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●Laws Regulating Real Estate Companies

There are a variety of business types employed by real estate companies. Of these types, real estate companies engaged in the real estate transaction business (sales, purchase and brokerage) and management business for for-sale condominiums are regulated by certain laws.
​However, it must be noted that all business types are not regulated by laws. For example, there is no law that regulates the real estate leasing business or rental property management business. 

Building Lots and Buildings Transaction Business Act (Ministry of Land, Infrastructure, Transport and Tourism)

The Building Lots and Buildings Transaction Business Act is a law that, with the aim of protecting consumers in real estate transactions and facilitating trade, regulates the following: (1) Sale, purchase or exchange of residential lands and buildings conducted by the real estate companies, and (2) Real estate companies that provide agency or intermediary (brokerage) services for sale, purchase, exchange or leasing. ​Specifically, the law stipulates a variety of regulations on the services of real estate companies, including regulations on advertisement, obligation to explain important matters (about properties and terms and conditions, etc.) to the buyers or lessees, obligation to issue documents describing the contract details, and regulations on the contract details for the cases in which the real estate companies themselves serve as the seller.

Act on Advancement of Proper Condominium Management （Ministry of Land, Infrastructure, Transport and Tourism)

The Act on Advancement of Proper Condominium Management provides regulations and other requirements on the condominium management contractors in order to secure a good living environment of condominiums. Specifically, the law obliges the condominium management contractors to explain important matters regarding their management operations and conduct segregated management of properties, and the building lots and buildings transaction business operators to issue design specification documents to management associations upon selling the units. As such, the law provides regulations to ensure that appropriate management is conducted. Moreover, the law stipulates establishment of the system for legally licensed condominium managers who provide management associations with professional advice, and of the condominium management adjustment promotion center, which is a support group for management associations.