The Japan Cabinet Office has kicked off an oddly named nationwide "caravan" (actual name of the Cabinet Office awareness group in katakana) initiative in Kanagawa Prefecture to promote understanding and compliance with the Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands.
The act, according to the Cabinet Office website, states “Areas within a range of approximately 1,000 meters from important facilities (defense facilities, etc.) or areas within remote territorial islands may be designated as monitored areas, if it is particularly necessary to prevent real estate (land and buildings) in those areas from being used for adverse acts (meaning acts that impede the functions of important facilities and remote territorial islands).”
This caravan awareness program, launched in November 2024, aims to engage local real estate industry associations and municipalities to clarify reporting obligations under the law.
Law Targets Security Concerns Near Critical Facilities
Enacted in September 2022, the Act addresses security risks associated with land ownership and use near key facilities, such as defense sites, and border islands.
The law empowers the government to monitor land use in designated "monitored areas" and "special monitored areas."
Key provisions include:
Monitoring and Reporting: Land use in designated areas is subject to government review. Click here to learn more about the review process.
Enforcement: Authorities can issue warnings or orders to halt activities that could disrupt critical facilities.
Transaction Notification: Sales contracts for real estate (land or otherwise) over 200 square meters in special monitored areas must be reported to the government before finalization.
At present, submission for obtaining Cabinet Office permission to execute a sales contract in “monitored areas” is voluntary while permission for “special monitored areas” is mandatory.
Regarding consequences of not submitting proper notification prior to executing a sales contract in a “special monitored area”, according to the Cabinet Office website “Any person who falls under any of the following items is subject to imprisonment for not more than six months or a fine not exceeding 1,000,000 yen (Article 26 of the Act).
concluding a contract without notification (Article 13(1) of the Act)
not submitting a notification within two weeks from the date of contract (Article 13(3) of the Act)
submitting a notification containing falsified information (Article 13(1) or (3))
Real estate agents are strongly encouraged to communicate these requirements to clients during property transactions.
Kanagawa Meetings Kick Off the Caravan Awareness Campaign
The caravan campaign began with two meetings in Kanagawa Prefecture:
November 7: All Japan Real Estate Association Kanagawa Branch
Courtesy of R.E. Port News
Cabinet Office official Jinwa Kishikawa explained that Kanagawa has 12 monitored areas, including two special monitored areas.
“We are working to better understand land use in these areas and build strong relationships with the real estate industry to ensure compliance,” said Kishikawa.
Branch chairman Tomio Sasaki emphasized the importance of disclosure during property transactions, noting that areas like Sagamihara and Yokosuka are included.
Questions from attendees included how to handle power-of-attorney documents, to which the Cabinet Office provided practical advice (the original Japanese article didn’t specify what practical advice was given so if in doubt, have your agent contact the local association they are a member of for further details).
November 15: Kanagawa Real Estate Transaction Association
Courtesy of R.E. Port News.
At the seminar, association chairman Tokihiko Kusama called for renewed awareness among members.
“With areas in Yokosuka designated, we must ensure our member agencies handle transactions appropriately,” said Kusama.
Participants asked whether currently designated “monitored areas” might be reclassified as “special monitored areas” and if disclosure should be included for transactions in “monitored areas”.
The Japan Cabinet Office caravan encouraged voluntary disclosure in monitored areas to be safe, although it is not legally mandated.
Expanding the Caravan to Other Prefectures
The Cabinet Office plans to hold similar meetings in 12 other prefectures with a high number of designated areas.
By partnering with local real estate associations, the campaign seeks to improve compliance and raise awareness of this law nationwide.
Source:
R.E. Port News (Japanese only)
