What is electronic trading?
Updated: July 2026, 2
Electronic transactions in real estate specified joint ventures
Electronic trading operations in real estate specified joint ventures refer to the business of introducing products (special funds) online, explaining the necessary information to customers, and then concluding contracts online (so-called crowdfunding).
Crowdfunding makes it possible to carry out the following businesses:
・Recruiting many investors with small amounts such as 1 yen per share
・Getting investment from investors who are far away and for whom it is difficult to conclude a contract face-to-face
・Reporting to investors (asset management reports, etc.) can be done online, eliminating the need to mail documents and other hassles.
Crowdfunding is being used to carry out a variety of non-profit projects, such as renovating an old house into a guest house and rebuilding a hot spring inn that was completely destroyed by fire.
Types of crowdfunding that fall under real estate specified joint ventures
Crowdfunding that falls under real estate specified joint ventures is in the following cases:
Crowdfunding is being used to carry out a variety of non-profit projects, such as renovating an old house into a guest house and rebuilding a hot spring inn that was completely destroyed by fire.
1. When a Category XNUMX business entity solicits investors on the Internet by itself
1. When the first business operator entrusts the solicitation of investors to the second business operator (crowdfunding company)
4. In a special business, when soliciting investors is entrusted to a Category XNUMX business operator (crowdfunding company)
(Source: Practical Guide for Real Estate Specified Joint Ventures Using Crowdfunding, Ministry of Land, Infrastructure, Transport and Tourism)
In supervising electronic trading operations,“Electronic Transaction Business Guidelines under the Real Estate Specified Joint Enterprise Act”The stated measures must be clearly implemented.
Points to note when conducting electronic trading operations
When a real estate specified joint venturer conducts electronic transaction business, it must comply with the regulations issued by the Ministry of Land, Infrastructure, Transport and Tourism.“Electronic Transaction Business Guidelines under the Real Estate Specified Joint Enterprise Act”It is necessary to establish a business management system as stipulated in the
<Major issues>
- Legal information such as trade name, non-special license number, and head office address is clearly displayed on the website
- Establishment of a system to prevent damage to customer property and leakage of customer information
(Establishment of responsible department and person in charge, establishment of handling regulations, etc.) - Establishing a system to ensure appropriate screening
(Separation of the screening department and the sales department, clarification of screening criteria and screening flow, etc.) - Establish a system that identifies the cooling-off period and the starting date
- Access to important matters related to electronic trading operations (matters that have a significant impact on investor decisions), etc.
Advantages and disadvantages of electronic trading operations
The advantage of electronic trading is that it allows for efficient business operations, as the system can manage a large number of products and investors in one place. Investors can also invest in real estate quickly and easily, as everything from product confirmation to contracts and payments can be completed online. Another benefit is that it is paperless, eliminating the need to store important documents.
On the other hand, the disadvantages are that it takes time and money for businesses to build a system. In addition to the risks associated with regular non-specialty products, it is necessary to respond to and take measures against system risks (cyber attacks, failures, information leaks, etc.). Also, for investors, since the products they invest in become less visible to others, if they do not manage them properly, it could affect inheritance procedures in the event of their death.
For consultation regarding non-special permission, please contact Support Administrative Scrivener Corporation
Those who fall under the following may fall under a real estate specified joint venture.
◇I want to create a real estate fund by converting real estate (actual) into smaller units and securitizing it.
◇When acquiring real estate, bank loan screening is difficult, so I would like to find another way to raise funds.
◇Initially, we would like to solicit investment for 1 yen per unit and expand our customer base.
We will first listen to the business you wish to undertake, and then provide comprehensive support, from proposing the necessary permits and licenses, preparing application documents, and dealing with government offices and submitting the applications.
Consultation before making a request is free of charge.
