Background — Over 1.25 Million Aging Condominiums
As of 2026, more than 1.25 million condominium units in Japan are over 40 years old. According to Ministry of Land, Infrastructure, Transport and Tourism (MLIT) estimates, this number will grow rapidly to approximately 2.6 million by 2036. In aging condominiums, reaching consensus on rebuilding or major repairs has become an urgent challenge, with absent or untraceable unit owners posing a serious obstacle to passing resolutions.
In response, amendments to the Act on Building Unit Ownership (区分所有法) and the Act on Facilitation of Proper Condominium Management (マンション管理適正化法) were enacted during the 2024 ordinary Diet session and took effect in April 2026.
New System for Dealing with Absent or Untraceable Unit Owners
The Previous Problem
Assembly resolutions under the Unit Ownership Act generally require approval by a specified proportion of both the number of unit owners and voting rights. However, untraceable owners neither attend assemblies nor exercise their votes, effectively functioning as de facto opposition votes and making consensus impossible.
The New System Under the Amended Act
The amended Act introduces a procedure to exclude untraceable unit owners from the resolution base:
| Procedure | Details |
|---|---|
| Certification of untraceable status | The building manager applies to the court, which certifies the owner as "untraceable" after a reasonable investigation period |
| Exclusion from vote base | Certified owners may be excluded from the resolution base (both headcount and voting rights) |
| Applicable resolutions | Applies to both ordinary and special resolutions, including rebuilding resolutions |
| Prior public notice | A public notice period is required before the application to protect the absent owner's rights |
For example, in a 50-unit condominium where 5 owners are untraceable, the rebuilding resolution base can now be calculated from 45 units, significantly facilitating consensus.
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Try for free →Relaxed Requirements for Rebuilding Resolutions
Previous Requirements
Article 62 of the pre-amendment Unit Ownership Act required approval of at least four-fifths (80%) of both the number of unit owners and voting rights for a rebuilding resolution. This high threshold made consensus extremely difficult even for condominiums with clear structural deterioration.
Amended Requirements
Under the amended Act, the threshold is lowered to three-fourths (75%) or more when the following conditions are met:
| Condition | Details |
|---|---|
| Objective grounds exist | Insufficient earthquake resistance, risk of exterior wall separation, significant deterioration of facilities, etc. |
| Administrative certification | The designated administrative authority has certified the building as requiring removal under the Building Standards Act |
| Repair is impractical | Ensuring safety through repair or renovation is technically or economically impractical |
This measure addresses situations where rebuilding cannot proceed despite clear safety concerns due to the stringent vote requirement. Where no such objective grounds exist, the traditional four-fifths threshold remains.
Strengthened Administrative Oversight of Poorly Managed Condominiums
Amendments to the Proper Management Act
The amended Act strengthens the authority of local governments over condominiums in a state of management failure:
| Measure | Details |
|---|---|
| Advice and guidance | Provide advice and guidance on management association operations, repair planning, and accounting |
| Recommendations | Issue improvement recommendations where advice and guidance are not followed (Art. 5-2) |
| Management plan certification | Expansion of the system for local governments to certify condominiums with proper management plans |
| Disclosure of management failure | Provisions enabling public disclosure where recommendations are not followed |
Expanded Management Plan Certification System
The management plan certification system, launched in April 2022, has been expanded. Certified condominiums may receive preferential financing from the Japan Housing Finance Agency and fixed asset tax reductions, strengthening incentives for management associations to maintain proper management.
Reform of Repair Reserve Fund Systems
Problems with the Graduated Increase Method
The graduated increase method (starting with low contributions and raising them over time), adopted by many condominiums, had several problems:
- Resident consensus for future increases often fails, leaving funds below required levels
- Postponement of increases causes chronic shortfalls in repair reserves
- Strong psychological resistance to increases, particularly among elderly unit owners
Promotion of the Flat-Rate Method
MLIT has revised its "Guidelines on Condominium Repair Reserve Funds" to promote the flat-rate method (uniform contributions throughout the entire long-term repair plan period):
| Method | Features | Pros and Cons |
|---|---|---|
| Graduated increase | Low initially, raised in stages | Lower initial burden but difficult to secure future increase consensus |
| Flat-rate | Uniform amount throughout | Enables stable fund accumulation; somewhat higher initial burden |
The guidelines also provide benchmark reserve fund amounts per square meter of exclusive-use area, serving as a reference when management associations develop long-term repair plans.
Practical Considerations
- Using the untraceable owner exclusion system requires filing an application with the court; management associations are advised to consult with attorneys or other professionals
- The relaxed rebuilding threshold applies only where objective grounds exist, making it essential to conduct seismic and deterioration assessments in advance
- Obtaining management plan certification requires comprehensive management systems including long-term repair plans, appropriate reserve fund levels, and updated management rules
- Changing the reserve fund method requires an ordinary resolution (majority vote) at the owners' assembly, necessitating thorough explanation and consensus-building among residents
- The operation of the management failure disclosure system warrants attention going forward, and early remediation is advisable given potential impacts on property values
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*Houritsu no Mikata Editorial Team | Published April 26, 2026*
