In this section, the details of housing loans are listed: the name of the financial institution, the amount, the rate of interest, the loan period, the mediator, the guarantee fee, the administrative fee, the term of the special agreement for the use of the loan, etc.
 
Notes: 
The Real Estate Act mandates an explanation of the details of the loan arrangement and the measures to be taken if the loan is not approved. Make sure that the name of the financial institution and the expected amount of money are specifically described, as shown in the example above. There are many cases where problems arise due to lack of specific information on financial institutions providing loans.

This section states whether measures regarding the fulfilment of liability for defects are to be taken as well as the outline of the measures.  In the above sample, "講ずる” is  circled in red, meaning that such measures are to be taken. The outline is as follows: 
​The housing subject to this contract shall be registered under the Existing Home Warranty Program of the Japan Housing Warranty Organization (JHWO). For details of the warranty, please refer to the attached "Details of the Warranty Program for Existing Houses".

​Glossary of Terms:
Liability against defects
If the object of sale (land or building) has a defect ( a flaw, problem, etc.) and the defect is a 'hidden defect', the seller is liable for the "hidden defect."
A "hidden defect" is a defect of which the buyer was unaware or could not have been aware with ordinary care.

In the above sample, installment payments are not applicable ("該当なし”).

In the above sample, the following are written:

1. If the Buyer cancels the contract due to the Seller's default, the seller must pay the money received plus a penalty in an amount equivalent to (___) % of the sales price.
2. If the Seller cancels the contract due to the buyer's default, the Seller shall return the balance of the money received, less the penalty, without interest. In this case, if the amount of the penalty exceeds the money already paid, the Buyer shall pay the difference to the Seller.

In the section, the information on the method of protection and the institution/organization that takes protective measures can be found. In the above sample, the protection method is stated as ​Guarantee Entrustment Contract (Article 41, Paragraph 1, Item 1 of the Act) and Guarantee Contract (Article 41, Paragraph 1, Item 2 of the Act).

In the section, the information on the method of protection and the institution/organization that takes protective measures can be found. In the above sample, the protection method is stated as ​Guarantee Entrustment Contract (Article 41, Paragraph 1, Item 1 of the Act), Guarantee Contract (Article 41, Paragraph 1, Item 2 of the Act), and Pledge Agreement (Article 41-2, Paragraph 1 of the Act)

In this transaction, no protection measures will be taken because the amount of the deposit, etc. is less than 5/100 of the sales price for uncompleted properties and less than 1/10 of the sales price for completed properties, and the amount is less than 10 million yen.

In this section, the following are stated: whether protection measures are taken or not, the institution/organization that takes protective measures, etc. In the above sample, "講じない” is circled in red, meaning that no protection measures are taken. 

Note:
When the seller is a real estate agent and a deposit of more than 10% of the sales price (5% for unfinished properties) or 10 million yen is given or received, the seller real estate agent is obligated to take measures to protect such money before receiving payment. Payment is to be made after receiving a letter of guarantee, etc.

The payments other than the purchase price and the exchange margin are listed in this section.
​In the above sample, the payment details are as follows:
① Deposit (to be applied as part of the purchase price at the time of settlement): 1,000,000 yen
② Property Tax and City Planning Tax Settlement: 65,000 yen
③ Sewer Private Pipe Management Material Liquidation Money (Fiscal Year____): 2,000 yen
Note: The settlement amount is as of the scheduled transfer date (Month/Date/Year).

In the above sample, the following are states:
Cancellation with deposit payment: The seller and the buyer may cancel this sales contract until the other party begins the procedures to implement the contract, with the seller paying to the buyer twice the amount of the deposit received and the buyer waiving the deposit paid to the seller.
Note: Even after the buyer has initiated the contract, the parties concerned can waive the deposit and cancel the contract before the seller starts the implementation procedures. In such a case, there is no obligation for the buyer or seller to pay a penalty.
What are considered the implementation of the contract?
The procedures integral to the implementation  of the contract are considered to have initiated the contract, excluding preparatory actions for the implementation.  The following are considered to have implemented the contract: applying for the registration of the transfer of ownership to the buyer, the payment of the buyer's deposit, etc.

Cancellation in case of loss or damage before the transfer of the property:
1. The Buyer may cancel this contract if the Property is destroyed by a natural disaster or other cause not attributable to either the Seller or the Buyer prior to delivery.
2. The Seller may cancel this contract if the Property is damaged for any of the reasons described above, and the Buyer may cancel this contract if the purpose of the contract cannot be achieved due to damage to the Property, even if it is possible to repair the damage, if repair is extremely difficult or requires excessive expense.
4. In the event of termination of this Agreement pursuant to 1 or 2 above, the Seller must return all monies received without interest and without delay.

