Article 31(1)A Real Estate Broker must carry out its operations for persons concerned with transactions in, and accordance with the principle of good faith.

(2)In engaging in entrustment-based agency services for transactions, etc., and other such functions as prescribed in Article 50-2, paragraph (1), a Real Estate Broker must take into account the need to promote restrictions on speculative transactions.

Article 32If a Real Estate Broker advertises concerning the operations thereof, the Real Estate Broker, with respect to the location, size, characteristics, or restrictions on the present or future usage of a Building Lot or building pertaining to said advertising; the environment, transportation, and other matters relating to convenience as they pertain thereto; the amounts and methods for the payment of the price, rents, and other consideration as they pertain thereto; and any mediation for monetary loans relating to the price or difference arising from the exchange of property, must not give an indication that significantly contradicts the facts or that which mislead others to believe that conditions are significantly more favorable than they really are or are advantageous.

Article 33Prior to the completion of construction work relating to the development of a Building Lot or the construction of a building, a Real Estate Broker is not to sell a Building Lot or building or engage in advertising tied to other operations subject to said construction work unless such permission as provided for in Article 29, paragraph (1) or (2) of the Urban Planning Act, verification as provided for in Article 6, paragraph (1) of the Building Standards Act (Act No. 201 of 1950), or any other permission or disposition based on a law or regulation required in connection with said construction work that is as specified by Cabinet Order has been granted.

Article 33-2A Real Estate Broker is not to conclude a sales agreement (including a reservation) under which the Real Estate Broker will constitute the seller of a Building Lot or building that it does not own.Provided, however, this does not apply in a case falling under either of the following items:

Article 34(1)If a Real Estate Broker advertises in connection with the sale, exchange, or loan of a Building Lot or building, the Real Estate Broker must clearly state whether it effects the said sale or exchange as a party concerned to the applicable agreement; effect said sale, exchange, or loan as an agent; or effect said sale, exchange, or loan as an intermediary (referred to hereinafter in the following paragraph as "Mode of Transaction").

(2)If a Real Estate Broker receives an order for the sale, exchange, or loan of a Building Lot or building, the Real Estate Broker must, without delay, clarify the terms of Mode of Transaction for the ordering party.

Article 34-2(1)If a Real Estate Broker concludes an agreement for mediating a sale or exchange of a Building Lot or building (referred to hereinafter in this article as "Mediation Agreement"), the Real Estate Broker must, without delay, prepare a document in which the matters as listed below are stated, affix the name and seal of the Real Estate Broker thereto, and issue said document to the requesting party:

(2)If a Real Estate Broker states an opinion regarding a price or appraised value as provided for in item (ii) of the preceding paragraph, the Real Estate Broker must clarify the basis on which said opinion is made.

(3)The effective term of a Mediation Agreement that prohibits a requesting party from making a request to have another Real Estate Broker provide mediation or agency services for a sale or exchange (hereinafter referred to as "Exclusive Mediation Agreement") may not exceed three months. Any prescribed period longer than this is deemed to be three months.

(4)The effective term as provided for in the preceding paragraph may be renewed by the submission of an application by the requesting party.Provided, however, that the effective term as extended may not exceed three months from the time of renewal.

(5)If a Real Estate Broker concludes an Exclusive Mediation Agreement; the Real Estate Broker must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, register the location, size, and characteristics of a Building Lot or building subject to said Exclusive Mediation Agreement; the price at which said Building Lot or building should be sold; and other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism with a person designated by the Minister of the Ministry of Land, Infrastructure, Transport and Tourism (hereinafter referred to as the "Real Estate Information Network System") in order to facilitate searches of agreement counterparties.

(6)A Real Estate Broker that carries out a registration under the preceding paragraph must, without delay, deliver a document attesting to said registration as prescribed in Article 50-6 to the requesting party.

(7)If a Real Estate Broker as provided for in the preceding paragraph concludes an agreement for selling or exchanging a Building Lot or building pertaining to a registration under paragraph (5), the Real Estate Broker must, without delay and pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, provide notification of the fact thereof to the Real Estate Information Network System pertaining to said registration.

(8)A Real Estate Broker that has concluded an Exclusive Mediation Agreement must submit a report on the processing status of operations pertaining to said Exclusive Mediation Agreement to the requesting party at least once every two weeks (or at least once a week for an Exclusive Mediation Agreement that includes special provisions to the effect that the requesting party is unable to conclude an agreement for sale or exchange with a person other than a counterparty searched by said Real Estate Broker).

(9)Any special provision contravening the provisions of any of paragraphs (3) through (6) or the preceding paragraph is hereby invalidated.

Article 34-3The provisions of the preceding article apply mutatis mutandis to an agreement requesting agency services for the sale or exchange of a Building Lot or building from a Real Estate Broker.

Article 35(1)A Real Estate Broker must have a transaction specialist provide, through the issuance of a document in which the matters as listed below are stated (or drawing if required under item (v)), explanations, at the minimum these matters to a counterparty on the sale, exchange, or loan of a Building Lot or building or to parties for the sale, exchange, or loan of a Building Lot or building subject to mediation to be carried out by the Real Estate Broker (hereinafter referred to as "Real Estate Brokerage Operation Counterparty") in connection with the Building Lot or building that said party intends to acquire or borrow during the period until the conclusion of an agreement for said sale, exchange, or loan:

(2)During the period until the conclusion of an agreement for said installment sale, a Real Estate Broker must have a transaction specialist provide, through the issuance of a document in which matters as listed in any of the items of the preceding paragraph and the matters as listed below are stated, explanations on these matters to a counterparty to the installment sale of a Building Lot or building (sale subject to the receipt of the price in whole or in part of the subject matter through two or more installments across a period of time not shorter than one year after the delivery thereof; the same applies hereinafter) in connection with the Building Lot or building that said party intends to acquire:

(3)A Real Estate Broker must have a transaction specialist provide, through the issuance of a document in which the matters as listed below are stated (or drawing if required under item (v)), with explanations at the minimum, on these matters to a counterparty to a sale in a case in which the Real Estate Broker constitutes the seller of a beneficial interest in trust pertaining to a Building Lot or building (limited to that for which said Real Estate Broker constitutes the consignor) in connection with the Building Lot or building constituting the asset in trust pertaining to the beneficial interest in trust that said party intends to acquire during the period until the conclusion of an agreement for said sale.Provided, however, that this is not to apply in a case as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism as being one in which the protection of the interests of said counterparty to a sale will not be hindered.

