Can't borrow even if you have the income and ability to repay the loan? 4 Patterns that prevent you from getting a mortgage on an existing home purchase
Rising land prices and building costs have caused the price of new properties to rise. As a result, used homes are attracting attention. Renovation properties", which renovated used homes to be more stylish and functional than new homes, have become popular, and the number of people considering the purchase of used homes is increasing.
Incidentally, renovation is a type of reform, which means to renovate an existing home to have better performance than when it was new. Nowadays, there are mortgage loans that can be borrowed together with the cost of renovation, so if you are thinking of buying and renovating an existing house, if you do the renovation at the same time of purchase, you can borrow a mortgage to combine the cost of purchase and renovation of the house.
Many people know that in order to take out a mortgage loan, you need to have a certain income and the ability to repay the loan. But did you know that there are cases where you can't get a mortgage even if you have the income and the ability to repay the loan? That's what we call an "Existing Home with No Mortgage Available".
Why can't I get a mortgage?
When financial institutions provide mortgage loans, they screen the "person" and "property". The "person" screening is based on the applicant's income, place of employment, and whether or not he or she has any other loans, and whether or not he or she will be able to repay the mortgage without delay. On the other hand, the screening for "property" is based on whether the property is worth lending money to. Mortgages are lent against the property (land or building) that the loan recipient is purchasing. Simply put, if the borrower is unable to repay the loan, the financial institution will sell the property and use the proceeds to repay the loan.
However, in some cases, financial institutions do not recognize the value of the collateral and will not lend the mortgage even if the loan applicant's ability to repay the loan. A "financial institution does not recognize the value of the collateral" means that even if you try to sell it, a buyer cannot be found, or even if you can sell it, it was judged that you cannot collect the loan. If you consider a house to be an asset, you should not buy a property that you cannot get a mortgage loan for. So, what kind of property is such a mortgage loan not available?
<Case 1> Leasehold houses and houses with fixed term leases
A leasehold is simply "the right to rent someone else's land and build your own building on that land". A fixed term land lease is a tenancy for a fixed period of time (generally 50 years or more), and the principle is that after the term expires, the building is demolished and the land is cleared and returned to the owner. Although it is necessary to pay the deposit and the monthly ground rent at the time of a contract, since the land rent is not included, it seems to be a case where it can be purchased at about 40-50% of a general house. However, it can be difficult to get a mortgage loan because the ownership of the land does not belong to the person who bought it and financial institutions cannot use the land as collateral. Some financial institutions make it clear that they will not handle leasehold or fixed-term leasehold homes. However, it is common for new condominiums for sale to have an affiliated loan, so you can get a mortgage.
<Case 2> Housing built in an urbanization control area
The house can be built in the area that corresponds to the "urbanization area" defined by the city planning law.
Although "the urbanization control area" has a name similar to this, it is the area where urbanization must be controlled, that is, urbanization must be suppressed, and a general house cannot be built in principle. In fact, some people have built their houses and are living in them even before they were set up in the urbanization control area. The house built in those urbanization control areas can be purchased, but the borrowing of the mortgage becomes difficult. In addition, the relief measure "the existing housing site" which permits building exceptionally, such as the person who lived before it is set up in an urbanization control area, also exists.
<Case 3> Reserved land for land readjustment projects
Land readjustment projects are "projects to improve public facilities such as roads, parks and rivers, and to demarcate land in order to improve the use of residential land. In some cases, land owners have to bear the costs of land readjustment projects, but in such cases, the land owners do not bear the costs in monetary terms, but rather the land owners within the area gradually pool their land to establish a reservation, which is then disposed of and used to cover the project costs. Some financial institutions do not offer mortgages for the purchase of this reservation land for the land rezoning project.
However, some financial institutions do sell "reservation loans" specifically for reservation land, so please consult with your financial institution on an individual basis.
<Case 4> Property that cannot be reconstructed
A property that is designated as non-reconstructable cannot be "rebuilt". There are several reasons for being designated as non-reconstructable, but the most common is a case of violating the "duty of access".
