Question from a reader:
The information explained verbally by the real estate agent and the content of the document provided are completely different. When I’m told, “Now, please stamp here. Trust us,” I honestly find myself wondering what to do. I’m anxious about whether I can trust them, and I’m unsure whether to proceed with the contract. What should I do?

Discrepancies
Between Verbal Explanations and Written Documents in Real Estate Contracts

Introduction

Purchasing or renting real estate is one of the significant decisions in life. Especially for first-time contracts, it’s natural to feel nervous and anxious. When the verbal explanation and the content of the document provided are entirely different, it can increase your anxiety. Even when told, “Now, please stamp here,” it’s understandable to feel uncertain about whether this is really okay. In fact, from my experience working in a judicial scrivener’s office, I have often encountered such cases. This time, I will discuss how to think and act regarding this issue, including a legal perspective.

Basics of Real Estate Contracts

First, it is essential to understand the basics of real estate contracts. Real estate sales and rental agreements can be broadly categorized into verbal contracts and written contracts. Under Japanese law, contracts can be established verbally, but particularly for real estate-related contracts, it is strongly recommended to conduct them in writing. This is because real estate transactions involve significant amounts of money, and having documented content is necessary to avoid future disputes. Additionally, real estate agents bear a responsibility as professionals. According to the Real Estate Transaction Act, they are obligated to provide accurate information. However, unfortunately, not all agents are honest. There can be instances of inappropriate information provision or explanations that intentionally lead to misunderstandings, so it is essential to proceed with caution.

Mismatches Between Verbal and Written Information

Now, let’s consider a specific case. Suppose you were verbally told by a real estate agent, “This property is a 5-minute walk from the station, and the surrounding environment is excellent.” However, the document you received states, “The distance from the station is 7 minutes, and the surrounding environment is limited to sunny areas.” In this case, you would instinctively feel, “This is different.” In such situations, it is crucial to remain calm and think clearly. Becoming emotional can lead to poor judgment. Since the document has legal validity, even if the content differs from the verbal explanation, it does not invalidate the contract itself. However, there may be issues from the perspective of trust.

The Importance of Trust and Verification

When told, “Trust us,” it’s easy to be swayed by those words. However, trust is a very important element in contracts. Once you sign, it is not easy to dissolve that contract. Here, it is worth considering how trust is built. Specifically, I recommend following these steps: 1. Carefully review the document Take the time to thoroughly check the document provided. It’s helpful to take notes on the specific discrepancies from the verbal explanation. 2. Suggest a re-confirmation Ask the real estate agent, “The explanation you gave earlier differs from this document; what does this mean?” A sincere agent should provide a satisfactory explanation. 3. Seek a third-party opinion Consulting a lawyer, judicial scrivener, or a trusted friend can also be effective. Advice from experts can assist in your decision-making. 4. Take some time Instead of rushing to proceed with the contract, sometimes it is necessary to take a moment to think. By reconsidering when your mind is calm, you may be able to make a better choice.

Reviewing Contracts and Avoiding Troubles

Even if you decide to enter into a contract, you can take measures to avoid trouble. It is important to request that any discrepancies from the verbal explanation be clearly stated in the contract. Additionally, if you have any questions about the content after the contract is signed, you should maintain a posture of inquiring immediately. Particularly in real estate contracts, attention is also needed regarding cancellation clauses and warranty obligations. These are crucial elements to prepare for any potential troubles, so it is necessary to understand them thoroughly.

Conclusion

In real estate contracts, when the content of the verbal explanation and the written document differs, it is essential to respond calmly. Building trust is not easy, but by conducting appropriate information gathering and verification procedures, you can proceed with the contract with peace of mind. To protect your rights and interests, it is vital to possess specialized knowledge. If you still have anxieties or questions, please do not forget to consult an expert. I sincerely hope you can enter into a satisfactory contract with a trustworthy partner.