JapanDisclosure differs from reality. Broker's liability?
In Japan, if a real estate broker’s disclosure differs from reality, the broker may be liable for damages under the Real Estate Transaction Business Act and Civil Code for breach of duty or fraudulent misrepresentation.
What the Law Says
Japanese law imposes strict disclosure obligations on real estate brokers. When information provided to buyers or tenants materially differs from reality, statutory liability may arise under two key laws.
Under the Real Estate Transaction Business Act (Act No. 100 of 1971), brokers must provide accurate written disclosures about property conditions, legal restrictions, and transaction terms before contract execution. Failure to do so violates their statutory duty of care.
The Civil Code (Act No. 89 of 1896) governs contractual liability: if a broker knowingly provides false information or omits material facts affecting the decision to contract, the affected party may claim damages or rescind the contract.
Importantly, Article 35-2 of the Real Estate Transaction Business Act requires brokers to retain records of all disclosures for five years — supporting enforcement of accountability.
Statutory TextA real estate transaction business operator shall, prior to the conclusion of a contract, deliver to the other party a written document stating matters prescribed by Cabinet Order concerning the property and transaction.
— Real Estate Transaction Business Act, s. 35 — Disclosure Obligation
Statutory TextIf a real estate transaction business operator fails to deliver the written document required under the preceding Article… the operator shall be subject to a penalty of imprisonment with work for not more than one year or a fine of not more than one million yen.
— Real Estate Transaction Business Act, s. 74 — Penalty for Non-Disclosure
Statutory TextA party who has been induced to make a declaration of intention by fraud may rescind that declaration.
— Civil Code, s. 96 — Rescission for Fraud
What to Do
Confirm whether the inaccurate disclosure was made in writing before contract signing.
Send a written notice to the broker demanding correction or compensation within 3 months of discovery.
File a complaint with the local Prefectural Governor or the Consumer Affairs Agency.
If unresolved, file a civil claim for damages or rescission within 2 years of discovering the discrepancy (or 5 years from contract date, whichever expires first).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-09.