Point 1: ​Know how interest rates work and their characteristics.

The lower the interest rate, the lower the interest expense and the lower the total repayment amount. For example, if you borrow 10 million yen and make equal monthly repayments of principal and interest over 35 years, the difference in total repayments will be approximately 2.25 million yen if the interest rate is 3% or 2%.

​Note that, in general, the interest rate on a mortgage loan is applied at the time of loan origination, not at the time of loan application. This means that there is a risk that the interest rate at the time of actual borrowing may be higher than the interest rate confirmed when you applied for the mortgage loan. In particular, when purchasing a newly built property for sale before it is completed, it is advisable to make a financial plan with sufficient time to consider the risk of interest rate increases since the loan will be executed after the property is completed.

There are two main types of principal and interest repayment methods:
(1) equal repayment of principal and interest (a method in which the total amount of principal and interest to be repaid each time is set to be constant) and 
(2) equal repayment of principal (a method in which the amount of principal to be repaid each time is set to be constant).

​Equal repayment of principal and interest makes it easier to make a household budget schedule because the monthly repayment amount is fixed, but the pace of principal repayment is slower than with equal repayment of principal and interest, and if the loan term is the same, the total payment amount will be higher with equal repayment of principal and interest.

On the other hand, equal repayment of principal has the advantage of allowing the borrower to repay the principal amount faster, but the initial monthly repayment amount is higher. However, if the borrower is willing to make principal repayments quickly even if the initial repayment burden is heavier, it is advantageous to choose the equal principal repayment option.

Since many financial institutions only offer mortgages with equal repayment of principal and interest, it is advisable to check the mortgage products of each financial institution as early as possible when considering borrowing.

Point 2:  Three main types of mortgage products

There are various product types, depending on how the interest rate is set relative to the principal. The three main types as follows.

The fully fixed interest rate type is a product in which the interest rate is fixed for the entire loan period. Generally, if interest rates are expected to rise during the fixed interest rate period, the initial applicable interest rate will be higher than the variable interest rate type, etc. However, even if interest rates fluctuate during the borrowing period, the amount of mortgage loan repayment will not change from the initially set amount.

Floating-rate loans have interest rates that are reviewed semiannually, and the repayment amount is reviewed every five years based on interest rate movements. However, even if the repayment amount rises as interest rates fluctuate, it is capped at 1.25 times the existing repayment amount. In the event of a rise in interest rates, the initial applicable interest rate is generally lower than that of the fully fixed-rate type, but the borrower bears the risk of subsequent interest rate rises.

In the fixed-term option type, the interest rate is fixed for a certain period, such as 3 years or 5 years, and at the end of that period, the interest rate is set again (fixed term or variable interest rate) and the repayment amount is reviewed according to that interest rate. The choice of the fixed period varies from financial institution to financial institution. If the interest rate after the fixed period ends has risen significantly, the repayment amount may increase significantly because there is no upper limit to the amount of increase in the repayment amount as there is with the variable interest rate type.

To prevent trouble concerning a brokerage fee, it is important to take note of the legal regulations for brokerage fees and the precautions to be taken when concluding a mediation contract.

According to the Real Estate Brokerage Act, there is a maximum amount of brokerage fees that a real estate company can receive. Therefore, if a real estate company receives a brokerage fee that exceeds the maximum amount, it is in violation of the law. While the maximum amount that is stipulated by law, it does not mean that the maximum amount can automatically be charged.

In the brokerage of a real estate transaction, the real estate company's right to charge a brokerage fee occurs when a sales contract is concluded. (It is generally called "a transaction completion fee.") Therefore, it is not necessary to pay a real estate company a mediating fee until a sales contract is concluded.

When a sales contract is concluded, the right to claim a brokerage fee arises from the real estate company. For example, it is not illegal if the full amount of the brokerage fee is paid to the real estate company at the time the sales contract is concluded. However, since in real estate transactions there are many cases in which delivery has not been completed at the time of contract conclusion, it is generally common to pay 50% of a mediating fee at the time of contract conclusion, and to pay the remaining 50% at the time of completion of delivery.

Expenses incurred by a real estate company in ordinary brokerage work cannot be charged to the client. For example, the costs related to advertising expenses and site visits for prospective buyers that are generally conducted are included in the brokerage fee that is incurred when a sales contract is concluded. Exceptionally, "actual expenses" such as advertising expenses incurred based on the client's special request are allowed to be charged. For example, a real estate company can claim the cost of advertising that was specially implemented at the client's request, travel expenses for negotiations with a prospective purchaser in a remote area that were conducted at the client's request, etc., separately from the brokerage fee.
However, it should be noted that the exceptions are limited to cases where all of the following conditions are met:
(1) the cost was incurred based on the client's request,
(2) the cost is not incurred in the ordinary brokerage business, and
(3) the cost is an actual cost. 

Maximum brokerage fees
The maximum amount of a brokerage fee to be paid to a real estate company is set for each monetary category of the sales price as follows.

