Electronic contracts for real estate purchases were fully enabled by the May 2022 amendment to the Real Estate Brokerage Act, which allowed the digitization of the statement of important matters and the real estate sale contract document (Article 37 document). Even so, in actual practice, especially for dual-income married couples buying with a pair loan, cases where "everything is completed electronically" are still in the minority. Even in home purchases by ultra-high-net-worth and affluent clients that we at INA&Associates handle, the most common approach is to combine a web-based explanation of important matters with a paper power of attorney. In this article, we organize the key practical points buyers should understand, from preparation and signature timing to powers of attorney and bank coordination.
Key points of this article
- With the May 2022 amendment to the Real Estate Brokerage Act, electronic delivery of the statement of important matters and the Article 37 document for real estate sales, along with the abolition of the seal requirement, became permitted, and IT-based explanations of important matters entered full-scale operational use in purchase transactions.
- For dual-income married couples using a pair loan, where one spouse works far away or is posted overseas, electronic contracts and web-based explanations of important matters significantly reduce the burden of travel time and taking time off.
- Even when electronic contracts are possible, the practical mainstream is still to keep the power of attorney in paper form together with the registered seal and seal certificate. This is due to acceptance practices at financial institutions, judicial scriveners, and the Legal Affairs Bureau.
- Even when the sale contract can be digitized, it is not unusual for the money lending agreement with the financing bank to remain on paper, and the quality of scheduling can materially affect settlement risk.
Why were electronic contracts in real estate purchases fully enabled? Background and the state of play in 2026
In short, the May 2022 amendment to the Real Estate Brokerage Act made digitization in the purchase field fully possible, and as of 2026 we are at a stage where the environment for digitization is in place, but it is selected in cases where agreement can be reached among all parties involved.
Key points of the May 2022 Real Estate Brokerage Act amendment
Electronic contracts for real estate purchases began to move in earnest with the amendment to the Real Estate Brokerage Act that took effect on May 18, 2022. This amendment allowed electronic delivery of the statement of important matters (Article 35 document) and the sale contract document (Article 37 document), and it also abolished the requirement to affix a seal. With the other party’s consent, documents can be delivered electronically and concluded with an electronic signature.
Before the amendment, IT-based explanations of important matters had already been used in rental transactions after social experiments, but purchase transactions were outside the scope. Bringing purchases into scope was a major change, and it has significantly reshaped the workflow for buyers, brokerage firms, and judicial scriveners.
How to understand the full-scale use of IT-based explanations of important matters (web explanations)
For purchase transactions, the Ministry of Land, Infrastructure, Transport and Tourism indicated on March 30, 2021 that IT-based explanations of important matters would move into full-scale operation, and they were rolled out nationwide from fiscal 2021. Today, the ministry’s Manual for Implementing Important Matter Explanations Using IT and the National Association of Real Estate Transaction Associations manual (revised in December 2024) are established as practical guidelines.
Even so, there is still a meaningful gap between "electronic contracts are possible" and "we will proceed electronically." If any of the seller-side business operator, the financial institution, or the judicial scrivener assumes a paper-based process, the buyer alone cannot fully digitize the transaction. Even in 2026, the digitization rate of sale contracts still varies significantly from case to case.
For dual-income couples buying with a pair loan, where do electronic contracts in real estate purchases work well, and where do they not?
In short, digitization is highly effective when attendance together is difficult because of remote work, overseas assignment, or childcare, while the financing bank’s loan agreement and in-person settlement attendance remain areas where paper and face-to-face procedures still persist.
Where it works well: time constraints from remote work, overseas assignment, and childcare
With a pair loan, each spouse becomes a borrower, so ideally both the explanation of important matters and the sale contract should be attended together by both parties. In practice, however, cases are not rare where one spouse is on a regional transfer, stationed overseas, or has difficulty going out shortly after childbirth. Web-based explanations of important matters and electronic signatures directly ease this attendance constraint.
In one case we actually handled, a dual-income couple with the husband stationed in Singapore and the wife in Tokyo caring for their child completed the web-based explanation of important matters in one hour by connecting the overseas location and their home, and then signed the sale contract electronically. Because they no longer needed airline tickets or paid leave, the quality of the decision-making itself appeared to improve.
Where it is less effective: when the financing bank accepts paper contracts only, and for settlement attendance
On the other hand, some steps are still difficult to digitize. A representative example is the financing bank’s money lending agreement. Even among major banks, some products support electronic contracts while others remain paper-only, and paper handling is still mainstream at regional banks and credit unions. In addition, settlement attendance on the day of handover remains difficult to complete online because the judicial scrivener proceeds while checking the original registration documents.