So, what is the duty of accessibility?
The Building Standards Act basically dictates that the land on which a construction site is to be built must abut a road that is at least 4 meters wide and at least 2 meters long. When this regulation is established, the building that has already been built cannot be demolished because "it is in violation", so the building remains as it is, but "rebuilding" is not allowed, which is a property that cannot be rebuilt. If the streets are narrow, the possibility of the fire spreading increases, so it is also meant to strengthen the fire prevention system. In some old streets, buildings are crowded at both ends of narrow streets, or houses are built in alleys and corridors from the street.
The above are the main, when buying real estate, the mortgage is not available, and even if it is available, the collateral valuation is low.
When buying the real estate which exists in these cases, there are cases where the method of payment is limited to cash. Let's confirm whether it does not fall under the above beforehand, and try to make a smooth transaction.
Is real estate management properly done?
When managing real estate, it is necessary to confirm that the rent has been properly paid. Many lessees pay rent by the deadline, but some of them leave it until reminder. Even in the real estate managed by our company, one or two properties are delinquent every month, and we notify the lessee at the beginning of the month.
Normally, when they receive the reminder, lessees will be paid the rent within a few days. However, there are cases where payment is not made until waiting for half a month, so the competence of the management company is questioned. If there is a guarantor company, we will remind them via the guarantor company. In some cases, it may be more effective for lessees to reminder through the property management company than to contact the landlord or management company.
As a method to prevent rent delinquency, if there is even one delinquency, it is necessary to check the payment frequently from the next time and create an environment where the reminder is notified without delay when the next delinquency occurs. If the rent still get delinquency often, or if we think lessee isn't capable for the payment, we'll ask their joint guarantor to ask the rent payment instead of lessee.
After three months of delinquency, we will proceed with the story of leaving. Under Japan's Leased Land and House Lease Law, it is not possible to cancel a lease contract by simply not paying the rent, but we can start the procedure. We will notify lessee by registered mail and explore the direction of exit from all angles.
Leasing is based on an agreement between the lessor and the lessee, and payment of rent is the fulfillment of the contract. The management company manages properly, receives rent, manages the building, and manages the tenants appropriately. Let's eliminate arrears in rent with proper management.
Cost required when buying and selling real estate- Agency fee
If you trade real estate through a real estate agent, you must pay the prescribed brokerage fee (intermediary fee) to the real estate agent. The maximum amount of brokerage fees is set by the Ministry of Land, Infrastructure and Transport Notification.
When requesting a real estate agent to sell or purchase real estate, we conclude an intermediary contract with the real estate agent. The intermediary contract defines the period and conditions of the request, the amount of intermediary fee, etc. Brokerage fees are often paid half the amount when a sales contract is concluded and half the amount when the balance is paid.
Real estate brokerage fee rate
*¹ Amount not including consumption tax
Brokerage fee when condominium sale is completed for 30 million yen
(1) Principle calculation method *When calculating the brokerage fee, use a separate calculation.
2 million yen x 5.5% = 110,000 yen ････a
(4 million yen to 2 million yen) x 4.4% = 88,000 yen ････b
(30 million yen-4 million yen) x 3.3% = 858,000 yen...c
Total a+b+c = 1,056,000 yen
② Quick calculation method
30 million yen x 3.3% + 66,000 yen = 1,056,000 yen
Therefore, the maximum amount of brokerage fee (including consumption tax, etc.) will be 1056,000 yen when a real estate agent requests brokerage and the sale is completed for 30 million yen.
If you have any questions, please feel free to contact us.
Continuing with yesterday's article, we're going to explain some of the points you should be aware of when visiting a property. If you are looking for a rental property, or if you are an investor and are in a position to recruit a tenant, you may also find this useful.
[Case of Building] What to check when you preview the property
Are there any equipment shortages?
