Purchase Process

Purchase Process for Japanese Real Estate

 

The entire purchase process for buying a property in Japan is fairly simple. You choose, sign contract, pay, then receive the hand over.

However there are a few facts to keep in mind so let us go through each process step by step.

 

1. BOOKING

–       If you find a property that you are content on buying then fill out a booking form (買付書/申込書)

         provided by agent or developer

–       Japan`s property custom is first come first serve and there is no “reserving” a property

–       Negotiations can be done, but usually is a give and take situation with the Seller

 

2. DOWN PAYMENT (5% ~ 10%)

–      Down payment varies with each developer/agent

–      Payment shall be transferred into the seller/agents account before contract signing as a deposit.

–      If you decide not to proceed with contract for any reason the deposit will be returned with no interest

–      All transfer fees will be bourn by Buyer

 

3. SIGNING OF S&P AGREEMENT and DISCLOSURE

–      On day of Contract signing there will be a licensed Real Estate Specialist to explain each detail so that you understand

        the content and what you are signing.

–      Usually contracts and explanations are in Japanese so ask your Agent to assist/translate the content for you.

–      Contract signing usually takes 2 hours on average so keep your schedule open that day.

 

4. SETTLEMENT (Remaining Balance & Other Expenses)

–      All remaining balance and acquisition costs will be calculated by seller/agent before the Hand Over Date.

–      Bank transfer must be into seller/agents account BEFORE Hand Over Date of property.

–      *If using a loan, the loan amount will be transferred from the bank on day of hand over.

 

5. PROPERTY HAND OVER

–      On Day of property Hand Over all relating parties; Buyer, Agent, Seller, Judicial Scrivener will all gather in

        one place to sign off necessary documents.

–      The Judicial Scrivener will check all documents to the Buyer and property details to the seller, then head to

        the city hall to start the registration process.

–      Hand Over usually take about an hour

–      Registration usually takes about 2 weeks until you receive your property title.

        (Registration cannot be done in Alphabetical letters, only Japanese Characters)

–      If you need a property management then you should choose one before hand over of property so that they could

        start managing your property once it is handed over to you.

 

Buying a property in Japan, especially if you are overseas and this is your first time, is a big challenge. It is good to know the steps and details that you will be encountering once you decide to purchase. 

 

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