Who sells real estate with no heir, and how? The estate liquidator and the family court's permission

The key point: Real estate with no heir (or where all heirs have renounced) cannot be sold by anyone on the owner's death alone. First the family court appoints an "estate liquidator" on the request of an interested party or the public prosecutor (Civil Code art. 952(1); the amendment in force on 1 April 2023 (Reiwa 5) renamed the former "estate administrator" to this). Only after that liquidator obtains the family court's permission for an act beyond authority (Civil Code art. 28; the provisions on an absentee's property administrator are applied via art. 953) can the real estate be sold and turned into cash. This is because the liquidator treats the sale of real estate as a disposal going beyond the scope of preservation/management, so a separate petition for permission is required for each. What a real-estate company (we) handles is valuation, buyer search and sale brokerage on the appointed liquidator's instruction; the liquidator's appointment petition and the permission-for-an-act-beyond-authority petition are a lawyer's or judicial scrivener's work, inheritance registration and name change a judicial scrivener's, inheritance tax and capital gains a tax accountant's, and disputes among heirs or with creditors a lawyer's—each an independent business contracted with separately (no referral fees are exchanged).

For the relatives, creditors, special-connection persons, and neighbours/municipal staff of vacant houses dealing with real estate of a relative who left no family, this article organises the practical flow from appointing a liquidator to converting the property to cash, in the order of the Civil Code and court / Ministry of Justice guidance. This is general information; the final judgment on whether a liquidator can be appointed, whether permission for an act beyond authority is granted, and the reasonableness of the sale price rests with the family court and the respective licensed 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 of inherited real estate. We help from the stage of "how to convert real estate with no heir to cash", working together with the liquidator, lawyer and judicial scrivener.

Who must be appointed to sell real estate with no heir?

When it is not clear that there is an heir, the estate becomes a "juridical person" (Civil Code art. 951). Even after the owner dies, if the heirs are unknown/non-existent or all have renounced so there is no successor, no one holds the authority to sell the property. So the family court appoints an estate liquidator on the request of an interested party (creditor, special-connection person, co-owner, neighbour wishing to buy, etc.) or the public prosecutor (Civil Code art. 952(1)).

State	Who can sell
There is an heir	The heir (after inheritance registration)
Heirs unknown/non-existent, all renounced	No one can sell; a liquidator must be appointed
A liquidator is appointed	The liquidator (but some disposals need the court's permission)

The amendment in force on 1 April 2023 (Reiwa 5) renamed this office from "estate administrator" to "estate liquidator" and rationalised the public-notice procedure. Pre-amendment explanatory articles often retain the old name, so take care not to confuse them. The appointment petition, involving the preparation of documents filed with the court, is a lawyer's or judicial scrivener's field (an administrative scrivener cannot prepare court-filed documents as a business). For how to proceed with inherited real estate generally, see the consultation desk for inherited real estate.

Why can't the estate liquidator sell without the family court's permission?

By Civil Code art. 953, the provisions on an absentee's property administrator (Civil Code arts. 27–29) apply to the liquidator. Its art. 28 provides that "when an act exceeding the authority prescribed in art. 103 is required, the administrator may perform that act with the permission of the family court". The authority under art. 103 is the preservation of property and acts of use/improvement that do not change its character.

The sale of real estate is a "disposal" going beyond this preservation/use-improvement scope. The liquidator therefore needs the family court's permission for an act beyond authority for the very act of selling the estate's real estate. Permission is judged case by case for each property and sale condition, so it is not the case that "once a liquidator is appointed, they can sell freely"—this is the big difference from ordinary inherited real estate.

Act	Family court's permission
Preservation of property (management, status quo)	Not needed (within art. 103 scope)
Use/improvement not changing character	Not needed (within art. 103 scope)
Disposal such as sale of real estate	Needed (permission for an act beyond authority; Civil Code art. 28)

From the permission petition to the sale, how does it flow?