The first thing to do is to check for intercoms, lights, stove, etc. If possible, test run the unit if it can be checked to see if it works. Also, carefully check the function of the water system, such as checking the water pressure in the faucet and shower. There are some types, which are often found in older apartments, where the water temperature is so cumbersome that you have to fine-tune the amount of hot and cold water every time you use the shower. It would be a shame if the water pressure in the shower is also weak. Check it out so you don't regret it later. If you are a woman, carefully check the security of the building. While the type of key (a dimple key is best) is important, it is also important to check whether or not there are places that can be used as an entry route. For example, make sure that the fence on the first floor is high enough and that there are no unauthorized access routes to the building from the back, etc. Please check the security from both a facility and environmental perspective.
Is it sound insulation?
It is also important to check the sound insulation quality of the room to see how much noise you can hear from up, down, left and right. Tapping on the walls is also useful. Please check to see if it sounds like it's stuck inside.
It's also best if you can check not only the walls, but also the floor, and preferably the ceiling as well, to see how well they are soundproofed. Be careful if you knock on the walls and find that they are hollow or only separated by plasterboard. In some cases, the sound from the next room can be heard exactly as it is.
If you have plans with you, please check the building structure as well. Reinforced concrete buildings (RC and SRC) are often excellent for sound insulation, so if you are concerned about sound, please consider it. If you are not sure, please ask the real estate agent.
Is the room tilted?
The tilt of the room can affect your health, such as headaches and dizziness. It's important to check the tilt of the room, which is difficult to see from the outside. Rolling a marble on the desk is old now, and recently there is an application that can check it on a smartphone. In fact, if it's wooden and old, some rooms may be leaning.
Even though the rent is cheap, the property itself is still pretty rickety, so make sure you check it out.
Is the delivery route wide?
You also need to consider bringing in beds, sofas and large appliances. Measure the space at the entrance, as well as the entrance, elevator and stairs if possible. It is a special case, but when you want to move a large item like a piano into a room on the second floor or higher, there are cases where it must be brought in from the balcony because it cannot be disassembled or assembled. The price will vary depending on the type of hauling, but it can range from 10,000 yen to several hundred thousand yen. Be careful not to become an unexpected expense in moving.
Check for mold.
Check your clogs and bathrooms, which are prone to moisture, as these are the points where mold can occur. It is easy to forget about the Japanese style closet and the back of the closet, so make sure to check these areas. The moment you open a storage door, be careful if you smell moldy. Your clothes, bags, and shoes may have been damaged by mold.
The ventilation fan, which also serves to release moisture, is a good place to check. If you think the ventilation fan is noisy, it may have been installed long past its useful life. Consult the real estate agent to see if they will replace the fan.
Do you notice any dirt or scratches?
Stains on the wallpaper and scratches on the flooring are things you want to check in advance. It may be difficult to look at them in detail when you preview the room, but it is a good idea to check them before you sign the lease. If there are areas of concern, take pictures of them and discuss them with the management company in advance. It is important to take the necessary precautions to avoid having your security deposit returned when you move out.
How's the cell phone signal?
It can be easily affected by the structure of the property and its location in relation to the surrounding buildings. You should check the signal reception everywhere you go. In general, it is easier to get reception in wooden buildings and harder to get reception in reinforced concrete buildings. If you have trouble getting a signal, major cell phone carriers can lend you a home antenna, so please consult with them.
Is the number and location of outlets appropriate?
This is especially important if you have a home with many appliances. In addition to the electrical outlets, make sure you have details on your drawings of where the TV antenna wires and the phone wires are located. Imagine your life and think about where you want the electrical outlets to be located, whether they are around the sink or where you want to place the TV, and so on.
Do you sense any trouble with the residents?
The person viewing the property is, as it were, a first-time visitor to the property. Because it is your first visit, it is very important to follow up on any missing information. At times like these, the bulletin boards set up at the entrance and in each area are helpful.
You can imagine what kind of problems are likely to occur based on the content of the warning signs about garbage disposal and noise. General notices are fine, but if they are specific, such as "Neighbors complain about noise after 10:00 p.m.," "Do not leave your personal belongings, such as bicycles, in the common corridor," or "Please obey the garbage disposal rules," you need to be careful.
