How to verify a property developer in Tokyo before purchasing

Corporate verification via the Legal Affairs Bureau

When evaluating a Tokyo real estate developer, marketing brochures and sales pitches should never be taken at face value. Corporate legitimacy must be established using the official Commercial Registration System (Shougyou Touki) operated by the Legal Affairs Bureau (Homukyoku), an administrative body of the Ministry of Justice. Every legally operating joint-stock company (Kabushiki Kaisha) or limited liability company (Goudo Kaisha) in Japan is assigned a 13-digit Corporate Number (Houjin Bangou) and maintains an official registry record.

To inspect a developer, order a Certificate of Registered Matters (Rireki Touki Sumisho). This can be requested in person at any Legal Affairs Bureau office across Tokyo (such as the Tokyo Legal Affairs Bureau main office in Chiyoda) or online via the official Touki Jouhou Teikyou Service.

Review the following specific fields in the commercial register:

• Paid-in Capital (Shikonkin): Check whether capital levels match the scale of the proposed project.
• Representative Director (Daihyou Torishimariyaku): Confirm the legal name and registered address of the individual who executes contracts.
• Corporate Purpose (Mokuteki): Ensure the company's legal mandate expressly permits real estate acquisition, development, and sales.
• Registration History: Examine recent amendments to company names, corporate addresses, or director appointments. Frequent, unannounced address relocations or rapid turnovers of representative directors indicate instability.

In addition to corporate registration, developers selling off-plan units directly or acting as sales brokers must hold a Real Estate Broker Licence (Takuchi Tatemono取引業者免許, or Takuten Licence) issued under the Building Lots and Buildings Transaction Business Act. Licences issued by the Governor of Tokyo (e.g. Tokyo Governor Licence (1) No. XXXXX) indicate a broker operating within Tokyo, while licenses issued by the Minister of Land, Infrastructure, Transport and Tourism (MLIT) indicate multi-prefectural operations. Licence numbers display a digit in parentheses, such as (1) or (3), which denotes the number of five-year renewal cycles the firm has completed. A (1) designation indicates a firm operating for less than five years.

Verifying land ownership and legal control

Under Japanese property law, land and buildings are treated as entirely separate legal real estate assets. A developer selling off-plan units must either own the underlying land or hold an enforceable legal interest, such as a long-term leasehold (Shakuchi-ken) or a sales agreement conditional on closing.

Land ownership cannot be verified through municipal tax bills or broker summary sheets. You must inspect the official Real Estate Register (Fudousan Toukibo) held by the Legal Affairs Bureau. To pull this document, you need the land parcel lot number (Chiban), which differs from the standard municipal postal address (Jukyo Hyouji).

Request the Certificate of Registered Matters (Fudousan Touki Shoumei-sho) for the specific land parcel. The document is split into three core sections:

1. Head (Omote-gaki / Title Section): Lists the physical land details, including parcel area, official land category (Takuchi for residential land), and lot number. 2. Section A (Kou-ku / Ownership Rights): Details the legal owner. If the developer claims ownership, their corporate name must appear as the registered rights-holder (Kenshi). If the property is held under a trust agreement, the registered owner will typically be a trust bank (e.g. Sumitomo Mitsui Trust Bank), with the developer holding the trust beneficiary right (Shintaku Kyoutaku-ken). 3. Section B (Otsu-ku / Encumbrances): Shows mortgages (Tantei-ken), provisional registrations (Kari-touki), or attachment claims. Developers routinely secure senior construction financing, which appears as a registered mortgage in favour of a lender. Ensure that the contract guarantees the complete discharge and removal of these senior mortgages prior to final title transfer to buyers.

If the land is registered under an individual's name rather than the developer's, demand proof of a binding land purchase agreement or development agreement giving the developer contractual power of disposal.

Verifying planning permission and building approval

In Japan, marketing or selling new off-plan residential properties before obtaining official building authorization is strictly prohibited under the Building Lots and Buildings Transaction Business Act. Before construction begins or sales contracts are executed, the development design must pass technical verification under the Building Standards Act.

Planning approval is evidenced by two distinct documents issued at different stages of construction:

• Building Confirmation Certificate (Kenchiku Kakunin Sumisho): Issued prior to breaking ground by a municipal building official (Kenchiku Shuji) or an accredited private inspection agency (Shitei Kakunin Kensa Kikan). This document confirms that the architectural plans, structural calculations, fire safety systems, and floor-area ratios (FAR) strictly adhere to local zoning and building statutes.
• Certificate of Inspection (Kensazumi-sho): Issued upon completion of physical construction following a final site audit by the authorities. It verifies that the structure was built in exact compliance with the approved planning documentation.

Buyers must demand the Building Confirmation number and issue date from the seller. These details are legally required to be listed on the Important Matters Explanation Statement (Juuyou Sakou Setsumeisho, or Juusetsu), which must be delivered to a buyer by a licensed broker prior to signing the contract.

To independently verify planning status, visit the Urban Development Bureau or local ward office (Ku-yakusho) where the land is located (e.g. Minato Ward Office or Shinjuku Ward Office). Request to view the Public Summary of Building Plan (Kenchiku Keikaku Gaiyousho). This public record contains the project's confirmation number, approved structure type, total floor area, designated architect, licensed main contractor (Zeneru Kon), and planned completion date.

Reviewing track records and completed developments

Past performance is a key metric when assessing a developer's reliability. In Tokyo, you can review completed projects by cross-referencing physical site registrations and municipal records.

To trace a developer's history:

• Inspect the Real Estate Register for prior developments: Search past projects developed by the firm using the Legal Affairs Bureau database. Check whether past building title registrations (Tatemono Touki) were completed on schedule without post-completion ownership disputes or delayed transfers.
• Audit the main contractor: Check the construction company executing the build. Under the Construction Business Act (Kensetsu Gyouhou), general contractors must hold a Construction Industry Licence from MLIT or the Tokyo Metropolitan Government. You can verify a contractor's financial standing and administrative penalty history on the MLIT Construction Business Information System (Kensetsugyou Shoukai Jouhou System).
• Verify defect liability arrangements: Under the Act for Execution of Housing Defect Warranty Liability (Housing Defect Guarantee Act), developers delivering new residential units must provide a 10-year statutory warranty covering major structural parts and water ingress. To fulfill this, developers must either pay a monetary cash deposit into an official Deposit Office (Kyotakusho) or purchase mandatory housing defect warranty insurance through an accredited insurer (e.g. Japan Housing Warranty Organization / JIO). Ask the developer for the specific insurance submission certificate or deposit notification before signing.

Critical red flags

Avoid proceeding with a transaction if any of the following specific conditions are present:

1. Pre-confirmation sales activities: The developer requests a deposit or signs binding agreements before the Building Confirmation Certificate (Kenchiku Kakunin Sumisho) has been formally issued. 2. Unregistered land ownership or missing contracts: The land register (Touki) lists an unrelated third party as the sole owner, and the developer refuses to provide a written land sale purchase agreement showing clear contractual control. 3. Unlicensed sales intermediaries: The selling agent or developer lacks a valid Real Estate Broker Licence issued by MLIT or the Tokyo Metropolitan Government. 4. Refusal to provide the Juusetsu statement: The seller attempts to collect deposit monies without delivering and orally reviewing the Important Matters Explanation Statement via a licensed Real Estate Transaction Specialist (Takuchi Tatemono Torihikishi). 5. Lack of statutory defect cover: The developer cannot produce documentation demonstrating compliance with the Housing Defect Guarantee Act through either bank escrow deposits or accredited defect warranty insurance policies.