I hereby give My Sanction to the Law Providing Temporary Measures concerning Leasehold Land and Leased Building in the Cities Damaged by War, approved by the Imperial Diet and cause the same to be promulgated.
Signed:HIROHITO, Seal of the Emperor
This twenty-sixth day of the eighth month of the twenty-first year of Showa (August 26, 1946)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Justice KIMURA Tokutaro
Minister of Finance ISHIBASHI Tanzan
The Law Providing Temporary Measures concerning Leasehold Land and Leased Building in the Cities Damaged by War
Article 1. Within the meaning of this Law, a "building damaged by war" is a building which was destroyed by airraids or other calamities caused by the recent War, a "dispersed building" is a building which was removed by reason of the necessities of airdefence, "leasehold" is superficies or lease of land whose object is to own a building thereon, "leasehold land" is land on which leasehold has been granted, and a "leased building" is a building which has been rented.
Article 2. In cases where no person has leasehold on the site of the building damaged by war or on the land substituted therefore as a result of readjustment of urban land, a person who was leasing the building at the time when it was destroyed shall be entitled to lease the site or land in preference to others, by reasonable stipulations, if he makes an offer for leasing it for the purpose of owning a building thereon to the land owner within one year from the date on which this law comes into force;provided that, such offer shall not have the effect prescribed above, if there is any person who, upon lawful right, is actually using the land for the purpose of owning a building thereon, or if, while it is necessary by laws or ordinances to obtain a licence of the proper authorities for erecting a building thereon, such licence is not obtained.
Unless the land-owner who has received the offer mentioned in the preceding paragraph expresses his intention to refuse the acceptance of the offer within three weeks of that reception, he shall be deemed to have accepted the offer at the expiration of that period.
A land-owner cannot refuse to accept the offer mentioned in Paragraph 1, unless it is necessary for him to use the land himself or there is any other justifiable reason for his refusal.
In respect of the application of Paragraph 1, a leasehold which cannot be set up against a third person or which was granted clearly for the purpose of making a temporary establishment or other provisional use shall be deemed not to be a leasehold.
Article 3. In cases where any other person has a leasehold on the site of the building damaged by war or on the land substituted therefor as a result of readjustment of urban land, the lessee of the building mentioned in Paragraph 1 of the preceding article, shall be entitled to acquire the leasehold on the land by assignment in preference to others for a reasonable consideration, if he makes an offer therefor to the leaseholder (in case the original leaseholder has further granted a leasehold to others, then to the latter), within the period prescribed in the same paragraph. In this case the provisions of Paragraph 1, proviso and Paragraphs 2-4 of the preceding article shall apply with the necessary modifications.
Article 4. In cases where a lease has been assigned in accordance with the provisions of the preceding article, the consent of the lessor for the assignment shall be deemed to have been granted.In this case, the assignee of the lease shall forthwith give notice of the acquisition by assignment to the lessor.
Article 5. Notwithstanding the provisions of Article 2 of the Law relating to the Leasehold Land (Shakuchi-Ho), the term of a lease granted in accordance with provisions of Article 2 shall be ten years;provided that, if the building on a leased land has perished before the expiration of such period, the lease shall be extinguished thereby.
Notwithstanding the provisions of the preceding paragraph, the parties may, by their agreement, make differrent stipulations as to the term of lease.But stipulations of lease providing the term of lease less than ten years shall be deemed not to have been made.
Article 6. If, in cases where the grant of a lease in accordance with the provisions of Article 2 or the assignment of a leasehold in accordance with the provisions of Article 3 has been effected, there is any person who, upon lawful right, is actually using the land for the purpose of cultivation (excluding a person who uses the land by virtue of the provisions of Article 29, Paragraph 1, the former part, or Paragraph 3), he may still continue to use the land only within six months from the grant of the lease or the assignment of the leasehold (if a decision has been rendered or a mediation has brought an agreement of the parties concerned in respect of the grant of the lease or the assignment of the leasehold, then from the date on which the decision become final and conclusive or the mediation brought the agreement, as the case may be);provided that, the court may upon application abridge or enlarge the period mentioned above.
During the continuance of the use of land in accordance with the provisions of the preceding paragraph, or of Article 29, Paragraph 1, the former part, or Paragraph 3, the unexpired term of the lease granted in accordance with the provisions of Article 2 or of the leasehold assigned in accordance with the provisions Article 3 shall suspend its running.In this case, during the period of suspention mentioned above, the lessee or the leaseholder, as such, shall not be entitled to exercise his right, and no obligation to pay the rent shall arise.
The provisions of the preceding two paragraphs shall not apply in cases where a person who uses land by virtue of the provision of Paragraph 1, himself has been granted a lease thereof in accordance with the provision of Article 2 or has acquired a leasehold thereof by assignment in accordance with the provision of Article 3.
