JapanHow did reform change co-owned property management?
The 2023 amendment to the Civil Code introduced mandatory management agreements for co-owned buildings, required majority consent (3/4) for major decisions, and clarified manager appointment procedures.
What the Law Says
The 2023 amendment to Japan’s Civil Code fundamentally restructured how co-owned buildings—especially condominiums—are managed, replacing informal practices with clear statutory requirements.
Before the reform, co-ownership management relied heavily on custom and voluntary agreements, often leading to disputes over repairs, cost allocation, and decision-making authority.
The amended Civil Code now requires all co-owners of a building to enter into a written management agreement. This agreement must specify the scope of management duties, cost-sharing rules, and procedures for appointing or dismissing a manager.
Major decisions—including structural renovations, sale of common areas, or adoption of new management rules—now require approval by owners holding at least three-quarters of the total voting rights (based on floor area ownership shares).
A manager may be appointed for up to ten years, and reappointment requires renewed consent under the same 3/4 majority rule. The manager must act in accordance with the written agreement and report annually to all co-owners.
Statutory TextCo-owners of a building shall conclude a written agreement concerning the management of the building.
— Civil Code, Art. 252-2 — Management Agreement
Statutory TextDecisions on matters prescribed by Cabinet Order shall require the consent of co-owners holding at least three-quarters of the total voting rights.
— Civil Code, Art. 252-3 — Majority Requirement
Statutory TextThe term of office of a manager shall not exceed ten years; reappointment shall be subject to the procedure prescribed in the preceding Article.
— Civil Code, Art. 252-5 — Term of Manager
What to Do
Review or draft a written management agreement complying with Civil Code Art. 252-2
Hold a meeting where decisions requiring 3/4 consent (e.g., renovation plans) are formally voted on
Appoint or reappoint a manager for no more than 10 years, documenting consent per Art. 252-5
Ensure annual reports from the manager are distributed to all co-owners
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.