Found a Defect After Handover? Notice Deadlines and Remedies Under Japan's Contract Non-Conformity Rules
You bought a used home in Japan, took delivery, and then discovered a roof leak or termite damage. For overseas buyers who could not inspect in person, this is a particularly stressful moment. Japan's Civil Code addresses it through the seller's liability for goods that do not conform to the contract.
What you can claim, and how long you have to notify the seller, depends heavily in practice on whether the seller is a real estate company or an individual. This article covers the basics every buyer should know.
What is contract non-conformity liability?
Contract non-conformity liability is the responsibility a seller bears when the property delivered does not match the contract. It replaced the older concept of warranty against hidden defects in the 2020 Civil Code reform. Whether something is non-conforming is generally judged against what the contract and the explanation of important matters actually said.
For example, if the contract states there are no leaks and the roof leaks, that may count as non-conformity. If it clearly says there are signs of past leaks and the property is delivered as is, that point is generally harder to claim. What you verify in writing before signing largely determines your rights after handover.
What can a buyer ask the seller to do?
The Civil Code gives buyers four remedies: (1) supplementary performance such as repair, (2) a price reduction, (3) damages, and (4) cancellation of the contract. As a general rule, a buyer first asks for repair and moves to a price reduction if repair is not made.
Cancellation is understood to be available only when the non-conformity is not minor. In practice, buyers often obtain a repair estimate and use that figure to negotiate a price reduction or cost sharing.
Rough guide to notice periods and liability periods
- Civil Code notice deadline
- 1year
- Minimum for corporate sellers
- 2years +
- Example for individual sellers
- 3months
- Main parts of new homes
- 10years
From when you learn of it (Civil Code Art. 566)
From handover; Building Lots and Buildings Transaction Business Act Art. 40
Set by contract, not by law
Housing Quality Assurance Act Art. 95
By when must you notify the seller?
Article 566 of the Civil Code provides that, for non-conformity in type or quality, a buyer who does not notify the seller within one year of learning of it generally loses the right to claim repair, a price reduction, and similar remedies. What is required is notice; it is generally understood that you do not need to file a lawsuit within that year.
In practice, however, contracts often shorten the liability period. In private sales of used homes, periods of around three months are not unusual. If the period is extremely short or liability is excluded entirely, make sure you fully understand it before signing.
Legal basis
- Civil Code Art. 562
- If the delivered item does not conform to the contract, the buyer may demand supplementary performance such as repair.
- Civil Code Art. 563
- If repair is not made after a reasonable period set by the buyer, among other cases, the buyer may demand a price reduction.
- Civil Code Art. 566
- For non-conformity in type or quality, the buyer generally loses the right to demand repair or a price reduction unless notice is given within one year of learning of it.
- Building Lots and Buildings Transaction Business Act Art. 40
- Where a licensed business is the seller, special terms less favorable to the buyer than the Civil Code are void, except a term setting the notice period at two years or more from handover.
- Housing Quality Assurance Act Art. 95
- For new homes, liability for the main structural parts and the parts preventing rainwater intrusion is set at ten years from handover.
How do corporate and individual sellers differ?
When the seller is a real estate company, Article 40 of the Building Lots and Buildings Transaction Business Act restricts terms unfavorable to the buyer. Even if the notice period is shortened, the term is not valid unless it is at least two years from handover.
When the seller is an individual, no such restriction applies, and shortened periods or full exclusions can be agreed between the parties. For individually owned properties, it is therefore important to check beforehand whether a building inspection and existing-home sales defect insurance are available.
How it generally works by seller type
| Seller / property | Notice period guide | Main basis |
|---|---|---|
| Real estate company (used) | Two years or more from handover (floor for shortening terms) | Business Act Art. 40 |
| Individual (used) | Set by contract (around three months in some cases) | Civil Code Art. 566 / contract |
| Real estate company (new) | Ten years for main parts from handover | Housing Quality Act Art. 95 |
Common gaps and how to close them
✕The buyer noticed a defect and started repairs at their own cost without telling the seller, leaving no proof of notice.
→Take dated photos as soon as you notice, and notify the seller and agent in writing or by email.
✕The contract set liability at one month from handover, and the deadline had passed when the defect appeared.
→Check the period before signing, and if it is short, compensate with an inspection or defect insurance.
✕The buyer skipped over a note about past leak marks in the explanation document and could not later claim non-conformity.
→Review every known defect listed in writing before signing, and keep a record of questions you ask.
✕The buyer assumed a two-year liability period applied even though the seller was an individual.
→Confirm the seller type, and for individuals read the contract's period and exclusion clauses individually.
Checklist before and after handover
- I confirmed whether the seller is a company or an individual
- I read the liability period and exclusion clauses in the contract
- I reviewed every known defect listed in the explanation document
- I decided for myself whether to do or skip an inspection
- I checked whether existing-home defect insurance is available
- I recorded the condition at handover with dated photos
- I agreed with the seller's side on contacts and notice method (written or email)
Frequently asked questions
- Q. By when should I contact the seller after finding a defect?
- A. The Civil Code guide is notice within one year of learning of it, but contracts may set a shorter period, so notifying the seller in writing as soon as you notice is the safest approach.
- Q. Can I claim against the seller if I live overseas?
- A. Your rights do not depend on where you live, though in practice notice and negotiation are often handled through a Japanese agent or representative.
- Q. Does termite damage count as non-conformity?
- A. It depends on what the contract and explanation document said. Damage that was not disclosed in advance may be considered as non-conformity.
- Q. Can I still claim if the seller has gone bankrupt?
- A. Collecting is difficult if the seller cannot pay. If existing-home sales defect insurance was in place, compensation through the insurance may be possible.
In the SUMIMOTO Hub app, a 24-hour AI advisor explains how to read the liability clauses in explanation documents and contracts in multiple languages, and AI valuation helps you organize a property's condition. For individual legal judgments, please consult a qualified professional.
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