With IT-based important matter disclosure (leveraging technology for required explanations) and online contracts, rental agreements can now be completed entirely remotely. Real estate professionals explain everything from how these systems work to key usage tips and important precautions.
Reviewed by: Nobuyuki MoriPresident, M-Assets Co., Ltd. / Licensed Real Estate Transaction Specialist (Miyagi #018212)
In recent years, the rental housing contract process has undergone significant changes. The "important matter disclosure" (often called "重説") that traditionally required visiting a real estate office in person can now be conducted via video call over the internet. This is called "IT-based important matter disclosure."
Since 2021, when IT-based Important Matters Explanation (Online Important Matters Explanation) was fully deregulated, you can complete a rental contract without visiting the real estate office. This guide clearly explains the procedure flow, advance preparation, differences from in-person, and trouble prevention strategies. Essential reading for those relocating from remote areas or those with busy schedules.
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The system was piloted in October 2017, and full implementation began in March 2021. Furthermore, with the May 2022 amendment to the Real Estate Transaction Law, electronic methods (digital signatures and electronic contracts) became possible for delivering contract documents. Today, the environment is in place for the entire process from property search through contract signing to be completed entirely online.
IT-based important matter disclosure and online contracts are different concepts. IT-based important matter disclosure refers to the act of a licensed real estate agent explaining the important matters via video call, while an online contract refers to the entire process of digitally completing the signing and affixing of seals on the rental agreement that follows. Both are legally valid procedures.
To receive IT-based important matter disclosure, several requirements must be met. The main requirements are as follows:
Borrower Requirements
Typical Process for IT-Based Important Matter Disclosure
Feel free to ask questions if any points are unclear during the explanation. As with in-person meetings, it is important to listen to the licensed real estate agent's explanation and thoroughly review the document contents.
The benefits of using IT-based important matter disclosure and online contracts are diverse.
Greater Flexibility with Time and Location When a relocation or move to a distant location is decided, contract procedures can be completed without traveling there. Additionally, for working professionals who cannot take time off during business hours to visit a real estate office, the ability to handle procedures in the evening or on weekends is a significant advantage.
Easier Document Management With electronic contracts, the important matter disclosure document and rental agreement are stored in the cloud as PDF files. There is no risk of losing paper documents, and they can be reviewed anytime via smartphone.
Can Also Lead to Savings on Initial Costs As there is no need for printing and mailing costs, some properties may result in reduced administrative fees.
Real estate companies offering IT-based important matter disclosure and electronic contracts are increasing year by year. Major companies such as Mitsui Real Estate Realty, Tokyu Livable, Able, and Apaman Shop already offer these services. Furthermore, fully online real estate services have also emerged, and major portals such as "SUUMO," "at home," and "LIFULL HOME'S" now allow you to search for properties that offer these services.
While IT-based important matter disclosure and online contracts offer many advantages, there are also points to keep in mind.
Verify Your Internet Connection If your connection drops during the video call, the procedure will be interrupted. We strongly recommend using a stable Wi-Fi connection. Also, make sure your device is fully charged beforehand.
Thoroughly Review Documents in Advance With IT-based important matter disclosure, documents are sent in advance. Rather than trying to understand everything during the video call alone, it is more efficient to review the documents beforehand and compile any questions you may have.
Registration with an Electronic Signature Service May Be Required With electronic contracts, you may need to use an electronic signature service such as CloudSign, DocuSign, or Adobe Sign. Since email registration and identity verification may be required, preparing in advance will ensure a smooth process on the day.
Not All Properties Support These Services Not all real estate companies and properties support IT-based important matter disclosure. If you have a specific property in mind, check with your real estate agent beforehand to confirm whether these services are available for that property.
Even though IT-based important matter disclosure has become widespread, property viewings remain essential. Since rental housing is a space where you will actually live, we recommend visiting the property in person when possible to check factors not apparent from floor plans alone, such as natural light, noise levels, odors, and structural wear and tear.
However, there is an increasing trend of using "online property viewings (virtual viewings)" when relocating to a distant area makes in-person inspection difficult, or as a preliminary investigation when comparing multiple properties. This is a service where a real estate company representative shows you the interior in real-time using their smartphone camera.
To summarize the best practices:
By utilizing this process, you can significantly reduce the number of office visits while entering into a contract with full confidence.
With the widespread adoption of IT-based important matter disclosure and online contracts, rental housing agreements are becoming less constrained by time and location. This is especially effective for those relocating from distant areas for job transfers, studies, or employment.
However, digitalization is merely an "improvement in procedural convenience," and the essence of rental contracts—signing after fully understanding the contract terms—remains unchanged. Be sure to thoroughly read the important matter disclosure document in advance, and do not hesitate to ask questions about anything unclear.
By choosing a real estate company that offers IT-based important matter disclosure and online contracts, your apartment search can become more efficient and comfortable even with a busy schedule. Take advantage of this new form of rental contracting and find your ideal home.
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