[Case of Surrounding Environment] What to check when you preview the property
It is not only the building that determines the quality of the property. How well-developed and equipped the surrounding environment is also an important criterion. Take a little time to walk around and look around.
Are convenience stores and supermarkets nearby?
Make sure to check the location of convenience stores and supermarkets, which are essential to your daily life. Also, don't forget to check the opening hours. Although the day of the preview may be difficult, it is a good idea to check the store's product line and price quotes if possible.
Is the security level high?
It is important to get a feel for the atmosphere of the place by going to the site to see if it is safe. It's easy to stare at the drawings while traveling to the property, but check to see if there are streetlights and if there are many people on the street. Once again, it is useful to visit at night and actually walk your route home. During the day, the street may have a great view, but at night the streetlights may be dark and scary.
Are there any noise sources nearby?
It is important to know if there are any facilities nearby that generate loud noise, such as pachinko parlors, or if there is too much traffic on the main road. Heavy traffic on a main road is directly related to noise. Depending on the time of day, the road may be quiet, so you should also be aware of what the road will be used for. Otherwise, if there is a hospital or fire station nearby, you will need to consider the access of emergency vehicles.
How convenient is the transportation system?
Walking time to the nearest station is important, but some properties may require you to ride a bicycle or take a bus. If it's a bus, you should also check the destination and number of bus stops, and if it's a bicycle, you should also check the location, cost and current availability of bicycle parking near the station. The "walking time" shown on the drawing is based on one minute per 80 meters and does not take into account stopping at traffic lights. When looking at several housings, there are many cases where a real estate company will show you around by car, etc., but if possible, please try to confirm the time required from the station by your own feet.
We've given you some key points to consider here, focusing on the date of your preview, but there are actually many things you can check in advance. With a rental information site, you can look up a map of the area, search for the location of supermarkets and hospitals, and check the facilities and traffic on the bus routes as well as the crime rate. Since you are looking for a new house, it is ideal to be able to have fun while looking for a place to live. Prepare well in advance and find the room that's perfect for you!
What is the risk of lessee and market?
We explained that the rent income from real estate involves four risks: vacancy, early cancellation, rent decline, and delinquency. This time, we will explain what kind of risks are involved in terms of the lessee's attributes, type, and market.
Relationship between lessee attributes and risk
The tenant attributes of real estate for rent can be broadly classified into three categories: “residential”, “office”, and “store”. In real estate investment, the magnitude of risk varies depending on the lessee's attributes. We will explain the risks associated with attributes from the perspective of stable income.
The above is a general comparison that does not take individual circumstances into consideration. Stores and offices are subject to the risks of withdrawal and relocation, depending on location conditions and economic conditions. In addition, if there are vacancies, we must search for a store or company that meets the conditions, taking into consideration the location and other factors. Therefore, it can generally take some time to secure a new tenant. Naturally, residences are affected by location and economy, and there is a risk of vacancy, but since it is essential as a home of life, new lessee can be found unless rent conditions such as rent are set unreasonably. The cycle of finding new tenant is generally shorter than in offices and stores. From this point of view, by the stability of rent income, it can be said that the risk of residential is lower than stores and offices.
Relationship between type of lessee and risk
As mentioned above, the risk of income differs depending on the lessee's attributes, but in addition, the risk level also changes depending on the “business type”, “scale” and “quality” of the lessee in each attribute.
Again, this is just a general idea, and of course it depends on the individual case. As for offices, it is important to consider how the company is generating stable income and the occupation where stable income can be obtained. In terms of stores, restaurants are generally said to be at higher risk from the perspective of fire risk. In this way, the risk varies depending on the attributes and quality of the lessee. In other words, cultivate a sense of risk by imagining the possibility of obtaining stable income and the different probabilities.
