1. Definition of Psychological Defects
A psychological defect (shinriteki kashi / 心理的瑕疵) in a real estate transaction refers to a factor that would cause a reasonable buyer or tenant to feel psychological resistance to living in a property, due to past events or the surrounding environment, even though the property itself has no physical problems.
Specific examples include cases where a suicide or homicide occurred in the property, or where a cemetery or crematorium is located nearby. Because psychological defects are "invisible flaws," buyers and tenants often have no way of knowing about them unless the seller or landlord discloses the information in advance, which is why they are subject to disclosure obligations.
2. Four Types of Property Defects
Defects (kashi / 瑕疵) in real estate transactions are generally classified into the following four categories. Psychological defects are one of them.
| Type of Defect | Description | Examples |
|---|---|---|
| Physical Defect | Physical flaws in the building or land | Roof leaks, termite damage, land subsidence |
| Psychological Defect | Factors causing psychological discomfort | Suicide, homicide, lonely death, nearby undesirable facilities |
| Legal Defect | Legal restrictions or issues with property rights | Building code violations, zoning restrictions |
| Environmental Defect | Problems caused by the surrounding environment | Noise, vibration, odors, blocked sunlight |
The Boundary Between Psychological and Environmental Defects
Nearby undesirable facilities (such as cemeteries, crematoriums, and waste processing facilities) may be classified as either a psychological defect or an environmental defect. The classification is not fixed and is determined on a case-by-case basis.
3. Legal Basis
The legal basis for psychological defects primarily rests on the following laws and guidelines.
Civil Code, Article 562 (Non-Conformity with Contract)
Following the 2020 revision of Japan's Civil Code, the former "warranty against defects" (kashi tanpo sekinin) was replaced with "liability for non-conformity with contract" (keiyaku futekigo sekinin). When a delivered property does not conform to the terms of the contract, the buyer may request remedy, price reduction, damages, or contract cancellation. Psychological defects may constitute "non-conformity with contract."
Real Estate Brokerage Act, Article 47 (Prohibition of Non-Disclosure of Material Facts)
Licensed real estate agents (takken gyosha) are prohibited from intentionally concealing or misrepresenting facts that materially affect the other party's decision in a transaction. Facts constituting psychological defects are subject to this provision.
MLIT Guidelines (October 2021)
The "Guidelines on Disclosure of Deaths in Properties by Real Estate Agents," issued by Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT), establishes standards for disclosing deaths in properties -- a subset of psychological defects. While not legally binding, these guidelines serve as an important practical reference.
4. Difference from Stigmatized Properties
"Psychological defect" and "stigmatized property" (jiko bukken / 事故物件) are often confused, but there is a clear distinction between the two.
| Category | Psychological Defect | Stigmatized Property (Jiko Bukken) |
|---|---|---|
| Scope | Broad concept, not limited to deaths | Primarily concerns deaths at the property |
| Legal Definition | Based on Civil Code and Real Estate Brokerage Act | No clear legal definition exists |
| Examples | Suicide, homicide, undesirable facilities, organized crime offices, etc. | Suicide, homicide, lonely death, fire-related death, etc. |
| Relationship | A stigmatized property is a subcategory of psychological defect | |
In other words, all stigmatized properties involve psychological defects, but not all psychological defects make a property a stigmatized property. Nearby undesirable facilities and past incidents not involving a person's death also fall under psychological defects.
5. Relationship with Disclosure Obligations
When transacting a property with a psychological defect, the seller or landlord (and their agent) has a disclosure obligation (kokuchi gimu / 告知義務). The scope and duration of this obligation vary depending on the nature of the defect.
Psychological Defects Involving a Person's Death
Based on the MLIT Guidelines, disclosure is required for approximately 3 years for rentals and without time limit for sales. However, natural death and accidental death during daily life generally do not require disclosure.
Psychological Defects Not Involving Death
Psychological defects not involving a person's death -- such as nearby undesirable facilities or past incidents -- are not covered by the MLIT Guidelines. Whether disclosure is required is determined on a case-by-case basis, depending on whether the fact materially affects the other party's decision.
6. Cases That Qualify as Psychological Defects
The following are representative cases that may constitute psychological defects. Whether they actually qualify depends on the specific circumstances.
Cases Highly Likely to Qualify
- - Suicide or homicide at the property
- - Lonely death left undiscovered for an extended period (requiring specialized cleaning)
- - Death from fire at the property
- - Property that was the scene of a serious crime
Cases Where Judgment Is Divided
- - Nearby cemetery or crematorium
- - Incident or accident in the neighborhood
- - History of flooding or natural disaster
- - Proximity to an organized crime (yakuza) office
Cases That Generally Do Not Qualify
- - Natural death from old age or illness
- - Accidental death during daily life (without need for specialized cleaning)
- - Incidents in shared areas of apartment buildings that are not routinely used
7. Practical Considerations in Real Estate Transactions
When dealing with a property that has a psychological defect, keep the following points in mind.
- ●Always check the "disclosure items" section of the important matters explanation document, and ask questions about anything unclear
- ●If a property is described as having a "psychological defect," confirm the specific details
- ●For rentals, be aware that incidents older than approximately 3 years may not be disclosed
- ●Price negotiation based on psychological defects may be possible, though the amount varies by case
- ●If the contract includes a disclaimer clause regarding psychological defects, review it carefully
8. How to Check on JikoDB
JikoDB maintains a database primarily focused on psychological defects related to deaths at properties. Each property's detail page clearly displays its verification level (confirmed / likely / unverified), helping you assess the reliability of the information.
Because JikoDB includes properties for which the disclosure obligation period has already expired, you can access information that may not be available through real estate agency disclosures alone. We recommend searching by address or using the map search before signing any property contract.
Related Pages
- Disclosure Obligation Guidelines -- MLIT 2021 Standards
- What Is a Stigmatized Property? -- Definition, Types & Legal Status
- Natural Death and Lonely Death: Disclosure Rules
- Search the Stigmatized Property Database
When researching a specific property, please also check the regional stigmatized property listings.
* The content on this page is for general informational purposes only and does not constitute legal advice. Please consult a qualified attorney or legal professional for advice on specific cases.