Real Estate Notary Exam Questions "Perspectives and Solving Methods" - December 2021 Exam Question 21 (Legal Restrictions - Farmland Act)

December 2021 Exam (Farmland Act)

【Question 21】 Regarding the following statements about farmland, which one is correct according to the provisions of the Farmland Act (hereinafter referred to as the "Act" in this question)?
1. When establishing a mortgage on farmland owned by oneself to borrow funds for constructing a house on said farmland, it is necessary to obtain permission under Article 3, Paragraph 1 of the Act.
2. Regarding the termination of a farmland lease, if the owner of the farmland unilaterally makes an offer to terminate the contract to the lessee, it is not necessary to obtain permission under Article 18, Paragraph 1 of the Act.
3. If the land category in the real estate registry is residential land, it is not subject to the regulations of the Act even if the current status is farmland.
4. If one notifies the Agricultural Commission in advance to convert farmland owned by oneself within an urbanization promotion area into a parking lot, it is not necessary to obtain permission under Article 4, Paragraph 1 of the Act.

【Perspective】
This question is about the Farmland Act. The Farmland Act tends to be easier to answer correctly among legal restrictions. Most questions come from Articles 3, 4, and 5. While some options can be extremely difficult, let's first confirm the basic points.

【Solving Method】
In this question, while similar points for option 3 have appeared in past exams, this is the first time it has been asked directly. Some options require basic knowledge of the Civil Code and the Real Estate Registration Act, but since the overall question text is short, you will likely solve them in the order of options 1, 3, and 4.

1. When establishing a mortgage on farmland owned by oneself to borrow funds for constructing a house on said farmland, it is necessary to obtain permission under Article 3, Paragraph 1 of the Act.
[Point Explanation]
① The theme is "Necessity of Article 3 Permission." Permission under Article 3 is required when transferring ownership (selling) or setting up leasehold rights (renting) of one's own farmland to another person while it remains farmland.
② "Establishing a mortgage" as mentioned in the question means one continues to use the farmland oneself, so Article 3 permission is unnecessary. This is extremely simple, but it is a trick that is repeatedly asked.
Therefore, I judge option 1 to be incorrect.

2. Regarding the termination of a farmland lease, if the owner of the farmland unilaterally makes an offer to terminate the contract to the lessee, it is not necessary to obtain permission under Article 18, Paragraph 1 of the Act.
[Point Explanation]
① The theme is "Restrictions on Termination, etc. of Leases for Farmland or Grazing Land." It is confusing because the question suddenly mentions "Article 18, Paragraph 1 permission"!
② Article 18 states, "Parties to a lease of farmland or grazing land shall not, without obtaining permission from the prefectural governor as prescribed by Cabinet Order, terminate the lease, make an offer to terminate, agree to terminate, or notify that the lease will not be renewed."⇨ This means that permission from the governor is required to terminate a farmland lease.
※ As a way of thinking, permission from the governor is required when concluding a farmland lease contract. Therefore, permission from the governor is also required when terminating a farmland lease contract.
Therefore, I judge option 2 to be incorrect.

3. If the land category in the real estate registry is residential land, it is not subject to the regulations of the Act even if the current status is farmland.
[Point Explanation]
① The theme is "Definition of Terms." The frequency of questions in recent years has decreased.
② Farmland under the Farmland Act refers to land used for the purpose of cultivation, and is land primarily used for cultivation. When it appears on the exam, it uses the "land category in the registry" as a trick, as in this option.
⇨ Whether or not it is farmland is determined by the current situation, regardless of the land category in the registry. In this option, it states "current status is farmland," so it is farmland.
※ This same point was asked in Question 21, Option 1 of the December 2020 exam.
Therefore, I judge option 3 to be incorrect.

4. If one notifies the Agricultural Commission in advance to convert farmland owned by oneself within an urbanization promotion area into a parking lot, it is not necessary to obtain permission under Article 4, Paragraph 1 of the Act.
[Point Explanation]
① The theme is "Article 4 Permission." Permission under Article 4 is required when converting one's own farmland to something other than farmland. Since this option involves "converting farmland into a private parking lot," permission is required in principle.
② There is an exception where permission is not required, and the most frequently asked one is "if you notify the Agricultural Commission in advance, permission is not required for farmland within an urbanization promotion area".
※ This same point was asked in Question 21, Option 2 of the 2020 exam!
Therefore, I judge option 4 to be correct.

Since the correct option 4 in this question is a super basic problem, it is at a level that can be called a bonus question. Option 2 is a first-time question, but it appeared in Question 21 of the 2024 exam. Because there are few points in the Farmland Act, it means that many options are repeatedly asked. Of course, difficult options may appear, but let's solidify the basic matters so that we can correctly answer by the process of elimination!