Risk of repair costs and construction delays caused by defects in properties for sale and development land
First written in FY2019. 2 of 6 entries say "Restated". Latest entry: FY2025.
Azplanning moved to the "Worse" side of this theme in 2020.
4 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Before entering into contracts for property held for sale, the Group works to reduce risk by having the relevant department and the Administration Department identify potentially risky matters and specify them in the contracts wherever possible.」
The Group continues to identify risks before entering into contracts and specify them in the contracts as measures addressing liability for non-conformity to contract. - FY2024RestatedAnnual report
「Before entering into contracts for property held for sale, the Group works to reduce risk by having the relevant department and the Administration Department identify potentially risky matters and specify them in the contracts wherever possible.」
The Group continues to identify risks before entering into contracts and specify them in the contracts as measures addressing liability for non-conformity to contract. - FY2022MitigatedAnnual report
「Before entering into contracts for property held for sale, the Company works to reduce risk by having the relevant department and the Administration Department identify potentially risky matters and specify them in the contracts wherever possible.」
As a measure to address the risk of liability for non-conformity to contract, the Company has added and explicitly identified the pre-contract process of having the relevant department and the Administration Department identify risks and specify them in the contracts. - FY2021ReframedAnnual report
「In its real estate sales business, the Company generally assumes liability for non-conformity to contract with respect to properties it sells to customers. If a property sold does not conform to the contract in terms of type, quality or quantity (hereinafter, a “contractual non-conformity”), the resulting liability for damages may include repair work and compensation, potentially affecting the Company's operating results and other aspects of its business.」
The Company updated the terminology and explanation of liability from liability for defects to liability for non-conformity to contract, while continuing to identify the risks of repair work and compensation payments. - FY2020WorsenedAnnual report
「Under the revised Civil Code that took effect on 1 April 2020, liability for defects became liability for non-conformity to contract. Previously, sellers were liable for defects that were latent at the time of contract. Going forward, sellers will be liable if the subject matter does not conform to the contract at the time of delivery, regardless of whether the buyer knew of the non-conformity.」
Following the enforcement of the revised Civil Code, the Company newly explains liability based on conformity with the contract and identifies unexpected liability where the contract contains no relevant provisions as a risk. - FY2019First statedAnnual report
「In its real estate sales business, the Company generally assumes liability for defects in properties it sells to customers. If a serious defect is discovered, the Company may be liable even if it was not the direct cause. This could result in substantial repair costs and, if the Company's social credibility declines, could affect its operating results and other aspects of its business.」
The Company identifies the risk of liability for defects and repair costs arising from serious defects in properties sold. It also describes the possibility of additional costs and extended construction periods due to soil contamination and underground buried objects at sites for business use.