(4)If an explanation as provided for in any of the preceding three paragraphs is to be provided, a transaction specialist must present their Transaction Specialist Identification Card to the party to whom said explanation is to be provided.

(5)In issuing a document as provided for in any of paragraphs (1) through (3), the transaction specialist must affix their name and seal to said document.

Article 35-2If said Real Estate Broker is not general incorporated association member designated pursuant to the provisions of Article 64-2, paragraph (1), a Real Estate Broker during the period until the conclusion of an agreement for said sale, exchange, or loan, must provide an explanation on the matter as listed in item (i); or, if said Real Estate Broker is a member of a general incorporated association designated pursuant to the provisions of the same paragraph of the same article, explanations on matters as listed in items (i) and (ii) prior to the date for the commencement of repayment services as designated by the Minister of Land, Infrastructure, Transport and Tourism pursuant to the provisions of Article 64-8 paragraph (1) and matters as listed in item (ii) on or subsequent to said date for the commencement of repayment services:

Article 36Prior to the completion of construction work relating to the development of a Building Lot or the construction of a building, a Real Estate Broker is not to conclude an agreement for the sale or exchange of the Building Lot or building pertaining to said construction work as a party thereto or as an agent of a party thereto or mediate for said sale or exchange unless such permission as provided for in Article 29, paragraph (1) or (2) of the Urban Planning Act, verification as provided for in Article 6, paragraph (1) of the Building Standards Act, or any other permission or disposition based on a law or regulation required in connection with said construction work that is as specified by Cabinet Order has been granted.

Article 37(1)A Real Estate Broker must, without delay, issue a document in which the matters as listed below are stated to the counterparty to an agreement in connection with the sale or exchange of a Building Lot or building if said agreement is concluded with the Real Estate Broker as a party thereto; to the counterparty to an agreement in connection with the sale or exchange of a Building Lot or building and the person requesting agency services if said agreement is concluded with the Real Estate Broker acting as an agent for a party thereto; or to each party to an agreement in connection with the sale or exchange of a Building Lot or building if said agreement is concluded through the mediation of the Real Estate Broker:

(2)A Real Estate Broker must issue a document in which the matters as listed below are stated to the counterparty to an agreement in connection with the loan of a Building Lot or building if said agreement is concluded with the Real Estate Broker acting as an agent for a party thereto; or to each party to an agreement in connection with the sale or exchange of a Building Lot or building if said agreement is concluded through the mediation of the Real Estate Broker:

(3)If a Real Estate Broker prepares a document that should be issued pursuant to the provisions of the preceding two paragraphs, the Real Estate Broker must have the transaction specialist affix their name and seal to said document.

Article 37-2(1)With respect to a sales agreement for a Building Lot or building for which a Real Estate Broker constitutes the seller, a person who makes a purchase offer on said Building Lot or building, or buyer who concludes a sales agreement at a business office of said Real Estate Broker or elsewhere as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Ordinance (hereinafter referred to in this article as "Business Office, etc.") (excluding a buyer who makes a purchase offer at a Business Office and concludes a sales agreement at a location other than a Business Office) may revoke said purchase offer or cancel said sales agreement in writing (hereinafter referred to in this article as "Revocation of Offer, etc.") except in either of the following cases. In such a case, the Real Estate Broker may not demand payment of indemnification for damage or a penalty charge tied to a Revocation of Offer, etc.

(2)A Revocation of Offer, etc. is to take effect upon the issuance by the Offerer of a document as provided for in the first sentence of the preceding paragraph.

(3)If a Revocation of Offer, etc. is carried out, a Real Estate Broker must promptly refund the earnest money and other monetary amounts received at the time of the purchase offer or conclusion of sales agreement to the Offerer.

(4)Any special provision that contravenes any of the provisions of the preceding three paragraphs and is disadvantageous to the Offerer is hereby invalidated.

Article 38(1)Regarding the sales agreement for a Building Lot or building for which the Real Estate Broker constitutes the seller, on grounds of the non-fulfillment of obligations by a party governing the cost of liquidated damages or penalties for breach of agreement tied to the cancellation prescribed therein, the sum of said amount in said provision must not exceed two-tenths of the amount of the price of said Building Lot or building.

(2)The portion corresponding to any special provision that contravenes a provision of the preceding paragraph exceeding two-tenths of the amount of the price of said Building Lot or building is hereby invalidated.

Article 39(1)When a Real Estate Broker concludes a sales agreement for a Building Lot or building for which the Real Estate Broker constitutes the seller, the Real Estate Broker is not entitled to receive an earnest money of an amount exceeding two-tenths of the amount of the price of said Building Lot or building.

(2)If a Real Estate Broker receives an earnest money when concluding a sales agreement for a Building Lot or building for which the Real Estate Broker constitutes the seller, the buyer may forfeit said earnest money and said Real Estate Broker may repay double the amount thereof and thereby cancel the agreement at any time until one of the parties thereto commences with the performance of said agreement, irrespective of the properties of said earnest money.