Article 7. In cases where a person who was leasing a building as stated in Article 2, Paragraph 1, has not, without reasonable cause, begun to use the land which was the site of the building or the land substituted therefor as a result of readjustment of urban land for the purpose of owning a building thereon, even after the elapse of six months from the time when he was granted a lease of the land in accordance with the provisions of Article 2 or acquired a leasehold of the land by assignment in accordance with the provisions of Article 3, (if a decision has been rendered or a mediation has brought an agreement of the parties concerned in respect of the grant of the lease or the assignment of the leasehold, then from the date on which the decision became final and conclusive or the mediation brought the agreement), the land-owner or the assignor of the leasehold may respectively rescind the contract of granting the lease or the contract of assigning the leasehold.But this shall not apply if the lessee of a building abovementioned began to use the afore-said land before the rescission.
In cases where a person who was leasing a building as stated in Article 2, Paragraph 1, has ceased to use the land before the completion of a building thereon, after he had once begun to use the land for the purpose of owning a building thereon the same with the provisions of the preceding paragraph shall apply.
If there is any person who uses land in accordance with the provisions of Paragraph 1 of the preceding article, or of Article 29, Paragraph 1, the former part, or Paragraph 3, the period of six months mentioned in Paragraph 1 of this Article shall be computed as from the time when such use of land ceased to exist.
Article 8. In cases where the grant of a lease in accordance with the provisions of Article 2 or the assignmen of a leasehold in accordance with the provisions of Article 3 has been effected, the lessor or the assignor of the leasehold has a preferential right over the building situated on the land and owned by the lessee or by the assignee of the leasehold, for all and any part of the sum payable as rent or as a consideration for the assignment, as the case may be.
The preferential right mentioned in the preceding paragraph retains its effect, as to the rent, by registration of its sum, and if the term of existence or the day on which the rent is payable has been fixed or if there is rent already due, respectively by the registration to that effect, and as to the consideration for the assignment, by registration to the effect that the consideration is not yet paid.
The preferential right mentioned in Paragraph 1, shall have preferential effect to other rights,provided that, it shall not take priority over a claim which may be levied by the National Taxes Collection Law (Kokusei-Choshu-Ho), a preferential right for the expenses incurred for common benefits, for a claim arising from the preservation or construction of immovables, and a pledge and hypothec registered before the registration prescribed in the preceding paragraph.
Article 9. In respect of a leaseholder of the site of a dispersed building when it was removed, a person who, at that time, owned that dispersed building basing upon a right other than leasehold, and a person who, at that time, was leasing that dispersed building, the provisions of the preceding seven articles shall apply with the necessary modifications.But this shall not apply in cases where a public corporation has ownership of, or is leasing, the site of the dispersed building or the land substituted therefor as a result of urban land readjustment.
Article 10. A person who has had a leasehold of the site of a building damaged by war or a dispersed building or of the land substituted therefor as a result of urban land readjustment, continuously from the time when the building was destroyed or removed, may set up the leasehold against a third person who acquires a right to the leasehold land within five years from July 1st, 1946, even within the registration of the leasehold itself or of the building on the land.
Article 11. If the unexpired term of a leasehold actually existing on the site of a building damaged by war or of a dispersed building at the date on which this Law comes into force (excluding a leasehold which was granted clearly for the purpose of making a temporary establishment or other provisional use), is less than ten years, it shall be extended to ten years. In this case, the provisions of Article 5, Paragraph 1, proviso, and Paragraph 2 shall apply with the necessary modifications.
Article 12. A land-owner may, within one year from the date on which this Law comes into force, give a peremtory notice to the leaseholder of the land mentioned in Article 10 to report whether he intends to retain the leasehold or not within a fixed period, which shall not be less than one month.Unless the leaseholder reports, within the fixed period abovementioned, the land-owner that he intends to retain the leasehold, the leasehold shall be extinguished at the expiration of such period. But, in cases where a leaseholder has further granted a leasehold to others, the leasehold of any of the leaseholders shall be extinguished only if none of the leaseholders report his intention to retain the leasehold.
The peremtory notice mentioned in the preceding paragraph may be effected by way of public notice if the land-owner is unable to accertain the leaseholders or their whereabouts.
The public notice mentioned in the preceding, paragraph shall be effected by posting up the notice on the notice board of the Court, in accordance with the provisions of the Code of Civil Procedure regulating service by publication, and also by publishing twice a notice that such notice has been given in a newspaper.
The proceedings concerning the public notice shall fall under the jurisdiction of the Local Court of the place wherein the leasehold land is situated.