The maximum amount of a brokerage fee for land with a sales price of 10 million yen
→ The sales price is broken down and calculated as follows.

a) The portion up to 2 million yen
2,000,000 yen  x  5% = 100,000 yen
b) The portion exceeding 2 million yen up to 4 million yen
2,000,000 yen x 4% = 80,000 yen
c) The portion exceeding 4 million yen up to 10 million yen
6,000,000 yen x 3% = 180,000 yen

a + b + c = 360,000 yen
​
*The amount obtained by adding the consumption tax to this amount is the maximum amount of the brokerage fee.

• For properties exceeding 4 million yen, the following formula can be used to calculate the brokerage fee:

          →　sales price x 3 % + 60,000 yen + consumption tax

In the case of an inexpensive sale or purchase of a vacant house, etc., where the cost of on-site inspections, etc. is higher than usual, the brokerage fee that can be received from the seller of the vacant house or the person exchanging the house is limited to the total of the above maximum amount and the cost of on-site inspections, etc. (however, the maximum is 180,000 yen plus consumption tax). The brokerage fee must be agreed upon between the two parties in advance.

*Real estate companies to watch out for
Be wary of real estate companies that engage in the following inappropriate discussions regarding brokerage fees. If you have any doubts, you should clarify them until you are satisfied. If you receive an insincere explanation, there is room to reconsider your request to that real estate company.

• Offering commission terms that exceed the maximum amount.
• Explaining the maximum amount as if it were a flat fee set by law.
• Automatically charging advertising fees, etc. that are incurred in addition to the brokerage fee.

The "standard mediation contract clauses" (hereinafter referred to as "Standard clauses") cover the basic matters to be stipulated in a mediation contract, and prevent a mediation contract disadvantageous to the consumer from being concluded. 

​The following is an outline of the standard conditions of contract and matters to be confirmed.
If there are any conditions that are not included in the Standard Terms and Conditions, make them as clear as possible by adding them. The Ministry of Land, Infrastructure, Transport and Tourism also recommends that matters that are not disadvantageous to the client be added to the Standard Terms and Conditions in a more specific manner.

(1) Whether the contract is based on standard terms and conditions or not
The Ministry of Land, Infrastructure, Transport and Tourism instructs a real estate company to conclude a mediation contract based on standard terms and conditions. Since whether or not it is a contract based on standard terms and conditions is indicated in a mediation contract, confirm it. If it is a contract not based on standard terms and conditions, ask the reason why standard terms and conditions are not used.

(2) Types of mediation contracts
It is stated in the contract whether it is a full-time mediation contract, under-exclusive-contract exclusive duty mediation contract, or general mediation contract. Moreover, in the case of a general mediation contract, whether it is an explicit type or a non-explicit type is described. Check whether it is the contract which you hope for.

(3) Display of the subject property
The property subject to brokerage or the desired conditions of purchase are indicated, check for any errors.

(4) Obligations and duties of a real estate company
The basic duties to be provided by the real estate company are specified. It is possible to describe the details of the duties in greater detail. After confirming the duties of the real estate company and the contents of its business, if there are any matters to be added, coordinate with the real estate company.

(5) Effective period and renewal
The effective period of a mediation contract is described. A full-time mediation contract and exclusive-contract full-time mediation contract have the legal regulation that an effective period must not exceed three months. Although there is no legal regulation concerning an effective period in a general mediation contract, it is assumed to be decided within the range not exceeding three months in standard terms and conditions. Set the validity period in consideration of the expected purchase schedule, etc. (It is also possible to make a contract for a period shorter than three months.)
The mediation contract will be renewed by an offer from the client at the expiration of the effective period. Please decide the effective period after renewal within the range not exceeding three months. A mediation contract is renewed only by the client's request, and is not automatically renewed. Please carefully determine whether or not to renew by the client's own judgment.

(6) Brokerage value
The desired purchase price, etc., which was finally determined based on the desired purchase price of the prospective buyer and the advice of the real estate company, is stated. Since this is an important agreement that affects negotiations up to purchase, be sure to check it thoroughly.

(7) Brokerage fee (compensation)
The amount of a mediating fee to be paid to a real estate company and the time of payment are described. Since there are many troubles concerning a mediating fee, discuss with a real estate company thoroughly before concluding a mediation contract. In addition, since there are laws and regulations concerning the maximum amount of a mediating fee that a real estate company can receive, please understand the outline before discussing with a real estate company.

(8) Obligations of the client
In the standard terms and conditions, the obligations of a client is also defined in order for the client and the real estate company to proceed with the transaction in good faith with each other. If there is a breach of duty by the client, the real estate company can claim expenses, etc. to the client based on a mediation contract, up to the amount equivalent to a brokerage fee.

●　Obligation when a general mediation contract (explicit type) is concluded
​If you request mediation to another real estate company concurrently during the term of validity of a mediation contract, you are obligated to notify the real estate company to that effect.
●　Obligations common to a general mediation contract (non-explicit type) and (explicit type)

• When a sales contract is concluded, you must notify all real estate companies to which you requested mediation to that effect. This is to avoid other real estate companies continuing their brokerage business without knowing the fact that a contract has been concluded.
• It is prohibited to conclude a sales contract (this is called "direct dealing") with the seller of the housing referred to by a real estate company during the effective period of a mediation contract for two years after the termination of the mediation contract, without working through that real estate company. This prevents "insincere" dealings such as intentionally terminating a mediation contract and then contracting with the seller who was introduced by a real estate company in order to avoid the payment of a mediation fee to the real estate company.
  

