[Real Estate Notary 2027] 10 Basic Questions on the 8 Restrictions

Among the Real Estate Brokerage Act, one area you want to turn into a source of points is the 8 restrictions.

The 8 restrictions are special rules for buyer protection that apply when a real estate broker acts as the seller and sells land or buildings to a buyer who is not a real estate broker.

This time, focusing on cooling-off, deposits, liquidated damages, and liability for contract non-conformity, I have prepared 10 free multiple-choice questions.

The correct answers and explanations are also all free.

Question 1 | Application of the 8 Restrictions

Which transaction is the 8 restrictions applied to in principle?

1. A sale where a real estate broker is the seller and a general consumer is the buyer
2. A sale between general consumers
3. A sale between real estate brokers
4. A case where a real estate broker acts as an intermediary for a sale between general consumers

Question 2 | Cooling-off

In a sale where a real estate broker acts as the seller, if the buyer applies for the purchase at a coffee shop, is it in principle subject to cooling-off?

1. No
2. Yes
3. The contract is always void
4. It is subject only if the seller consents

Question 3 | Cooling-off Period

Regarding cooling-off, after how many days have passed since the day it was notified in the statutory manner does it in principle become impossible to exercise?

1. 5 days
2. 7 days
3. 8 days
4. 14 days

Question 4 | Method of Cooling-off

Which of the following is correct regarding the expression of intent for cooling-off?

1. It can only be done orally
2. It is done in writing or by electromagnetic record
3. It must be filed with the court
4. The presence of a real estate notary is required

Question 5 | Deposit Limit

When a real estate broker acts as the seller, up to what percentage of the purchase price can they receive as a deposit from a buyer who is not a real estate broker?

1. 10%
2. 20%
3. 30%
4. No limit

Question 6 | Nature of the Deposit

In a sale where a real estate agent acts as the seller, how is the earnest money received generally treated?

1. Earnest money as evidence of contract
2. Earnest money as penalty
3. Earnest money for cancellation
4. Non-refundable earnest money

Question 7 | Liquidated Damages

In a sale where a real estate agent acts as the seller, what is the general maximum percentage of the purchase price for the combined total of liquidated damages and penalties?

1. 10%
2. 20%
3. 30%
4. 50%

Question 8 | Liability for Contract Non-Conformity

In a sale where a real estate agent acts as the seller, what is the general rule for special provisions regarding liability for contract non-conformity that are disadvantageous to the buyer?

1. All are valid
2. Generally invalid. However, special provisions such as setting a notification period of 2 years or more from the date of delivery are permitted
3. Valid if signed by a real estate notary
4. Always valid if the purchase price is low

Question 9 | Cancellation of Installment Sales Contracts

In an installment sale where a real estate agent acts as the seller, what must the seller generally do if the buyer fails to pay an installment?

1. Can cancel immediately without notice
2. Must set a period of at least 30 days and demand payment in writing
3. Can cancel after one verbal warning
4. Must always obtain court permission

Question 10 | Prohibition of Retention of Ownership, etc.

In an installment sale where a real estate agent acts as the seller, what must the seller generally do if they have received payment exceeding 3/10 of the price?

1. Take measures to transfer ownership to the buyer, such as performing a transfer of ownership registration
2. Must retain ownership
3. Cancel the contract
4. Return the earnest money

Answers and Explanations

Question 1 | Answer 1

The 8 restrictions generally apply to sales where a real estate agent acts as the seller and a non-real estate agent is the buyer.

They do not apply to transactions between real estate agents.

Question 2 | Answer 2

If the buyer makes an application at a location that does not qualify as a real estate agent’s office, such as a coffee shop, it is generally subject to cooling-off.

However, there are cases where it does not apply, such as when the buyer requests it at their own home.

Question 3 | Correct Answer ③

Once 8 days have passed from the day the buyer was notified of the cooling-off period in the statutory manner, they can generally no longer exercise the cooling-off right.

Also, it cannot be exercised if the buyer has received the land or building and has paid the full price.

Question 4 | Correct Answer ②

The declaration of intent for cooling-off must be made in writing or by electromagnetic record.

Question 5 | Correct Answer ②

When a real estate agent acts as the seller, the deposit they can receive is within 20% of the purchase price.

Question 6 | Correct Answer ③

In a sale where a real estate agent acts as the seller, the deposit received is generally treated as a cancellation deposit.

The buyer can cancel by forfeiting the deposit, and the seller can cancel by actually providing double the deposit, provided the other party has not yet commenced performance.

Question 7 | Correct Answer ②

The total amount of liquidated damages and penalties must be within 20% of the purchase price.

Any portion exceeding 20% is void.

Question 8 | Correct Answer ②

In a sale where a real estate agent acts as the seller, special agreements disadvantageous to the buyer regarding liability for contract non-conformity are generally void.

However, a special agreement that sets the period for the buyer to notify the seller of non-conformity to at least two years from the date of delivery is permitted.

Question 9 | Correct Answer ②

In installment sales, if the buyer fails to pay an installment, the seller must generally set a reasonable period of at least 30 days and demand payment in writing.

If payment is not made within that period, the contract can be terminated.

Question 10 | Correct Answer ①

In installment sales, as a general rule, you must take measures such as registering the transfer of ownership before receiving payments exceeding 3/10 of the price.

Although there are certain exceptions, “3/10” is an important figure.