Termination by the default of the contract:
1. If the Seller or the Buyer fails to perform any of the obligations set forth in this contract, the other party may terminate this contract after stipulating the performance of contingent obligations and giving a reasonable period of notice.
2. The party whose contract is terminated pursuant to 1 above shall pay to the other party without delay the penalty specified in the contract.

Cancellation by special agreement on the use of financing:
1. If approval is not obtained for all or part of the financing described in the "6 Matters Concerning the Financing" section below by the last　date of the scheduled loan approval date specified in the contract, this contract will automatically be terminated.
2. When this contract is cancelled pursuant to 1 above, the Seller must promptly return all the money received without terminated.

Other:
Cancellation under the Special Agreement on Replacement of Property
1. The Buyer will use the proceeds from the sale of the property (Room 301, OO Apartment, located at 16-11, OO-cho, OO City) to pay for the purchase of the property. This agreement will be automatically terminated if the Property is not sold for at least OOOO yen  or if the proceeds are not received by Month/Date/Year.
2. When this contract is terminated pursuant to 1 above, the seller must promptly return all the money received without interest.

Note:  Make sure that the loan use covenant is written into the contract.
If a loan from a financial institution is to be obtained for part of the purchase price, it must be stipulated in the contract that the purchase agreement can be cancelled in the event that the loan is not obtained.

In the sample above, "造成宅地防災区域外" is circled, meaning that the property is NOT within a developed residential land disaster prevention zone. 

In the sample above, "有" is circled, meaning that asbestos testing was conducted on the property.
The details are as follows: 

• Testing conducted by: ___ Inc.
• Scope of testing: See the attached report.
• Date of testing: Month/Date/Year
• Use of asbestos: Yes (See the attached report for details.)

*The testing was conducted by the above-mentioned organization at the request of the seller but did not examine the entire building. (See the attached report for details.)

​Note: If there are records of asbestos testing and earthquake resistance assessment for the building, their details are to be explained, but the seller or real estate agent is not required to conduct such testing or assessment.

In the sample above, "有" is circled, meaning that earthquake resistance assessment was conducted on the property. The details are as follows: 

• Assessment conducted by: ___First-Class Architect Office
• Date of assessment: Month/Date/Year
• Assessment results: See the attached evaluation form.

​Note: It is difficult to determine the seismic strength and safety of a building unless it undergoes "seismic diagnosis."  It is important for the owner of an older building to have his/her building evaluated for seismic resistance and to have it  reinforced appropriately for seismic strength and safety.
Please consult with your local municipal office, regarding seismic diagnosis.

This section states whether or not a housing performance evaluation report has been issued by a registered housing performance evaluation agency. In the above sample, In the sample above, "無" is circled, meaning that a housing performance evaluation report (design/construction) is NOT available.

​Note: The Housing Performance Evaluation System
As consumers cannot always trust advertisements for high-performance, high-quality houses, the Housing Performance Evaluation System (a system to objectively evaluate and certify the advertised qualities) has been established in accordance with the Housing Quality Assurance Act.

5. The conditions of Utilities (Drinking Water, Gas, Electricity, and Sewerage)
If facilities essential for daily life such as those for electricity, gas, water, and sewerage are not in place, a large amount of money may be required to install and/or maintain them. To avoid future trouble and dispute, check the conditions of these fundamental facilities. 
Note: Buried water pipes in the front road may be private pipes. In the case of private pipes, a contribution payment may be required. Also, if the diameter of the water main is small, it may be necessary to change the diameter when rebuilding or renovating the house.

In the above sample, the conditions of utilities and drainage are as follows:
Drinking Water: 

• Public 
• Pipe: 50mm (the front road), 13mm (within the property)
• No contribution required

Gas:

• City gas and propane (Individually supplied) 
• Contribution required (To be determined)

Electricity:

• ______ Electricity
• No contribution required

Sewerage:

• Sewerage: Public (Private Pipe. See Note 3 below. No septic tank needed. No contribution required.)
• Miscellaneous: Public (Private Pipe. See Note 3 below. No septic tank needed. No contribution required.)
• Rainwater: Public (No contribution required.)

