Unless the seller is a real estate broker, seller’s obligation of explanation in not prescribed in laws of Japan. However, it is considered that the seller of real estate is obliged to explain important matters which may affect buyer’s intention whether to contract or not under the principle of good faith. If the seller is a real estate broker, obligation of explaining important matters is prescribed in Real Estate Brokerage Act.*Real Estate Brokerage Act(Explaining important matters)Article 35 (1) A Real Estate Broker must have a transaction specialist provide, through the issuance of a document in which the matters as listed below are stated (or drawing if required under item (v)), explanations, at the minimum these matters to a counterparty on the sale, exchange, or loan of a Building Lot or building or to parties for the sale, exchange, or loan of a Building Lot or building subject to mediation to be carried out by the Real Estate Broker (hereinafter referred to as "Real Estate Brokerage Operation Counterparty") in connection with the Building Lot or building that said party intends to acquire or borrow during the period until the conclusion of an agreement for said sale, exchange, or loan.