When you sell land, buyers care a great deal about where the boundary lies. If boundary markers can't be found, or if you and the neighboring landowner have different understandings of where the boundary sits, it becomes harder for a buyer to purchase with confidence as things stand. We cover the overall process of selling land in sell-18.html; here we focus specifically on how to approach boundary problems.
- Land with no boundary markers, or where you and a neighbor have differing understandings of the boundary, is worth sorting out before you sell — it reduces buyer anxiety.
- There are two ways to clarify a boundary: a boundary survey confirmed by agreement with the neighboring landowner, and the Legal Affairs Bureau's boundary determination system (hikkai tokutei seido).
- Even if you can't get the neighboring landowner's cooperation, using the boundary determination system lets you obtain an official ruling on where the registered boundary (hikkai) lies.
- If a block wall or eave encroaches onto neighboring land, there are ways to prevent future trouble, such as exchanging a written memorandum.
- Boundary negotiations require specialized knowledge, so the basic approach is to proceed in consultation with a professional such as a licensed land and house surveyor (tochi kaoku chōsashi).
What's the Problem with Land Whose Boundary Isn't Confirmed?
If the boundary isn't confirmed, the buyer ends up signing a contract without knowing exactly what land they'll own after the purchase, which tends to make them uneasy. It's not unusual for boundary markers to be missing, or for you and the neighboring landowner to have different understandings of where the boundary sits. Checking the state of the boundary as soon as you start considering a sale is the first step.
How to Confirm a Boundary (a Boundary Survey)
The most basic method is a boundary survey: confirming the boundary in the presence of all neighboring landowners, then installing boundary markers by agreement. You have a licensed land and house surveyor carry out the survey and exchange a boundary confirmation agreement (hikkai kakunin-sho) with the neighboring landowner, leaving a record that the boundary's position was agreed on. Having this record makes it easier for a buyer to consider the purchase with confidence.
The Boundary Determination System When You Can't Get a Neighbor's Cooperation
If the neighboring landowner won't attend, or if you disagree over the boundary, one option is to use the Legal Affairs Bureau's boundary determination system. Under this system, a boundary determination registrar rules on where the registered boundary (hikkai) lies, drawing on the opinions of outside experts — and the key feature is that the process can move forward without the neighboring landowner's consent. That said, boundary determination only clarifies where the registered boundary sits; it doesn't resolve a dispute over the actual extent of ownership (the ownership boundary, or shoyūken-kai) itself, so care is needed there.
How to Handle an Encroachment
If a block wall, eave, or water or drain pipe encroaches onto neighboring land, it can become a source of future trouble for the buyer if left as is. Confirm the encroachment with the neighboring landowner and either resolve it, or, if that's difficult, exchange a written memorandum committing to correct it at the time of a future rebuild — this makes it easier to explain the situation to a buyer as well.
How to Proceed With Selling Land That Has a Boundary Problem
Sorting out boundary issues often takes time, so we'd recommend consulting a licensed land and house surveyor early, as soon as you start considering a sale, to get a sense of the procedures required. If confirming the boundary is going to take a while, share that situation with your agent and think through the timing of your listing and how to explain things to the buyer together. We cover the overall process of selling land in sell-18.html.
FAQ
Can I sell land without boundary markers?
Selling land without boundary markers is possible in itself, but it can leave buyers uneasy about the boundary's position and hesitant to proceed with the purchase. We'd recommend clarifying the boundary as far as you can before you list.
What should I do if the neighboring landowner won't cooperate with confirming the boundary?
If you can't get the neighboring landowner's cooperation, one option is to use the Legal Affairs Bureau's boundary determination system to obtain an official ruling on where the registered boundary lies. We'd recommend consulting a professional such as a licensed land and house surveyor for the details of the procedure.
If I find there's an encroachment, do I have to resolve it before I can sell?
You don't necessarily have to resolve the encroachment. If resolving it is difficult, another approach is to exchange a written memorandum with the neighboring landowner setting out a future correction, explain its contents to the buyer, and proceed with the sale on that basis.
Summary
For land with no boundary markers, or where you and a neighbor have differing understandings of the boundary, sorting out the situation through a boundary survey or the boundary determination system before you list reduces buyer anxiety and leads to a smoother sale. Proceed with boundary-related negotiations in consultation with a professional such as a licensed land and house surveyor.