Real estate sale contract

About the basics of real estate sales contract

First, I will briefly explain the flow of real estate sales contracts. Once the seller and the buyer have negotiated the amount and terms, we will move on to the sales contract. We will ask the real estate company that is in the middle of the process to create a sales contract, and proceed while confirming the contract details one by one. At the same time, we also conduct pre-screening of mortgages on the buyer’s side and survey of properties. Next, prior to the conclusion of the sales contract, the residential land and building trader will issue a document called “Important Matters Explanation” and explain important matters of real estate.

This work is legally required . If there are no problems, you can finally conclude a sales contract using the “real estate sales contract”. The important matter explanation is a document that describes the details such as the rights and transaction conditions related to the real estate to be sold at the time of the real estate contract. At the time of contract, the building lot and building trader is required by the Home Building Business Law to deliver and explain in writing.

Who creates the sales contract?

The sales contract is created by the real estate company (intermediary company) that is in the intermediary . It should be noted that if the seller and the buyer have the same intermediary company, there is no problem, but if they are different companies, the company to be created will be decided by the agreement between the companies. After that, if there is no problem, the sales contract will be completed.

1. Check the contents carefully before concluding a sales contract.

Real estate sales contracts are generally made and exchanged. Since the intermediary will explain important matters regarding the transaction conditions, both parties will be convinced that they will sign and seal the real estate sales contract and fulfill their rights and obligations. One thing to keep in mind is that the contract is basically free.

moreover,Once you have signed a contract, you cannot easily cancel it... In the end, you will be at your own risk, so be sure to make sure that you do not overlook the contents of the contract . In particular, if you cannot surrender the land or building by the due date, you will be breached, so you must check carefully before making a contract. On the other hand, if important contract terms are unclear, it may lead to trouble after the contract, so please be careful.

2. Make a contract carefully! About difficult contract cancellation

Land, single-family homes, condominiums, etc. are very large transactions, so once you conclude a contract, you cannot basically cancel the contract for your own convenience . If you still have to cancel it, the following are the main ones. Especially if the contract is canceled due to breach of contract.A heavy penalty of 10 to 20% of the real estate transaction value is incurredI will do it, so let’s remember it. For example, in the case of a single-family house that has a sales contract for 30 million yen, the market price for penalties is 3 to 6 million yen.

Types of contract cancellation

Untouched	The contract can be canceled by doubling the deposit (seller side) and waiving it (buyer side) only before the other party starts to fulfill the contract.
Release due to risk of loss	If a natural disaster such as a typhoon, flood, or earthquake damages the real estate transaction and requires a large amount of repair costs, the seller can unconditionally cancel the contract. In this case, the seller generally makes a special contract with the buyer to return the deposit and the purchase price.
Cancellation due to contract breach	If either the seller or the buyer violates the contract, the contract will be canceled by payment of a penalty. For example, if the other party does not follow the contract, you can cancel the contract and charge a penalty if you do not respond even if you specify a due date and urge you.
Cancellation based on defect warranty liability	If there is a defect such as a serious defect in the building and the defect does not serve the purpose of the contract, the buyer can cancel the contract unconditionally.
Cancellation by special contract	It can be canceled according to the contents of the special contract. For example, there is a “loan treaty” that allows the buyer to unconditionally cancel the contract if the buyer fails to get a mortgage.
Cancellation by agreement	Both the seller and the buyer can cancel the contract on the condition based on the agreement.

3. About the type and amount of deposit

In a real estate sale contract, it is common for the buyer to pay a deposit to the seller at the time of signing the contract (that is, if you are the seller, you can receive a deposit from the buyer). For this deposit,

□	With a certificate (giving and receiving for the purpose of proving the conclusion of the contract)
□	Cancellation procedure (procedure that can cancel the sales contract)
□	Penalty (hands that can be confiscated if there is a penalty)

There are three types, but in real estate sales contracts, it is generally given and received as a cancellation allowance. Also, under the Civil Code, unless otherwise specified, it is presumed to be “cancellation allowance”. There is no particular rule on the amount of the deposit, but it is generally 5 to 10% of the selling price . If the amount of the deposit is too large, the burden of cancellation will be heavy, and if it is too small, it will be easy for the other party to cancel the deposit, so be careful.

