Yokohama Land Price Guide Basic Edition 3 Appraisal and Law

Land is a limited and valuable resource of the people. Disorderly land use and speculative land transactions can cause problems that hinder the sound development of the economy and have a significant impact on the stability of people's lives.
In order to address these issues, various laws and systems related to real estate have been established.

Laws surrounding real estate such as land stipulate the relationship of real estate rights (civil law, leased land lease law, etc.) and rules of land use (Land Basic Law, National Land Use Planning Law, City Planning Law, Building Standard Law, etc.) And other things that stipulate taxes (Inheritance Tax Law, Land Price Tax Law, etc.).
While these laws and regulations are related to each other, they have some effect on land prices, but here we provide an overview of the following laws, which are directly related to the basic rules of land evaluation. You.

• Land Price Disclosure Act
• National Land Use Planning Act
• Act on Appraisal of Real Estate

Land is not traded as often as clothing or food, and there are no two exactly the same land. In addition, prices tend to be affected by the circumstances and motivation of the trading person. As a result, it is difficult for the general public to understand how much the land is appropriate.
Therefore, the Land Price Disclosure Act announces prices that are normally considered to be established for about 30,000 standard land nationwide (land with a standard size and usage status in that area). It can be used as an objective guide when determining an appropriate price.
Land price announcements are also used as “land valuation indicators” such as appraisal standards for real estate appraisers and other appraisers, indications for valuation of inheritance tax and property tax, and price screening standards under the National Land Use Planning Act.

The prefectural land price survey is used as an index for land evaluation along with the land price announcement, but the underlying laws and regulations here are not the Land Price Disclosure Act, but the Enforcement Order of the National Land Use Planning Act, which is introduced below. Article 9 stipulates its implementation.

The National Land Use Planning Act is a law to maintain proper land use and appropriate land prices by regulating land transactions (Note 1).
The land acquirer (buyer) is required to notify the prefectural or government-designated city of required items, including the purpose of use and contract price, within two weeks from the date of the land transaction contract. The target of notification is relatively large-scale land of more than 2,000 square meters if the land is in the urbanization area and 5,000 square meters or more if it is in the urbanization adjustment area (Note 2). Upon submission of the registration form, we will examine whether the purpose of land use is appropriate and reasonable from a public point of view, and analyze whether the land price is reasonable compared to the costs required for development and the status of transactions in the surrounding area.
When land transactions with a large area are carried out, the surrounding area may be affected depending on how the land is used, so it plays a role in checking so that land prices and land use do not balance. I am.

• Note 1: The enactment was in 1974. In order to control land prices soaring and fulfill the purpose of land use determined from a comprehensive perspective, measures will be taken to regulate land transactions. In 1987, a “monitoring area” system was established in order to curb land price hikes, which requires notification before a land transaction sales contract. In August of the same year, Yokohama City designated a monitoring area ahead of the rest of the country and started monitoring land transactions. In 1991, we conducted a price review for all land transactions of 100 square meters or more in the city and worked to optimize land prices. Due to the subsidence of land prices, the monitoring area was canceled in 1995, and it is now a post-report system that requires notification after contract.
• Comment 2: Outside the city planning area, the target area is more than 10,000 square meters, but in Yokohama City, the whole area is a city planning area (urbanization area or urbanization adjustment area).

Determining the economic value of real estate and expressing it as a price is called "real estate appraisal."
The purpose of this law is to optimize the business related to real estate appraisal and secure social credibility and authoritative "real estate appraiser" to help form an appropriate price for land, etc. .
National qualified persons who have passed the national examination based on this law and have been registered by the Minister of Land, Infrastructure, Transport and Tourism are called "real estate appraisers", and other people are prohibited from conducting real estate appraisals. In addition, the “Real Estate Appraisal Standards”, which serve as the basis for conducting appraisals, are set by the government, and revisions are made as appropriate in response to changes in socio-economic conditions. System is in place.

Since real estate prices are usually formed individually according to the needs of transactions, etc., and tend to be affected by individual circumstances, it is extremely difficult for real estate to have a market that forms an appropriate price. It is said. Therefore, in order to determine the appropriate price of real estate, it is necessary to conduct an appraisal conducted by a real estate appraiser with specialized knowledge and experience based on uniform standards.