Supply and demand and risk of real estate for rent (Condominiums for sale also become competitors)
If the rent obtained from the investment target real estate is higher than the market price in the neighborhood, there is a high possibility that the rent will have to be reduced at the same level as the market price at the timing of contract renewal or replacement of the borrower. Therefore, even if the yield at the time of property purchase is high, the rent may be reduced in the future due to replacement of the lessee or negotiations for rent reduction, etc., and as a result, the yield may decrease.
Number of rental units and risk (the more rental units, the smaller the risk)
The degree of risk also changes depending on the number of real estate units you invest. If the number of rented units is large, the ratio of one rent to the total rent is small, so even if one vacant unit is vacant, the impact on rent income will be small. Conversely, if the number of rented units is small, the ratio of one rent to the total rent will be large, so if vacant, the impact on rent income will be large. In other words, the impact of vacancy per unit increases as the number of rental units decreases, and the impact decreases as the number of units increases. As shown in the table below, even if the investment amount and the yield are both the same, the income and yield when there are vacant rooms will differ due to the difference in the number of rental units.
We explained the risk related to income in two times, the last time and this time, but it does not mean that the risk is bad because it is high or low. If the risk is high, you can buy cheaply and get a high yield accordingly. In addition, if the risk is low, the yield will inevitably be low, so you may not be able to expect high profits, but stable operation may be possible. First of all, it is important to understand the risks and develop a sense and image that you can make an investment commensurate with the risks.
When investing in real estate, it is important to understand the intuition of the land, the unique circumstances of the real estate, demand, and major trends. However, starting with a small investment and gradually increasing it, you will be able to accumulate know-how and select the appropriate property from various investment targets. We also accept questions related to investment, so please feel free to contact us.
Terms and interpretations commonly used in the real estate industry
Usually used in the real estate industry, it is used as a matter of course or it is a business practice, and we will explain in a Q & A format such as words and ideas that are not familiar to the general public.
Q - What is the standard for walking time from stations?
A - Every 80 meters of road distance is converted to approximately 1 minute, and fractions less than 1 minute are rounded up to 1 minute and displayed.
Q - How should the unit of width be viewed?
A - 1 tsubo = 2 tatami mats (Jo) ≒ 3.3 square meters.
It's a good idea to keep this in mind because you often make calculations such as square meters × 0.3025 = ○ tsubo.
Q - What is the meaning of the symbols displayed on the floor plan?
A - The meanings of the typical symbols displayed in the floor plan are as follows.
L → Living
D → Dining
K → Kitchen
S → Service room
PS → Pipe space (drain and drinking pipes)
UB → Unit Bus (Japanese English, meaning of modular bath)
MB → Meter box (gas, water or electricity meters are installed)
Q - The floor plan often says "S" Service room. What kind of room is it?
A - Service room as "Nando" means a room with 3 tatami mats or less, or a room without windows. This is in accordance with the Building Standards Acts, which does not recognize a windowless room as a living room. There are some rooms that are treated as service rooms because there are no windows even if they are more than 8 tatami mats.
Q - It is often called the unit price per tsubo, but how do you put it out?
A - The result of dividing the sales price by the number of Tsubo (area) of the property.
If the trading price is 25 million yen and the area is 50 square meters, it will be as follows.
25,000,000 yen ÷ 50 square meters = 500,000 yen (per square meter)
500,000 yen x 3.3 square meters = 1,650,000 yen (per tsubo) ⇒ unit price per tsubo
Q - I want to buy only the land and build the building in the future, but can't it be the land with construction conditions?
A - When a homebuilder sells land, it is called land with construction conditions. This is a land sales form, subject to a contract for building construction within a certain period (3 months). The contract type is a sales contract for land and a construction contract for buildings. If the building contract is not concluded within 3 months after the land purchase contract, the land purchase contract will be blank and all the money paid will be refunded. Therefore, in the case of land with construction conditions, it is not possible to purchase only the land. However, please be aware that some advertisements may look like advertisements for newly built homes, such as posting a large example of a building plan (floor plan).
Q - Is there a consumption tax on the purchase of real estate?
