What We Do in Japanese Real Estate Appraisal & Valuation Services
In Japan, only real estate appraisers licenced by Ministry of Land, Infrastructure, Transport and Tourism(MLIT） are entitled to making formal appraisal reports concerning price and rents of real estates.
The published land price of standard sites all over Japan is announced every March by MLIT.
Every June, the price of land along each roads in every town and most villages in Japan is announced by Naional Tax Agency for the pupose of calculation of inheritage tax. In addition, the price of land for the calculation of real estate tax is prepared by each local government . These valuations of land are made by the licenced real estate appraisers(LREA)
In addtion to public sector as mentioned above, real estate appraisal or valuation is also utilized in private sector. For example, accounting is changng from historical cost to market value accounting.
In Japan, large-sized companies are required for the explation to shareholders in the Balance Sheet to append a note of market value of real estate for lease which they own, and real estate appraisal by LREA is useful to prove the market value of such real estate for lease.
When a person or a company borrows money from a bank, a bank takes out a motrgage on real estate which a person or a company owns, and real estate appraisal can provide a bank with realiable data for their judgement of value of real estate.
In a trial, successors of inheritance compete for the value of property. In order to prove the market value, the real estate appraisal by LREA is useful. Lessors and lessees compete for the rents of property in a trial. The real estate appraisal by LREA is produced to a court as a reliable evidence.
When the property of company is transferred to the owner in family business, the evidence which proves that the property is transferred at market value is necessary in order to avoid gift tax. Or when the property is exchanged with other property, the evidence which proves that the property is exchanged at equal value is necessary in order to avoide corporation tax. In this case, real estate appraisal by LREA is also useful.
For small and medium-sized companies, the inheritance of shares by successors is important. The value of property accouts for large portion in the value of shares, and real estate appraisal by LREA is useful for the valuation of shares.
Our company is aiming at the accurate and precise correspondence to clients' necessities in cooperation with such specialists as lawyers, licenced tax accountants, registered architects and real estate agents. In addition, we have two future challenges. One is the valuation of overseas property. The other is the valuation of such assets as machine tool. We are always at your services.