Japan's Building Standards Act seismic requirements were substantially revised in June 1981. A building confirmation issued before that point falls under what's called the "old seismic standard" (kyū-taishin), while one issued afterward falls under the "new seismic standard" (shin-taishin). An old-standard condo isn't impossible to sell, but it can affect mortgage screening and how easily a buyer is found. Here's how to think about selling one.
- A building with a confirmation issued before June 1981 falls under the old seismic standard; one issued after falls under the new seismic standard.
- Even an old-standard condo can offer buyers reassurance if a seismic diagnosis or retrofit work has been carried out.
- The home loan tax deduction and reduced registration tax may be handled differently depending on whether a building meets the new seismic standard.
- Lenders can differ in how they factor an old-standard building into a buyer's mortgage screening.
- Because the old seismic standard must be treated as a disclosure item, sellers need to communicate it accurately when selling.
What "Old Standard" and "New Standard" Mean
The Building Standards Act's seismic requirements were substantially revised in June 1981, and buildings are classified as old-standard or new-standard depending on which side of that date their building confirmation falls. For a condo, the building confirmation date can be checked in the property register or the important matters explanation document. Being old-standard doesn't automatically mean a building is unsafe, but it's a point of interest for buyers who care about seismic performance.
Effect on the Buyer's Mortgage Screening
An old-standard condo doesn't make a mortgage impossible, but some lenders factor seismic performance into their screening. The conditions for the home loan tax deduction and other tax benefits can also change depending on whether a building meets the new seismic standard, so this is information that matters to the buyer's financing plan. For details on specific programs and eligibility, checking with a tax accountant or the lender directly is the most reliable route.
If a Seismic Diagnosis or Retrofit Has Been Done, Say So
If the building as a whole has had a seismic diagnosis performed, or has undergone retrofit construction, this can be communicated to buyers as reassurance. If the management association holds a seismic diagnosis report or records of retrofit work, it's worth preparing to present these to buyers through your agent.
Treating It as a Disclosure Item
Because being built to the old seismic standard is information that can affect a buyer's purchase decision, it needs to be disclosed accurately. Communicating facts clearly — the building confirmation date, whether a seismic diagnosis has been done — rather than leaving things vague, helps prevent disputes after the contract.
Tips for a Successful Sale
When selling an old-standard condo, emphasizing the property's other strengths alongside seismic performance — location, price, how well it's managed, renovation history — tends to draw more buyer interest. Pricing based on realistic comparable sales in the area also has a significant effect on how quickly the sale closes. We cover what's different about selling a condo versus a house in sell-20.html.
FAQ
Does an old-standard condo make it impossible to get a mortgage?
Being built to the old seismic standard doesn't make a mortgage impossible outright, but how lenders factor it into screening can vary by institution. It's important that the buyer be made aware of this in advance.
If a seismic diagnosis hasn't been done, should I get one before selling?
You don't need a seismic diagnosis in order to sell, but having the results can reassure buyers. Since it involves the building as a whole, it's worth checking with the management association about where things stand.
Do I need to disclose the old seismic standard to the buyer?
Since it's information that can affect the buyer's purchase decision, it needs to be disclosed accurately. Don't leave it vague — communicate facts such as the building confirmation date through your agent.
Summary
An old seismic standard condo can affect mortgage screening and buyer interest, but communicating the results of any seismic diagnosis or retrofit work alongside the property's own appeal can broaden your chances of selling. Proceed with accurate disclosure as the foundation, and adjust your selling approach from there.