What to do with unwanted inherited land: the system for reversion of inherited land to the national treasury and the difference from renunciation of inheritance

In short: if inherited land is unwanted, the first system to check is the system for reversion of inherited land to the national treasury. This system allows certain land acquired by inheritance to be reverted to the national treasury if the requirements are met. Renunciation of inheritance, by contrast, is not a system to abandon only that land; it treats the person as never having been an heir for that inheritance. The two differ in purpose and effect. This article explains the difference between reversion to the national treasury and renunciation, who can apply, land that cannot be taken, costs and the procedure. The individual decision on application is made by the Legal Affairs Bureau, and our office does not guarantee approval or success.

"Renouncing only this land" is not possible

Renunciation of inheritance is not a system to select and abandon only specific assets. A person who renounces an inheritance is treated as never having been an heir for that inheritance.

On the other hand, an estate division agreement among co-heirs can determine who takes which asset, such as "land goes to A and deposits go to B". This is different from renunciation.

For the basics of renunciation, the three-month period for consideration and its effect, see What to know before considering renunciation or qualified acceptance.

What is the system for reversion of inherited land to the national treasury?

The system for reversion of inherited land to the national treasury is based on the Act on Reversion of Ownership of Land Acquired by Inheritance and Other Grounds to the National Treasury. A person who acquired ownership of land by inheritance or by a testamentary gift to an heir can, if the land meets certain requirements, have the land reverted to the national treasury.

The system began on 27 April 2023. Land acquired by inheritance before the system began is also covered. It is not the case that land from an inheritance decades ago is excluded.

Who can apply

The person who can apply for reversion to the national treasury is a person who acquired all or part of the ownership of land by inheritance or by a testamentary gift to an heir.

For co-owned land, all co-owners must apply jointly. If even one co-owner does not agree, the application cannot be approved in that co-ownership state.

Even if a co-owner acquired a share by sale or another ground, if a co-owner who acquired a share by inheritance or a similar ground is included and all co-owners apply jointly, the system may be used.

Relationship with inheritance registration

Even if inheritance registration has not been completed, application is possible if the applicant can prove, with a certificate of family register matters or other documents, that the land was acquired by inheritance or by a testamentary gift to an heir.

However, if the current applicant's acquisition by inheritance cannot be confirmed, such as where the transfer of ownership from the registered holder to the deceased is itself unregistered and the deceased later died, the application may not be possible.

If the application is withdrawn, rejected or not approved, the applicant remains the landowner and must separately deal with the inheritance registration obligation.

The reversion system and the inheritance registration obligation are separate systems. It is not the case that "because an application for reversion was made, the inheritance registration deadline need not be considered". For the inheritance registration obligation and deadline, see How to proceed with inheritance registration.

Types of land that cannot be taken

Land for which reversion to the national treasury is not approved is broadly divided into two categories.

A. Land subject to grounds for rejection

• Land with a building
• Land with a security interest, right of use and profit or other right
• Land on which another person's use is planned
• Land with certain soil contamination
• Land with unclear boundaries
• Land with a dispute over the existence, attribution or scope of ownership

B. Land subject to grounds for non-approval

• Land with a certain cliff requiring a heavy management burden
• Land with above-ground objects obstructing management and disposal
• Land with underground installations and the like that must be removed
• Land that cannot be managed and disposed of without litigation
• Other land requiring excessive cost and labour for ordinary management

It is not the case that "all land with a cliff is excluded" or "all land with weeds is excluded". The final decision is made by the Legal Affairs Bureau.

How far should the boundary be confirmed?

For reversion to the national treasury, the boundary must be clear. However, it is not the case that "a fixed survey is always required" or "a boundary confirmation document is always required". The Ministry of Justice does not uniformly require a survey or a boundary confirmation document.

It is important that the applicant shows the boundary that the applicant recognises on site and on a map, and that there is no difference or dispute with the neighbouring landowner over the boundary. If the parcel boundary or related matters are unclear, consult a land and house investigator.

Costs of reversion to the national treasury

Reversion to the national treasury requires a review fee and a burden charge after approval.

Cost	Content
Review fee	14,000 yen per parcel of land
Burden charge	Paid after approval. 200,000 yen is the basis, but it may exceed 200,000 yen depending on the type and area of the land

The review fee is in principle not refunded even if the application is withdrawn, rejected or not approved.

When the land reverts to the national treasury

Receiving the approval notice alone does not transfer ownership of the land to the national government.

The burden charge must be paid within 30 days from the day after the notice of the burden charge arrives. At the time the burden charge is paid, ownership of the land reverts to the national treasury.

If the burden charge is not paid within the period, the approval lapses. To seek reversion again, the applicant must apply again from the beginning.

General application flow

The general flow is as follows.

1. Consult the Legal Affairs Bureau in advance as necessary (recommended).
2. Confirm the target land, boundary and rights.
3. Prepare the application and attached materials.
4. Apply to the head office of the Legal Affairs Bureau or District Legal Affairs Bureau with jurisdiction over the location of the land.
5. Document examination.
6. On-site inspection as necessary.
7. Approval or non-approval.
8. If approved, notice of the burden charge.
9. Pay the burden charge within 30 days.
10. Reversion to the national treasury at the time of payment.

Prior consultation requires a reservation. The actual application for approval is made to the head office of the Legal Affairs Bureau or District Legal Affairs Bureau of the prefecture with jurisdiction over the location of the land. If the land is far away, consultation may also be possible at the head office of a nearby Legal Affairs Bureau or District Legal Affairs Bureau.

