Arrows International Realty
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact

2/17/2023

Buying a House: What to Check in the Important Points Explanation

Read Now
 

What to Check in the Important Points Explanation

Before signing a contract, an "important points explanation" is always given. Important points regarding the property to be purchased and the terms and conditions of the transaction are explained. It is important to understand the details before making a final decision on whether or not to purchase the property.
Picture
Point 1: What is an important points explanation?
The Real Estate Brokerage Act stipulates that a real estate company must provide an important points explanation regarding the property to be purchased to the prospective buyer before concluding a sales contract. An explanation of important points must be given orally by a licensed real estate agent after he/she has signed and sealed a written document describing the contents and given the document to the client.

It is possible that you may decide not to purchase the property after receiving the explanation of important points, so it is important to receive the explanation of important points at an earlier stage. After receiving an explanation, you will want to take sufficient time to consider the matter and resolve any questions before signing the contract. For this reason, it is advisable to confirm in advance with the real estate agency the schedule for the important points explanation and the sales contract. There tends to be little time to consider the situation in the final stage of negotiations related to buying and selling. Make sure to set aside enough time in the schedule so that you can make a final decision after careful consideration.
Online (IT) Explanation of Important Points 
An explanation of important points is required to be provided orally by delivering a document signed and sealed by a licensed real estate agent. However, when certain requirements are met, a non-personal explanation using "IT" (computers and other terminals) such as videoconferencing is now considered the same as a face-to-face explanations of important points. In order to implement an IT explanation, the following four requirements must be met.
  1. Conduct in an IT environment that allows two-way communication (between the real estate transaction agent and the customer).
  2. Send (to the customer) a copy of the important points explanation in advance.
  3. Before the explanation of important points begins, the licensed real estate agent confirms that the consumer is ready to receive the explanation, including in an IT environment.
  4. Confirm that the customer can see the real estate agent's license on the screen.
The revised part of the Real Estate Brokerage Act of the Digital Improvement Law went into effect on May 18, 2022, making the seal of a licensed real estate agent unnecessary when he/she delivers the important points explanation in paper form, and also making it possible to provide the document by electromagnetic means (electronic document delivery) instead of a paper document.
Picture
Point 2: The important points to check
The important points explanation may seem difficult because it contains some technical details, but you will be able to understand it if you have it explained to you one by one in detail. In addition, it will be easier to understand if you grasp the overall picture of the important points explanation and then check the key points.

​The following is an explanation of eight items that you should particularly check in the important points explanation.
The flow of explanation of important points
Picture
A licensed real estate agent will sign and seal the document, provide the document, and give an oral explanation.

1. Basic confirmation before receiving an explanation
A licensed real estate agent provides a written document and a verbal explanation.
2. Basic property checks
  • Has the property been identified?
  • Are the rights (mortgages, etc.) organized?
3. Legal restrictions
  • Are there any restrictions on the use of the land?
  • Will the building be built as planned?
  • Will there be any expenses incurred?
4. Infrastructure maintenance
  • Is the water supply and other infrastructure in place?
  • Are there any special requirements such as private roads, etc.?
5. Other laws and regulations, etc.
  • Are there any other restrictions on the use of the property?
  • Are there any other costs incurred?
6. Condominiums
  • What are the rights?
  • What are the rules for building use, repair and management?
7. Terms and conditions
  • Is the contract appropriate?
8. Other
  • ​Is there a money loan arrangement?
  • ​Are there any other items to be checked?
⇩
Picture
prospective buyer
"I have confirmed and understood what has been explained to me."

⇩
Picture
The conclusion of the sales contract

Picture
Point 3: What is a notice?
In the transaction of an used house, the past history and hidden defects of the house may become an issue, but there is a limit to what a real estate company can understand about all of these matters that are originally known only to the seller or owner. Therefore, many real estate companies ask the seller to submit a written notice (a written confirmation of incidental facilities and property conditions), conduct a property investigation based on it, and reflect it in the explanation of important points.
Guidelines Concerning Notification of Death of a Person by a Real Estate Agent
When a real estate agent is aware of a person's death and believes that it will have an important influence on the decision to conclude a contract for a real estate transaction, it is necessary to notify the customer of this fact. However, each person has his or her own view of death, and the degree to which it affects his or her judgment of the contract differs. Therefore, in October 2021, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) compiled the "Guidelines for Notification of Death of a Person by a Real Estate Agent."

It provide guidelines on the extent to which real estate agents should investigate the death of a person and the extent to which they should notify the prospective buyer of the death of a person. The guidelines state that real estate agents should investigate the death of a person by asking the seller to include it in the "notice" and that they are not required to investigate the death of a person by asking around the neighborhood or researching on the Internet.

Regarding notification in sales transactions, the law states that notification is not required for "natural death or unforeseen death in daily life (natural death such as senility, death from illness due to chronic disease, or accidental death such as a fall or aspiration)." However, even in such cases, notification is required if the property has been left unattended for a long period of time, and if special cleaning such as deodorization and disinfection or major renovation has been performed. In the case of an incident occurring in a neighboring dwelling unit of the subject property or in a common area that is not normally used, no notification is required. However, it is necessary to give notice in cases where the death of a person is an incident or has a significant social impact, or when it is considered to have an important influence on the decision to conclude a contract.

Share


Comments are closed.
Details

    Author

    Arrows International Realty Corp.

