Pre-owned home handover conditions come in two types: "already-renovated," where the seller completes renovations before handing the property over, and "as-is" (genjō watashi), where it's handed over in its current condition. Which one applies changes how to think about the price, how liability for non-conformity (keiyaku futekigō sekinin) is handled, and what to check after purchase. Below, we cover the characteristics of each and the points worth confirming in the contract.
- Already-renovated properties let you move in and start living right away, but you still need to check the scope of work and the materials used.
- As-is properties commonly come with a special clause exempting the seller from liability for non-conformity.
- The property condition disclosure statement (kokuchisho) and the fixtures list (setsubi-hyō) are important documents for confirming handover conditions.
- Getting a home inspection is one useful way to gather information when considering an as-is property.
Conclusion
In a pre-owned home sale contract, the condition in which the property will be handed over is specified explicitly. Whether it's "already-renovated" or "as-is" changes how the price is thought about and how responsibility for defects discovered after handover is handled, so it's important to know precisely which condition applies before signing the contract.
What to Check with Already-Renovated Properties
Properties sold as already-renovated have new interiors and fixtures, and the benefit is that you can start living there right after moving in. That said, how much of the property was actually worked on, and the grade of the materials and fixtures used, varies from property to property. If there's documentation showing the details of the renovation, the contractor involved, and the construction history, it's reassuring to check that too.
What "As-Is" Means
"As-is" (genjō watashi) means the seller doesn't carry out any particular repairs, and the property is handed over in its current condition. The price is often lower than the market rate, but you need to consider the purchase on the assumption that you'll handle any renovation or repairs yourself afterward. Even if some fixtures don't work or the property shows advanced wear from age, the basic idea of an as-is sale is that it's handed over in that same condition.
The Exemption Clause for Liability for Non-Conformity
As-is properties generally come with a special clause exempting the seller from liability for non-conformity (keiyaku futekigō sekinin) — the seller's responsibility for defects discovered after handover. Where this clause applies, even if you find a roof leak or a fixture defect after handover, you may not be able to demand repair or compensation from the seller. Whether this exemption clause is included in the contract is something you must always check in advance.
The Disclosure Statement and Fixtures List
Two important documents for confirming handover conditions are the property condition disclosure statement (kokuchisho) and the fixtures list (setsubi-hyō). The disclosure statement records any defects or repair history the seller is aware of, while the fixtures list records which fixtures will remain at handover and whether they're in working order. Checking that the content of these documents matches what you actually saw during the viewing helps prevent trouble after handover.
What to Keep in Mind When Considering a Purchase
When considering an as-is property, one option is to arrange a home inspection so a professional can assess the building's condition. This matters all the more when liability for non-conformity is exempted — understanding the building's condition as thoroughly as possible before handover gives you peace of mind after the purchase. If you're planning to renovate after buying, consulting a contractor in advance about the likely scope of work and cost also makes it easier to put together a financing plan.
FAQ
If a property is already renovated, is the seller exempt from liability for non-conformity?
It depends on the property. Even an already-renovated property can come with an exemption clause, so you need to check the contract wording case by case.
Is it easier to negotiate a discount on an as-is property?
Not necessarily. Price is set based on market supply and demand and the property's condition, so the as-is condition alone doesn't necessarily widen the room for negotiation.
Can I feel reassured if the disclosure statement has nothing written on it?
The disclosure statement only covers what the seller is aware of. The absence of an entry doesn't guarantee there's no defect, so it's worth also considering a check such as a home inspection.
Summary
For a pre-owned home, whether the handover condition is already-renovated or as-is changes how the price is thought about and how liability for non-conformity is handled. It's important to check the contract, the disclosure statement, and the fixtures list, use a home inspection where needed, and move forward with terms you're genuinely comfortable with. Whichever condition applies, the habit of checking exactly what's stated in writing is what gives you peace of mind after the purchase.