Contracts

Transaction Type -Transaction Type

Transaction Type（取引態様）is a term used to describe the role and position of agents or representatives in real estate transactions. It clarifies the role of the agent in property sales or rental agreements. For example, agents might act as representatives for the seller or buyer, or they might handle the brokerage of the transaction. Understanding transaction type helps to better grasp the contract details and responsibilities. Agents are required to explain the transaction type to ensure transparency for their clients.

Registered Seal, Bank Seal & Informal Seal -Registered Seal, Bank Seal & Informal Seal

Registered Seal（実印）is a formal seal used on legal documents and requires government registration. It is typically used for real estate transactions or important contracts. Bank Seal（銀行印）is used for transactions with banks and must be registered with the bank. It is used for activities such as withdrawing money or transferring funds. Informal Seal（認印）is used for general documents or daily use and does not require registration. It is used for less formal documents like contracts or application forms.

Down Payment -Down Payment

Down Payment（頭金）is the amount you need to pay yourself when buying property, after subtracting the mortgage loan amount from the total price. For example, if you are buying a property worth 40 million yen and taking out a loan of 35 million yen, your down payment would be 5 million yen. In other words, it is the portion of the property price covered by your own funds or other sources, rather than the mortgage. This payment is usually made between signing the purchase contract and the final transfer of the property.

Fixed-term Rental Contract -Fixed-term Rental Contract

Fixed-term Rental Contract（定期借家契約）is one where the rental period is set in advance and the contract does not automatically renew when the period ends. Unlike regular rental agreements, once the term is over, it does not automatically continue. If you want to extend the lease, a new contract must be signed. Landlords can manage their property more flexibly according to future plans, and tenants can meet their short-term housing needs.

Dual Agency -Dual Agency

In property transactions or rental agreements, it is common to charge a fee to both parties involved, called Dual Agency（両手）. On the other hand, One-sided Agency（片手）means the fee is only charged to one side, such as just the buyer or the tenant, while the other party does not pay any fees.

Explanation of Important Matters -Explanation of Important Matters

In real estate transactions, according to Article 35 of the Real Estate Brokerage Act, agents are required to prepare and explain a document called Explanation of Important Matters（重要事項説明書）to the buyer or renter before signing the contract. This includes details about property registration, building restrictions, water and drainage systems, and whether the property is in a hazard zone.

Owner Change -Owner Change

Owner Change（オーナーチェンジ）refers to when the owner of a rental property sells the property with tenants still living in it. This approach is convenient for buyers because they don’t have to find tenants themselves, and they can start earning income right after the purchase.

tetsukekin -Deposit Payment

Deposit Payment（手付金） is the money paid when signing a purchase contract, intended to stabilize the legal relationship and secure the contract. Paying deposit payment helps ensure the commitment between both the buyer and the seller. Although the maximum deposit payment is typically set at 20% of the sale price, the usual range is between 5% and 10% of the total sale price.

Brokerage Fee -Brokerage Fee

Brokerage Fee（仲介手数料）refers to the fee paid to the real estate or broker that helps you through the process of finding a property and finalizing a deal. Whether it is for renting or buying, the real estate company supports the client by searching for properties and facilitating the agreement between the client and the landlord.

In the case of sales
2 million yen or less Sale amount x 5% x Consumption tax
2~4 million yen Sale amount x 4% + 20,000 yen x Consumption tax
Over 4 million yen Sale amount x 3% + 60,000 yen x Consumption tax

In the case of rentals
For rental agreements, the brokerage fee is determined based on the rent amount. Typically, real estate agencies specify the fee as a percentage of the rent, such as “〇% of the rent,” meaning the fee will vary with the rent amount.