In the case mentioned in Paragraph 2, the provisions of Article 97-2 Paragraphs 3 and 5 of the Civil Code shall apply with the necessary modification.
Article 13. In cases where a leaseholder has further granted a leasehold to others, as regards the former the provisions of the preceding article shall apply with the necessary modifications.
Article 14. A person who was leasing a building damaged by war or a dispersed building at the time when it was destroyed or removed may, in preference to others, be entitled to lease a building which has been erected by any other person for the first time after its destruction or removal upon the site of the aforesaid building or upon the land substituted therefor as a result of urban land readjustment, if he makes an offer for lessing it before the completion of the building,provided that, if, such person is not the last lessee of a building, if any, which has been erected by any other person on the site of a building damaged by war or of a dispersed building after the destruction or removal thereof, he shall not be entitled to make such offer for leasing as to a building which has been erected on the land substituted for the site as a result of urban land readjustment.
In the case mentioned in the preceding paragraph, the provisions of Article 2. Paragraphs 2 and 3 shall apply with the necessary modifications.
Article 15. If there are controversies between the parties concerned or no agreement has been brought by the parties concerned in respect of the juridical relation concerning the grant of a lease in accordance with the provisions of Article 2 (including the case where the provisions are applied with the necessary modification Article 9 and Article 32, Paragraph 1), or the assignment of a leasehold in accordance with the provisions of Article 3 (including the case where the provisions are applied with the necessary modifications by Article 9 and Article 32, Paragraph 1), the Court may, upon application, after hearing the opinion of an expert committee, and taking into account the former stipulations of lease, the conditions of the land or building and all other circumstances, decide the juridical relations.
Article 16. If, in cases where there are more than one person who have made offers for leasing in accordance with the provisions of Article 2 (including the case where the provisions are applied with the necessary modifications by Article 9 and Article 32, Paragraph 1) or offers for acquiring leasehold by assignment in accordance with the provisions of Article 3 (including the case where the provisions are applied with the necessary modifications by Article 9 and Article 32, Paragraph 1), no agreement has been brought between the parties in respect of the allotment of the land or building wanted to be leased or of the land which is the object of the leasehold wanted to be acquired by assignment, the Court may, upon application, taking into account the conditions of the land or building, the professions of the lesses or assignees and all other circumstances, make the allotment in question.
The Court may, if it deems necessary for the maintenance of equity between the parties concerned, order the parties who have received exceedingly advantageous allotment to make a reasonable contribution for the benefit of the parties who have received no allotment or who have received exceedingly disadvantageous allotments.
Article 17. If the sum of rent or of money deposited as caution or other stipulations as to the leasehold land and leased building are exceedingly unreasonable, the Court may, upon application, and after hearing the opinion of an expert committee, order the modifications of such stipulations for the purpose of realizing equity in respect of the relation of leasehold land and leased building.In this case, the Court may order the repayment or return of the money deposited as a caution or of other pecuniary performance, or deem the sum already performed as a payment in advance of the rent, or order other dispositions which the Court thinks fit.
Article 18. The decisions which may be made in accordance with the provisions of Article 6, Paragraph 1, proviso (including the case where this proviso is applied with the necessary modification by Article 9) or Articles 15 to 17 shall be rendered by the Local Court having territorial jurisdiction over the place where the leasehold land or leased building is situated, in accordance with the provisions of the Law of procedure in Non-Contentious Matters.
Article 19. The expert committee shall consist of not less than three commissioners.
The expert commissioners shall be designated by the Court for each case from among the following persons:
1. Persons who have been appointed by the President of the District Court in advance every year out of those who have special knowledge and experience or those who are deemed proper;
2. Persons selected by the agreement of the parties concerned.
Article 20. The resolution at the expert committee shall be adopted by a majority of the opinion of the commissioners.
Article 21. The discussion at the expert committee shall be conducted in camera.
Article 22. Expert commissioners are entitled to receive travelling expenses, daily allowance and hotelexpenses.The sum of which shall be fixed by an Imperial Ordinance.
Article 23. In cases where the application in accordance with the provisions of Articles 15 to 17 has been instituted, Articles 4-(2) and 5 of the Law of Mediation for Leasehold Land and Leased Building (Shakuchi-Shakka-Chotei-Ho) shall apply with the necessary modifications.In this case, there shall be no appeal against a decision committing the case to mediation.
Article 24. Against a decision rendered in accordance with the provisions the proviso of Paragraph 1 of Article 6 (including the case where the provisions are applied with the necessary modifications by Article 9) and Articles 15 to 17, an appeal within a fixed time may be taken, and the time shall be two weeks.
An appeal mentioned in the preceding paragraph shall have the effect to stay the enforcement of the decision.
Article 25. A decisions rendered in accordance with the provisions of Articles 15 to 17 shall have the same effect as a judicial compromise.