(9) Cancellation of a mediation contract
A mediation contract can be canceled in the following cases.

●　Cases in which either a client or a real estate company can cancel the contract
When one of a client or a real estate company does not perform the duties defined in a mediation contract, and when the other party does not perform the duties in spite of having set a reasonable period of time to perform them, a mediation contract can be canceled by the other party. ​(In other words, if there is a "breach of contract" with regard to a mediation contract, it can be terminated within a certain period of time if the other party does not perform even if you demand that he or she fulfill the obligation).
​●　Cases in which a client can cancel the contract

• When a real estate company does not execute the business set forth in a mediation contract in good faith
• When a real estate company intentionally or by gross negligence does not tell a fact or tells a falsehood about important matters concerning a mediation contract
• When a real estate company commits a dishonest or extremely unfair act with regard to the Real Estate Brokerage Act (including cases where there has been misconduct in the brokerage business of another client)

(10) Exclusion of Anti-Social Forces
For the purpose of "exclusion of antisocial forces" from real estate transactions, standard model clauses for exclusion of antisocial forces have been introduced. Confirm that clauses such as "the person who request mediation and the real estate company/agent are not members of anti-social forces such as organized crime groups" are included in the clause of a mediation contract with a real estate company. If the other party acts contrary to these, the contract can be canceled.

(11) Mediation of persons who conduct building condition inspections
Under the Standard Terms and Conditions, a building condition investigation (investigation to grasp whether or not events such as cracks, rainwater leaks, etc., have occurred in a building) is implemented at the time of an existing house transaction, so that a purchasing decision and negotiation can be made after fully understanding accurate information concerning the state of the housing that is the subject of the transaction.  The client's intention will be confirmed by indicating the possible mediation of the person who carries out a building condition investigation and specifying the presence or absence of mediation in the mediation contract document.​

A mediation contract is concluded when formally requesting a real estate company to mediate a sale and purchase.　A mediation contract is an important document to clarify the service contents of mediation that you hope for and its consideration, such as a commission. It is necessary to conclude a mediation contract after conveying one's intention to a real estate company firmly so that there will be no regret.

A mediation contract is a contract between a client and a real estate company concerning mediation of the sale and exchange of a housing site and a building. A mediation contract can prevent troubles related to agency work by clarifying the contents of the work (what kind of service is received) and a mediation fee, etc. that a prospective buyer requests of a real estate company in a contract. Therefore, the real estate company which received a mediation request is legally obligated (Article 34-2 of the Real Estate Brokerage Act) to prepare and deliver to the client a document describing certain matters to clarify the contractual relationship of a mediation contract.

The revised part of the Real Estate Brokerage Act of the Digital Improvement Act came into effect on May 18, 2022, and the document at the time of this mediation contract conclusion can be provided by electromagnetic means (electronic document delivery) in place of a paper document.

Since the conclusion of a mediation contract is an important step that serves as a gateway to subsequent mediation work, it is necessary to properly understand the contents.

There are three kinds of mediation contracts: "exclusive-contract full-time mediation," "full-time mediation," and "general mediation." In exclusive-contract full-time mediation and full-time mediation, only one company can provide brokerage services, but in general mediation, two or more real estate companies can provide brokerage services. However, when requesting mediation of purchase, it is usual to conclude general mediation. (Exclusive-contract full-time mediation and full-time mediation contracts are not often concluded.) In addition, since there are an explicit type and a non-explicit type in a general mediation contract, based on the following explanation, choose the contract which suits you.

This contract allows you to request multiple real estate companies to act as intermediaries at the same time. You can also sign a contract with the other party you have found yourself (such as when negotiating directly with a relative or acquaintance) without having to go through a real estate company. However, you will ultimately decide through which real estate company to proceed with the transaction. Generally, it is common to proceed with a deal with the real estate company that introduced the most promising housing.

There are "an explicit type" and "a non-explicit type" in a general mediation contract.
​In the case of an explicit type, it is necessary to notify the real estate companies that you have requested mediation of which other real estate companies you have commissioned mediation to, even though the contract permits simultaneous requests to other real estate companies. On the other hand, in the case of a non-explicit type, it is not necessary to notify the real estate company of whether you have made concurrent requests to other real estate companies or what kind of companies you have been working with.

When a mediation contract is concluded, while the contents of the contract become clear, various contractual obligations arise for the client, so please be sure to keep in mind the points to be kept in mind.

(1) Clearly convey the desired conditions
It is important to reiterate to the real estate company the desired conditions, such as the time of purchase and the desired purchase price, based on circumstances such as the time when moving is possible and the financial plan necessary for purchase. Of course, there are cases in which purchase may be difficult under the desired conditions, so after sufficient discussion with the real estate company, final conditions should be determined.