(3)Any special provision that contravenes a provision of the preceding paragraph and that is disadvantageous to the buyer is hereby invalidated.

Article 40(1)A Real Estate Broker is not to prescribe any special provisions in a sales agreement for a Building Lot or building for which the Real Estate Broker constitutes the seller in connection with defect liability concerning the subject matter thereof that, with the exception of special provisions setting forth a period as prescribed in Article 566, paragraph (3) of the Civil Code (Act No. 89 of 1896) as applied mutatis mutandis pursuant to Article 570 of the same Act that is at least two years from the date of the delivery of the subject matter thereof, would be more disadvantageous to the buyer than provisions as prescribed in the same article.

(2)Any special provision that contravenes a provision of the preceding paragraph is hereby invalidated.

Article 41(1)A Real Estate Broker must not receive an earnest money t, etc., (money transferred as the price in whole or in part, and money transferred as an earnest money or under a different name where said money is allocated to the price and is paid on or after the date of the conclusion of the agreement and prior to the delivery of said Building Lot or building; the same applies hereinafter) from a buyer concerning the sale of a Building Lot or building pertaining to construction work relating to the development of the Building Lot or construction of the building prior to the completion of said construction work where they are the seller, unless measures as listed in either of the following items are first taken.Provided, however, that this is not to apply if the transfer of ownership of said Building Lot or building to the buyer has been registered; if the buyer has carried out a registration of ownership; or if the amount of the earnest money, etc., that said Real Estate Broker intends to receive (the amount obtained by adding the amount of earnest money, etc., that has already been received, if applicable) is no more than five-one hundredths of the amount of the price and no more than the amount as specified by Cabinet Order in consideration of the actual conditions of transactions undertaken by Real Estate Brokers and the protection of the interests of counterparties to said transactions.

(2)An Indemnity Agreement under item (i) of the preceding paragraph must stipulate that an insurance agreement satisfying the requirements as listed in the following items are concluded by the Bank with the buyer:

(3)The warranty insurance agreement under paragraph (1), item (ii), must satisfy the requirements listed in the following items:

(4)If a Real Estate Broker sells a Building Lot or building as prescribed in paragraph (1) (excluding any case, falling under the proviso of the same paragraph) and does not take measures as listed in item (i) or (ii) of the same paragraph, the buyer may choose to forgo payment of an earnest money, etc.

(5)A Real Estate Broker, pursuant to the provisions of Cabinet Order, after obtaining the consent of the buyer as prescribed in paragraph (1) can take measures , in lieu of a method as listed in either of the following items, a method for using an electronic data processing system or any other method for using information communications technology where said method is as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Ordinance as corresponding to a measure as listed in either of said items. In such a case, the person who carries out said measure as specified by the Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Ordinance is deemed to have carried out a measure as listed in either of said items.

Article 41-2(1)A Real Estate Broker must not receive an earnest money, etc., from a buyer concerning the sale of a Building Lot or building for which the Real Estate Broker is the seller (excluding any sale as prescribed in paragraph (1) of the preceding article) unless measures as listed in item (i) or (ii) of the same paragraph or the measures as listed in both of the following items are taken.Provided, however, that this does not apply if the transfer of ownership of said Building Lot or building to the buyer has been registered; if the buyer has carried out a registration of ownership; or if the amount of the earnest money, etc., that said Real Estate Broker intends to receive (the amount obtained by adding the amount of earnest money, etc., that has already been received, if applicable) is no more than one-tenth of the amount of the price and no more than the amount as specified by Cabinet Order in consideration of the actual conditions of transactions undertaken by Real Estate Brokers and the protection of the interests of counterparties to said transactions.

(2)An Earnest Money Deposition Agreement under item (i) of the preceding paragraph must satisfy the requirements as listed in the following items:

(3)A Pledge-Establishing Agreement under paragraph (1), item (ii), must stipulate that the duration of the established right of pledge is, at the minimum the period from the establishment of said right of pledge to the delivery of the Building Lot or building pertaining to the earnest money, etc., received by the Real Estate Broker.

(4)If a Real Estate Broker takes measures as listed in any of the items of paragraph (1) and has already received an earnest money, etc., the Real Estate Broker must deliver an amount that is equivalent to the amount of earnest money, etc., received by the Real Estate Broker (the amount obtained by deducting the amount already retained by the Designated Custodian, if applicable) to the Designated Custodian prior to payment of an earnest money, etc., by the buyer.

(5)If a Real Estate Broker sells a Building Lot or building as prescribed in paragraph (1) (excluding any case falling under the proviso of the same paragraph) and does not take measures as listed in item (i) or (ii) of paragraph (1) of the preceding article, does not take measures as listed in any of the items of paragraph (1), or does not deliver money under the preceding paragraph, the buyer may choose to forgo payment of an earnest money, etc.

(6)A Real Estate Broker may, pursuant to the provisions of Cabinet Order, obtain the consent of the buyer as prescribed in paragraph (1) and apply, in lieu of a method as listed in either of the following items, a method for using an electronic data processing system or any other method for using information communications technology where said method is as specified by Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism or Cabinet Office Ordinance as corresponding to a measure as listed in either of said items. In such a case, the person who carries out said measure as specified by Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Ordinance is deemed to have carried out a measure as listed in either of said items.

Article 42(1)If the obligation to pay installments under an installment sales agreement for a Building Lot or building for which a Real Estate Broker is the seller is not performed, the Real Estate Broker is to provide a written demand for payment to be made within a prescribed reasonable period of time of no less than thirty days and may not cancel the agreement on grounds that the payment of an installment is late or demand payment of an installment that is not yet due unless said obligation is not performed within said period.

(2)Any special provision that contravenes a provision of the preceding paragraph is hereby invalidated.

