Cases of Questionable Performance of the Duty of Explanation/Liability for Non-Conformity by Real Estate Sellers/Agents, and Points to Note
Host: Financial Management Forums, Inc.
Date: Wednesday, January 12, 2022, 13:30 – 16:30
Venue: Online or Seminar Room in Greenhill Bldg. (10-8, Nihonbashi-Kayabacho 1-chome, Chuo-ku, Tokyo)
Lecturer: Kenji Sarukura
When selling or brokering the sale of land or a building, a failure to provide appropriate explanation of any defects of the property often results in a breach of the duty of explanation, liability for non-conformity or warranty against defects. However, it is not always clear in what cases and to what extent the investigation and the explanation are required.
In this seminar, the lecturer presents various cases of breach of the obligation to investigate or explain, and illustrates actions that need to be taken by the sellers/agents.
- Cases where the obligation to explain and/or investigate defects in real property arises
(1) Seller’s obligations and cases of breaches
(2) Real estate agent’s obligations and cases of breaches
(3) Points to note in the investigation
- Misunderstanding regarding liability for non-conformity
(1) Differences between non-conformity and defect warranty
(2) Psychological defect/disclosure guidelines
(3) Means for exercising rights to liability for non-conformity (advantageous to purchasers)
- Matters to note regarding sales contract clauses
(1) Typical contract clauses (non-conformity, damages, termination, etc.)
(2) As-is clause and seller’s exemption
(3) Acceptance of notified matters clause (representation of exemption from or non-existence of specified defects)
(4) Cases where the seller’s exemption clause is held invalid
(5) Representations and warranties (summary)