4. What is the liability for defects that may require compensation for damages?

After the sales contract, when the buyer actually lives, it may happen that “it was leaking” or “it was damaged by termites”. These defects in real estate such as land, single-family homes, and condominiums are called “defects.” In a real estate transaction, if a “hidden defect” that the buyer did not know is found, the buyer can ask the seller to repair the house or compensate for damages .

For example, if you are a seller, be aware that selling a defective home will result in damages, whether you knew it or not. You can request the cancellation of the contract, especially if the defect is serious and you cannot live. The seller’s liability for such defects in real estate is called “defect warranty liability”. There are mainly the following types of defects, so it is a good idea to remember them to avoid troubles.

Main types of defects

Physical defect	In the case of buildings, leaks, termites, lack of seismic strength, etc. In the case of land, soil pollution, presence of underground obstacles, etc.
Legal defect	When the free use of the transaction property is hindered by laws and regulations, such as when the land to be traded is subject to legal building restrictions.
Psychological defects	If you have a suicide or murder case in the past and you do not feel comfortable living in the house you are dealing with.
Environmental defects	When there is no problem with the transaction property itself, such as noise, vibration, strange odor, and sunshine disturbance from the neighborhood, but there is a problem with the surrounding environment.

In the sales contract, the seller and the buyer can freely decide whether or not the seller is liable for defect warranty, and if so, how long the liability is from the delivery of the real estate. In addition, in order to prevent troubles caused by hidden defects, please try to provide information on the defects that the seller is aware of in good faith .

Let’s avoid troubles in selling real estate with the help of experts!
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5. Main checkpoints of sales contracts

Once you conclude it, it will be difficult to cancel it, so you want to check the sales contract firmly. So what kind of part should we check? Regarding the entire contract, be sure to check the following in particular.

Important confirmation items of the sales contract

1.	Are your desired conditions listed?
2.	Are there any unreasonable conditions for me?
3.	Are there any unclear conditions?

There are some other points to check. The general points are summarized below. However, the content of the agreement and the points to be confirmed differ depending on the individual contract.

General checkpoints for sales contracts

□	Is the display of the property for sale correct?
□	Are the trading value, deposit, etc. correct?
□	When is the payment date from the buyer?
□	What kind of deposit is it? Is the amount reasonable?
□	Does the seller actually measure the land? Also, will the trading value be settled according to the increase or decrease in the area at the time of actual measurement?
□	Isn’t it unreasonable at the time of transfer and delivery of ownership?
□	Is the handling when the property is lost or damaged before delivery clear?
□	How long can it be released?
□	Is the estimated penalty amount reasonable?
□	Is the period of liability for defect warranty appropriate?
□	Is the incidental equipment to be taken over clear?
□	Tax and public dues settlement method and amount.
□	Isn’t it unreasonable for the buyer to use the loan for the loan special contract?

6. Items to prepare by the day of the contract

After confirming the contract details, we will finally conclude a sales contract. We will introduce what the seller needs when concluding a contract, so be prepared in advance.

□	Registration certificate
□	Real seal
□	Seal certificate
□	Identity verification documents
□	Management agreement, etc. (in the case of condominium sale)
□	Building confirmation notice (inspection certificate) (in the case of sale of a detached house)
□	Building agreement, etc. (if there is an agreement)
□	Property tax payment slip
□	print fee
□	Brokerage fees to real estate companies

7. From contract conclusion to delivery

Just because you’ve successfully signed a contract doesn’t mean you can rest assured.After the contract is signed, you will be obliged to transfer or hand over the ownership... Be prepared quickly to avoid penalties . At the time of delivery, it is also important to remove weeds on the premises, dispose of garbage, and clean and tidy up the room. Handing over with a good impression will improve the impression of the other party and lead to a good relationship.

summary

We have introduced points to note and points regarding contracts that require specialized knowledge in the flow of real estate sales. There are many items in the contract that require specialized words and explanations about real estate, so make sure to check each unclear point until you can understand it. It is important to proceed carefully so as not to incur penalties or develop into trouble after the contract.

