Japanese Business Glossary

底地 (sokochi) refers to "land underlying leased property" in Japanese. It is the land that is owned by one party but leased to another party who uses it, often for building purposes. The owner of the sokochi is entitled to receive rent from the tenant who uses the land.

In real estate and property law, sokochi is an important concept because it distinguishes the ownership of the land from the ownership of any structures built on the land. This type of arrangement is common in urban areas where land is leased for commercial or residential development.

Understanding sokochi is crucial for property transactions, land development, and investment decisions, as it involves navigating the rights and obligations of both the landowner and the lessee. This includes aspects such as lease terms, rent payments, and the eventual return of the land to the owner after the lease period ends.

係る (kakaru) means "related to" or "pertaining to" in Japanese. It is often used in formal and legal contexts to describe matters, issues, or items that are connected or relevant to a specific subject.

For example, in legal documents, you might see a phrase like "この契約に係る問題" (kono keiyaku ni kakaru mondai), which means "issues related to this contract." It helps specify the scope or relevance of certain information, making it clear what is being referred to or addressed.

扶養者 (fuyosha) refers to a dependent or a person who is supported financially by someone else, typically a family member. In a legal and tax context, a fuyosha is an individual, such as a child, spouse, or elderly parent, who relies on the primary income earner for financial support.

For instance, in the Japanese tax system, the primary income earner may receive tax deductions or benefits for supporting a fuyosha. This designation is important for understanding household finances, tax obligations, and eligibility for various social welfare benefits.

Having a fuyosha affects financial planning and can provide certain tax advantages, making it an important consideration for families and individuals managing their financial responsibilities.

共益費 (kyoekihi) is a Japanese term that translates to "common area maintenance fee" or "common service fee" in English. It refers to the charges levied on tenants or property owners for the maintenance and upkeep of shared facilities and common areas in a building or complex. These fees typically cover costs such as cleaning and maintenance of hallways, lobbies, and other common areas, utilities for shared spaces like electricity and water, security services, landscaping and gardening, and repairs and maintenance of shared equipment and infrastructure. Kyoekihi is commonly applied in residential buildings, commercial properties, and office complexes. It ensures that all tenants or owners contribute to the upkeep of the common areas, maintaining a clean, safe, and pleasant environment for everyone. The amount of the fee can vary depending on the size of the property, the level of services provided, and the specific agreements in place.

権利金 (kenrikin) is a Japanese term that translates to "key money" or "premium" in English. It is a non-refundable payment made by a tenant to a landlord or property owner when leasing commercial property, such as a store or office space.

Key money is often required in addition to the usual security deposit and rent. It serves as a form of goodwill payment to secure the lease and may also be seen as compensation for the landlord's investment in the property or its location. The amount of key money can vary depending on factors such as the property's location, size, and market demand.

In some cases, key money can also be associated with the transfer of business rights or other intangible assets related to the property. It is a common practice in Japan, especially in the context of commercial real estate transactions.

更地 (sarachi) refers to vacant land or an empty lot in Japan. It describes a piece of land that has no buildings, structures, or significant improvements on it. This type of land is essentially undeveloped and ready for construction or other uses.

Sarachi is often considered valuable for various reasons. For developers and investors, it provides a blank slate for new construction projects, such as residential homes, commercial buildings, or industrial facilities. For individuals or businesses looking to build, it offers the flexibility to design and construct according to specific needs and preferences without the constraints of existing structures.

In real estate transactions, sarachi can be attractive due to its potential for development and the absence of demolition costs that would be required if buildings were present. The value of sarachi depends on factors such as location, zoning regulations, accessibility, and market demand.

Owning sarachi also involves responsibilities, including maintaining the property, paying property taxes, and ensuring compliance with local regulations. For buyers, careful consideration of these factors, along with future development plans, is essential when purchasing vacant land.