Column ・ Home Selling ・ Vol.18

How to Sell Land: Survey, Boundary Confirmation, and Handling an Old House

Selling vacant land or land with an old house on it calls for different preparation than selling a condo or house. This article organizes the land-specific process, covering surveys, boundary confirmation, and how to handle an old house.

Selling land follows the same broad flow as a property with a building — valuation through to contract and handover — but it comes with land-specific preparation such as confirming boundaries, arranging a survey, and deciding how to handle any old house on the site.

Key points in this article
  • Whether the boundaries are confirmed is a key thing to check when selling land.
  • If boundaries aren't confirmed, you may need a boundary survey (kakutei sokuryō).
  • A boundary survey requires neighboring landowners to be present and can take several months.
  • If there's an old house on the site, you'll need to decide whether to demolish it or sell it as a vacant lot with an old house.
  • Survey and demolition costs are generally borne by the seller.

The Basic Process for Selling Land

Selling land follows the same overall process as selling a property with a building — requesting a valuation, signing a listing agreement, marketing the property, then moving to contract and handover. What's distinctive about land, though, is that whether the boundaries are confirmed and whether the survey map is up to date can significantly affect how long preparation takes. It also helps to have the land's basic details in order — its land-use category (chimoku), use-zone designation, and building coverage/floor-area ratios — so you can explain them clearly to buyers.

Why Boundary Confirmation Matters

Purchase agreements generally call for the boundary with neighboring land to be clearly established before handover. If the boundary is left ambiguous, it can lead to disputes with neighbors after handover. On older parcels of land, it's not unusual for a survey map to exist from years ago while the physical boundary markers themselves have since gone missing. Boundary markers come in forms such as concrete stakes or metal plates, and their positions can shift over the years or get lost during paving work.

How Long a Boundary Survey Takes, and Typical Costs

If the boundary is unconfirmed, or there's no up-to-date survey map, you'll typically hire a licensed land surveyor (tochi kaoku chōsashi) to carry out a boundary survey (kakutei sokuryō). This involves confirming the boundary with neighboring landowners and the road authority present, followed by signing a boundary confirmation agreement (hikkai kakunin-sho). Because it requires coordinating everyone's schedules, it's not unusual for the survey to take several months to complete. If you're in a hurry to sell, it's important to check early on whether a survey will be needed. Survey costs vary with the land's area and the number of adjoining parcels, but can range from a few hundred thousand yen to over a million yen, and are generally borne by the seller.

How to Handle an Old House on the Site

If there's an old building still standing on the land, you'll need to decide whether to demolish it and hand over a vacant lot, or hand it over as-is as a vacant lot with an old house. Demolishing can raise your property tax, among other considerations — see sell-16.html for the decision criteria in more detail. Even if you sell it as a vacant lot with an old house, you can still negotiate whether to demolish once a buyer is found, so there's no need to rush the decision.

Checking for Encroachments and Buried Objects

It's also worth checking in advance whether any part of a wall or roof overhangs onto neighboring land (an encroachment), and whether anything is buried underground, such as an old well or septic tank. If there's an encroachment, you'll need to discuss whether to resolve it before handover or hand it over along with a written memorandum acknowledging it. Resolving an encroachment can take time, so it's best to consult your agent as soon as you become aware of one.

What to Discuss With Your Agent When Selling Land

Land involves more hard-to-see items to check than a building does — boundaries, encroachments, buried objects, and the like. Telling your agent about any survey map you have, or any encroachment you're aware of, when you first request a valuation will make the rest of the preparation go more smoothly. Because selling land tends to take longer to prepare than selling a property with a building, it's worth planning on a generous schedule.

Frequently Asked Questions

Is a survey always necessary?

Not if the boundary is already confirmed and you have an up-to-date boundary survey map — in that case it may not be needed. It's worth having your agent check whether the map exists and what condition the boundary markers are in.

How long does a survey take?

Because it requires coordinating a joint site visit with neighboring landowners, it typically takes a few months. If you're in a hurry to sell, we'd recommend starting early.

What should I do if there's an old building still standing?

You have the choice of demolishing it and selling a vacant lot, or selling it as a vacant lot with an old house. See sell-16.html for the decision criteria.

Summary

Selling land involves preparation that a property with a building doesn't — boundary confirmation, surveys, and how to handle an old house. If you're aware of any boundary or encroachment issues, it's best to tell your agent early and proceed together while confirming whether a survey is needed.

Get free advice on land surveys and boundary confirmation, too.

We'll also walk you through how to handle an old house and whether a survey is needed.