Article 43(1)If a Real Estate Broker carries out an installment sale of a Building Lot or building with the Real Estate Broker as the seller, the Real Estate Broker must fulfill obligations of the seller other than registration and delivery by the time the Building Lot or building pertaining to said installment sale is delivered to the buyer (if an amount of money exceeding three-tenths of the amount of the price has not yet been received by the time said Building Lot or building is delivered, by the time an amount of money exceeding three-tenths of the amount of the price is received).Provided, however, that this is not to apply if it is not expected that the buyer will make an application for the registration of a mortgage or a prior lien on the sale of Real Estate in order to secure the payment liabilities obligation in effect subsequent to the registration of the ownership of said Building Lot or building or establish a guarantor to guarantee said obligation.

(2)If a Real Estate Broker carries out an installment sale of a Building Lot or building with the Real Estate Broker as the seller, the Real Estate Broker must not obtain said Building Lot or building by transfer as collateral after the Building Lot or building pertaining to said installment sale is delivered to the buyer and payment of an amount of money exceeding three-tenths of the amount of the price is received.

(3)If a Real Estate Broker carries out a sale of a Building Lot or building with the Real Estate Broker as the seller and guarantees obligations pertaining to money that is borrowed by the buyer to be allocated to the price in whole or in part and that is subject to repayment over two or more installments across a period of at least one year after the delivery of said Building Lot or building, the Real Estate Broker must fulfill obligations of the seller not covered by registration and delivery by the time the Building Lot or building pertaining to said installment sale is delivered to the buyer. (If the amount of the price received by the time of the delivery of said Building Lot or building net of the amount of the obligation pertaining to said guarantee not yet repaid by the time of the delivery of said Building Lot or building does not exceed three-tenths of the amount of the price, by the time the received amount of the price net of the amount of the obligation pertaining to said guarantee not yet repaid exceeds three-tenths of the amount of the price.) Provided, however, that this is not to apply if it is not expected that the buyer will make an application for the registration of a mortgage or a prior lien on the sale of Real Estate in order to secure the right of indemnity obtained upon the performance of said guarantee obligation by the Real Estate Broker and the payment liabilities obligation in effect subsequent to the registration of the ownership of said Building Lot or building by the buyer or establish a guarantor to guarantee said obligation.

(4)If a Real Estate Broker carries out a sale of a Building Lot or building with the Real Estate Broker as the seller and guarantees obligations pertaining to money that is borrowed by the buyer to be allocated to the price of said Building Lot or building in whole or in part that is subject to repayment over two or more installments across a period of at least one year after the delivery of said Building Lot or building, the Real Estate Broker is not to obtain said Building Lot or building by transfer as collateral after the Building Lot or building pertaining to said sale is delivered to the buyer and payment of the received amount of the price net of the amount of the obligation pertaining to said guarantee not yet repaid exceeding three-tenths of the amount of the price is received.

Article 44A Real Estate Broker must not unduly delay the registration or delivery of a Building Lot or building or the value of the payment affecting the transactions that should be carried out concerning the operations thereof.

Article 45A Real Estate Broker must not divulge any secrets learned with respect to any matter handled in the course of the operations thereof unless there are justifiable grounds for doing so. The same is to apply even after the Real Estate Broker ceases to engage in the Real Estate Brokerage.

Article 46(1)The amount of remuneration that a Real Estate Broker may receive concerning the provision of agency or mediation services for the sale, exchange, or loan of a Building Lot or building is to be as set forth by the Minister of Land, Infrastructure, Transport and Tourism.

(2)A Real Estate Broker is not to receive remuneration exceeding the amount as provided for in the preceding paragraph.

(3)If the Minister of Land, Infrastructure, Transport and Tourism prescribes an amount of remuneration as provided for in paragraph (1), said minister must issue an announcement thereof.

(4)A Real Estate Broker must post the amount of remuneration as prescribed by the Minister of Land, Infrastructure, Transport and Tourism pursuant to the provisions of paragraph (1) at a conspicuous location accessible to the public at each office operated thereby.

Article 47A Real Estate Broker must not engage in any of the following actions against the Real Estate Brokerage Operation Counterparty concerning the operations of the Real Estate Broker:

Article 47-2(1)No Real Estate Broker or agent, employee, or other worker thereof (hereinafter referred to in this article as "Real Estate Broker, etc.") must not make definitive conclusions that would cause a Real Estate Brokerage Operation Counterparty to mistakenly believe that the generation of profits is certain when soliciting for the conclusion of an agreement pertaining to the Real Estate Brokerage.

(2)A Real Estate Broker, etc., must not use intimidation to a Real Estate Brokerage Operation Counterparty in order to have an agreement pertaining to the Real Estate Brokerage concluded, or hinder the revocation or cancellation of an agreement application pertaining to the Real Estate Brokerage.

(3)In addition to what is as prescribed in the preceding two paragraphs, a Real Estate Broker, etc., must not engage in conduct that relates to the conclusion of or the hindrance of the revocation or cancellation of an application for an agreement pertaining to the Real Estate Brokerage and that is, as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and Cabinet Office Ordinance as lacking in terms of the protection of the interests of a Real Estate Brokerage Operation Counterparty as prescribed in Article 35, paragraph (1), item (14)(a) or as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism as lacking in terms of the protection of other interests of a Real Estate Brokerage Operation Counterparty.

Article 48(1)A Real Estate Broker is not to, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, have an employee engage in the operations of the Real Estate Broker unless it has said employee carry an identification card proving that said employee is an employee thereof.

(2)An employee must present their identification card as provided for in the preceding paragraph if a request is made by a person concerned with transactions.

(3)A Real Estate Broker must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, prepare an employee roster and state therein the names, addresses, and numbers of identification cards as provided for in paragraph (1) of employees and any other matter as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism therein for each business office operated.