Before concluding a mediation contract, it is also important to reconfirm the contents of the mediation work presented by the real estate company. ​Failure to make this confirmation may result in a situation where you do not receive the services you thought you were entitled to.

After clarifying the details of the brokerage business, confirm the brokerage fee. Make sure you understand the laws and regulations regarding brokerage commissions, etc., and discuss them with the real estate company.

As for a mediation contract, the Minister of Land, Infrastructure, Transport and Tourism publicly announces "Standard mediation contract terms and conditions" (hereinafter referred to as "Standard terms and conditions") for the purpose of standardization of mediation contracts and consumer protection. Since a mediation contract is generally concluded by the standard terms and conditions regarding mediation for a residence, etc., it is important to correctly understand the contents and matters to be confirmed.

In addition, the real estate company will indicate whether or not the real estate company can arrange for the person who conducts the building condition survey (inspection) (limited to those conducted by an architect who has completed the training course specified by the Minister of Land, Infrastructure, Transport and Tourism), and will specify whether or not such arrangement can be made in the mediation contract document.

When purchasing a home, it is important to gather information on properties. In addition to gathering information on individual properties on your own using the Internet or information magazines, it is also effective to ask a real estate agent who has a lot of information on properties and the local area to help you find a property.

When looking for a brokered property, have the real estate company that acts as an intermediary between the seller and the buyer, called a brokerage firm, look for the property. The real estate company provides information on properties that meet the conditions of the prospective buyer, and then supports the entire real estate transaction, including on-site visits, negotiations with the seller on terms and conditions, property explanations (explanation of important matters), contract procedures, and delivery procedures (on-site attendance, settlement of payment and expenses, etc.). Advice can also be sought on specialized areas such as law and taxes.
​
It is difficult for non-expert parties to directly negotiate a contract with the seller, but by having a real estate company, a professional in real estate transactions, act as an intermediary, negotiations can be expected to proceed smoothly. If there are any uncertainties, it is advisable to consult with a real estate company.
Brokerage fees are charged for such support services for the entire real estate transaction.

(1) Provide property information
Search and introduce properties close to what you desire from REINS-registered properties, its own information, other companies' information, etc.

(2) Provide on-site tours
​Provide on-site tours of selected properties

(3) ​Negotiate terms and conditions with the seller
​Coordinate and negotiate with the seller regarding the purchase price and other terms and conditions

(4) Explanation of important matters
Provide a legally obligated explanation of important matters regarding the property, contract details, etc. (This explanation will prevent potential problems in the future.)

(5) Assist with mortgage loan procedures and execution of the purchase agreement
Assist with the mortgage loan process.
Assist in the preparation and conclusion of the purchase agreement.

(6) Delivery of property
​Assist with verification and handover procedures by being present at the site.

Point 2: ​Check the differences in services offered by different real estate companies.​

*This checklist is a reference for reviewing brokerage services and selecting a real estate company. Ultimately, please use your own discretion  in selecting the real estate you request.

Real estate companies can search for property information from the extensive information database of "REINS*" operated by the designated distribution system, including information that other real estate companies have received requests to sell. They can also provide information on properties for sale by their own clients and through cooperation with other real estate companies.

​Just because a real estate company introduces you to a property does not mean that you must purchase it. It is also possible to stop the property search in the middle of the process or request other real estate companies to search for properties at the same time. First, gather a wide range of information from real estate companies.

*REINS: The name of the computer network system (Real Estate Information Network System) operated by the designated distribution system.

Communicating the exact conditions of your desired home to the real estate company is often the fastest way to purchase a desired home. When asking the real estate company to search for a housing, you should tell the real estate company the "area," "type of housing," "budget," and "move-in period.

​For the "area," it will be easier for the real estate company to find a property if you narrow down your search to the train line and nearest station. The type of property" includes whether it is a single-family home or a used condominium. For "Budget," set an upper limit and tell whether it is a "housing budget" or a "total budget for purchasing a house.

Once you have communicated your desired conditions, ask the real estate company for advice on whether the conditions are reasonable, and narrow down your preferences to more specific conditions. If you are unable to find a property that meets your conditions, consider expanding the range of properties by changing the desired conditions that are lower in priority.
​
If your initial preferences are not clear, you may want to clarify them by looking at property information. In this case, organize the conditions of the properties you like and communicate them to the real estate company while clarifying your desired conditions.

When purchasing real estate, it is important to choose a reliable real estate company. It is especially important to work closely with a real estate company if you are looking for a brokered property. Start by first gathering some basic information about the real estate company.

Real estate companies have a variety of characteristics.
For example, a company with many branches may have an advantage in providing information using its own network or in dealing in remote areas. A company that has been in business for a long time in a particular area may also be well versed in a variety of local information, not limited to real estate. These characteristics of a real estate company cannot be formally determined by the size of the company. It is important to determine these characteristics by referring to the reputation of the neighborhood and ultimately through communication with the real estate agent's staff.

Information on real estate companies can be obtained on the Internet and through other sources. When information is not available on the Internet, it may still be possible to obtain certain information from government agencies. It is a good idea to check basic information about the real estate company, as needed.
You can also look up the real estate company you want to know about on Real Estate Japan, or search for a real estate company by area or train line.