It is not the case that "an application will always be accepted".

What an administrative scrivener can and cannot do

Except for a statutory agent, the reversion system is not a system to delegate the entire application procedure to a voluntary third party. The applicant is the person making the application.

However, the professionals who can prepare the application and attached documents as a business are attorneys, judicial scriveners and administrative scriveners. Within the scope of administrative-scrivener work, Yotsuba Administrative Scrivener Office prepares the application and attached documents in the applicant's own name and collects and organises family registers and other materials.

It is not the case that "an administrative scrivener approves reversion", "approval is certain" or "an administrative scrivener becomes the applicant instead of the landowner". The office does not describe the work as "agency application".

How the work of specialists is divided

• Preparation of the application for reversion of inherited land to the national treasury → an administrative scrivener, judicial scrivener or attorney
• Inheritance registration agency → a judicial scrivener or attorney
• Investigation and survey of the parcel boundary of land, registration of description, registration of extinguishment of a building and similar matters → a land and house investigator
• Individual legal judgement and dispute handling where the scope of ownership is disputed → an attorney
• Tax → a tax accountant
• Sale appraisal and brokerage → Yotsuba Real Estate Co., Ltd.

Yotsuba Administrative Scrivener Office and Yotsuba Real Estate Co., Ltd. handle their work under separate businesses and separate contracts. Our office receives no referral fee.

Difference from sale

The reversion system is not a system by which the national government buys the land. The applicant bears the review fee and the burden charge after approval. This is separate from considering whether the land can be sold.

For the sale and management of inherited land, see Complete Guide to Inherited Real Estate (Yotsuba Real Estate). Yotsuba Real Estate Co., Ltd. handles its work under a separate business and separate contract from Yotsuba Administrative Scrivener Office.

How to proceed when considering unwanted land in Bunkyo

Yotsuba Administrative Scrivener Office (Kohinata, Bunkyo, about five minutes' walk from Myogadani Station) guides you in stages through family register collection, heir investigation, estate investigation, preparation of an inventory of assets and preparation of the reversion application for organising unwanted land.

For estate investigation, see Investigating the inherited estate and preparing an inventory of assets; for deadlines, see A guide to inheritance procedure deadlines. For the flow of engagement, see Engagement Flow; for fees, see Fee Schedule; and for the whole picture, see Inheritance, Wills and Trusts.

FAQ

Q. Can I renounce only the land?
A. Renunciation of inheritance is a system that treats the person as never having been an heir for that inheritance. It is not a system to select and abandon only specific land. To divide land and deposits between different people, use an estate division agreement.

Q. Can land with a building be reverted to the national treasury?
A. Land on which a building exists cannot be applied for reversion. The same applies to an unregistered building if a building exists in substance. Whether a small shed or similar object is a "building" under the law may be an individual judgement.

Q. Can I apply for reversion before inheritance registration?
A. Even if inheritance registration has not been completed, application is possible if the acquisition by inheritance or testamentary gift can be proved with a certificate of family register matters or other documents. However, if the acquisition cannot be confirmed, such as where the transfer to the deceased is unregistered, application may not be possible. The inheritance registration obligation is a separate system.

Q. Can I revert co-owned land by myself?
A. Co-owned land must be applied for jointly by all co-owners. If even one co-owner does not agree, the application cannot be approved in that co-ownership state.

Q. How much does reversion cost?
A. The review fee is 14,000 yen per parcel. After approval, a separate burden charge is required; 200,000 yen is the basis, but it may exceed 200,000 yen depending on the type and area of the land. The review fee is in principle not refunded.

Q. If I apply, will the national government always take the land?
A. It will not always take the land. If a ground for rejection or non-approval applies, or as a result of the examination, approval may not be given. The final decision is made by the Legal Affairs Bureau.

Q. Is land inherited long ago also covered?
A. Land acquired by inheritance before the system began on 27 April 2023 is also covered. It is not excluded merely because the inheritance occurred decades ago. However, the individual requirements must be confirmed.

Sources (Primary Information)

• e-Gov, Act on Reversion of Ownership of Land Acquired by Inheritance and Other Grounds to the National Treasury
• e-Gov, Order for Enforcement of the Act on Reversion of Ownership of Land Acquired by Inheritance and Other Grounds to the National Treasury
• Ministry of Justice, "Overview of the system for reversion of inherited land to the national treasury"
• Ministry of Justice, "Q&A on the system for reversion of inherited land to the national treasury"
• Ministry of Justice, "Q&A concerning the system for reversion of inherited land to the national treasury"
• Ministry of Justice, "Requirements for land that cannot be taken"
• Ministry of Justice, "Burden charge under the system for reversion of inherited land to the national treasury"
• Ministry of Justice, "Use of professionals under the system for reversion of inherited land to the national treasury"

This article is general information and does not guarantee individual reversion application eligibility, land classification, costs, timing of reversion or the inheritance registration obligation. The final approval or non-approval of a reversion application is made by the Legal Affairs Bureau. Inheritance registration agency is handled by a judicial scrivener or attorney; investigation and survey of parcel boundaries, registration of description and registration of extinguishment of a building by a land and house investigator; individual legal judgement and dispute handling where the scope of ownership is disputed by an attorney; tax by a tax accountant; and sale appraisal and brokerage by Yotsuba Real Estate Co., Ltd., each as an independent business under a separate contract. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.