(4)If a request is made by a person concerned with transactions, the employee roster as provided for in the preceding paragraph must be made available for inspection to said person by the Real Estate Broker.

Article 49A Real Estate Broker must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, prepare books relating to the operations thereof for each business office operated thereby and state therein, for each transaction relating to the Real Estate Brokerage, the date, address and area of the Building Lot or building pertaining to said transaction and any other matter as specified by Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism.

Article 50(1)A Real Estate Broker must put up a sign as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism at a conspicuous location accessible to the public at each Business Office, etc., and any other location at which the operations of the Real Estate Broker are carried out other than a Business Office, etc., as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism.

(2)A Real Estate Broker must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, provide a notification in advance of the locations of, operational contents of, periods during which operations are to be carried out for, and names of exclusive transaction specialists at locations as specified by Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism as provided for in Article 15, paragraph (1), to the Minister of Land, Infrastructure, Transport and Tourism or prefectural governor from whom its license was obtained and to the prefectural governor with jurisdiction over said locations.

Article 50-2(1)If, in conjunction with the entrustment in whole or in part of determinations pertaining to the selling, exchanging, or lending of Building Lots or buildings pursuant to an agreement as listed below, the approval of the Minister of Land, Infrastructure, Transport and Tourism is obtained, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, by a Real Estate Broker in advance for the provision of agency or mediation services for said transactions based on said determinations (hereinafter referred to as "Entrustment-Based Agency Services for Transactions, etc."), the provisions of Articles 34-2 and 34-3 does not apply to Entrustment-Based Agency Services for Transactions, etc. and other such functions to be engaged in by said Real Estate Broker.

(2)If a Real Estate Broker that has obtained the approval as provided for in the preceding paragraph (hereinafter referred to as "Approved Real Estate Broker") engages in Entrustment-Based Agency Services for Transactions, etc., actions as prescribed in each of the items below does not need to be carried out for the counterparty to the agreement as listed in the applicable item of the preceding paragraph pertaining to said Entrustment-Based Agency Services for Transactions, etc. irrespective of the corresponding provisions as listed in said item below:

Article 50-2-2(1)The Minister of Land, Infrastructure, Transport and Tourism may attach conditions to the approval as provided for in paragraph (1) of the preceding article and revise said conditions.

(2)The conditions as provided for in the preceding paragraph must not be limited to those that are minimally required to secure the fairness of transactions involving Real Estate, and must not impose any undue obligation on a person who has obtained said approval.

Article 50-2-3(1)If a person intending to obtain an approval as provided for in Article 50-2, paragraph (1), falls under any of the following items, the Minister of Land, Infrastructure, Transport and Tourism must not grant said approval:

(2)If the Minister of Land, Infrastructure, Transport and Tourism does not grant approval as provided for in Article 50-2, paragraph (1), said minister must provide a written notification thereof with grounds for said decision included therein to the applicant.

(3)If the Minister of Land, Infrastructure, Transport and Tourism grants approval as provided for in Article 50-2, paragraph (1), and said Real Estate Broker has obtained a license granted by a prefectural governor, the Minister of Land, Infrastructure, Transport and Tourism must, without delay, provide a notification of the fact thereof to said prefectural governor.

Article 50-2-4A case in which a financial service specialist (a financial service specialist as prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act) or a financial instruments intermediary service provider (a financial instruments intermediary as prescribed in paragraph (12) of the same article) constituting a Real Estate Broker serves as the seller of rights based on a partnership agreement (a partnership agreement as prescribed in Article 667 paragraph (1) of the Civil Code), silent partnership agreement (a silent partnership agreement as prescribed in Article 535 of the Commercial Code (Act No. 48 of 1899)), or limited partnership agreement for investment (a limited partnership agreement for investment as prescribed in Article 3, paragraph (1) of the Limited Partnership Act for Investment (Act No. 90 of 1998)) pertaining to trust beneficial rights pertaining to Building Lots or buildings or to an investment business relating to said beneficial rights (hereinafter referred as "Real Estate Trust Beneficiary Rights") or provides agency or intermediation services for the selling of Real Estate Trust Beneficiary Rights is deemed to be a case in which said Real Estate Broker is a seller of trust (limited to that for which said Real Estate Broker is the consignor) beneficiary rights pertaining to Building Lots or buildings and the provisions of Article 35, paragraphs (3) through (5) apply. In such a case, "to a counterparty to a sale" as referred to the main text of in paragraph (3) of the same article is to be read as "to a counterparty to a sale or to the person who requested agency services or parties to a sale pertaining to intermediation services (hereinafter referred to as "Counterparty to the Sale of Real Estate Beneficiary Rights")"; "pertaining to the beneficial interest in trust" as referred to in the same paragraph is to be read as "pertaining to Real Estate trust beneficiary rights as prescribed in Article 50-2-4"; as referred "to a counterparty" in the proviso of the same paragraph; and "counterparty to the sale of said beneficial interest in trust" as referred to in item (vii) of the same paragraph is to be read as "Counterparty to the Sale of Real Estate Beneficiary Rights".

Article 50-2-5(1)For a designation under Article 34-2, paragraph (5) (hereinafter referred to in this Section as "Designation"), the consent of a person who satisfies the conditions as listed below and who is deemed to be capable of properly and reliably carrying out duties as listed in the items of paragraph (1) of the following article must be obtained as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism:

(2)If the Minister of Land, Infrastructure, Transport and Tourism carries out a Designation, said minister must issue a public notice of the name of the Real Estate Information Network System, location of the principal business office thereof, date of said designation, and any other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism.