Calmly separating what can and cannot be shortened through digitization is the first decision that protects the buyer’s time. We recommend confirming with the brokerage firm at an early stage whether the transaction is one that can actually be handled electronically. If you have concerns, you can sort them out individually through INA’s free consultation desk.
How does a web-based explanation of important matters (IT explanation) proceed? Preparation before the day and the day-of flow
In short, if you prepare four points before the day itself, prior delivery, confirmation that the materials have been read, a communications environment check, and recording retention, the explanation on the day can be completed efficiently in a short time.
Practical handling of prior delivery and confirmation of reading
The key to a web-based explanation of important matters is not to make the day itself a cold start. The ministry manual also requires prior delivery of the statement of important matters and confirmation that it has been read. Standard practice is to receive the documents electronically several days before the contract date, ask the brokerage representative about any unclear points, and then proceed to the meeting on the day itself.
In practical terms, cases where questions are exchanged in advance tend to take less time on the day itself, while cases with no advance questions tend to run longer. We recommend that readers secure two to three business days between prior delivery and the day of the explanation.
Identity verification, communication environment, and recording retention on the day
On the day itself, the licensed real estate transaction specialist checks a photo ID through the camera, confirms the communication status and clarity of the audio, and then begins the explanation. The ministry manual recommends video and audio recording, and many brokerage firms retain recordings with the buyer’s consent. Recordings help prevent later disputes over who said what and also provide reassurance for the buyer.
Adjusting the timing of electronic signatures: a design that separates contract dates
For couples using a pair loan, the area with the greatest room for design is the timing of electronic signatures. Even if both spouses are not present together on the same day, it is technically possible to sign at different times. With cloud-based electronic signature services such as CloudSign, each party can sign at a convenient time within the validity period, typically 48 to 72 hours after the signature request is sent.
That said, this timing must be aligned with the seller’s signing timing, and if the design separates contract dates, agreement among the seller, the broker, and the judicial scrivener is essential. One point requiring particular care is the date the earnest money is deposited, and the structure should align the date the sale contract takes effect with the date the earnest money is settled.
If only one spouse can attend, how should a power of attorney for a pair loan be handled?
In short, even in the age of electronic contracts, the practical mainstream is still to keep the power of attorney in paper form together with the registered seal and seal certificate. The scope of authority should be specifically identified, and for overseas assignments it is replaced with a signature certificate.
Why is the power of attorney kept on paper?
Even as electronic contracts advance, keeping only the power of attorney in paper form together with the registered seal and seal certificate remains the practical mainstream. There are three reasons. First, as a document that specifies the scope of delegated authority, such as sale price, earnest money, handover date, and financing conditions, the practice of guaranteeing authenticity through a registered seal and seal certificate remains deeply rooted at financial institutions, judicial scriveners, and the Legal Affairs Bureau. Second, in some registration applications to the Legal Affairs Bureau, a paper original is required as proof of authority. Third, identity verification operations at financial institutions are built on the assumption of a paper power of attorney.
Under Japan’s Electronic Signatures Act, it is not that a power of attorney cannot be digitized. However, the cost of reaching agreement for all related parties to accept it electronically remains high in practice, and there are still many situations where proceeding with a single paper document is faster and more reliable.
Required items to include in the power of attorney
The power of attorney should specifically state the sale price, earnest money amount, scheduled handover date, upper limits on financing conditions, and even how cancellation rights will be handled. A blanket delegation such as "all matters are delegated" is often rejected in acceptance practice by financial institutions and judicial scriveners, so it is a basic rule to specify the scope of authority. The Real Estate Transaction Promotion Center, a public interest foundation, expresses the same view in its guidance on points to note when a party to a sale contract is represented by an agent.
Signature certificates and residence certificates for overseas assignments
If the husband is stationed overseas, a seal certificate cannot be obtained, so a signature certificate and residence certificate issued by the Japanese diplomatic mission abroad are attached to the power of attorney. Making arrangements requires an appointment at the diplomatic mission, and in some countries it can take two to three weeks. Counting back from the pair loan settlement date, it is safest to begin at least one month in advance. If you need help designing the documentation, please use INA’s purchase support consultation.
What are the risks and design considerations when the financing bank does not support electronic contracts?