In practice, after a liquidator is appointed, the flow proceeds in this order: carrying out public notice to identify creditors and legatees, petitioning for permission for an act beyond authority on the real estate to be sold, and selling once permission is obtained. Because the public notice was unified in the amendment, the time outlook is easier to see than before.

Stage	Content	Who is mainly involved
1. Appointment of the liquidator	The family court appoints and, without delay, gives public notice of the appointment and of the period (not less than 6 months) within which an heir should claim their right (Civil Code art. 952)	Lawyer/judicial scrivener (petition documents) / family court
2. Notice calling for claims	The liquidator gives public notice to creditors and legatees of a claim period of at least 2 months (expiring within the period in 1; Civil Code art. 957)	Liquidator
3. Valuation / buyer search	Valuation and buyer search for the property to be sold; organising sale conditions	Us (a real-estate transaction business)
4. Permission petition	Petition the family court for permission, fixing the buyer, price and other conditions (Civil Code art. 28)	Lawyer/judicial scrivener (petition documents) / family court
5. Sale / handover	Sale contract with permission, receipt of price, ownership-transfer registration	Us (brokerage) / judicial scrivener (registration)

A real-estate company is involved mainly in 3 and 5—valuation/buyer search and, after permission, brokerage. The reasonableness of the price also serves as material for the permission judgment, so preparing the basis of the valuation is practically important. Preparing the appointment-petition and permission-petition documents is a lawyer's/judicial scrivener's work; registration a judicial scrivener's. For the general flow of selling inherited real estate, see the flow of selling an inherited family home.

To whom, and in what order, are the sale proceeds distributed (the liquidation order)?

The proceeds the liquidator obtains by converting the real estate are first applied to payment of creditors and legatees. Civil Code art. 957(2) applies the provisions on qualified-acceptance liquidation (art. 927(2)–(4), arts. 928–935, excluding the proviso to art. 932), and payment proceeds roughly in this order.

Order	Recipient	Basis (applied)
1	Creditors of the estate (dividend payment to those who filed claims)	Civil Code art. 929
2	Legatees	Civil Code art. 931
3	Special-connection person (if claimed and the court finds it appropriate)	Civil Code art. 958-2
4	The remainder escheats to the State	Civil Code art. 959

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When real estate must be sold to make payments, in principle it is by auction, but there is an exception that the auction can be stopped by paying the value in accordance with the appraisal of an appraiser appointed by the family court (art. 932 main text/proviso applied). In practice a negotiated sale is often chosen, and its feasibility and conditions are judged by the family court's permission for an act beyond authority. The legal judgment of in what order and how much to distribute belongs to the liquidator and the court; the real-estate company handles the conversion part (valuation/brokerage). Capital gains and other tax are a tax accountant's field.

How does this relate to special-connection persons, co-owners and escheat to the State?

When property remains after payment to creditors and legatees, it becomes a question of distribution to a "special-connection person". A person who shared a livelihood with the decedent, who devoted themselves to their nursing/care, or who otherwise had a special connection may petition the family court for distribution of the property (Civil Code art. 958-2(1)). This petition must be made within 3 months after the expiry of the heir-claim period (the period under art. 952(2)) (same art. (2)). If there is no special-connection person, or no distribution is made, the remainder ultimately escheats to the State (Civil Code art. 959).

Where the owner of a co-owned share dies with no heir, the treatment differs slightly. Civil Code art. 255 provides that "when one co-owner dies and there is no heir, their share belongs to the other co-owners", but case law organises it so that the share belongs to the other co-owners under art. 255 only when no distribution to a special-connection person has been made—distribution to a special-connection person takes priority. A sale involving a co-owned share adds issues, so it is safer to coordinate early with the liquidator, lawyer and judicial scrivener. For how to sell an inherited co-owned share, see selling / dividing an inherited co-owned share to a third party.

Bring your consultation on converting/selling real estate with no heir to Yotsuba Real Estate—initial consultation is free

In your message, write "no heir" and include the property's location, whether renunciation has occurred, whether a liquidator has already been appointed, and whether it is a co-owned share. Working with the liquidator, lawyer and judicial scrivener, we help from the valuation / buyer-search / brokerage part.