(3)If a Real Estate Information Network System intends to change the name or location of the principal business office thereof, the Real Estate Information Network System must notify the fact thereof to the Minister of Land, Infrastructure, Transport and Tourism by no later than two weeks prior to the intended date of said change.

(4)If a notification under the preceding paragraph is filed, the Minister of Land, Infrastructure, Transport and Tourism must issue a public notification of the fact thereof.

Article 50-3(1)Pursuant to the provisions of this Section, a Real Estate Information Network System is to carry out operations as listed below:

(2)A Real Estate Information Network System may, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, entrust some of the operations thereof to another person upon obtaining the approval of the Minister of Land, Infrastructure, Transport and Tourism.

Article 50-4A Real Estate Information Network System must not, in connection with the performance of operations as listed in paragraph (1), items (i) and (ii) of the preceding article (hereinafter referred to as in this Section as "Registration Operations"), improperly engage in the discriminatory treatment of a person intending to register a Building Lot or building or another Real Estate Broker intending to utilize said Real Estate Information Network System.

Article 50-5(1)A Real Estate Information Network System must prescribe regulations concerning Registration Operations (hereinafter referred to as "Regulations Governing Registration Operations") and have them approved by the Minister of Land, Infrastructure, Transport and Tourism. The same applies if said regulations are revised.

(2)The method of implementing Registration Operations (including any method with respect to the conclusion of agreements with other Real Estate Information Network Systems concerning such matters as coordination and the provision of proxy services involving Registration Operations), fees relating to Registration Operations, and other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism must be prescribed in the Regulations Governing Registration Operations. In such a case, said fees must be limited to the coverage of appropriate costs for the efficient performance of operations and must be fair and reasonable.

(3)If the Minister of Land, Infrastructure, Transport and Tourism deems that Regulations Governing Registration Operations as approved under paragraph (1) have become inappropriate for the proper and reliable implementation of Registration Operations, said minister may order a Real Estate Information Network System to revise said Regulations Governing Registration Operations.

Article 50-6If a registration under Article 34-2, paragraph (5), has been carried out, a Real Estate Information Network System must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, issue a document attesting to said registration to the Real Estate Broker that carried out said registration.

Article 50-7A Real Estate Information Network System, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, must officially announce the numbers of sales or exchange agreements concluded each month and other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism with respect to Building Lots or buildings registered with said Real Estate Information Network System.

Article 50-8(1)A Real Estate Information Network System must prepare a business plan, revenue and expenditure budget each business year and have them approved by the Minister of Land, Infrastructure, Transport and Tourism prior to the commencement of the corresponding business year (or, for the business year in which falls the date on which a Designation was obtained, without delay upon obtaining said Designation). The same is to apply when the Real Estate Information Network System intends to revise a business plan or revenue and expenditure budget.

(2)A Real Estate Information Network System must prepare a business report and statement of accounts each business year and submit them to the Minister of Land, Infrastructure, Transport and Tourism within three months after the end of the corresponding business year.

Article 50-9No officer or employee of a Real Estate Information Network System or person who was formerly in such a position are to use information obtained concerning Registration Operations for a purpose other than operations as prescribed in Article 50-3, paragraph (1).

Article 50-10(1)No appointment or dismissal of an officer of a Real Estate Information Network System will take effect unless approved by the Minister of Land, Infrastructure, Transport and Tourism.

(2)If an officer of a Real Estate Information Network System engages in conduct contravening this Act (including an order or disposition based on this Act) or the Regulations Governing Registration Operations as approved pursuant to the provisions of Article 50-5, paragraph (1), or engages in considerably inappropriate conduct in connection with Registration Operations, the Minister of Land, Infrastructure, Transport and Tourism may order the Real Estate Information Network System to dismiss said officer.

Article 50-11If the Minister of Land, Infrastructure, Transport and Tourism deems it necessary to secure the proper implementation of operations as prescribed in Article 50-3, paragraph (1), said minister may issue an order required for supervision in connection with said operations to a Real Estate Information Network System.

Article 50-12(1)If the Minister of Land, Infrastructure, Transport and Tourism deems it necessary to secure the proper implementation of operations as prescribed in Article 50-3, paragraph (1), said minister may request required reports concerning the status of said operations from a Real Estate Information Network System or have said ministers officials, enter the business office of the Real Estate Information Network System and inspect the status of operations or the equipment, books, documents, and other materials and objects of the Real Estate Information Network System.

(2)An official conducting an on-site inspection pursuant to the provisions of the preceding paragraph must carry personal identification and present said identification if requested to do so by a concerned person.

(3)The authority to conduct an on-site inspection under paragraph (1) must not be interpreted as having been accorded for the purpose of a criminal investigation.

Article 50-13(1)If a Real Estate Information Network System intends to suspend or discontinue Registration Operations in whole or in part, the Real Estate Information Network System must provide a notification of matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism to the Minister of Land, Infrastructure, Transport and Tourism by no later than thirty days prior to the intended date of suspension or abolition.

(2)If a notification as provided for in the preceding paragraph is submitted, the Minister of Land, Infrastructure, Transport and Tourism must issue a public notification of the fact thereof.

Article 50-14(1)If a Real Estate Information Network System falls under any of the following items, the Minister of Land, Infrastructure, Transport and Tourism may rescind the designation of said Real Estate Information Network System or order said Real Estate Information Network System to suspend Registration Operations in whole or in part for a prescribed period:

(2)The provisions of Article 16-15, paragraphs (3) through (5) are to apply mutatis mutandis to any hearings pertaining to a disposition under the preceding paragraph.

(3)If the Minister of Land, Infrastructure, Transport and Tourism carries out a disposition under paragraph (1), said minister must issue a public notification of the fact thereof.