The following is some commonly available information on real estate agencies.

In order to buy, sell, or broker real estate, a real estate transaction business license is required. Companies with offices (head office, branch, etc.) in multiple prefectures are licensed by the Minister of Land, Infrastructure, Transport and Tourism, and companies with offices (head office, branch, etc.) in only one prefecture operate under a prefectural governor's license. The license number is always listed in real estate advertisements, so be sure to check it.

From the license number, you can confirm the licensor of the real estate agency (Minister of Land, Infrastructure, Transport and Tourism or prefectural governor) and the number of times the license has been renewed. Since licenses are renewed every five years, a company with a high number of renewals can be deemed to have a long history in the business and a certain level of experience, but there are also companies with a high level of know-how even if the number of renewals is low. The number of times the license is renewed should be checked as reference information when selecting a real estate company.

You can check the Real Estate Agents Directory at the administrative offices listed below. This roster includes the date of license, names of officers, locations of all offices (head office, branch offices, etc.), past administrative penalties, and the status of other concurrent businesses. This directory provides an overview of the real estate company. Some administrative agencies provide an overview of real estate agencies and information on administrative penalties on the Internet. ​However, you cannot judge a real estate company based on this information alone, so use it only as reference information when selecting a real estate company.

There are four trade associations in the real estate distribution industry. Each organization provides training, guidance, and business support to its member companies, as well as consultation on consumer complaints. It is advisable to check the membership status of real estate companies in the associations for reference. If a real estate company is a member of an industry organization, the membership is listed near the name of the real estate company in the real estate advertisement.

As consumer protection is being strengthened, more and more people are seeking advice regarding malicious solicitation of condominiums. Therefore, the Ministry of Land, Infrastructure, Transport and Tourism has clearly stipulated prohibited acts in the Enforcement Regulations of the Real Estate Transaction Business Law. Specifically, the following acts are prohibited.

• Soliciting without first informing the other party of the real estate agent's trade name, the name of the person conducting the solicitation, and the purpose of the solicitation
• Continuing to solicit despite the fact that the other party has indicated an intention not to enter into a contract (including an intention not to continue receiving solicitations)
  
• Soliciting by telephone or door-to-door solicitation at a time that may cause annoyance.
  

​For solicitations that violate these prohibitions, administrative guidance and disciplinary action can be taken by consulting the section in charge of the Real Estate Transaction Business Law in each prefecture, the Ministry of Land, Infrastructure, Transport and Tourism, or the Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism. If you receive an unsolicited solicitation, it is important to confirm the name and company name of the other party and to indicate your intention by saying, "Please stop any solicitation from your company," or "I do not need a condominium.

A "house with a housing performance evaluation certificate" is a house for which a third-party evaluation certificate on housing performance has been issued based on the "Housing Performance Indication System" stipulated in the Law Concerning the Promotion of Housing Quality Assurance, etc. It is important to know what kind of system it is and what kind of advantages it has.

The Housing Performance Indication System for newly built houses was launched in 2000. Under this system, a registered housing performance evaluation agency, a third-party organization registered by the Minister of Land, Infrastructure, Transport and Tourism, evaluates housing performance in 33 items in 10 fields* (for newly built houses), including structural stability, mitigation of deterioration, consideration for maintenance and renewal, thermal environment, and energy consumption, on a scale of 1 to 5. This provides an objective performance evaluation of the house.　​

​This program is voluntary, and not all homes undergo performance evaluation. Note that anyone can request a housing performance evaluation, including the building company that built the house, the buyer of the house, or the seller of the house.

Two types of residential performance evaluations for new homes
There are two types of performance evaluations: Design Housing Performance Evaluation, which summarizes the evaluation results of the design documents, and Construction Housing Performance Evaluation, which is based on the results of on-site inspections and verification of construction record documents at the time of construction and completion for houses that have undergone Design Housing Performance Evaluation.​

Existing houses are also subject to the evaluation system
In August 2002, the Performance Indication System for Existing (pre-owned) Houses was also launched. In the evaluation of existing houses, among the performance indication items for new houses, there are 28 items in 9 fields that can be evaluated with a certain level of reliability even for existing houses, and 2 items that are only for existing houses. While the evaluation of the deterioration status of the existing house is mandatory, the evaluation of the individual performance of the house is optional.

In the event of a housing dispute or a dispute between parties concerning a contract or sales agreement on a house for which a Construction Housing Performance Evaluation Certificate has been issued, you may apply for dispute resolution at a designated housing dispute resolution organization (local unit bar association) designated by the Minister of Land, Infrastructure, Transport and Tourism. The fee for dispute resolution is 10,000 yen per case.
​*A designated housing dispute resolution organization is an organization that facilitates and speeds up the resolution of housing disputes.

If you find a property you like in a a real estate ad, visit the site and check in detail what you cannot know through the ad or other information available.

