Guide to explaining important matters in a building condition survey
-Explaining the impact of the amendment to the Real Estate Transactions Law!-

Due to the revision of the Real Estate Transaction Business Act (Real Estate Business Act), the importance of building condition inspections is increasing.

In particular, real estate agents dealing in used homes and condominiums are required to properly explain important matters based on building condition surveys in order to ensure transparency in transactions and increase buyers' peace of mind.

This page provides detailed explanations about the key points of building condition surveys and important matters explanations in response to the revision of the Real Estate Brokerage Business Act.

What is a building condition survey?

Purpose and role of building condition survey

What is a building condition survey?

A procedure in which professional architects inspect existing housing, especially condominiums and detached houses, to check for deterioration and defects in the building and report the results. .

The main purpose of this inspection is to allow a buyer to get an accurate understanding of the condition of the building when considering a purchase.

In addition, the survey results can be useful for planning renovations and repairs, and are a way to prevent any problems that may arise after the purchase.

Importance and necessity of the survey

Used homes and condominiums are often more deteriorated with age than new buildings, so it is essential to accurately understand the current condition of the building when making a transaction.

By conducting a building condition survey,A contract is concluded when both the seller and the buyer are satisfiedWill be possible.

Furthermore, the results of the building condition survey serve as reliable information when explaining important matters based on the Real Estate Transaction Business Act, thereby contributing to consumer protection.

Due to changes in the law, the obligation to conduct and explain this survey has become clearer, and real estate agents now have greater responsibility.

Key points of the amendments to the Real Estate Transactions Act

Details of the amendment

The 2024 amendment to the Real Estate Transaction Business Act (Real Estate Transaction Business Act) strengthens the obligation to provide information regarding building condition surveys.

In particular, if there are results of a survey conducted within the past year (some exceptions apply), the important information explanation must explain whether or not a survey was conducted, the date it was conducted, the names of the architects or other professionals who conducted the survey, and a summary of the survey results.

This will significantly improve the transparency of information when buyers make purchasing decisions and ensure fairness in transactions.

Specific methods of reflecting in the important matters explanation document

Pursuant to the revised Real Estate Brokerage Act, the following information must be included in the Important Information Explanation Document:

-Whether or not a building condition survey has been carried out

-Date of survey (within the past year)

*Reinforced concrete or steel-reinforced concrete apartment buildings, etc." is an exception to this rule.Within the last year'

- Name and affiliation of the survey participant (architect, etc.)

・Summary of survey results

For condominiums and other shared housing, the description is required to include the condition of not only the private areas but also the common areas.

In addition, it is desirable to provide an explanation in writing rather than just verbally, and to use supplementary materials such as drawings and photographs to make it easier for the buyer to understand.

Summary

With the recent amendments to the Real Estate Transaction Business Act (Real Estate Transaction Business Act), the obligations to inspect the building condition and provide important information have been further strengthened.

In particular, for apartment buildings made of reinforced concrete or steel-reinforced concrete, it is required to accurately explain the results of the building condition survey and reflect them in the important information document so that buyers can make their purchase with peace of mind.

Business operators are required to provide accurate information, including the results of inspections conducted within the past year (within two years in the case of apartment buildings, etc. made of reinforced concrete or steel-reinforced concrete structures), and to make thorough preparations to ensure highly transparent transactions.

Leave the preparation of important matter explanations to Support Administrative Scrivener Corporation!

Supporting administrative scriveners create important matters explanations as professionals who are well-versed in the law.

Our staff have experience conducting surveys in prefectures across the country.

Please feel free to contact us with any inquiries or requests.

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