Article 50-15(1)If a notification of the suspension or abolition of Registration Operations in whole or in part under Article 50-13, paragraph (1), has been made; a Designation has been rescinded or the suspension of Registration Operations in whole or in part has been ordered pursuant to the provisions of paragraph (1) of the preceding article; or it is deemed necessary where it has become difficult for a Real Estate Information Network System to implement Registration Operations in whole or in part due to a natural disaster or for other reasons, the Minister of Land, Infrastructure, Transport and Tourism may have another Real Estate Information Network System carry out said Registration Operations in whole or in part pursuant to approved Regulations Governing Registration Operations as provided for in Article 50-5, paragraph (1).

(2)If the Minister of Land, Infrastructure, Transport and Tourism determines that Registration Operations are to be carried out by another Real Estate Information Network System pursuant to the provisions of the preceding paragraph, said minister must, as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, issue a public notice of the fact thereof.

(3)In addition to what is as prescribed in the preceding two paragraphs, transitional measures that would be required if a reason as prescribed in paragraph (1) were to arise may be specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism to the extent that is determined to be reasonably necessary.

Article 51(1)The designation as provided for in Article 41, paragraph (1), item (i) (hereinafter referred to in this Section as "Designation") is to be made through the application of a person intending to engage in a business to guarantee the obligation to refund earnest money s, etc., received by Real Estate Brokers from buyers in connection with the sale of Building Lots or buildings (hereinafter referred to as "Earnest Money Guarantee Business").

(2)A person intending to obtain a Designation must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, submit an application form on which matters as listed below are stated to the Minister of Land, Infrastructure, Transport and Tourism:

(3)Documents as listed below must be attached to the application form as provided for in the preceding paragraph:

(4)The extent of what the guarantee is for; matters relating to the authority of branch offices and other business offices as specified by Cabinet Order; limits on guarantees; limits on the acceptance of guarantees consigned from guarantee consignors; matters relating to the method by which an Indemnity Agreement is to be concluded; matters relating to criteria for rejecting a guarantee consignment; and other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism must be stated in a statement of business procedures as provided for in item (i) of the preceding paragraph.

Article 52If the Minister of Land, Infrastructure, Transport and Tourism deems that a person who has applied for a Designation falls under any of the following items, said minister must not carry out said Designation:

Article 53If there has been a change to a matter as listed in any of the items of Article 51, paragraph (2), or document as listed in item (i) or (iii) of paragraph (3) of the same article, a Designated Guarantee Agency must, pursuant to the provisions of an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, notify the fact thereof to the Minister of Land, Infrastructure, Transport and Tourism within two weeks.

Article 54(1)If, in addition to a case in which a Designation is rescinded pursuant to the provisions of Article 62, paragraph (2), a Designated Guarantee Agency does not commence an Earnest Money Guarantee Business within three months from the date on which it obtains a Designation or suspends said Earnest Money Guarantee Business for a continuous period of three or more months, the Minister of Land, Infrastructure, Transport and Tourism may rescind the Designation of said Designated Guarantee Agency.

(2)The provisions of Article 16-15, paragraphs (3) through (5), apply mutatis mutandis to any hearing pertaining to a disposition under the preceding paragraph.

Article 55(1)If a Designated Guarantee Agency comes to fall under any of the following items, the person as specified in the applicable item must provide a notification of the fact thereof to the Minister of Land, Infrastructure, Transport and Tourism within two weeks:

(2)If a notification has been submitted pursuant to the provisions of any of items (ii) through (iv) of the preceding paragraph, the Designation ceases to be effective.

Article 56(1)A Designated Guarantee Agency must not engage in business other than the Earnest Money Guarantee Business; provided, however, that this shall not does not apply to engagement in business that is found not interfere with the protection of the buyer's interests, if this has been approved by the Minister of Land, Infrastructure, Transport and Tourism.

(2)If a Designated Guarantee Agency has obtained a Designation as provided for in Article 41-2, paragraph (1), item (i), it is deemed to have obtained the approval as provided for in the proviso of the preceding paragraph.

Article 57(1)A Designated Guarantee Agency must post the larger amount as listed in the following as a liability reserve for each business year, if there is a guarantee agreement which is still in effect as of the end of a business year:

(2)If a Designated Guarantee Agency posts a liability reserve pursuant to the provisions of the preceding paragraph, the amount posted is to include the amount of losses for the purpose of calculating the amount of income posted thereby for the corresponding business year or the amount of consolidated income posted thereby for the corresponding consolidated business year under the Corporation Tax Act (Act No. 34 of 1965).

(3)The amount of the liability reserve included in the amount of losses pursuant to the provisions of the preceding paragraph is to include the amount of profits for the purpose of calculating the amount of income posted thereby for the following business year or the amount of consolidated income posted thereby for the following consolidated business year under the Corporation Tax Act.

Article 58If there is an amount as listed in any of the following items, a Designated Guarantee Agency must accumulate the corresponding amount as listed in said each item as an outstanding claims reserve in each settlement term:

Article 59(1)A Designated Guarantee Agency must, pursuant to the provisions of its articles of association, set up a payment guarantee fund.

(2)If a Designated Guarantee Agency is unable to pay a guarantee obligation out of its liability reserve, it may use its payment guarantee fund only for allocation to repayment of said guarantee obligation.

Article 60If the sum of the amounts of guarantee obligations pertaining to an Indemnity Agreement to be concluded by and between a Designated Guarantee Agency and a Real Estate Broker exceeds an amount as specified by Cabinet Order, said Designated Guarantee Agency is not to conclude said Indemnity Agreement.

Article 61If the Minister of Land, Infrastructure, Transport and Tourism deems it necessary and appropriate to protect the interests of a buyer where a Designated Guarantee Agency comes to fall under the provisions of any of Article 52, items (ii) through (iv), said minister may order said Designated Guarantee Agency to take measures required for the amelioration of the status of property or the operations of the business thereof to the extent of said necessity.