A - When buying a used home, it can be divided into a case where the seller is a corporation and a case where the seller is a general individual. If the seller is a corporation, the house will be a commodity and will be subject to consumption tax. However, in most cases, the tax is included, so the tax will be included. If the seller is a general individual, it will not be taxed as it is not a product referred to in the consumption tax law.
In addition, the purchase and sale of land is not a target of consumption in the first place, and the transfer is considered to be a simple transfer of capital. Whether the seller is a corporation or an individual, the tax is exempt under the consumption tax law.
Today, we will explain the newly started 360° Tour of real estate sales and rental properties. Please check here first.
Renovated Machiya building in 1902, for Sale near Nijo Castle
We took a picture for the first time today. As we introduced the other day, we bought a 360° camera, so we have tried taking photographs of the sale property and the rental property. If you are considering using a 360° camera for your own service, please refer to it.
As a practical matter, we took a picture first. The shooting is divided into two types, a photo shooting for a 360° Tour and a spot photo in the Tour. For 360° cameras, setting the lens height slightly below the line of sight made it feel more like walking in the room. Also, the 360° camera works in conjunction with Mobile and presses the shutter button. Therefore, we installed a camera at each position and took care so that luggage and the photographer would not be reflected in the lens. Also, the brightness can be adjusted, so we took a trial shot first, decided which brightness to use, and then took a picture at each location. The photos of the spots were taken on mobile, so if you bring a mobile and a 360° camera, you can take a tour photo like this one.
This time, we are creating a Tour using Ricoh's service. We started from a free account, confirmed the contents, and changed to a paid service. Creating a Tour is easy. Create a Tour for each property and upload the photos we have taken. All we have to do was to register the floor plan as well and placed each photo at the shooting location on the floor plan. Also, spot photos will be registered in 360° photos. Here too, we only had to register the photo at the spot position. After that, we created a tour as if you were inside the room by simply connecting the points at each shooting location.
Studio Apartment for Rent, near Demachiyanagi sta., in Sakyo Ward
Since this is the first time to create a Tour, we will continue to improve it each time to improve it. Please contact us if you are interested in how to register or set up, or the property. From tomorrow, we will continue to shoot other properties as needed.
In recent years, the issue of unoccupied houses has attracted attention in Japan. As a background to this, there may be many people hesitant to dismantle the house that "I do not know the cost of clearing the land" and "I am anxious about how much can be sold even if I vacate the land" even if they try to sell the house that they no longer live in on the vacant lot. When considering the purchase of real estate, the type of real estate may be land with an old house as the type of advertisement. This means that the value of the building is 0 yen and the price of the land will be sold with the existing building.
How much vacant lot can be sold depends greatly on the economic situation and location conditions, but it is possible to understand the rough amount of "dismantling cost" for vacant lot. Also, knowing the cost of dismantling an old house that will occur in the future is very useful for those who are thinking of selling land with an old house instead of vacant house, or those who are considering the construction of a new building by purchasing the land. Therefore, this time, we will explain about the dismantling procedures and costs of a detached house, how to judge the dismantling, etc.
What should owner do when you want to dismantle a detached house?
Who and what do you consult?
Who should you consult if you want to demolish a detached house? The actual dismantling is done by a professional dismantling company. Rather than inquiring directly to the dismantling company, the safest and smoothest way is to consult with the construction company (architecting company) and the architect (designing company) who took care when designing the house or building the house, consult with the real estate company you are requesting buy or sell the properties (a real estate broker).
How to request?
First of all, it is most important to discuss how to use the land after demolition of the building. If you are trying to build a new house after dismantling, but the land could not be built, the minimum area was not enough, and there are cases where you cannot return later. Therefore, after consulting with the above companies, it is better to have them conduct a field survey locally, present an approximate amount, and obtain a formal estimate before making a decision.
Should the Seller or the Buyer bear the Dismantling Costs?