In short, even when the sale contract can be digitized, if the loan agreement remains on paper, confusion right before handover can be avoided by working through branch visit scheduling, stamp tax differences, fees, and attendance requirements for settlement day in advance.
Scheduling gaps between the sale contract (electronic) and the loan agreement (paper)
An electronic housing loan agreement does not necessarily move in step with the sale contract. Even if the sale contract can be concluded electronically, if the financing bank’s loan agreement remains paper-based, the borrowers may need to visit a bank branch several days before the loan disbursement date to sign. If one spouse in a dual-income couple is far away, failure to secure that visit schedule can push the settlement date back.
How stamp tax and electronic contract fees are handled
When the contract is electronic, stamp tax on the sale contract becomes unnecessary, because under the National Tax Agency’s interpretation electronic data does not qualify as a taxable document. Stamp tax on a sale contract of more than JPY 10 million and up to JPY 50 million is JPY 10,000 under the reduced-rate measure, so the economic benefit of digitization is not small. On the other hand, when a cloud-based electronic contract service is used, an electronic contract fee may apply, so buyers should confirm in advance with the brokerage firm which service is being used and who bears the fee.
Items to confirm with the sales representative
As a buyer, there are five items you should confirm. First, whether the loan product supports electronic contracts. Second, the execution format of the loan agreement, whether electronic or paper and whether a branch visit is required. Third, whether procedures for enrolling in fire insurance can also be digitized. Fourth, how registration identification information will be received, by mail or in person. Fifth, attendance requirements on the settlement day. If these five items are worked through early, schedule confusion right before handover can largely be avoided.
INA&Associates’ view: what truly gains value through digitization?
In short, the essential value of digitization is not saving on stamp tax, but enabling buyers and their families to regain the time and focus needed for sound decisions.
The essential value of electronic contracts in real estate purchases is not the savings on stamp tax. It is the recovery of the time and concentration that buyers and their families can use for decision-making. The more affluent a dual-income household is, the higher the value of its time, and the harder it is to keep stacking up half-days off on weekdays. I believe digitization and web-based explanations of important matters should therefore be positioned as a means of protecting this "time asset."
That is precisely why the degree of digitization should be decided by working backward from the quality of the decision. Rather than rushing everything through electronically, key points should still be confirmed on paper and face to face. At INA, we design individually for each client which steps should be digitized and which should remain on paper, and as a human capital investment company we support sustainable decisions premised on the well-being of everyone involved.
Summary
Real estate purchases in the age of electronic contracts are a major tailwind for dual-income couples taking out a pair loan. To make the most of that tailwind, however, buyers need to understand four practical points: the setup for the web-based explanation of important matters, the timing design for electronic signatures, paper handling for the power of attorney, and scheduling gaps in the loan agreement. Precisely because the range of what can be digitized has expanded, this is an era in which judgment about what should remain on paper matters more. If you are considering a purchase, we recommend choosing a brokerage partner that can advise not only on property selection but also on the design of the contract operation itself.
Author: Daisuke Inazawa (Representative Director, INA&Associates Co., Ltd.)
Last updated: April 2026
Frequently Asked Questions (FAQ)
Q1. Can a real estate sale contract be completed entirely online?
A. Technically, it is possible to digitize everything from the explanation of important matters to the sale contract and the loan agreement. In reality, however, fully online cases are still a minority because financing banks and seller-side operators differ in how they handle the process. We recommend confirming early with the brokerage firm how far digitization can go in your case.
Q2. Is a power of attorney valid in electronic form?
A. If it meets the requirements of Japan’s Electronic Signatures Act, an electronic power of attorney can also be valid. In practice, however, financial institutions, judicial scriveners, and the Legal Affairs Bureau often require paper plus a registered seal and seal certificate, so paper handling remains mainstream. The scope of authority, including the sale price, earnest money, handover date, and financing conditions, should be specified clearly.
Q3. Is recording mandatory for an IT-based explanation of important matters?
A. It is not legally mandatory, but the ministry manual recommends recording audio and video, and many brokerage firms retain recordings with the buyer’s consent. Because the recording also serves as a reference for the buyer later, we recommend agreeing to the recording.
Q4. In a pair loan, can spouses sign electronically on different days?
A. Cloud-based electronic contract services generally allow each spouse to sign on a different day as long as it is within the validity period of the signature request, typically 48 to 72 hours. However, this assumes agreement among the seller, broker, and judicial scrivener, as well as alignment with the earnest money settlement date. The contract-date design should therefore be worked through in advance.
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