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Understanding Site Rights in Real Estate: A Comprehensive Guide

Written by Daisuke Inazawa | Jul 17, 2025 2:54:51 AM

In real estate transactions, you may have heard the term " site rights, " especially when it comes to condominiums and other condominium-owned buildings. This right of site is an important form of right unique to condominiums that differs from that of single-family homes, and understanding this right is essential for smooth real estate transactions.

In this article, INA&Associates, Inc. will explain about the right of site in an easy-to-understand manner for the general public, from its basic concept to its relationship with the right to use the site, its relation to the exclusive use area andcommon use area, and the importance of registration. We hope that this will help you to resolve any questions you may have about real estate, and to conduct your transactions with greater peace of mind.

Definition and Importance of Site Rights

Site rights refer to a form of right in which the exclusive use portion of a building (each unit, etc.) and the right to use the land on which the building stands ( site use right) are treated as a single unit in condominiums and other condominium-owned buildings. The most significant feature of this is that the land and building are registered as a single unit, unlike detached real estate where the land and building are registered as independent rights.

This integrated right is based on the principle of prohibition of separate disposition. In other words, as a general rule, it is not possible to sell only a room (exclusive use portion) of a condominium or only a right to the land (right to use the site). This is because, due to the characteristics of condominiums, which are communal dwellings, if each unit owner disposes of the right to the land separately, it will interfere with the management and use of the entire building. This principle is stipulated in the "Law Concerning Building Unit Ownership, etc." (Unit Ownership Law) and is an important mechanism that supports the stable operation of condominiums.

With the establishment of site rights, the purchaser of a condominium acquires the rights to the land and the building at the same time, and can conduct the transaction as one unit when selling the property. This increases the transparency and safety of real estate transactions and lays the foundation for the smooth distribution of real estate in the form of condominiums.

Difference between Site Use Rights and Site Rights

The terms " site use rights " and " site rights " are often confused, but there is a clear difference between the two. Right to use the site is a general term for the right to use the land on which the building stands in order for the condominium unit owner to own the exclusive use portion of the building. This includes ownership rights, surface rights, and lease rights.

Site rights, on the other hand, refer to those rights to use the site that have been specifically registered and are integrated with the exclusive use area. In other words, while the right to use the site is a broad concept of "the right to use the land," the right to use the site is a more limited and legally effective concept of "the right to use the site that is integrated with the exclusive use area by registration.

The following table summarizes the differences between the two.

Item Right to Use the Premises Right of Use of Premises
Definition General term for the right to use land by condominium unit owners. Site use rights that are registered and integrated with the exclusive area
Types of rights Ownership, surface rights, lease rights, etc. Site use rights that are integrated with the exclusive use area
Registration May not be registered Always registered
Separate disposition Possible in principle (in the case of non site rights) Not possible in principle ( Separate disposition prohibited )
Subject Land use of condominium interests in general Land use integrated with the exclusive use portion of a condominium-owned building

Buildings subject to right of site

Site rights are mainly established for condominiumsand other condominium-ownedbuildings. A condominium unit-ownership building is a building that is structurally divided into two parts, each of which can be used independently as a residence, store, or office ( exclusive use area ) and common use areas (corridors, stairs, elevators, entrances, etc.) that do not belong to the exclusive use area. Some office buildings and commercial facilities may also be treated as condominiums.

In the case of a single-family residence, the land and building are treated as separate properties and can be sold or mortgaged separately. However, condominiums have a special form in which many owners share one piece of land and own each part of the building built on it, requiring a right-of-way system in which the right to the land and the right to the building are treated as one.

Registration of Right of Premises

Site rights are clearly stated in the real estate registry. In addition to the description of each exclusive area, the type of right of site (ownership, superficies, etc.) and the percentage of ownership corresponding to that exclusive area will be described in the condominium registry. This registration legally establishes the right to the site and publicly notifies third parties of their rights.

The registration of the right of site is very important to ensure the safety of real estate transactions. The registration allows the purchaser to accurately grasp the land rights of the condominium and facilitates smooth procedures when selling the property. The registration of the right of site rights is also an important factor in the evaluation of collateral when financial institutions set up mortgage loans.

Site rights and non-site rights

Some condominiums are rarely "non-site rights" properties, where site rights are not established. This is often the case with older condominiums built before the Compartmentalized Ownership Law was enacted, or properties that have not been converted to site rights for some reason. Since the land rights and building rights are treated separately in a non-site-rights property, the procedures for each are required when buying, selling, and mortgaging the property, and can be complicated.

When buying or selling a property with non-lot rights, it is necessary to register the transfer of land rights and building rights at the same time, which can lead to complicated procedures and, in some cases, the risk that the land rights may be unclear. Therefore, when conducting a real estate transaction, it is very important to confirm in advance whether or not the subject property has been converted to site rights.

