On 20 September 2022, the Act on the Review and Regulation of the use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands entered into force. The Act seeks to support the lives of the public and contribute to protecting the territorial waters and national security of Japan by preventing real estate in areas surrounding important facilities and on remote territorial islands from being used for acts that impede the functions of those facilities and islands. It allows Japanese authorities to review the use of real estate in certain areas, designated as “monitored areas” or “special monitored areas”. Moreover, the Act requires buyers and sellers of real estate to submit a pre-notification to the Japanese authorities when the real estate is located in the “special monitored areas”. This Act applies to both foreigners and nationals of Japan.
"Chapter I General provisions
(Purpose)
Article 1. The purpose of this Act is to prevent land, etc. in the area around important facilities and in the area of remote border islands, etc. from being used for acts that interfere with the functions of important facilities or remote border islands, etc., by establishing basic policies, designating watch areas and special watch areas, investigating the use of land, etc. in the watch areas, regulating the use of said land, etc., and notifying contracts pertaining to land, etc. in special watch areas. The purpose is to contribute to the maintenance of the infrastructure of national life and the preservation and security of Japan's territorial waters, etc.
(Definitions, etc.)
Article 2. In this Act, "land etc." means land and buildings.
(2) The term "important facilities" as used in this Law means the following facilities:
(i) Facilities of the Self-Defence Forces, and facilities and areas under Article 6 of the Treaty of Mutual Cooperation and Security between Japan and the United States of America and facilities and areas under Article 2, paragraph 1 of the Agreement on the Status of United States Armed Forces in Japan (referred to as "defence-related facilities" in paragraph 4, item 1).
(ii) Coast Guard facilities.
(iii) Facilities that are related to the lives of the people and are recognized to pose a risk of serious damage to the lives, bodies, or property of the people if any act that impairs their functions is carried out, and is specified by Cabinet Order ( Referred to as "life-related facilities" in Paragraph 4, Item 3 and Article 14, Paragraph 2, Item 1.
[...]
(Notification of Transfer of Ownership, etc. of Land, etc. in a Special Watched Area)
Article 13. Land, etc. located within special attention areas (land, etc. whose area (for buildings, floor area; the same applies in item 2) is less than 200 square meters and less than the size specified by Cabinet Order) Contracts (including reservations, Contracts in which the person receiving the transfer or establishment of ownership, etc. with respect to the land, etc. pertaining to the contract is the national government, local public entity, or other person specified by cabinet order, or any other contract after the transfer or establishment of the ownership, etc. of the land, etc. pursuant to such contract; Excludes contracts specified by Cabinet Order as those that are unlikely to be used for acts that impede the facility functions of specified important facilities or the functions of remote islands such as specified border remote islands. Hereinafter in this article and Article 26, item 1. (hereinafter referred to as a "Land Sales, etc. Contract"), the parties must notify the Prime Minister in advance of the following matters as specified by Cabinet Office Ordinance: [...]
(2) The provision of the preceding paragraph shall not apply to the case of concluding a Contract on Sale and Purchase of Land etc. through conciliation under the Civil Conciliation Act (Act No. 222 of 1951) or other reasons specified by a Cabinet Order.
(3) When a contract on sale and purchase of land etc. is concluded for land etc. in a special attention area on the grounds prescribed in the preceding paragraph, the parties concerned shall notify the Prime Minister of the matters listed in each item of paragraph 1 within two weeks from the date of conclusion of the said contract on sale and purchase of land etc., as provided for in a Cabinet Office Ordinance.
(4) Upon receipt of a notification pursuant to paragraph (1) or the preceding paragraph, the Prime Minister shall conduct an investigation into the matters listed in the items of paragraph (1) pertaining to such notification.
(5) The provisions of Articles 7 and 8 shall apply mutatis mutandis to the investigation under the preceding paragraph.[...]" (Act on investigation of the status of use of land, etc. around important facilities and border islands, etc., and regulation of use, etc., 23 June 2021, Articles 1, 2 and 13 [unofficial translation])
Act on investigation of the status of use of land, etc. around important facilities and border islands, etc., and regulation of use, etc., 23 June 2021, Articles 1, 2 and 13 [unofficial translation]
[<a href="https://elaws.e-gov.go.jp/document?lawid=503AC0000000084">Act</a>],[<a href="https://www.cliffordchance.com/content/dam/cliffordchance/briefings/2022/04/Japan-to-regulate-use-and-purchase-of-strategic-real-estate(30064317624.15).pdf">Other</a>]