If the market value of the old house is completely absent and the market value of the vacant lot is judged to be higher, it may be advantageous for the seller to pay the demolition cost. However, in reality, the seller cannot afford this demolition cost, so it's one of the reason why they often sell land with an old house. It is good if the buyer renovates, but if you want to build a new one, the buyer will dismantle after purchasing. In this case, the buyer will bear the dismantling costs. In real estate transactions, there is no uniform rule that which party has to bear the cost of dismantling, so it can be said that the mutual interests are determined at the point of agreement.
How to decide the Dismantling Cost?
◇ Case: How much does it cost to dismantle a 30-tsubo (about 100 m2) detached house?
For example, the market rates for dismantling costs for a detached house with 30 tsubo are as follows.
[In case of Wooden structure]
Unit price per Tsubo: 40,000 to 50,000 yen times 30 tsubo = total amount of 1.2M yen to 1.5M yen
[In case of Lightweight Steel structure]
Unit price per Tsubo: 60,000 to 80,000 yen times 30 tsubo = 1.8M yen to 2.4M yen
◇The dismantling cost depends on the location conditions and time
The actual cost of demolition varies depending on the structure and size of the building and for a variety of reasons. First, there are location requirements. It would be nice if they could use a large-scale machine for dismantling work, but if the road is narrow, they cannot put in the vehicle, so they have to manually dismantle and carry the waste materials. Therefore, the labor cost will be high. Also, in densely populated areas, costs such as curing will be high and dismantling costs will increase.
Second, dismantling time also has a bearing on costs. For example, there may be a construction rush in front of a large-scale event, and at such times, the company doing the dismantling work is also busy and the unit price tends to rise.
Third, if the building to be demolished contains asbestos, or if there are many unnecessary household items, disposal costs will be higher, resulting in higher demolition costs.
What are the criteria for Dismantling/Not Dismantling?
When selling land with an old house, if the price of vacant lot can ask higher on the market, it can be said that it should be dismantled from an economic point of view. Unfortunately, a wooden detached house loses its value after more than 30 years. After more than 40 years, the deterioration of the roof and outer walls will become remarkable, and if it is left untouched, it will become a very old building in 50 years. However, although it is extremely rare, it is difficult to find much economic value but there are houses with high rarity and cultural value, such as “a detached house, which is an early work by an architect who has become a famous now”, and “house decorations such as transom are made with traditional techniques and materials", which are difficult for repeatability. Kyo-machiya house is also similar, and it may be more valuable to renovate than dismantle, such as different construction methods from now, non-rebuildable buildings in the back alleys, styled buildings popular with overseas travelers, future rarity value will improve. Today, renovation makes it possible to create a building that retains the value of an old building while incorporating the convenience of modern times. If you own a high scarcity value building, please consult once.
It is better to dismantle the old house as it is, but if the building disappears, there will be no tax reduction measures and the tax burden will increase. When dismantling a detached house, it is important to examine the costs involved and make a firm decision on "how to use the land after the house dismantled." It is possible to introduce affiliated architects and contractors, so please contact us.
When signing the contract, the buyer and seller will each show their ID. In the case of an individual, it is a driver's license, and in the case of a corporation, it is a certified copy of the company register and identification of the representative. Although it was not a difficult case, the seller's corporation originally registered the head office in Kyoto. When the seller moved to Tokyo to expand his business, he closed the corporation in Kyoto and registered a new head office in Tokyo. The owner's name in the real estate registry is the same, but the address is different.
What needs to be corrected this time is to change the address of the seller's corporation in the real estate registry to Tokyo. Also, since the content of the registered corporate seal is different, as a solution,
・Use the existing seal as it is and change the name of the seller in the contract
・Delay the contract until a new seal is created, and sign the contract at a later date
・Use the existing seal as it is, change the representative of the seal certification, and sign the contract as it is.
When the head office was in Kyoto, there was only one representative director. When they moved to Tokyo, the original representative did not have permanent residence and he wanted to use a bank loan, so thye invited another director and added one representative director. This is the reason why the name of another officer is written on the seal certificate.
