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Overview of Transition to a Legal Entity

In a significant development for the real estate sector, LandIssues Inc. has announced that the Real Estate Paid Collection Industry Association, in which it serves as a board member, will officially become a legal entity on December 26, 2025. Established in 2023 as a voluntary organization, the association has focused on addressing issues surrounding paid collection services while developing comprehensive guidelines to support its members and the wider community.

Background

The necessity for such an organization stems from the ongoing population decline and growing disparities between regions, leading to an increase in what is termed "burdensome real estate"—properties that struggle to find buyers in the conventional market. As the demand for paid collection services is rapidly increasing, significant challenges have emerged in this evolving market. Users have expressed concerns regarding the lack of clarity in contract terms, inadequate management post-collection, and vague responsibilities of service providers.

The Ministry of Land, Infrastructure, Transport and Tourism has acknowledged the potential of paid collection services to meet the demands of property owners with "unsellable real estate," but also emphasizes the importance of ensuring safety and regulation within these transactions. In response to these societal pressures, the association prioritized the healthy growth of the industry and the protection of consumers by striving to create guidelines and address existing challenges.

Purpose of Becoming a Legal Entity

The conversion to a legal entity reflects the intention to solidify the social significance and operational effectiveness of the association's activities in the context of a growing acceptance of paid collection as a viable option within society. The association aims to clarify the responsibilities of the industry as a whole beyond mere individual profits and ensure a trustworthy framework for real estate transactions through ongoing rule refinement.

Key Objectives and Implementation

1. Standardized Guidelines: The association will establish uniform guidelines regarding contract conditions, cost estimation, and specific transaction procedures to provide a clear standard for the industry. These guidelines will not just be aspirational but will constitute mandatory practices for member companies to ensure fairness in transactions.
2. Ensuring Quality of Member Companies: Compliance with legally mandated regulations alongside a commitment to ethical business operations will become prerequisites for association membership. The association will set specific criteria and a code of conduct that excludes non-compliant firms, thus enhancing overall market reliability.
3. Transparency for Users: The association will prioritize thorough information disclosure to alleviate uncertainties regarding costs and the handling of collected properties. By visualizing withdrawal conditions, processes, and management strategies post-collection, property owners will be empowered to make informed decisions.
4. Multifaceted Collaborations: Addressing issues such as vacant houses and lots cannot be achieved by a single company or organization alone. Collaborative efforts will be reinforced with local governments, financial institutions, legal professionals, and research organizations, sharing insights and data to align services with legal frameworks and policies.

LandIssues Inc.'s Commitment

The transition of the Real Estate Paid Collection Industry Association to a legal entity marks a vital step towards recognizing the industry's importance in society. LandIssues Inc. aims to elevate industry standards, focusing not just on numerical business targets but enhancing compliance and accountability.

The company aims to cultivate actionable guidelines relevant to practical operations rather than theoretical applications, actively contributing through case studies to inform rule-making. By standardizing contracts and cost explanations, the company seeks to bolster transparency across the industry and prevent consumer disputes. Furthermore, LandIssues emphasizes clarifying the responsibilities surrounding property management and exit strategies post-collection to prevent negative impacts on communities.

LandIssues views its role not merely as a board member but as a key player in fostering trust and sustainable market environments that benefit property owners, community members, and all stakeholders involved.

Representative Commentary

Matsuo Kiharu, CEO of LandIssues Inc., expressed that the increasing emergence of "burdened real estate" highlights the pressing need for paid collection services. While the anticipation for such services grows, concerns regarding opaque cost structures and post-transaction issues deter many property owners from engaging. The primary goal of establishing the association as a legal entity is to eliminate these concerns by clarifying responsibility and maintaining disciplined operations, ultimately fostering social trust in this demographic. This change represents a foundational step towards creating a protective framework for users.

LandIssues Inc. pledges to uphold the association’s activities and maintain ethical practices that enable the paid collection services to benefit those in need, ensuring a transparent and effective system for all stakeholders involved.

Overview of the Real Estate Paid Collection Industry Association

• - Name: Real Estate Paid Collection Industry Association
• - Established: 2023 (as a voluntary organization)
• - Transition to Legal Entity: December 26, 2025
• - Objective: Improve transaction transparency and user protection through self-regulation of paid collection services
• - Main Activities: Development and application of guidelines related to paid collection services, establishment of member firm standards, and fostering communication with government and financial entities.
• - Official Website: Real Estate Paid Collection Association