Understanding REINS: How It Revolutionizes Real Estate Transactions

Have you ever heard the term "REINS" when considering the sale or lease of real estate?

Although REINS is a system that plays an extremely important role in the real estate industry, the general public is not familiar with it and does not fully understand its structure and impact.

In this article, INA & Associates, Inc. will explain the technical knowledge of REINS, from its basic structure to its specific impact on the average consumer, in an easy-to-understand manner.

Please read to the end as this is important information that you need to know in order to make your real estate transaction a success.

Basic Concept and Role of REINS

What is REINS?

REINS is an abbreviation for "Real Estate Information Network System" and is called "Real Estate Information Network System" in Japanese.

This system is a computer network system exclusively for real estate companies, operated by the Real Estate Information Network System, which has been designated by the Minister of Land, Infrastructure, Transport and Tourism.

The most important feature of Raines is that it enables real estate companies nationwide to share property information and realize efficient real estate transactions.

In the past, real estate information was managed individually by each real estate company, and consumers had to visit multiple real estate companies to find the desired property.

With the introduction of Raines, this problem has been greatly improved, and the transparency and efficiency of real estate transactions have been dramatically enhanced.

Historical Background of Raines

The background to the establishment of Raines was the structural challenges of the real estate distribution market.

Until the 1980s, information asymmetry was a serious problem in the Japanese real estate market.

Limited information sharing among real estate companies meant that consumers did not have enough choices, making it difficult to get the right deal at the right price.

To remedy this situation, the Real Estate Information Network was established in 1988 and Raines began operating.

Since its establishment, Raines has been continuously improved and now functions as an indispensable infrastructure for real estate transactions in Japan.

Legal Status of Raines

Raines is operated in accordance with the Real Estate Lots and Buildings Transaction Business Law.

Under this law, when a real estate company concludes a under-exclusive-contract exclusive duty mediation contract or a full-time mediation contract, it is obligated to register properties with Raines within a certain period of time.

Specifically, in the case of a under-exclusive-contract exclusive duty mediation contract, it is necessary to register within five days after the conclusion of the contract, and within seven days in the case of a full-time mediation contract.

Through this legal obligation, the latest property information is always accumulated in Raines, and transparency of the real estate market is secured.

In addition, when a contract is concluded, information such as the contract price is also required to be registered, and these data play an important role in the formation of market prices.

Raines' Organizational Structure and Regional Divisions

Four nationwide real estate distribution organizations

Raines is divided into four regions, each operated by an independent real estate distribution organization.

This regional division is adopted to achieve efficient operations that take into account the characteristics of each region's real estate market and transaction practices.

The table below summarizes the jurisdictional regions and characteristics of each organization.

East Japan Real Estate Information Network (East Japan Rains)

Real Estate Information Network for East Japan is the largest organization, covering 17 prefectures from Hokkaido to Koshinetsu region.

Since it includes the Tokyo metropolitan area (Tokyo, Kanagawa, Saitama, and Chiba prefectures), it is responsible for the most active real estate transactions in Japan.

In addition to information on condominiums, detached houses, and land sales, the Organization has accumulated a wealth of information on rental properties.

In the Tokyo metropolitan area, investment real estate transactions are particularly active, and a wide variety of property information is updated on a daily basis.

Chubu Real Estate Information Network (Chubu Rains)

The Chubu Real Estate Information Network has jurisdiction over seven prefectures in the Tokai and Hokuriku regions.

The region is characterized by a concentration of manufacturing industries, including the automotive industry, and demand for housing due to corporate relocations.

Demand for condominiums is high in the urban area centered on Nagoya City, while detached houses are actively traded in the suburbs.

In addition, the Hokuriku region has accumulated property information reflecting the unique housing conditions in the snow country.

Real Estate Information Network for the Kinki Region (Kinki Reins)

The Kinki Real Estate Information Network has jurisdiction over six prefectures in the Kansai region.

In this region, which includes such historic cities as Osaka, Kyoto, and Kobe, information on properties that meet a variety of housing needs has been accumulated.