Article 62(1)If a Designated Guarantee Agency falls under any of the following items or contravenes a provision of this Act, the Minister of Land, Infrastructure, Transport and Tourism may issue instructions as necessary to said Designated Guarantee Agency:

(2)If a Designated Guarantee Agency falls under any of the following items, the Minister of Land, Infrastructure, Transport and Tourism may rescind the Designation of said Designated Guarantee Agency or order said Designated Guarantee Agency to suspend its Earnest Money Guarantee Business in whole or in part for a prescribed period not longer than six months:

(3)If the Minister of Land, Infrastructure, Transport and Tourism intends to issue necessary instructions pursuant to the provisions of paragraph (1) or an order to suspend the Earnest Money Guarantee Business in whole or in part pursuant to the provisions of the preceding paragraph, said minister must hold a hearing irrespective of the classification of procedures for stating opinions under Article 13, paragraph (1), of the Administrative Procedures Act.

(4)The provisions of Article 16-15, paragraphs (3) through (5), is to apply mutatis mutandis to any hearing that pertains to a disposition under paragraph (1) or (2).

Article 63(1)A Designated Guarantee Agency must, prior to the commencement of each business year, prepare a business plan in which revenue and expenditure estimates and other matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism are stated and submit it to the Minister of Land, Infrastructure, Transport and Tourism.

(2)If a Designated Guarantee Agency changes a matter as stated in a business plan, it must, without delay, provide a notification of the fact thereof to the Minister of Land, Infrastructure, Transport and Tourism.

(3)A Designated Guarantee Agency must, for each business year, prepare a business report according to a format as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism and submit it to the Minister of Land, Infrastructure, Transport and Tourism within three months after the end of each business year.

Article 63-2(1)If the Minister of Land, Infrastructure, Transport and Tourism deems it necessary to secure the proper operations of an Earnest Money Guarantee Business, said minister may issue an order to a Designated Guarantee Agency to have a report or materials concerning the operations thereof submitted, or have said ministers officials enter the location where the operations thereof are carried out and inspect the status of operations or properties or the books, documents, and other materials and objects relating to operations.

(2)An official conducting an on-site inspection pursuant to the provisions of the preceding paragraph must carry personal identification and present said identification if requested to do so by a concerned person.

(3)The authority to conduct an on-site inspection under paragraph (1) must not be interpreted as having been accorded for the purpose of a criminal investigation.

Article 63-3(1)The designation as provided for in Article 41-2, paragraph (1), item (i), (hereinafter referred to in this Section as "Designation") is to be made through the application of a person intending to engage in a business to receive earnest money , etc., on behalf of Real Estate Brokers and retain money of amounts equivalent to the amounts of earnest money, etc., received by said Real Estate Brokers in connection with the sale of Building Lots or buildings (excluding any sale as prescribed in Article 41, paragraph (1)) (hereinafter referred to as " Earnest Money Safekeeping Business").

(2)The provisions of the preceding Section (excluding Article 51, paragraph (1); Articles 57 through 60; and Article 62, paragraph (2), item (vi)) is to apply mutatis mutandis to a Designated Custodian. In such a case, "Cabinet Order" as referred to in Article 51, paragraph (2), item (iii), is read as "an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism"; "provisions of an Indemnity Agreement" as referred to in paragraph (3), item (iii) of the same article and Article 52, item (iv), is read as "provisions of an Earnest Money Deposition Agreement"; "The scope of the guarantee purpose; matters relating to the authority of branch offices and other business offices as specified by Cabinet Order; limits on guarantees; limits on the acceptance of guarantees consigned from guarantee consignors; matters relating to the method by which an Indemnity Agreement is to be concluded; matters relating to criteria for rejecting a guarantee consignment" as referred to in Article 51, paragraph (4), is read as "Matters relating to the retention of earnest moneys , etc."; "pursuant to the provisions of [...]" as referred to in Article 52, items (v) and (vii)(d), is read as "pursuant to the provisions of [...] or Article 64, paragraph (1)"; "document" as referred to in Article 53 is read as "document (excluding a statement of business procedures)"; and "Article 41-2, paragraph (1), item (i)" as referred to in Article 56, paragraph (2), is read as "Article 41, paragraph (1), item (i)".

Article 63-4If a Designated Custodian intends to change a statement of business procedures as provided for in Article 51, paragraph (3), item (i), as applied mutatis mutandis pursuant to paragraph (2) of the preceding article, the Designated Custodian must obtain the approval of the Minister of Land, Infrastructure, Transport and Tourism.

Article 63-5A Designated Custodian must, as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, prepare a trust money safekeeping book, state therein matters as specified by an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism, and retain said book.

Article 64(1)If, in addition to a case in which a Designation is rescinded pursuant to the provisions of Article 54, paragraph (1), or Article 62, paragraph (2), as applied mutatis mutandis pursuant to Article 63-3, paragraph (2), a Designated Custodian falls under either of the following items, the Minister of Land, Infrastructure, Transport and Tourism may rescind the Designation of said Designated Custodian or order said Designated Custodian to suspend its Earnest Money Safekeeping Business in whole or in part for a prescribed period not longer than six months:

(2)If the Minister of Land, Infrastructure, Transport and Tourism intends to order the suspension of an Earnest Money Safekeeping Business in whole or in part pursuant to the provisions of the preceding paragraph, said minister must hold a hearing irrespective of the classification of procedures for stating opinions under Article 13, paragraph (1) of the Administrative Procedures Act.

(3)The provisions of Article 16-15, paragraphs (3) through (5), does apply mutatis mutandis to any hearing that pertains to a disposition under paragraph (1).