During a site visit, you need to thoroughly check the surrounding environment, including convenience and comfort. It is important to check with your own eyes not only the access to the station, availability of public facilities and convenience facilities, etc., but also whether there are any objectionable facilities or large vacant lots. If there is a large vacant lot, the environment may be completely changed by the construction of a large building. Signs may be posted to inform you of buildings that are to be constructed, so be sure to check these signs. When checking the surrounding environment, it is recommended to check the surrounding area with a map in advance to facilitate the confirmation process.
​
It is also important to check the surrounding environment at different times of the day and on different days of the week. The atmosphere of the neighborhood may be different during the day and night, and on weekdays and holidays. Also, when it rains, you can see where rainwater flows in and where drainage is poor. If you buy a house, you will live there for a long time, so check carefully.

The Great East Japan Earthquake has raised awareness of disasters such as flooding and liquefaction of the ground, as well as earthquake damage. Even if a building is sturdily constructed, lifelines may not be available due to soft ground in the surrounding area, so be sure to gather information on disaster prevention in the area you are considering purchasing. Check disaster prevention maps that predict damage from earthquakes, such as building collapse, liquefaction, and fires, as well as hazard maps for floods and tsunamis.

Items to check for convenience

• Time required to the nearest station
• Time required to the bus stop
• Are the roads from the station and bus stop safe?
• How long does it take to get to school ( for children)?
• Are there parks or other places for children to play nearby?
• Is there a hospital nearby?
• Are there banks and post offices nearby?
• Is there a supermarket nearby?

Items to be check for comfort

• Are there any noisy or smelly nuisance facilities in the neighborhood?
• Are there any buildings in the vicinity that block sunlight?
• Are there any buildings planned to be constructed in the neighborhood?

Items to check for safety

• Have you checked earthquake damage (seismic intensity, liquefaction, fire, etc.) forecasts (e.g., disaster prevention maps, etc.)?
• Have you checked the estimated damage (flood, tsunami, etc.) from natural disasters (e.g., hazard maps, etc.)?
• Have you checked the information on disaster prevention and crime prevention provided by the local government?

In the case of newly built properties, the points to check differ depending on whether it is an unfinished property or a completed property. In the case of a completed property, you can actually see the property, so check in detail the size, specifications, facilities, etc., as well as the view from the windows. If you are visiting a model room for an unfinished property, consider the differences in layout and size from the property you wish to purchase. In addition, many of the facilities are optional rather than standard specifications, so be sure to check them carefully.

For existing/preowned properties, in addition to the items to check for in a new property, you need to check the building's maintenance and facilities for damage. For single-family homes, look at the building's exterior walls, roof, building foundation and foundations, and for condominiums, look at the exterior walls and common hallways, and note whether there are any major cracks or tilts. If it is difficult to judge the condition by yourself and you are concerned, you can request a "home inspection" by a specialist such as an architect to check the deterioration of the house, whether there are any defects, and areas that need to be repaired.

When touring a used property, please be aware that the seller may be living in the property, so please mind your manners. Also, if you notice any stains, scratches, or defects in the equipment or interior, you may need to consult with the real estate agent later.

If you are purchasing a used property and remodeling it, check in advance whether you can remodel it as you wish. Mainly, for condominiums, it is necessary to check the restrictions on remodeling according to the "management agreement," and for single-family homes, it is necessary to check the restrictions according to laws and ordinances. In addition, there are cases where remodeling is difficult due to the structure of the building, so it is advisable to consult with a specialist or other professional to whom you will commission the remodeling project.

Building, floor plan and facilities (for both single-family homes and condominiums)

• Orientation of the house/building
• Stains and scratches on exterior walls, cracks (cracks), etc.
• Scratches, cracks, etc. on foundations
• View from the windows
• Ventilation and sunlight
• Size of each room
• Room layout
• The flow line of the kitchen, bathroom, and washroom
• Specifications of water fixtures and appliances
• Stains in the kitchen and bathroom areas
• Storage capacity
• Color, texture, and stain of the interior materials
• Color, texture, stains, and opening/closing of fixtures
• Exterior design
• Impression of the entrance
• Size of outdoor storage and trunk room
• Specifications of equipment such as floor heating and air conditioning
• Sound insulation, heat insulation, earthquake resistance, and durability
• Age of the equipment and whether it is operational or not
• The size of the garden and balcony
• If the house has been remodeled, its details
• Past repair history

Common areas and management (for condominiums)

• Impression of the entrance
• Presence or absence of an auto-lock system
• Number and location of elevators
• Availability and location of parking lots
• Availability and location of bicycle and motorcycle parking lots
• Location of garbage disposal facilities
• Gathering place and other common facilities
• Whether or not pets are allowed
• Remodeling restrictions
• State of management (presence or absence of problems)
• Existence or non-existence of long-term repair plans and their actual status​

*If you do not know just by looking, do not hesitate to ask the representative at the site!

Home Inspection
A home inspection (home inspection/building inspection) is an objective diagnosis of the presence or absence of defects, areas that need to be renovated, and the timing of such renovations, conducted by an architect or other specialist with expertise in home design and construction, who investigates the deterioration of the house. The content of the survey varies depending on the survey company and the client's intentions, ranging from visual inspections to the use of specialized survey equipment.