You can also consult with us about points to note and unclear points regarding the contract.
First of all, let’s do a free assessment of the property with a real estate sale assessment!

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STEP1 Prefecture Please select Hokkaido Aomori Prefecture Iwate Prefecture Miyagi Prefecture Akita Yamagata Prefecture Fukushima Prefecture Ibaraki Prefecture Tochigi Prefecture Gunma Prefecture Saitama Chiba prefecture Tokyo Kanagawa Prefecture Niigata Prefecture Toyama Prefecture Ishikawa Prefecture Fukui prefecture Yamanashi Prefecture Nagano Prefecture Gifu Prefecture Shizuoka Prefecture Aichi prefecture Mie Prefecture Shiga Prefecture Kyoto Osaka prefecture Hyogo prefecture Nara Prefecture Wakayama Prefecture Tottori prefecture Shimane Prefecture Okayama Prefecture Hiroshima Yamaguchi Prefecture Tokushima Prefecture Kagawa Prefecture Ehime Prefecture Kochi Prefecture Fukuoka Prefecture Saga Prefecture Nagasaki Prefecture Kumamoto Prefecture Oita Prefecture Miyazaki Prefecture Kagoshima prefecture Okinawa Prefecture
STEP2 Municipality Please select

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You can find the best real estate company out of about 1,800 companies !

* Please check ” Notes on sale assessment and purchase assessment services ” at the bottom of the page before using.

SupervisionYusuke Nakamura

[Qualification] Residential land and building trader / nursery teacher

Born in Fukuoka in 1983. Graduated from Shanghai Fudan University.

After working at a trading company, nursery center, and welfare facility, he is currently a writer and real estate manager who mainly deals with real estate and travel articles. He writes articles about real estate from the standpoint of actually providing stores and housing.

● The information introduced is as of the time of writing, and the content may change due to revisions to the law after publication. Please check for yourself the accuracy, up-to-dateness and completeness of the information.
● For specific consultation items, please contact various specialists (tax accountants, judicial scriveners, lawyers, etc.) and related authorities individually.

Precautions for sale assessment and purchase assessment services

The linked sale assessment / purchase assessment service (hereinafter referred to as “partner service”) is a service applied by the following companies of our affiliates.

Sale assessment: NTT DATA Smart Sourcing Co., Ltd.

Purchase assessment: Living Technologies Co., Ltd.

About partner services

Kakaku.com Co., Ltd. does not hold the information entered in the partner service. All assessment request data, including personal information, is strictly managed by the partner company and disclosed by the company to the real estate company. Regarding the handling of personal information, etc. at our business partners and real estate companies, please check the privacy policies of each company.

Handling of personal information

The number of companies that can be assessed depends on your area and the type of property you have.
Assessment may not be possible depending on the condition of your property. note that.
The provision of partner services is limited to Japan (excluding some remote islands).
Each partner real estate company will contact you directly regarding the assessment results.
Kakaku.com Co., Ltd. and its business partners will not be involved in the sale or purchase of real estate after the assessment.
Partner services support the SSL (Secure Sockets Layer) function that encrypts and sends and receives information to maintain security. Please use an SSL-compatible browser when using.
If you have any questions about our partner services, please contact us from the following. Kakaku.com Co., Ltd. cannot answer.

Sale assessment: “Inquiries about HOME4U service”

Purchase assessment: “Inquiries about Ribin Match Service (0120-935-565)”

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