Real Estate Glossary
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契約期間 – Contract period
Generally, it is one year or two years. It is possible to cancel within the period. However, if you breach your contract within a short period of time, you may have to pay a penalty fee.
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仲介手数料 – Brokerage fee
A commission fee paid by the person who accepted the intermediation to the intermediary (real estate company).
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更新料 – Renewal fee
This is the fee to be paid to renew the contract when it expires. This commercial practice vary by region within Japan. In Osaka, there is almost no renewal fee.
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礼金 – Key money
In Japan, key money is an amount of money that a new tenant gives to a landlord before moving in, as “thanks” for being allowed to rent an apartment, house, etc. This money will not be returned after the contract ends.
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敷金(保証金) – Deposit
This is the amount of money that is deposited with the landlord when signing a contract. The landlord will use it to cover unpaid rent and repairs when you move out. If there are no problems, the money is basically returned.
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手付金 – Earnest money
A system in which a portion of the contract fee is paid at the time of signing the contract. Please note that if you cancel after the important matters have been explained, there will be no refund.
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前家賃 – Advance rent
That means you have to pay next month’s rent in current month.
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日割家賃 – Daily rent
If you sign the contract in the middle of the month, the rent will be calculated on a daily basis.
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共益費 – Common area fee
The costs of elevator maintenance, electricity, cleaning in the common areas of the building are shared among the tenants.
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鍵交換代 – Key exchange fee
The cost of replacing the locks at the time of removal will be charged.
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火災保険料 – Fire insurance premium
This insurance covers your belongings in case of a fire or water leak while renting. The contract period is generally 1 to 2 years. Renewal is required.
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保証会社 – Guarantee company
A company that will pay the rent to the landlord in advance if you are unable to pay the rent during the contract period. In many cases, people are required to join this company regardless of whether they have a guarantor or not.
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入居審査 – Tenant screening
Before signing a contract, the real estate management company, landlord, and insurance company will review the applicant’s profile to see if it meets the conditions for occupancy.
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重要事項説明 – Explanation of important matters
The Real Estate Transaction Business Law stipulates that real estate agents must explain the contents, conditions, special terms, etc. of the contract in writing to the buyer before signing.
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特約 – Special terms
Making special promises that are not written in the contract in advance.