​Especially for existing homes that have been in use for some time since they were built, it is difficult for consumers to determine the deterioration of the structural parts of the home and the need for repairs, etc. Recently, more and more homes are being bought and sold after a home inspection is requested in advance.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has formulated the "Existing Home Inspection Guidelines" to provide guidelines on inspection items, inspection methods, and procedures for inspecting the existing conditions.

Real estate advertising is also regulated by property types. Take a look at some important points to consider when looking at advertisements for newly built properties for sale, used condominiums, and used single-family homes.

It is important to confirm that the number of units for sale and prices are viewed differently for newly constructed properties for sale than for existing properties because, for example, several properties are sold at once in the same residential development area or condominium.

Display example:
Property Overview
​1. Location: 1-1-1 Ko-otsu-machi Sakae-ku, Yokohama
2. Transportation: 

• 15-minute walk from Hongodai Station of the JR Negishi Line
• 30 minutes from Hongodai to Yokohama and 60 minutes to Tokyo Station during commuting hours, by transferring to the Tokaido Line at Ofuna Station, not including transfer time (21 min. to Yokohama and 47 min. to Tokyo during non-rush hours).

3. Total number of plots:

• 500 plots (Proprietor: Kou Otsu Real Estate Co., Ltd.)
• Number of plots acquired by our company: 150 plots​

4. Number of houses sold this time: 75 houses
5. Prices: 49.98M JPY (x 1)ー69.85M JPY (x 2):  26 are in the price ranges of around 55.00 JPY 
*Prices include sales tax on buildings.
Common facility contribution fee: ¥200,000 per unit
Common facility maintenance fee: ¥3,000 per unit per month.
6. Land area: 165.32㎡ー198.26㎡
7. Floor area: 120.56㎡ー135.96㎡
8. Zoning: Type 2 low-rise residential zone
9. Building structure: 2-story wooden building with a tiled roof (mortar sprayed)
10. Facilities: city water supply, Tokyo Gas, Tokyo Electric Power Company, sewage (centralized sewage treatment facility in the complex), rainwater (L-shaped ditch), system kitchen, 4-position fueling system, shampoo vanity, shower room (2 locations), bathroom (1 location), 2 toilets, air conditioning in all rooms, under-floor storage, gate, hedge, roofed car garage (for 2 compact cars), etc.
11. Road: facing the 4 meter-wide asphalt paved road for 6 meters
12. Building Permit Number: No. OO
13. Scheduled move-in: Early May of Year
14. Deposit security institution:  OO Credit Guarantor
15 . Expiration Date of Terms and Conditions:　the end of May of Year 
16. Licensed by the Governor of Prefecture A, No. 54321
17. Member of OOOO Association
18. Member of OO Real Estate Fair Trade Council
19. Seller: ABC Real Estate Co.

2-17-7 Heisei-cho B City, A Prefecture
Phone* OOO-OOO-OOOO

*This example is for general newspaper and magazine advertisements.

Total Number of Lots and Number of Units to be Sold (Total Number of Units and Number of Units to be Sold)
The total number of lots is the number of all lots in the area to be developed, and the total number of units is the number of houses/condominiums scheduled to be sold. In the case of large-scale subdivisions, sales are often staggered and divided into several phases, and the number of lots and units to be sold at this time indicates the number of lots and units that are to be sold at the time of advertisement.
Price and Other Costs
Prices must in principle be shown for all properties, but when a large number of properties are to be sold, the lowest, highest, and most expensive price ranges and the number of properties in those price ranges will be shown. The prices also include costs for water, sewerage facilities and city gas supply facilities.
In addition, if there are other charges for common facilities or special facilities, and if there are maintenance and management fees for those facilities, the details and amounts of those fees will be displayed.
Zoning (common to all properties)
The zoning of the property location is displayed. The zoning district is a designation under the City Planning Act that restricts the buildings that can be built and their uses, and defines the use of land in each area. There are a total of 13 zoning districts, and the Building Standards Law defines restrictions on buildings that can be constructed, the building-to-land ratio, and the floor-area ratio for each of these zoning districts.
Facilities Overview (common to all properties)
An overview of facilities such as water and sewage facilities and gas is displayed.
Anticipated Move-in Date and Construction Date
In the case of a newly constructed property for sale, the expected move-in date will be listed if the building is not yet completed, and the construction date is listed if the building has been completed.
Agency for the Preservation of Deposits, etc.
When a real estate company (real estate transaction agent) acts as the seller itself and a deposit, etc. in excess of a certain amount (5% of the amount of the price or in excess of 10 million yen in the case of a purchase and sale before completion of construction, or 10% of the amount of the price or in excess of 10 million yen in the case of a purchase and sale after completion of construction) is paid at the time of the sales contract, the seller must take measures to preserve the deposit received. The measures to preserve the deposit, etc. may include a guarantee by a guarantee company, etc. or insurance by an insurance company, etc. This prevents the buyer from being unable to recover the deposit paid in the event of the seller's bankruptcy before delivery. The agency that implements the security measures can be confirmed in the advertisement.
​Expiration Date of Terms and Conditions
In the case of newspaper inserts, etc., the expiration date of the terms and conditions is displayed. In the case of Internet, the information update date is displayed. Properties with good conditions tend to attract buyers quickly, so it is important to check the validity period of the terms and conditions as well as the date when the information is updated.

