When the real estate seller is a General Corporation

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.