What is IT-based explanation of important matters in Japan? An online rental contract guide for foreigners.
"IT-based explanation of important matters" refers to a system unique to Japan where important explanations are conducted using IT equipment. This article thoroughly explains the overview, advantages, and disadvantages of online rental agreements for foreigners.
1.What is IT-based explanation of important matters? | Japanese explanation of important matters that can be understood by foreigners
T-Jusetsu refers to the process of conducting the important matters explanation (Jusetsu) required when signing a real estate contract, using IT devices such as personal computers and smartphones.
Previously, this process was required to be conducted in person, but since October 1, 2017, it has become possible to conduct the explanation of important matters for rental agreements remotely using IT.
Subsequently, in April 2021, it became possible to use IT-based explanations of important matters in sales contracts as well, and currently, IT-based explanations of important matters can be used in all types of real estate transactions.
What is an explanation of important matters? (A system unique to Japan)
An explanation of important matters is a system unique to Japan, a procedure stipulated by the Real Estate Transaction Business Act, and refers to an explanation that is always required when entering into a contract for the sale or lease of real estate.
The main points of the important matters explanation are as follows:
| Matters concerning the property in question | Contents recorded in the registration record Contents of restrictions based on laws and regulations Development of infrastructure such as drinking water Situation: Status of building facilities Contents of seismic diagnosis Contents of the asbestos use survey |
| Matters concerning terms and conditions of the transaction | Money other than rent Details regarding contract termination Contract period and renewal details Details of usage and other restrictions on use Details regarding the settlement of security deposits, etc. Details of predetermined compensation for damages and penalties Security measures for payments and deposits Brokerage of loans Management outsourcing |
A document containing the important matters mentioned above is called an "Important Matters Explanation Document," and real estate agents are required to provide prospective tenants with a signed and sealed Important Matters Explanation Document and then provide an oral explanation.
*Reference: Ministry of Land, Infrastructure, Transport and Tourism, " Guidelines Regarding Explanations of Important Matters "
2.Requirements for using IT-based explanation of important matters | Summary of necessary equipment, documents, and preparations
To receive an online explanation of important matters, you need to prepare the following three things. (Details will be explained later.)
| item | Content |
| equipment | Smartphones, PCs, tablets, cameras, microphones, and a stable internet connection. |
| Contractor preparation | Confirmation of residence card and passport, expiration date, and whether an interpreter can be present. |
| Requirements for a real estate company | A licensed real estate agent will provide an explanation, and consent will be given for video recording. |
Equipment and environment required for use
First and foremost, it's essential to prepare the necessary equipment and a suitable environment for use.
Since this will be an online event, please prepare electronic devices such as smartphones, PCs, and tablets, as well as a camera and microphone.
Furthermore, it is necessary to ensure a stable communication environment and take precautions to avoid communication problems. Regarding the communication environment, if Wi-Fi is unstable, it is advisable to prepare a backup mobile data line or use a wired LAN connection to prevent problems.
Preparations required on the part of the contract holder
The contract holder will need to prepare identification documents (such as a residence card or passport).
Make sure to check the validity period of your identification documents and whether the remaining period of your residence status covers the contract period. In some cases, the contract period may be shortened to match your residence status.
Also, if you are not confident in your Japanese, be sure to consult with the real estate company in advance to see if it is possible to have an interpreter present.
Conditions from the real estate company
Real estate companies also have conditions they must meet to implement online explanations of important matters.
First and foremost, as mentioned earlier, the explanation must always be given by a licensed real estate agent. This rule must be followed not only when using IT-based explanations, but in all explanations of important matters.
Additionally, while consent will be required, recording and videotaping will be permitted in principle.
3.Benefits of IT-based explanation of important matters | Peace of mind with pre-departure contract and recording function
Now, let's discuss the advantages of using IT for explaining important matters.
You can sign a contract before you travel.
One major advantage for foreigners is that they can sign a contract before traveling abroad.
With online explanations of important matters, there is no need to visit a branch, significantly reducing the burden on the customer. Even if you live outside of Japan or the branch is far away, you can complete the contract smoothly.
For students and those planning to start working abroad, a major advantage is the ability to secure accommodation immediately upon arrival.
You can review the content by watching the recording (which is also helpful for overcoming language barriers).
With permission, you can also record audio and video.
Since a record of the day's interactions is kept, it reduces the likelihood of problems and also helps overcome language barriers.
The advantages and disadvantages of using IT for explaining important matters are summarized as follows:
| merit | Disadvantages | Recommended for people like this |
| You can sign a contract before you travel. | Risk of communication problems | People who want to secure a room to live in immediately after arriving in the country |
| You can review by watching the recordings. | The explanation is primarily in Japanese. | For those who are unsure about their Japanese (you can record and review it later). |
| Complete the contract without visiting a store. | Time zone adjustment is required. | People who want to sign a contract from overseas |
4.Disadvantages and points to note regarding IT-based explanations of important matters | How foreigners can avoid mistakes
Now, let's discuss the disadvantages.
Communication trouble
Since the explanation of important matters will be conducted via the internet, communication problems are likely to occur.
In particular, if the explanation is conducted in an area with poor signal reception, the image quality may be extremely poor, or the video and audio may be interrupted, making it impossible to conduct the explanation smoothly.
In the unlikely event that the connection is interrupted, it's a good idea to check beforehand whether you can reconnect on the spot or if you'll have to try again on another day.
Points to note when foreigners use the service (due to language and cultural differences)
In Japanese rental agreements, the use of a "guarantee company" is almost always mandatory.
This will be explained during the important matters explanation, so make sure you understand whether a guarantor is required and the screening criteria of the guarantee company.
Also, since the rules for contract termination and the concept of restoring the property to its original state may differ in Japan compared to your home country, it is recommended that you ask about the details carefully.
5.Frequently Asked Questions (FAQ)
From here, we've compiled some frequently asked questions from foreigners regarding "IT-based explanations of important matters."
Please use this as a reference.
Can I receive the IT-based explanation of important matters in English?
Availability varies depending on the real estate company.
In some cases, having an interpreter present or using a translation app may be permitted, so be sure to check in advance.
Can I apply even if I'm from abroad?
It is possible to receive an online explanation of important matters even from abroad. However, you should coordinate with the real estate company to account for time differences and the stability of the communication environment.
For optimal stability, a network connection speed of 5Mbps or higher for both upload and download is recommended. The session will be conducted using common video conferencing tools such as Zoom or Teams.
Is it okay if I bring an interpreter?
Basically, it's possible.
However, availability may vary depending on the real estate company, so it's best to check in advance.
Additionally, those attending the event must also be prepared to use cameras and microphones.
What documents are required for an online explanation of important matters?
You will need to provide identification documents.
In addition to your residence card and passport, you may also be required to submit a student ID, proof of employment, and documents to your guarantor company.