Although many used condominiums are undervalued in terms of property price, they may incur large repair costs due to the aging of the property. Here are some items to check that are unique to used condominiums.

*These examples are for general newspaper and magazine advertisements. Examples of company name, building license number, name of organization, company address, etc. are omitted.

1. Exclusive Area
This is the area of the portion owned by the buyer. In principle, the wall-core area measured from the center of the wall is indicated, but in the case of an existing condominium, the area may be indicated by the area of the registration record (registry) measured from the inside of the wall. Balconies are common areas, so their area is not included in the exclusive area.
2. Building Structure and Stories
Indication of the building structure may be omitted. The phrase "5th floor of a 10-story building" indicates that the condominium building is 10 stories high and the house being sold is on the 5th floor.
​3. Year and Month of Construction
The year and month when the building was completed are indicated, rather than the year of construction. Even if the property has never been occupied, if more than one year has passed since construction, it is treated as a used property in real estate advertisements.
4. Management Fee (common to all condominiums)
The monthly management fee and reserve for repairs are shown. In addition, there may be fees for parking, trunk room, and private garden. In addition, the management system may be displayed as "Resident" (when a janitor is stationed at the property), "Day shift (commuting)" (when a janitor is stationed only during the daytime), "Patrol" (when a janitor patrols multiple apartments), or "Self-management" (when no janitor is stationed at the property).

Each and every existing single-family home has different characteristics. First, check to see if the size, floor plan, year of construction and location match your needs.

1. Private Road Area
When the land to be sold includes a private road, the area of the site and the area of the private road burden are indicated separately. If the private road portion is owned solely, the area is indicated as "private road burden 20㎡", etc. If the private road portion is shared with surrounding owners, the ratio of ownership is also indicated as "private road 100㎡, 1/5 of ownership".
2. Floor area of the building
If the floor area of the building includes an underground garage or basement, a statement to that effect and the floor area is also shown.
3. Car Garage
A "carport" is a simple parking facility with only a roof and posts. A building that can store cars and has a roof and walls can be labeled "with a garage. Otherwise, ambiguous indications such as "with a garage" or "cars allowed" are prohibited.
4. Year and Month of Construction
The year and month when the building was completed are displayed, not the year of construction. Even if the property was expanded or remodeled after construction, the year of construction at the time of completion will be displayed. Even if the property has never been occupied, if more than one year has passed since construction, it will be treated as a used property in real estate advertisements.
5. Location
It is permitted to omit the detailed lot number of the property location. In addition, the location shown in the advertisement is based on the registered lot number, not the residence indication number. Please note that in some areas the registered lot number and the residential indication are the same, but in others they are different.

In real estate advertising, "bait and switch" and "misleading representations" are prohibited.
Take a look at the display examples to see if there are any violations of the terms and conditions that should be displayed, such as missing items or misleading wording.​

A bait-and-switch advertisement is an advertisement for a property that cannot be traded and includes the following:

• Fictitious properties
• Properties that have already been sold
• Properties with no intention of selling

​These are deceptive advertisements that aim to advertise such properties and introduce other properties to the assembled guests to trade with them. Also prohibited are double price indications to make a property appear significantly cheaper, unfair comparative advertising to make a property appear superior, exaggerated advertising, false advertising, and misrepresentation of superiority to indicate that a property is significantly superior to the actual property or to a property handled by a competitor.

*​This example is for newspaper inserts. Examples of company name, building license number, name of organization, company address, etc. are omitted.

1. "Specially Selected," "Best," "Outstanding," "Rare," etc.
In addition to terms such as "specially selected" that indicate that the real estate has been selected according to certain criteria, terms that give the impression of extremely low prices ("cheap", etc.), terms that imply superiority over other companies ("first in the industry", "best in Japan", etc.), and terms that indicate the highest quality are prohibited unless there is objective and concrete evidence to support the use. 
2. 8-minute walk from the bus stop
The time required to take a bus from the nearest station to the nearest bus stop and the time required to walk from the bus stop to the property must be indicated.
3. 20㎡ private road included
The property area and the private road area (if any) must be indicated clearly and separately.
4. Non-conforming road access
When a building is constructed in a city planning area or a quasi-city planning area, the site must, in principle, abut a 4m or wider road under the Building Standard Law by at least 2m. In the case of a "non-conforming road" that does not meet this requirement, the property must be marked as "no building allowed" or "no re-building allowed.
5. Floor area: 108.45㎡ (with a basement car garage)
A car garage cannot be included in the floor area.
6. Spacious 4DK
Subjective expressions such as "spacious" and "bright" are prohibited.
7. Used
The date of construction must be indicated.
8. Proximity to parks
When indicating public facilities such as schools and parks, the distance must be clearly indicated instead of using subjective expressions such as "close by.
9.  Dedicated service
It is necessary to clearly indicate the real estate company's position on transactions by specifying which of "seller," "lessor," "mediation," and "agency" corresponds to the transaction mode.