Frequently asked questions

Q. Does real estate with no heir just become the State's if left alone?
A. It does not escheat automatically. The family court appoints an estate liquidator, and after liquidation—payment to creditors and legatees and distribution to special-connection persons—any property that remains ultimately escheats to the State (Civil Code art. 959). To convert real estate to cash, the liquidator needs the procedure of selling with the family court's permission for an act beyond authority. The appointment petition is a lawyer's/judicial scrivener's field.

Q. Once a liquidator is appointed, can the real estate be sold right away?
A. No. Because selling real estate is a disposal going beyond preservation/use-improvement, the liquidator must individually obtain the family court's permission for an act beyond authority (Civil Code art. 28, applied via art. 953) for the act of selling. Permission is judged per sale condition such as the buyer and price. A real-estate company handles the preceding valuation/buyer search and, after permission, the brokerage.

Q. Are "estate administrator" and "estate liquidator" different things?
A. The amendment in force on 1 April 2023 (Reiwa 5) renamed the office appointed where heirs do not exist from "estate administrator" to "estate liquidator" and rationalised the public-notice procedure. Pre-amendment articles often retain the old name, so note the enforcement date when researching the procedure. Separately, an "estate administrator" who only preserves the estate has been established.

Q. Will the real-estate company also handle the liquidator appointment or the permission petition?
A. No. The liquidator's appointment petition and the permission-for-an-act-beyond-authority petition, involving documents filed with the court, are a lawyer's or judicial scrivener's field. Inheritance registration is a judicial scrivener's, inheritance tax and capital gains a tax accountant's, and disputes a lawyer's. What a real-estate company (we) handles is valuation, buyer search and sale brokerage on the liquidator's instruction. Each is an independent business contracted with separately.

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 concrete flow of the procedure depends on the competent family court's practice, so check with the court / Ministry of Justice guidance. Whether a liquidator can be appointed, permission for an act beyond authority, and distribution to a special-connection person are judged by the family court. Public materials were all consulted on 3 November 2026. The sources below are in Japanese.

• e-Gov Law Search: Civil Code (Act No. 89 of 1896; art. 951 = estate juridical person, art. 952 = appointment and public notice of the liquidator [the claim period cannot be less than 6 months], art. 953 = application of arts. 27–29, art. 957 = payment to creditors/legatees [claim notice of at least 2 months], art. 958-2 = distribution to special-connection persons, art. 959 = escheat of remaining property to the State, art. 28 = permission for an act beyond authority, art. 103 = authority of an agent without a defined scope, arts. 929/931 = order of payment, art. 932 = auction for conversion, art. 255 = devolution of a co-owned share)
• Act Partially Amending the Civil Code, etc. (Act No. 24 of 2021; in force 1 April 2023 (Reiwa 5); renaming of estate administrator to estate liquidator, rationalisation of the public-notice procedure in liquidation; check the relevant article and latest text on e-Gov Law Search)
• e-Gov Law Search: Domestic Relations Case Procedure Act (Act No. 52 of 2011; procedures for appointing an estate liquidator and for permission for an act beyond authority; check the article number and latest text on e-Gov Law Search)
• Courts of Japan, guidance on "Appointment of an estate liquidator (estate administrator)" (consulted 3 November 2026; the latest is on the courts' page)
• Ministry of Justice, materials on "Review of the basic civil legislation toward resolving unknown-owner land" (the purpose of the estate-liquidator / public-notice reform; consulted 3 November 2026)

This article provides general information and does not guarantee the appointment of a liquidator, permission for an act beyond authority, distribution to a special-connection person, or the reasonableness of the sale price. The appointment petition and the permission petition are a lawyer's/judicial scrivener's; inheritance and ownership-transfer registration a judicial scrivener's; inheritance tax and capital gains a tax accountant's; disputes among heirs or with creditors a lawyer's; the valuation and sale brokerage real estate's (ours)—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: 3 November 2026