The 2026 Building Lot Ownership Act Reform and Your Rights as a Tenant—How Reconstruction and Land Sales Impact Your Home

In April 2026, a major overhaul of the Building Lot Ownership Act takes effect—the first significant reform in approximately 40 years. This revision was undertaken to address critical challenges including the rising number of aging condominiums and the problem of unidentifiable property owners.

The Building Lot Ownership Act is legislation that establishes rules for situations where multiple people own separate units within a single building (like condominiums). While it may seem unrelated to renters living in leased apartments, changes to procedures such as "reconstruction resolutions" and "sale resolutions" can significantly impact tenants' living situations.

This reform centers on three major points: First, relaxing the requirements for reconstruction resolutions (considering a reduction from four-fifths to three-fourths), second, establishing new rules and clarifying requirements for condo land sale resolutions, and third, digitizing and streamlining decision-making processes within management associations.

The Changes That Most Affect Tenants: Reconstruction and Demolition

What renters must pay closest attention to is how rental contracts are affected if reconstruction or demolition is decided.

When unit owners vote to approve a reconstruction resolution and the majority agrees, the landlord can request that tenants vacate the premises. While the Land and House Lease Act provides tenants with a grace period (typically six months or more), they will ultimately be required to move out.

The 2026 reform takes the direction of making it easier to proceed with rebuilding aging condominiums. This means that the risk for renters living in older buildings may increase compared to before.

Specifically, the impact on tenants unfolds in the following sequence:

1. The management association begins considering reconstruction
2. A reconstruction resolution passes at the unit owners' general assembly
3. The landlord (unit owner) requests the tenant to vacate
4. The tenant moves out after the six-month grace period mandated by the Land and House Lease Act

As of 2026, discussions are underway to lower the required threshold to three-fourths, making it easier to reach consensus on rebuilding aging condominiums.

Land Sale Resolutions—The New System Tenants Should Understand

The "condo land sale" system, newly established and strengthened in this reform, is also important. This system enables the sale of an entire condo property (land and building), anticipating cases where the building is so deteriorated that sale and demolition are more realistic than reconstruction.

If a land sale resolution is passed, tenants are required to vacate. However, the protections of the Land and House Lease Act apply to land sales as well. Unilateral, immediate evacuation orders without valid cause are not permitted, and tenants have the right to a reasonable grace period and, in some cases, to negotiate compensation for moving costs.

Whether a property you're renting becomes subject to such procedures depends on the building's age and the management association's direction. When selecting a property, verifying the building's age, earthquake resistance standards, and the management association's activity level is crucial for renters to mitigate risk.

Management Association Digitization and Tenants' Involvement

The Building Lot Ownership Act reform also promotes digitization of management association operations. Digital voting at general assemblies and online notifications replacing paper documents have been established.

Tenants generally do not have voting rights in the management association. However, information about reconstruction or major repairs can sometimes be obtained early through the management association's activities. In occupied buildings, landlords (unit owners) or management companies may communicate information about the management association.

If you have concerns, we recommend asking the property management company during viewings or before signing the lease whether there are any current plans for major repairs or reconstruction. The Property Transaction Disclosure Document may also include information about the management association's status, so be sure to review it carefully.

Key Considerations When Renting an Older Building

Given the Building Lot Ownership Act reform, special attention should be paid to properties with the following characteristics:

Properties That Warrant Special Caution

• •Buildings over 30 years old built before 1981 (pre-1981 earthquake resistance standards)
• •Buildings with insufficient repair reserves
• •Buildings where unit owners are aging and management association activities have stalled
• •Buildings with many vacant units or unpaid maintenance fees, or those in a state of poor management

These buildings are at high risk of being designated as "poorly managed condominiums" by the Ministry of Land, Infrastructure, Transport and Tourism, and after the reform, local governments can more easily lead reconstruction or demolition procedures.

Conversely, buildings where repair reserves are being maintained adequately and the management association meets regularly are less likely to undergo sudden reconstruction or sale. When viewing a property, the cleanliness of common areas, the status of bulletin board updates, and the condition of the entrance can indirectly indicate the level of management.

Understanding Your Rights as a Tenant

While the Building Lot Ownership Act reform makes reconstruction easier, the legal framework protecting tenant rights under the Land and House Lease Act remains intact. As of June 2026, even after a reconstruction resolution is passed, immediate forced evacuation without valid cause is not permitted.

Here are the key rights tenants should understand:

In the case of evacuation due to reconstruction, etc.

• •A grace period of at least six months is guaranteed in response to a landlord's evacuation notice
• •The payment of relocation allowance is considered in determining whether the landlord has valid cause
• •Relocation allowance is negotiated based on moving costs, initial expenses for a new home, and agency fees

If you're suddenly asked to vacate, you need not comply immediately. First, seek guidance by using free legal consultations from your municipal government, the National Consumer Affairs Center, or legal fee insurance—it's important to confirm the appropriate course of action.

Summary—Understanding the Reform and Making Smart Property Choices

The Building Lot Ownership Act reform taking effect in April 2026 is an important policy change designed to promote the revitalization of aging condominiums. While there are no direct changes to tenants' obligations, the indirect effect—that reconstruction and land sales of aging condominiums are now more likely—cannot be ignored.

Verifying a building's age, earthquake resistance standards, and management association's condition when selecting a property can help mitigate risk. Remember that even if you are asked to vacate due to reconstruction, you have the right to a grace period under the Land and House Lease Act and the ability to negotiate relocation allowance.

Rental housing is the foundation of your living situation. Use an accurate understanding of these policy changes as knowledge to help you choose a home where you can live comfortably and securely for years to come.

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