In Osaka City, investment condominium transactions are particularly active, and in Kyoto, information on housing with consideration for the historical landscape is a distinctive feature.

In the area surrounding Kansai International Airport, there is also a wealth of registered information on properties that meet international housing demand.

West Japan Real Estate Information Network (West Japan Raines)

The West Japan Real Estate Information Network has jurisdiction over a vast area of 17 prefectures, from the Chugoku region to Okinawa Prefecture.

This region has accumulated a wealth of housing information that takes advantage of the characteristics of regional cities, featuring properties blessed with a natural environment and housing information that reflects the local culture.

In core regional cities such as Fukuoka and Hiroshima, there is a wealth of information on properties that meet urban housing demand.

In Okinawa Prefecture, there is also a wealth of information registered on resort properties and housing for immigrants.

Raines Structure and Main Functions

Property Information Registration Process

Registration of property information on Raines follows a strict process.

When a real estate company concludes a mediation contract with a seller or a lender, registration is obligated according to the following schedule according to the type of contract.

In the case of a under-exclusive-contract exclusive duty mediation contract: It is necessary to register within five days (excluding Saturdays, Sundays, and holidays) from the conclusion of a contract .

In this contract form, since the seller cannot duplicate a request to other real estate companies, prompt information sharing is required.

In the case of a full-time mediation contract: It is necessary to register within seven days (excluding Saturdays, Sundays, and holidays) from the conclusion of a contract .

Although the seller cannot request two or more real estate companies even in this contract, a self-discovery deal is possible.

In the case of a general mediation contract: Although there is no registration obligation, many real estate companies are registered voluntarily.

Under this contract, the seller can request multiple real estate companies at the same time.

Details of information to be registered

Property information registered with Raines is very detailed and comprehensive.

Basic information includes the property's location, area, age, structure, floor plan, and price.

Legal information includes city planning law and building code restrictions, rights, and mortgages .

Facility information includes details such as kitchen, bath, toilet, air conditioning, and parking space .

Neighborhood information includes distance from the nearest station and access to schools, hospitals, and commercial facilities .

Visual information such as exterior, interior, floor plans, and a map of the surrounding area will be attached as photos and drawings.

This information is registered in a standardized format, allowing for efficient information sharing among real estate agencies.

Search and Browse Functions

The search function of Raines is highly customized to meet the needs of real estate companies.

Regional searches can be narrowed down to the prefecture, city, town, or street level .

The Price Range Search allows you to set upper and lower limits for sales prices and rents .

Property Type Search allows you to narrow down your search by type, such as condominiums, detached houses, land, and commercial properties .

Detailed condition search allows you to set detailed conditions such as age, area, floor plan, distance from station, and facilities .

The Map Search function allows you to intuitively search for properties on a map and check the surrounding environment at the same time.

With these search functions, real estate agents can efficiently find properties that best suit their clients' needs.

Management of Contract Information

Raines also manages important information when a property closes.

In the case of a under-exclusive-contract exclusive duty mediation contract and a full-time mediation contract, the contract price must be registered within five days of the conclusion of the contract.

The actual transaction price, date of contract, and special terms and conditions of the transaction are registered as details of the contract terms and conditions.

This information is used as market analysis data in an anonymized form .

The accumulation of contract information enables the formation of appropriate market prices and more accurate assessments.

Ensuring Data Reliability

Raines has several mechanisms in place to ensure the reliability of the information registered.

Only real estate companies licensed to engage in building lots and buildings transactions are allowed to access the system .

Obligation to update information : information must be updated promptly when there is a change in the status of a property.

An audit function is in place to monitor for inappropriate or false information.

Penalty measures , such as warnings and suspension of use, are in place for rule violations.

Through these mechanisms, Raines information maintains a high level of reliability.

Impact and Benefits to Consumers

Significant Expansion of Property Options

The greatest benefit of Raines is that it greatly expands the property options of the general public.

Under the previous system, consumers had to visit multiple real estate companies individually to check the property information held by each.

With the introduction of Raines, however, consumers can now access property information held by member real estate companies nationwide through a single real estate company.