Supplementary Provisions:
Article 26. The date on which this Law comes into force shall be fixed by an Imperial Ordinance.
Article 27. The districts to which this Law are applied shall be specified by an Imperial Ordinance.
Article 28. It is hereby declared that the Law providing Temporary Measures concerning Leasehold Land and Leased Buildings (Shakuchi-Shakka-Rinji-Shori-Ho) and the Wartime Ordinance relating to Land and other Properties damaged by War (Senji-Risai-Tochi-Bukken-Rei) Tochi-Bukken-Rei) shall be abrogated.
Article 29. A lease created in accordance with the provisions of Paragraph 1 of Article 4 of the repealed Ordinance and existing on the site of a building damaged by war at the date on which this Law comes into force, shall continue to exist only within one year from the date on which this Law comes into force if its object is to own a building, and within six months from that date if its object is different,provided that, the foregoing provision shall not apply in respect of a person who has, on the site, a leasehold to which the provisions of Paragraph 1 of Article 3 of the repealed Ordinance are applicable (excluding a person who has the site used by others, upon a lease granted to him in accordance with the provisions of Paragraph 1 of Article 4 of the repealed Ordinance).
The lease mentioned in the former part of the preceding paragraph shall be extinguished, even before the expiration of the time prescribed in it, if a lessee or a sublessee who uses the site himself ceases to use the site, or later modifies the purpose of its use ascertained at the date on which this Law comes into force, or acquires anew a right to the site whose object is to use it or gain profit out of it.
In cases where there is a person who actually uses the site of a building damaged by war in accordance with the provisions of Paragraph 4 of Article 4 of the repealed Ordinance continuously from a time before July 1st, 1946 until the date on which this Law comes into force, the provisions of the preceding two paragraphs shall apply with the necessary modifications, in respect of the right of the owner of the land prescribed in the afore-said paragraph.
Article 30. The unexpired term of a leasehold which is existing at the date on which this Law comes into force and to which the provisions of Paragraph 1 of Article 3 of the repealed Ordinance are applicable, shall still suspend its running while the right prescribed in the former part of Paragraph 1 or in Paragraph 3 of the preceding article continues to exist. In this case, the provisions of Paragraph 2 of Article 3 of the repealed Ordinance shall still continue in force even after the enforcement of this Law (including after the expiration of the period prescribed in Paragraph 2 of the Supplementary Provisions of the Law No.44 of 1945;and these words shall be deemed as attached to the words "after the enforcement of this Law" which will hereinafter appear).
Article 31. In respect of the application of Article 2, Paragraph 1 and Article 3, Paragraph 1, the leasehold which continues to exist by virtue of the former part of Article 29, Paragraph 1 or Paragraph 3, shall he deemed not to be a leasehold.
Article 32. In respect of a person who, by virtue of Article 29, Paragraph 1, the former part or Paragraph 3, uses himself the site of a building damaged by war or the land substituted therefor as a result of urban land readjustment for the purpose of owning a building thereon, the provisions of Articles 2 to 5, Article 7, Paragraph 2 and Article 8 shall apply with the necessary modifications.
The person mentioned in the preceding paragraph may, if he has been refused his offer for granting a lease or for acquiring a leasehold by assignment made in accordance with Article 2, Paragraph 1 or Article 3, Paragraph 1 as applied with the necessary modifications by the preceding paragraph, demand the refuser to purchase, for a reasonable price, the building owned by him on the land upon lawful right.
Article 33. A right of use granted by virtue of the provisions of Article 7, Paragraph 1 of the repealed Ordinance which continues to exist at the date on which this Law comes into force, shall still continue to exist only within five years after the enforcement of this Law.In this case, the provisions of Articles 13, 16 and 17 shall continue in force even after the enforcement of this Law.
In addition to cases mentioned in each item of Article 16, Paragraph 1 of the repealed Ordinance, the Prefectual Governor may revoke the right of use, also in cases where a designation of an expected land to be substituted as a result of urban land readjustment has been effected, or a notification of a disposition substituting a land for others has been made.In this case, the provisions of Article 16, Paragraph 2 of the repealed Ordinance shall apply with the necessary modifications.
Article 34. The provisions of Articles 5, 15 and Article 18, Paragraph 2 of the repealed Ordinance shall continue in force even after the enforcement of this Law.
Article 35. Where registration in respect of a preferential right is effected for rent not yet due in accordance with the provisions of Article 8, the sum which is calculated by totaling the whole rent of the unexpired term of lease and deducting from that the rent already due, shall be deemed as the "sum of claim" prescribed in item 9 of Article 2, Paragraph 1 of the Registration Taxes Law (Torokuzei-Ho).