The real estate industry may be starting to leave hanko behind. A trial on finalizing short-term rental housing contracts over the internet is set to begin in August.
These contracts typically need to be stamped with hanko personal seals, which are becoming more impractical in these technological times and offer no efficiency benefit.
The Land and House Lease Law requires a written contract, but in the trial the use of encrypted "electronic signatures" is being permitted. The entire process -- applying, receiving an explanation and signing the contract -- can be completed online.
The Economy, Trade and Industry Ministry approved the application by the Tokyo-based IT company Gooddays Holdings Inc. under the government's "sandbox" system for deregulation. The company hopes the trial will show it is possible to confirm the intentions of signees even with electronic signatures to complete the contract process smoothly.
According to the real estate information service At Home Co., fixed-term rental properties made up 5.2% of the rental condominiums in Tokyo's 23 wards in fiscal 2019, up 0.4 percentage points from the previous fiscal year. The increase in tower condominiums in the Tokyo metropolitan area has been accompanied by a growing number of contracts for short-term rentals.
"There is increased demand for being able to complete procedures online," a source in the real estate industry said.
The pandemic has increased the number of companies with workers who work from home, creating new ways of life.
In fact, a number of things are going online or no longer requiring hanko.
"We're paying attention to whether it can also help to limit the spread of the coronavirus," said an official in charge of the matter at the ministry.
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