Buying a House: Building Lots and Buildings Transaction Business
Building Lots and Buildings Transaction Business
Point 1: Difference between Real Estate Business and Building Lots and Buildings Transaction Business
The real estate business and the building lots and buildings transaction business are not synonymous. The real estate business includes buying and selling, brokerage (also known as "mediation"), leasing (landlords of land, houses, and buildings), and management (management of condominiums, management of rental properties, etc.). On the other hand, the building lots and buildings transaction business includes only those types of real estate businesses that handle transactions (distribution) such as buying, selling, and brokering. Therefore, when selling or purchasing a house, it is important to understand the building lots and buildings transaction business.
Point 2: What is the building lots and buildings transaction business?
The building lots and buildings transaction business (i.e., the real estate transaction business) is
(1) Buying, selling, and exchanging residential land and buildings
(2) Representation or mediation when buying, selling, exchanging, or borrowing and lending
The Building Lots and Buildings Transaction Business Law regulates that only persons licensed by the Minister of Land, Infrastructure, Transport and Tourism or the prefectural governor are allowed to engage in the building lot and building transaction business. Whether the license is issued by the Minister of Land, Infrastructure, Transport and Tourism (MLIT) or by the prefectural governor depends on the status of the office (head office, branch office, etc.). The term of validity of a license for the real estate transaction business is five years.
It is important to note here that while intermediation of leasing and renting (such as soliciting tenants) at the request of a landlord is included in the 宅建 (building lots and buildings transaction) business, leasing and renting by oneself (such as managing a building or apartment for rent) is not included in the 宅建 (building lots and buildings transaction)business and is not a business regulated by the Building Lots and Buildings Transaction Business regulations.
Differences between licenses issued by the MLIT and the prefectural governor
The licensing authority (Minister of Land, Infrastructure, Transport and Tourism or prefectural governor) will also issue administrative penalties such as instructions to improve business, suspension of business, or revocation of license in the event of violations of laws and regulations by a building lots and buildings transaction business operator.
Point 3: What is the role of a real estate transaction agent?
A real estate transaction agent is a person who has passed the real estate transaction chief qualification examination or the real estate transaction professional qualification examination, has been registered by the prefectural governor, and has been issued a real estate transaction professional certificate, and is a distribution specialist who has extensive knowledge of real estate transactions. The Building Lots and Buildings Transaction Business Law stipulates that only a real estate transaction agent can handle the explanation of properties and contract details (explanation of important matters), which is one of the most important tasks in real estate transactions, and the signing and sealing of documents describing the written explanation and contract details.
In order for a real estate company to be licensed as a real estate transaction agency, it must have at least a certain number of professional real estate agents.
Arrows International Realty Corp.