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.
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.
Do you still have questions about purchasing property in Japan? Send us an e-mail. We would love to hear from you.
Are you ready to start looking at a premium selection of properties around Japan? Take a look at our property list.