Jyuyojiko Setsumeisho Sample 1 (Continued)

II Terms and Conditions of the Transaction:
Compensation for Damages or Penalties

3. Matters concerning compensation for damages or breach of contract　 

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.

4. The outline of measures to protect a deposit, etc. (in the case where the real estate agent is the seller)
(1) Unfinished properties

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).

(2) Completed properties

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)

(3) No protection measures taken

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.

5. The outline of measures to protect payments and deposits

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.