 the arrears pass to the buyer (the specific successor), and late-payment damages may also be covered. The amount of management fees/repair reserve and whether there are arrears are items of the important-matters explanation. Before listing, it is customary to query the balance with the association/management company and, if needed, settle among the heirs.

Q. Can it be sold while the title is still in the deceased parent's name?
A. As a rule, you first move the title to the heir by inheritance registration, then sell. Inheritance registration became mandatory on 1 April 2024, to be filed in principle within three years of learning of the acquisition. Only a judicial scrivener may act on the registration; we do not. Where estate division is not settled, consult a lawyer.

Sources (primary information)

• NTA guideline "On the valuation of residential condominium property" (28 September 2023, Ka-hyo 2-74 etc.) (applies to inheritance/bequest/gift on or after 1 January 2024; the framework of divergence rate, valuation level, and sectional-ownership correction rate. Accessed 3 Oct 2026)
• NTA Tax Answer No. 4667 "Valuation of residential condominium property" (divergence rate = A + B + C + D + 3.220; valuation level = 1 ÷ divergence rate; below 0.6 = divergence × 0.6; above 1 = divergence rate; 0.6 to 1 = no correction. Accessed 3 Oct 2026)
• NTA "Q&A on the valuation of residential condominium property" (May 2024, Property Valuation Planning Officer) (what is and is not subject to correction; the idea of each element of the formula. Accessed 3 Oct 2026)
• e-Gov Law Search "Act on Building Unit Ownership etc." (Act No. 69 of 1962; Article 7 = statutory lien, Article 8 = specific successor's liability (carryover of arrears of management fees etc.). Accessed 3 Oct 2026)
• e-Gov Law Search "Real Property Registration Act" (Act No. 123 of 2004; Article 76-2 = obligation to apply for inheritance registration (effective 1 April 2024, in principle within three years). Accessed 3 Oct 2026)
• e-Gov Law Search "Real Estate Brokerage Act" (Act No. 176 of 1952; Article 35 = important-matters explanation (amount of management fees/repair reserve, arrears). Accessed 3 Oct 2026)

• The application of the divergence rate, valuation level, and sectional-ownership correction rate, the subject/non-subject determination, and specific values/tax amounts are calculated per unit by a tax accountant. This article does not assert specific tax amounts/rates. Eligibility/calculation is treated as [unverified], assuming confirmation by a tax accountant.
• The inheritance-tax deadline, availability of installment/in-kind payment, and tax on rent income/transfer income vary with circumstances. This article presents no specific tax judgment.
• Inheritance and ownership-transfer registration applications are for a judicial scrivener, and estate-division negotiation/mediation/litigation for a lawyer. This article presents no specific legal judgment.
• This article is general information, not an individual legal or tax judgment. Valuation/filing is for a tax accountant, registration for a judicial scrivener, disputes for a lawyer, and preparation of documents submitted to public offices for an administrative scrivener.
• Sale appraisal/brokerage and the practice of settling management fees etc. are handled by Yotsuba Real Estate Co., Ltd. (real estate brokerage); the various professionals contract with you separately as independent business entities. There is no exchange of referral fees or introduction commissions.

About the author

Joji Uramatsu — Licensed Real Estate Transaction Specialist (Tokyo Governor registration No. 293544) and Administrative Scrivener (registration No. 25087022). Representative Director of Yotsuba Real Estate Co., Ltd. (real estate brokerage, Tokyo Governor (1) No. 113304) / Head of Yotsuba Administrative Scrivener Office. Kohinata, Bunkyo-ku, Tokyo, about 5 minutes' walk from Myogadani Station. For selling an inherited tower apartment, the Reiwa-6 valuation framework, settling management fees/the repair reserve, and the order of inheritance registration and sale are confirmed side by side. See the author page for the full profile.