Defect liability for properties sold
First written in FY2020. 1 of 4 entries say "Reframed", first in FY2023. Latest entry: 2026-06-26.
The whole theme swung hardest in 2026: 7 of 39 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- 2026-06-26MitigatedManagement planning
「We take defect liability insurance for newly built homes sold by the Group.」
Defect liability insurance, the compliance structure and coordination with outside counsel were presented as measures addressing defect liability and contractual nonconformity liability for properties sold. - FY2025RestatedAnnual report
「The Group assumes warranty liability or liability for non-conformity with the contract for 10 years with respect to the structurally important parts of newly built homes and parts designed to prevent rainwater intrusion, and for 2 years in the case of used homes.」
The disclosure continues to state the former liability periods of 10 years for new homes and 2 years for used homes for warranty liability and liability for non-conformity with the contract. - FY2023ReframedAnnual report
「Warranty liability or liability for non-conformity with the contract: The Group assumes warranty liability or liability for non-conformity with the contract for 10 years with respect to the structurally important parts of newly built homes and parts designed to prevent rainwater intrusion, and for 2 years in the case of used homes.」
The wording was revised to include the current legal term, liability for non-conformity with the contract, alongside the former warranty liability terminology. The periods of 10 years for new homes and 2 years for used homes remain unchanged. - FY2020First statedAnnual report
「A 10-year warranty liability applies to the structurally important parts of newly built homes and parts designed to prevent rainwater intrusion. For used homes, a 2-year warranty liability applies.」
The disclosure stated warranty liability periods of 10 years for new homes and 2 years for used homes, as well as the potential impact on remediation costs and creditworthiness.