Real Estate Disclaimer: Differences Between Buying from a Real Estate Company vs. an Individual Seller
tsujikenzaiWhen buying property in Japan, whether the seller is a real estate company (不動産会社) or an individual (個人売主) can significantly impact your legal protections as a buyer.
Buying from a Real Estate Company (不動産会社)
- Minimum 2-Year Liability for Hidden Defects - By law, real estate companies must provide at least two years of liability for defects.
- Less Risk for Buyers - Since companies cannot waive their liability, buyers have more protection.📌 Example Scenario
- Imagine you purchase a house from a real estate company. Six months later, you notice a water leak in the roof. Since the seller is a real estate company, they are legally required to cover the repair costs under the 2-year defect liability rule.
📌 Example Scenario
Imagine you purchase a house from a real estate company. Six months later, you notice a water leak in the roof. Since the seller is a real estate company, they are legally required to cover the repair costs under the 2-year defect liability rule.
Buying from an Individual Seller (個人売主)
- No Legal Obligation for Contractual Liability - Most individual sellers include a full disclaimer, meaning buyers must cover all repair costs.
- Higher Risk for Buyers - The property is typically sold "as-is" (現状渡し), meaning the buyer assumes all responsibility for defects.
- Safer Purchase with Inspection - Buying a property that has undergone an inspection (インスペクション済み) allows buyers to identify necessary renovations beforehand, reducing risk and ensuring peace of mind.
Key Differences Summary
| Real Estate Company (不動産会社) | Individual Seller (個人売主) | |
|---|---|---|
| Contractual Liability for Defects | Minimum 2 years required | Usually exempt (免責) |
| Buyer Protections | Higher | Lower |
| Property Condition | Often inspected & documented | Often sold "as-is" |
| Risk for Buyer | Lower | Higher |
Conclusion
If you want a safer purchase, buying from a real estate company is the better choice. However, if you're willing to take on more risk in exchange for a potentially lower price, buying from an individual may be an option—but be sure to conduct thorough inspections beforehand.
