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.
– 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.