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.
Arrows International Realty Corp.