    Archives

    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    July 2021
    January 2021
    December 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020

    Categories

    All
    360°
    Affidavit
    Airbnb
    Apartment
    Apartmment
    Application
    Architect
    Bank Account
    Bank Loan
    Bath Unit
    Brokerage Fee
    Buyandsell
    Cadastral Map
    Camping
    City Planning
    City Planning Areas
    Condo
    Construction Company
    Consulting
    Custom Home
    Demolition
    Depreciation
    Design
    Disaster Countermeasure
    Disaster Information
    Disaster Prevention
    Dismantlement
    Districts
    DIY
    Do It Yourself
    Documents
    Door Lock
    Double Window Sash
    Earthquake Resistance Standards
    Earthquake-Resistant
    Eel's Bed
    Escape Route
    Established A Corporation
    Evacuation Site
    Financing
    Fire Insurance
    Fixed Term Building Lease Agreement
    Flood
    For Rent
    For Sale
    Fusuma
    Garden
    General Corporation
    Go To Travel Campaign
    Guarantor Company
    Guesthouse
    Hatsu-bon
    Heavy Rain
    Home Loan
    Hotel
    House
    Housing Fire Alarm
    Housing Loan
    Inn
    Inns And Hotels Act
    Insulation
    Investment
    Investment Loan
    Investment Strategy
    Key Exchange
    Kitchen
    Kyo-machiya
    Kyoto
    Kyoto Shinkin Bank
    Land
    Land For Sale
    Land Use Zones
    Landslide Disaster
    Lease Agreement
    Lessee
    Lessor
    License
    Lot Number
    Machiya
    Machiya Design
    Machiya Loan
    Maintenance
    Management
    Mediation Contract
    Minpaku
    Money Flow
    Monthly Cost
    Mortgage
    Move
    National Strategic Special Zones Act
    Negotiation
    New Construction
    Non-rebuilding
    Obon
    Old House
    Omoteya Style
    Overlap Roofing
    PR Visa
    Price Reduce
    Private Lodging
    Private Lodging Business Act
    Property Management
    Purchase
    RC Structure
    RC-Structure
    Real Estate
    Real Estate Agents
    Real Estate Assessment
    Real Estate Investing
    Real Estate Ownership
    Real Estate Tour
    Rebuilding
    Registration Certificate
    Regular Rental Agreement
    Reinforcement
    REINS
    Remodeling
    Remote
    Remote Work
    Renovated
    Renovation
    Rent
    Repair
    Reserve Fund For Repair
    Residential Address
    Rethatching
    Risk Management
    Roof Painting
    Ryokan
    S Structure
    S-Structure
    Sales Contract
    Second Home
    Seismic Control
    Sell The Property
    Set-back
    Shiga
    Shin-bon
    Single-story Home
    Sliding Door
    Soundproofing
    SRC Structure
    SRC-Structure
    Stamp Duty
    Stamp Tax
    Standards
    Structure
    Swimming
    Tatami Mat
    Tax
    Tax Return
    Tea House
    The Building Standards Act
    Tile Roofing
    Transaction
    Tsubo
    Tsunami
    Ura-bon-e"
    Vacation Home
    Vacation Home Management
    W Structure
    W-Structure
    Waterproof
    WFH
    WFH In Kyoto
    Withholding Tax
    Zones

    RSS Feed

Home
About
Contact

​Jp
CN

Real Estate agent in Kyoto, Buy and Sell, Leasing, Renovation and Construction, Management for Investment and Vacation Property, Professional Services for International Customers. We deal in KyoMachiya houses, detached and attached Houses, new and old Condominium Apartments, Block of Apartments and Buildings for Commercial, Residential and Investments use, Manage and Support Operation and New Development of Guesthouse, Ryokan and Hotel, Total Supports for Land and Buildings Real Estate in Kyoto.
Yours sincerely, Founder Ken Hayashi
Real Estate Broker Company License No. Kyoto-Fu Governor ( 1 ) 14044 , ​Member of Kyoto Association of Residential Land Building Business
  • Home
  • Study
    • Rights of Property >
      • Real Right and Credit
      • Rights to the land and Rights to the building
    • the Building Lots and Buildings Transaction Business Act >
      • Laws Related to Real Estate Transaction in Japan
      • (1) Laws Concerning Land Use
      • (2) Laws Concerning Construction of Buildings
      • (3) Laws Regulating Real Estate Companies
      • (4) Laws and Regulations Concerning Advertisement
      • (5) Laws Concerning Contracts Including Sales Contracts and Lease Contracts
      • (6) Laws concerning Titles and Rights
      • (7) Laws Concerning Real Property Registration
      • (8) Laws Concerning Condominium Management
      • (9) Laws Concerning Defects (Faults, etc.) of Housing Properties
    • How to and Procedures >
      • Process of Real Estate Sale
      • Process of Real Estate Purchase
      • Cost by Transaction
      • Important Points Explanation
      • Real Estate Sales Contract
      • Property Condition Confirmation
      • Facilities and Equipment List
    • Building Management >
      • Process of Residential Property Management
      • Process of Real Estate Leasing >
        • Idea of Lease Agreement
      • Process of Vacation Home Management
    • Related Acts
    • Glossary >
      • Real Estate Glossary in Japan
    • Tax in Japan >
      • Consumption Tax
      • Property Tax
      • Capital Gain Tax
      • Withholding Tax
      • Taxes on Gifts and Inheritances
    • Q&A >
      • Q&A
  • Local
    • Learning
  • Latest Information
    • Latest News
    • We Love Kyoto
  • Column
  • About Us
    • Records
    • Partners
    • Cookie Notice
    • Sitemap
  • Contact