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PICK Confirms Legality of Electronic Contract Service

In a groundbreaking achievement, PICK Inc. has successfully leveraged Japan's Gray Zone Resolution System to verify the compliance of its electronic contract service, "PICKFORM," with the technical standards outlined in Article 13-4-2 of the Construction Business Law. This confirmation allows the service to be utilized legally for both real estate transactions and construction contracts, making it the first of its kind in Japan.

Understanding the Gray Zone Resolution System

The Gray Zone Resolution System, established under the Industrial Competitiveness Enhancement Act, offers a framework for businesses to clarify the applicability of existing regulations when embarking on new ventures. This system is designed to provide businesses with reassurance, allowing them to conduct activities without ambiguity regarding regulatory frameworks.

The inquiry initiated by PICK focused on whether the electronic contract flow provided by PICKFORM meets the technical standards stipulated in Article 13-4-2. The Ministry of Land, Infrastructure, Transport and Tourism confirmed the fulfillment of these standards, paving the way for enhancements in legal and operational practices within the construction industry.

Background of Electronic Contracts in Real Estate

While the adoption of electronic contracts has gained momentum in real estate transactions due to recent legal reforms, companies in the construction sector faced uncertainties. The interpretation and application of electronic contracts varied significantly across businesses, leading to practical ambiguities. Especially concerning technical standards, such as whether documents can be printed or how measures against tampering and identification verification are implemented, clarity was sparse.

PICK’s Verification Process

Utilizing the Gray Zone Resolution System, PICK inquired if its service met the technical criteria necessary for compliance in the construction sector. The insights gained from this verification process highlighted several key points regarding the capabilities of the PICKFORM service:

• - Accessibility of Contract Data: Users can view and print electronic contract data.
• - Tamper-Proof Measures: The service implements electronic signatures and timestamps to prevent tampering.
• - Identification Verification: Electronic signatures are executed through a verification process that ensures the identity of the signatories.

Significance of the Confirmation

This confirmation marks a significant milestone, illustrating that both real estate and construction contract processes can be legally completed using a single service, PICKFORM. Traditionally, enterprises engaged in both sectors required different systems, leading to operational fragmentation. With PICKFORM, users can manage and finalize all contracts seamlessly within one platform, significantly easing the burdens associated with contract management.

This capability is particularly beneficial for companies that engage in both real estate and construction, as it centralizes contract operations and reduces the complexity of managing multiple systems.

Detailed Features of PICKFORM

PICKFORM offers a comprehensive electronic contract service that fulfills all prescribed legal requirements and technical standards necessary for both real estate and construction:

• - RSA 2048-bit Electronic Signature: Utilizing public key cryptography for secure signing.
• - Timestamp Provided by Certified Firms: Ensuring the integrity of documents over time.
• - Signature Flow Incorporating Identity Verification: Ensuring that all parties are verified before signing.
• - Document Management Features: Users can view, save, and print contracts directly within the platform.

These functionalities not only support compliance with legal standards but also facilitate efficient contract management for users across the board.

Industry Implications

This endeavor by PICK alone helps to address the uncertainties surrounding electronic contracts in the construction sector. Moreover, it serves as a foundational step toward accelerating digital transformation (DX) in both real estate and construction, spurring further innovation across the industry.

Future Developments

PICK is committed to continuing its efforts toward digitalizing contract operations while ensuring compliance with legal regulations. The company aims to roll out more service features that will solve various operational challenges faced by businesses in the real estate and construction sectors.

About PICK Inc.

Founded in October 2018, PICK Inc. is on a mission to create a more open and enjoyable experience in real estate transactions. Since launching the PICKFORM electronic contract service in 2022, the company has worked to enhance customer experiences in the real estate and construction trades. With official recognition from the Ministry of Land, Infrastructure, Transport and Tourism, PICKFORM stands as a reliable and legally compliant option in the evolving landscape of electronic contracts.

For more information on PICK and its services, visit PICK公式サイト.