Calculation of the percentage of site rights

The percentage of site rights is generally determined based on the percentage of the floor area of each exclusive area. For example, if the total floor area of the exclusive area of a condominium is 10,000 square meters and the floor area of the exclusive area of a certain dwelling unit is 70 square meters, the ratio of site right for that unit is 70/10,000. This ratio will affect the ratio of the property tax and city planning tax burden on the land, the ratio of voting rights in the management association, and so on.

The site right ratio can be confirmed with the condominium's registration certificate. Knowing the site rights ratio of your condominium will be helpful when considering future sale or inheritance.

Common misconceptions about right of site rights

The following are some common misconceptions about right of site rights that are often misunderstood by the general public.

1. if I have the right of site rights, can I use the land freely?
Site rights mean that the right to use the land is integrated with the exclusive use area, but this does not mean that the land can be used freely. The site of a condominium is the common property of all unit owners, and its use is restricted by the Management Regulations and the Unit Ownership Law. For example, you cannot add a parking lot or build a private garden without permission.

Are condominiums without site rights less valuable?
Although it cannot be said that they are generally less valuable, condominiums without site rights may be valued differently in the market compared to condominiums with site rights, due to the more complicated procedures involved in transactions and the risk of unclear land rights. However, depending on the location and condition of the building, there are some properties with high value even with non-site rights.

3. is site right the same as ownership?
Site rights refer to a "form of right" in which the ownership (or superficies, leasehold, etc.) of the land is integrated with the exclusive area. If the type of site right is ownership, you effectively have ownership of the land, but the term site right itself is not ownership itself, but a concept that defines how it is handled.

It is important to resolve these misunderstandings and develop a correct understanding of site rights in order to avoid problems in real estate transactions.

Conclusion

In this article, we have explained the definition of right of site, related concepts, and practical points to keep in mind. Site rights are an important form of right in condominiums and othercondominium buildings where the exclusive use portion and theright to use the site are treated as an integral part of the building. This integration ensures the safety and smoothness of real estate transactions by prohibiting the separate disposal of the land and building in principle.

In particular, the right of site, which is legally determined by registration, is an indispensable right for owners of condominium interests, and understanding this right is extremely important in real estate transactions and inheritance. Although non-site rights also exist for some properties, they require more careful confirmation during transactions.

INA & Associates, Inc. provides professional and experienced support for your real estate questions and concerns. If you have any questions about property rights or would like to discuss a real estate transaction, please do not hesitate to contact us. We are committed to resolving your real estate concerns and providing you with the best solutions.

Frequently Asked Questions

Q1: Can I buy a condominium without site rights?

A1: It is possible to purchase a condominium without site rights (non-site rights property), but the procedures for buying, selling, and mortgaging tend to be more complicated than for a property with site rights. Also, the risk of unclear land rights should be considered. When considering a purchase, we strongly recommend that you always consult with a real estate professional to conduct a detailed investigation.

Q2: How can I confirm the percentage of site rights?

A2: The percentage of site rights can be verified with a certified copy of the registry (certificate of all items) of the subject condominium. The certified copy of the registry clearly indicates the type and percentage of site rights corresponding to each exclusive area as well as each exclusive area. You can obtain this information yourself, or you can ask a real estate company or judicial scrivener to do so.


Q3: Do site rights and site use rights mean the same thing?

A3: Site rights and site use rights are two different concepts. The right to use the site is a generic term for the right to use the land in order for unit owners to own their exclusive areas, and includes ownership, superficies, and leasehold rights. Site right, on the other hand, refers to this right to use the site, especially one that is registered and integrated with theexclusive area. Site right is a type of right to use the site and is a more limited and legally effective concept.


Q4: Does a condominium with a right of site also have to pay property tax on the land?

A4: Yes, condominiums with site rights are subject to property tax. The site of a condominium is the common property of all unit owners, and each unit owner bears the property tax and city planning tax on the land according to his/her percentage interest. The amount of tax is calculated based on the percentage of ownership of the site rights and is usually collected together with management fees.


Q5: What exactly does "prohibition of separate disposition" of site rights mean?

A5: The " prohibition of separate disposition " of the right of site rights means that, in principle, you cannot sell or pledge as collateral the exclusive use portion of thecondominium (your room) and the right to the land corresponding to that room ( right of site) separately. This is stipulated by the "Law Concerning Building Unit Ownership, etc." because, due to the characteristics of condominiums, which are apartment buildings, if the land rights are disposed of separately, it will interfere with the management and use of the entire building. This keeps the rights of condominiums simple and allows for smooth transactions.