What we thought this time is that the seller should finish the contract safely without the seller having to do much work, and let the buyer purchase the real estate with peace of mind. To correct the name on the contract, recreate a new document and ask the buyer to re-sign it. Or, correct the part with a double line and stamp the correction mark and re-enter correctly. It takes about a week to make a new seal, even seller place an order in a hurry. In the meantime, the buyer will have to wait, but buyer feel uneasy when we think about it. The buyer has just finished imprinting the seal on the contract and is depositing the down payment with the real estate agent, but if the seller does not sign it, it will naturally cause anxiety.
Therefore, as a result of consultation with the seller, seller will use the current stamp as it is to sign and seal, and in parallel, change the representative listed on the seal stamp certificate at the Legal Affairs Bureau. By doing so, each buyer and seller will sign and seal the contract, and the name of the legitimate representative will also be printed on the seal certificate that will be acquired at a later date. Originally, seller appointed another representative only to use the bank loan, so they will have this contract take the opportunity to change it to the correct form.
As a real estate agent on the seller side, we will explain the above to the real estate agent of the buyer so that they will understand and proceed with the procedure. For future plans, we will meet with the seller on Monday to complete the contract. First of all, we will do this firmly, next we will get other documents stamped by the seller and proceed with the procedure for settlement such as public certificate. We will discuss the movement of furniture locally and prepare for the delivery at the end of July.
Intermediating the buying and selling of real estate causes various problems each time. Agreement of contract contents, acceptance of payment, delivery status, preparation of required documents, etc. We will try to find a solution each time, make the seller feel comfortable selling, and let the buyer imagine the future after purchase, and make a pleasant transaction. We sincerely wish the buyer a pleasant life in Kyoto with this transaction.
As we mentioned yesterday, the seller was changed to 3 choices of general individual, general corporation or real estate agent due to the revision of civil law. Today, we will explain about the case where the seller is General Corporation.
The revised Civil Code, which came into effect on April 1, 2020, established a "nonconformance liability" as a provision equivalent to the defect liability before the revision. In this "liability for non-conformance", in addition to the right to cancel and the right to claim damages, which were previously recognized under the liability for defects, the right to request completion (repair, replacement of the target object, delivery of the lacking part), reduction of the price, the claim right is recognized by civil law. In addition, if the reason is due to contract nonconformity related to type or quality, the buyer must notify the seller within one year from the time when he/she knows the contract nonconformity in order to pursue the seller's contract nonconformity ( Revised Civil Code Article 566).
Regarding the contract non-compliance liability as described above, it's believed to be possible that to exempt the liability under civil law or to limit the scope of the liability and the exercise period by establishing a special agreement based on the agreement of the parties in the same way as the defect guarantee liability before the revision. However, since the purchase and sale of real estate is a large transaction, from the perspective of protecting the buyer, there are certain regulations in place to set special provisions to exempt or limit liability for nonconformance. In other words, the corporation, which was considered to be the same as the general consumer, was changed to a position which is more responsible than the general consumer from April.
The following are the actual required documents at the time of contract and property delivery when the seller is a general corporation.
Information for Registration Identification (title deed)
Certification of Registered Company Seal
Identity Verification Documents for Representative Director (person with the above certification)
Fixed Asset Evaluation Certificate or Fixed Asset Tax Statement
When establishing a corporation, it is possible to appoint multiple representative directors of the company. In that case, multiple persons will be registered as officers and representative directors in the certified copy of the company. In addition, when registering the representative seal of a corporation, the representative name of the corporation seal and the individual name of the representative director are registered as a set, so it is possible to register the representative seal of the corporation seal separately with multiple names. Therefore, when obtaining the above-mentioned company seal stamp certificate, it is necessary to have documents for verifying the identity of the person who has the seal stamp certificate. With this in mind, it is necessary to reconfirm the name of the corporation, which representative director's name is to be entered in the real estate sales contract, and which person's identification documents are required.
Arrows International Realty Corp.