Risks related to customer investment in condominiums, inadequate explanations and fraudulent lending
First written in FY2024. 1 of 3 entries say "Mitigated", first in FY2025. Latest entry: FY2026.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Through regular compliance training and on-the-job training by supervisors, we provide thorough education so that customers purchasing for investment purposes receive sufficient explanations, understand them, and then enter into purchase and sale contracts.」
The Group continues to address inadequate explanations, fraudulent financing, vacancies, and declines in asset value through training, independent management, and rental management. - FY2025MitigatedAnnual report
「To address these risks, we provide thorough training to sales employees and supporting personnel through regular compliance training and on-the-job training by supervisors, so that customers purchasing for investment purposes receive sufficient explanations, understand them, and then enter into purchase and sale contracts. We also use standardized and controlled investment simulation materials presented by sales employees and have established a structure in which a department independent of the sales division manages purchase and sale contracts and loan arrangements.」
Measures include training and OJT, standardized and controlled materials, and contract and loan management by a department independent of sales. - FY2024First statedAnnual report
「Real estate asset management, or real estate investment, entails various investment risks that may worsen profitability, including lower rental income due to declining occupancy rates or rents and increased debt-service burdens due to higher interest rates. There is also a risk that sales employees could become involved in fraudulent financing, such as preparing documents on behalf of customers, falsifying evidence, or preparing multiple contracts.」
The Group identifies deterioration in the profitability of investment real estate, lawsuits arising from inadequate customer explanations, and fraudulent financing involving sales employees as risks.