Note:

1. Water pipes are currently drawn in with 13mm pipes, and when rebuilding or extending the building, etc., it will be necessary to replace the drawing pipes due to insufficient capacity. In this case, the replacement cost will be borne by the buyer.
2. Gas service is scheduled to be provided in the south side of the building around (M/D/Y), when a city gas line is scheduled to be buried in the road adjacent to the south side of the building. The amount to be borne by the company has not yet been determined.
3. Sewage flows from the sewage basin on the site into the public sewerage system via a private pipe (managed by OO Town Council, management fee OO yen/year).

*A schematic diagram of piping may be  shown in this section as in the above sample.

6. Shape, Structure, etc. at the Time of Completion of the Residential Land Development or Building Construction (in the Case of Unfinished Buildings)
In the case of unfinished buildings, the description of the land and building upon completion can be found in this section: the shape and structure of the land and building, the details (width, type, etc.) of the road(s) surrounding the property, and the interior and exterior of the building, etc. 

3. The Land and the Road
In this section, the road in relation to the land is explained: road type, approach direction, width, frontage, etc.  

Note: Carefully check the information on the road (the type, width, frontage, etc.). 
In principle, a building cannot be constructed unless the land faces a road classified as such in accordance with the Building Standards Act for at least 2 meters.

In the above sample,  the property faces roads on the south and east sides.　
Access Roads:

• On the south side, the road is a public road (type 1) with 4.0m in width and about 16.8m in frontage.
• On the east side, the road is a private road (type 3) with 3.0m in width and about 10.0 in frontage.
• There is no location-designated road. 

The overview of the road types (1 to 4) can be found in the middle section:
1. 
(1) Roads under the Road Act
(2) Roads under the City Planning Law, Land Readjustment Law, Old Housing Development Project Law, Urban Redevelopment Law, New Urban Infrastructure Development Law, and Law on Special Measures to Promote the Supply of Residential Land in Large Urban Areas
(3) Roads that were in existence when Chapter 3 of the Building Code became applicable.
(4) Roads with new construction and alteration project plans under the Road Act, City Planning Act, Land Readjustment Act, Urban Redevelopment Act, New Urban Infrastructure Development Act, and Act on Promotion of Housing and Residential Land Supply in Urban Areas, which are designated by the specified administrative agency as those whose projects are to be executed within 2 years
2. Roads that have been designated by the specified administrative agency for those who intend to construct a road not in accordance with the law in 1 above in order to use the land as a site for a building (Location-designated road).
3. Roads that have been designated by the specified administrative agency for those who intend to construct a road not in accordance with the law in 1 above in order to use the land as a site for a building (Location-designated road).
4. Roads that do not fall under 1-3 above (building permit not available)

An outlie drawing showing the layout of the property and the road(s) may also be included in this section.

Note: To avoid road-related troubles and disputes, fully understand the relationship between the site and the road. Please also note that if the road in front of your property is a private road, you may be required to obtain the private road owner's approval to pass, dig, and pay a fee. 

The above sample states that private road contributions are available:
The area set back by Article 42 Clause 2 of the Building Standard Law is approximately 5.0㎡.
Note: ​Setback areas that are considered roads cannot be included in the building site. In addition, no buildings, gates, fences, etc. may be constructed in the setback area.

What is the setback?
The width of the road must be at least 4 m. If the road is less than 4 m, buildings, gates, fences, etc. must be 2 m from the center line of the road so that the road is at least 4 m wide. The setback is considered to be a road (deemed road).

2 The Outline of Restrictions Based on the City Planning Law, Building Standards Law, and Other Laws and Regulation
(3) Restrictions under Other Laws and Regulations
This section indicates what restrictions under other laws and regulations are applicable to the property in question. In the sample below, the number 17  is circled in red, meaning that the property is subject to restrictions under the Act on Regulation of Residential Land Development (宅地造成等規制).
​ 
* The numbers in the chart below are the numbers for each of the laws and regulations listed in Article 3, Clause 1 of the Order for Enforcement of the Building Lots and Buildings Transaction Business Law.

The restriction summary may also be included in this section.
In the above sample, the summary of the restrictions under (17) the Act on Regulation of Residential Land Development can be found at the end of the chart:
(制限の概要) 
In a residential land development control area, a land developer who intends to carry out construction work related to residential land development must obtain permission from the prefectural governor before starting the work. In addition, when a land developer intends to change the construction plan for residential land development related to the permission, he/she must also obtain the permission from the prefectural governor.

Note: It is important for the buyer/renter to understand the details of the restrictions, if applicable, since the construction and use may be strictly inhibited by them.