What is a sales contract (Article 37 document)?
Updated: July 2024, 3
In a real estate sales contract, the real estate broker must deliver it to the other party to the contract.
It is called an "Article 37 document" because it is stipulated in Article 37 of the Real Estate Transaction Business Act.
A real estate agent is obligated to issue an Article 37 document in the following cases:
- When you have entered into a contract as a party
- When a contract is concluded on behalf of a party
- When a contract is established through that mediation
So, what kind of matters should be included in the Article 37 document?
Article 37 Matters to be included in the document
The matters to be included in the Article 37 document are as follows.
However, items may increase or decrease depending on individual contracts.
| Buying/selling/exchanging | Rent | ||
| Items that must be filled out | ① Name of the party (in the case of a corporation, its name) and address | 〇 | 〇 |
| ②The location, lot number, and other indications necessary to identify the said residential lot, or the location, type, structure, and other indications necessary to identify the said building of the said building. | 〇 | 〇 | |
| ③ If the building is an existing building, matters confirmed by both parties regarding the condition of the main parts of the building in terms of structural strength. | 〇 | - | |
| ④Amount of price or exchange difference, timing and method of payment thereof | 〇 | 〇 | |
| ⑤ Timing of handover of residential land or building | 〇 | 〇 | |
| ⑥ Timing of application for transfer registration | 〇 | - | |
| Matters to be recorded when prescribed | ⑦ If there is a provision regarding the exchange of money other than the price and exchange difference, the amount, the timing and purpose of the exchange of money; | 〇 | 〇 |
| ⑧Contents of provisions regarding contract cancellation, if any. | 〇 | 〇 | |
| ⑨ If there is a provision regarding the amount of compensation for damages or penalty, the details thereof. | 〇 | 〇 | |
| ⑩ If there is a provision regarding the mediation of money lending or borrowing for the price or exchange difference, measures to be taken if the money lending or borrowing related to the mediation is not established. | 〇 | - | |
| ⑪Contents of provisions regarding the burden of damages due to natural disasters or other force majeure, if any. | 〇 | 〇 | |
| ⑫Contents of the liability for guaranteeing defects in the relevant residential land or building (defect warranty liability), or the conclusion of a guarantee insurance contract or other measures to be taken regarding the fulfillment of such liability, if any. | 〇 | - | |
| ⑬If there are provisions regarding the burden of taxes or other public dues on the residential land or building, the details thereof; | 〇 | - | |
Does the Article 37 document require an explanation?
Like the ``Explanation of Important Matters'', which is an Article 35 document, we do not only issue Article 37 documents.
Am I obligated to provide an explanation?
In conclusion, there is no obligation to explain.
When a real estate agent concludes a sales contract, it must deliver the Article 37 document to the other party without delay.
There is no provision in the law regarding the obligation of explanation.
In this respect, it is often confused with the important matters manual, but let's consider them separately.
Please leave it to the Support Administrative Scrivener Corporation regarding the preparation of Article 37 documents.
Our company receives requests from real estate agents to prepare important opinions, and at the same time, we also prepare Article 37 documents.
It is difficult to prepare important articles, but preparing the Article 37 document also requires legal knowledge and takes a lot of effort.
We have several administrative scriveners who are lawyers, so
Please consult us regarding the Article 37 document as well as the important explanations.
We will listen to your company's problems and make the best proposal.
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