What counts as a “psychological defect,” and how disclosure laws protect you

⚠️ Content Note: This article touches on topics like death and crime, but contains no graphic details.

Curious why some homes in Japan are listed for much less than their neighbors? The answer may lie not in the walls, but in the story behind them.

If you’ve been researching akiya or older homes in Japan, you may have come across the phrase “psychological defect” (心理的瑕疵 · shinriteki kashi).

Structural issues like cracks in the walls or outdated plumbing may be tricky to discover and expensive to fix, but psychological defects refer to something even less obvious: a history that makes some people uneasy.

In Japan, this concept covers what English speakers often call stigmatized properties. These are homes where a death, accident, crime, or other unsettling event has occurred. The houses themselves may be perfectly sound, yet they carry emotional weight, cultural nuance, and, often, a lower market value.

This guide explains what counts as a psychological defect, what sellers and agents must disclose under Japanese law, and how to approach such properties thoughtfully and confidently.

🧠 What Is a “Psychological Defect”?

In Japanese real estate, a psychological defect refers to any non-physical factor that could cause a buyer or tenant to feel psychological discomfort about a property.

Typical examples include:

• A suicide, homicide, or accidental death on the property

• A fire or incident that resulted in death or serious injury

• Long-term unattended death (孤独死 · kodokushi) requiring special cleaning

• Nearby causes of unease, such as a graveyard, crematorium, or organized crime presence

In other words, even if the building is structurally sound, a buyer may hesitate for emotional or cultural reasons. That hesitation affects market value, ease of resale, and sometimes neighborhood perception.

⚖️ The 2021 MLIT Guidelines: Clarifying the Rules

Until recently, Japan had no clear national rule about how (or how far back) deaths had to be disclosed.

That changed in October 2021, when the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) released formal Guidelines on Disclosure of Deaths in Real Estate Transactions.

These guidelines apply to homes intended for residential use (both sale and rental) and set practical standards for real estate agents and sellers.

In plain terms, here's how the rules work:

🏠 When Is Disclosure Required?

Sellers must disclose when the property has a history of:

• Suicide or homicide

• Fire or accident resulting in death

• Unexplained or suspicious death

• Natural death requiring special cleaning (e.g., decomposition or biohazard-level cleanup)

These are considered events that significantly affect a buyer’s judgment and must be mentioned in writing.

🚫 When Is Disclosure Not Required?

Sellers do not need to disclose incidents like:

• Natural death or old age, with no special cleaning needed

• Minor household accidents (e.g., falls, choking)

• Deaths in neighboring homes or shared spaces not normally used by residents

• Older incidents no longer considered relevant (see “The Three-Year Rule” below)

However, if asked directly, the agent must answer truthfully regardless of time passed or cause.

⏳ The “Three-Year Rule”

For rental properties, disclosure is generally required for three years after an incident. After that, unless the event remains widely known or was unusually severe, disclosure is no longer mandatory.

For sales, however, there’s no official time limit. Sellers and agents are still expected to disclose any deaths that could reasonably influence a buyer’s decision, even if many years have passed.

This difference reflects the longer-term nature of ownership and renovation decisions compared to renting.

🧾 How Disclosure Works in Practice

In Japan, the obligation to disclose doesn’t require detective work by the agent. Real estate companies must ask the seller (or landlord) to complete a Written Disclosure Form (告知書 · kokuchisho). They’re not required to interview neighbors or scour the internet.

That said, reputable agencies often go further by confirming whether the property has appeared on accident-property databases or in local media.

When a death or major incident is disclosed, the details are usually limited to:

• Type of event (e.g. suicide, fire)

• Approximate date

• Whether special cleaning or renovation was done

Names, ages, and personal details are not shared, out of respect for privacy and cultural sensitivity.

🏚️ Understanding “Accident Properties”

“Accident property” (事故物件 · jiko bukken) is the popular term for any home affected by psychological defects. They often sell for 10–30% below comparable properties, and sometimes even less in rural areas where stigma lingers longer.

For buyers with open minds, though, they can be an opportunity. Many akiya buyers, especially from abroad, focus on a home’s potential for the future rather than the ghosts of its past.

If you’re considering one:

• Ask for documentation of cleaning or repairs

• Check neighborhood perception (some areas move on quickly, others never do)

• Be transparent if you later plan to rent it out, as failure to disclose can lead to legal issues

With care and honesty, these homes can find new life. The key is understanding the home’s history and treating both the property and its neighbors with respect.

🙏 Cultural and Ethical Considerations

Death in the home carries stronger taboos in Japan than in many other countries. Even a natural death may make some locals uneasy, especially in rural communities where word travels fast.

When buying or renovating an akiya with such a history:

• Approach with cultural sensitivity, not skepticism

• Avoid publicizing or sensationalizing the event

• Remember that neighbors’ feelings matter in small towns

A respectful attitude can make the difference between cold shoulders and genuine community acceptance.

🧭 Before You Buy: What to Check

Here are a few steps for peace of mind:

1. ✅ Ask Directly

• Your agent is required to disclose if you ask specifically about deaths or accidents.

2. 📜 Review the Written Disclosure Form

• Check whether any psychological or physical defects are listed.

3. 🔍 Confirm Property History

• Search the property’s address online; Japanese-language sites sometimes list accident properties.

4. 🏘️ Talk to Locals

• If appropriate, discreetly confirm with neighbors or the local jichikai (neighborhood association).

5. 📋 Put It in the Contract

• Make sure any known issues are recorded in writing before signing.

🌸 Every Home Has a Story

Psychological defects and “accident properties” are part of Japan’s real estate landscape, especially among aging homes, whether rural, suburban or urban.

Handled wisely, they don’t have to be dealbreakers. In fact, many akiya buyers find that these homes offer excellent value, provided they understand their background, treat that history respectfully, and document everything properly.

Transparency builds trust, both with your agent and your future neighbors. Here in Japan, that trust is worth as much as any discount.

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