As a concrete effect, a Tokyo resident looking for a property in Osaka can obtain detailed information through a local real estate company.

The time efficiency gains have significantly reduced the time it takes to search for properties, allowing for more options to be compared and considered.

The comprehensiveness of the information allows the majority of properties on the market to be identified, greatly reducing the risk of missing out.

Realization of transactions at fair prices

The wealth of contract data accumulated in Raines contributes greatly to realizing transactions at fair prices.

The transparency of market prices has been improved, and it has become possible to set appropriate prices by referring to contracted cases of similar properties.

The improved accuracy of assessments has enabled real estate companies to provide more accurate appraisal prices based on past transaction data.

Reasonable price negotiations are now possible by referring to actual contracted cases as the basis for price negotiations.

The table below shows the change in price transparency before and after the introduction of Raines.

Improved transaction safety

The use of Raines has greatly improved the safety of real estate transactions.

Accuracy of information is ensured, reducing the risk of false property information and hype.

Transparency of transactions reduces the risk of improper terms and hidden defects .

As for professional support, real estate companies that use Raines are licensed real estate professionals and can provide appropriate advice.

As for legal protection, consumer rights are properly protected through the use of Raines in conjunction with the mediation contract system.

Speedy transaction realization

The speed of transactions is greatly improved by the efficient information sharing of Raines.

Faster matching of properties enables the needs of sellers and buyers to be efficiently matched .

Faster information transmission enables immediate sharing of information on changes in property conditions, price changes, etc.

Streamlined procedures facilitate the process from contract to settlement .

Faster market reactions allow for quicker responses to changes in the supply-demand balance in the market.

Realization of Trans-regional Transactions

The nationwide network of Raines facilitates cross-regional real estate transactions.

Support for transfers and relocations: For those who are considering relocating or moving to remote areas, it is now possible to collect information on properties in advance.

Expansion of investment opportunities has made it possible to search for investment properties without limiting the geographic area.

In response to the demand for second homes, it has become easier to consider purchasing a vacation home or second home.

The information gap between urban and rural areas has been narrowed, creating a fairer transaction environment.

Improvement of professional services

The quality of services provided by real estate companies has improved through the use of Raines.

Enhanced consulting functions provide professional advice based on a wealth of data .

More sophisticated market analysis allows for strategic proposals based on future market trends.

Customized proposals, allowing for optimal property proposals tailored to individual needs.

Comprehensive after-sales service, including post-transaction support .

How the general public can use Raines

Indirect use through a real estate company

Although the general public does not have direct access to Raines, it can be used effectively through real estate companies.

Selecting a reliable real estate company is the first step in making the best use of Raines.

Real estate companies displaying the Raines mark are official members of Raines and have access to a wealth of property information.

By consulting with multiple companies, you can receive property proposals from different perspectives and consider a wider range of options.

By clarifying specific requirements, real estate companies can efficiently utilize Raines to find the optimal properties.

Points to Consider when Searching for Properties

The following points are important for effective property searches using Raines.

Set detailed criteria: It is important to provide specific information on price range, location, layout, facilities, and other desired conditions.

Clarify your priorities: By sorting out your non-negotiables and compromises, you will be able to receive more effective property proposals.

To understand market trends, ask the real estate agent for a market analysis based on Raines data, so that you can make the right decision.

It is important to understand the importance of timing and be prepared to make a quick decision when a good property is found.

Strategic Use at the Time of Sale

Strategic use of Raines is also important in the sale of real estate.

It is important to confirm the validity of the assessed value price referring to the contract data of Raines as the setting of a proper price.

In the selection of a mediation contract, by selecting a under-exclusive-contract exclusive duty mediation contract or a full-time mediation contract, registration with Raines becomes obligatory, and it is possible to approach more prospective buyers.

In order to enhance the quality of information registered in Raines , it is important to prepare to convey the property's attractiveness to the maximum extent possible.

To optimize the market strategy, it is effective to discuss with the real estate company to adjust the sales strategy based on the Raines data.

Use of Raines Market Information

Raines Market Information" is a Raines-related service that can be directly accessed by the general public.

