The explanation of important matters for a lease was traditionally required to be done face to face, but the system now also permits an online version using video calls — known as IT jūsetsu — as well as delivering contract documents electronically. This article covers how IT jūsetsu and electronic contracts generally work. It's a system that also matters if you're arranging an online viewing before arriving in Japan.
- IT jūsetsu is a method of delivering the explanation of important matters using a video call, permitted under the Real Estate Brokerage Act (Takken Gyōhō).
- Using IT jūsetsu requires meeting certain conditions, such as having a two-way video-and-audio connection.
- A revision to the Real Estate Brokerage Act also now permits delivering the explanation-of-important-matters document and the contract itself electronically.
- Signing online makes it easier to complete contract procedures before you've even arrived in Japan.
- Compared with an in-person session, there are things worth preparing for in advance, such as how easy the documents are to see and how comfortable it is to ask questions.
What Is IT Jūsetsu?
IT jūsetsu is a system, recognized under the Real Estate Brokerage Act, for delivering the explanation of important matters using a video-call system. The explanation of important matters was traditionally required to be given face to face by a licensed real estate transaction agent (takken shi), but meeting certain conditions now allows it to be done online instead. It's positioned as an accessible option for people who live far away and find an in-person session difficult, as well as applicants who haven't yet arrived in Japan.
Conditions for Using IT Jūsetsu
Using IT jūsetsu requires meeting certain conditions — for example, both you and the licensed real estate transaction agent need an environment for two-way video and audio, and the explanation-of-important-matters document and other papers need to have been sent to you in advance. The exact procedure is explained differently by different real estate agencies, so it's worth checking in advance.
Electronic Contracts and Delivering Documents Electronically
A revision to the Real Estate Brokerage Act now allows the explanation-of-important-matters document and the contract document to be delivered electronically (as digital data) instead of on paper. This makes it possible to complete the entire exchange of contract-related documents online.
The Advantages of Signing Online
Using IT jūsetsu and electronic contracts, you can complete the explanation of important matters and the contract procedure without traveling in person, whether you want to sign before arriving in Japan or you simply live far away. Cutting down on the time and travel burden is one of the biggest advantages of signing online.
How It Differs from an In-Person Explanation, and Points to Watch
Some people find it harder to check the fine details of documents online than in person. Reading carefully through the documents sent to you in advance, and asking about anything unclear on the spot, are forms of preparation worth doing even more thoroughly than for an in-person session. It's also reassuring to check in advance whether recording is allowed, and whether there's a window afterward for asking follow-up questions. An unstable connection can interrupt the session, so having a stable connection ready matters too.
Using IT Jūsetsu for a Contract Signed Before Arriving in Japan
IT jūsetsu and electronic contracts also matter when you're deciding on a property using an online viewing before you've arrived in Japan. We cover how to think about the whole process, from online viewing through to signing, in a separate article — please have a look.
FAQ
Can IT jūsetsu be used for any property?
IT jūsetsu is a system recognized under the Real Estate Brokerage Act, but whether it's actually offered depends on the real estate agency and the property. It's worth checking in advance whether it's available.
With an electronic contract, is a paper contract not used at all?
Because electronic delivery is permitted, it's possible to complete the entire contract without paper documents. That said, whether an agency actually offers this varies.
What do I need to prepare to receive IT jūsetsu?
You're expected to have a connection that supports two-way video and audio, and to have read through the explanation-of-important-matters document and other papers sent to you in advance.
Summary
IT jūsetsu and electronic contracts are systems recognized under the Real Estate Brokerage Act that make it possible to handle the explanation of important matters and the contract procedure entirely online. Since this system can also be used to sign before arriving in Japan or to complete procedures from far away, it's worth understanding how it works and using it to your advantage.