This free service provides information on past transaction prices, and can be used to grasp market prices.

By checking market trends by region, you can use the information as a reference when making investment decisions and when to sell.

Analysis by property type allows you to understand the market characteristics of condominiums, detached houses, and land.

Long-term trend analysis provides reference information for future market forecasts.

Effective Communication with Real Estate Agencies

Effective communication with real estate companies is essential to maximize the use of Raines.

It is important to request regular updates of information and to continually receive updates on new listings and price changes.

Provide feedback by expressing your honest opinions and requests regarding the properties you have been introduced to, so that you can receive more appropriate suggestions.

Requesting the sharing of market analysis and receiving periodic professional market analysis based on Raines data can be effective.

As a strategic consultation, it is important to seek professional advice based on Raines data regarding the timing and pricing of transactions.

Points to keep in mind

When using Raines, the following points should be noted.

Information on Raines is updated as needed, but there may be a time lag between the actual status of the property and the information on Raines .

It is important to understand the differences in market characteristics and transaction practices in each region, even if the system is standardized nationwide .

The support of experts is indispensable to properly interpret Raines information and make the best decisions.

In order to make a comprehensive judgment, it is necessary to consider not only the information from Raines, but also to visit the property and check the surrounding environment from various perspectives.

Conclusion

REINS is an infrastructure system that plays an extremely important role in real estate transactions in Japan.

By its very nature, REINS is a network system dedicated to real estate companies, but it also offers tremendous benefits to the general public.

The main benefits include : a wider selection of properties, transactions at fair prices, improved transaction security, speedy transactions, and transactions that transcend geographical boundaries.

Key points to take advantage of this technology include working with a reliable real estate agent, clarifying specific requirements, understanding market trends, and making decisions at the appropriate time.

Looking ahead, as digital technology advances, the Raines system is expected to continue to evolve and provide more convenient services.

Understanding the Raines system and working effectively with expert real estate companies is essential for successful real estate transactions.

As your next action, when considering buying, selling, or leasing real estate, we recommend that you consult with a reputable real estate agency that displays the Raines mark to take advantage of the wealth of property information and professional support available.

We will provide you with support based on our extensive experience and expertise to ensure the success of your important real estate transaction.

Frequently Asked Questions

Q1 Can the general public use Raines directly?

A1: Raines is a system for real estate companies only and cannot be accessed directly by the general public.

However, it is possible to use the wealth of property information available on Raines through real estate companies displaying the Raines mark.

In addition, a service for the general public called "Raines Market Information" allows you to search for past transaction price information free of charge.

Q2: Are there properties that are not registered in Raines?

A2: Yes, there are some properties that are not registered with Raines.

Since there is no registration obligation for the property of a general mediation contract, not all properties are registered.

However, since registration is legally obligated for the properties of a under-exclusive-contract exclusive duty mediation contract and a full-time mediation contract, most of the properties on the market can be confirmed with Raines.

Q3. How reliable is the information in Raines?

A3. Raines information is highly reliable.

Only licensed real estate agents have access to the information, and there are strict penalties for registering false information.

In addition, because the registration system is based on legal obligations, the accuracy of the information is guaranteed.

However, we recommend that you check with your real estate agent for the most up-to-date information, as property conditions change on a daily basis.

Q4: Does using Raines increase my commission?

A4: The use of Raines itself does not affect brokerage commissions.

The Real Estate Agency Brokerage Fee is capped by the Real Estate Lots and Buildings Transaction Business Law, and the same standard applies regardless of whether Raines is used or not.

Rather, the use of Raines allows for more efficient transactions, and as a result, an improvement in cost performance can be expected.

Q5: Can I find properties in rural areas through Raines?

A5: Yes, you can use Raines to check information on regional properties, as each of the four nationwide real estate information networks covers a different region.

Western Japan Raines covers 17 prefectures in Chugoku, Shikoku, Kyushu, and Okinawa, and has accumulated a wealth of information on properties in regional cities and suburbs.

Raines' nationwide network can be effectively utilized for property searches and investment considerations across regions.