Buying a house in Japan – buying procedure

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Non Japanese people can buy and own Real Estate in Japan, even if they do not live in Japan.

We cooperate with Japanese registered real estate agents who will guide the buying process in Japan. Our Japanese partners communicate in English and Japanese. Therefore potential buyers are expected to speak either English or Japanese. The purchase will always take place in Japan.
If you inform us of your interest and if you are looking for a property not listed on our website or if you are interested in other locations in Japan please let us know. Basically we can introduce thousands of properties all over Japan in any price range both in rural and urban regions. After you have made a selection you are invited to visit Japan for house viewings. This has to be arranged well in advance with the present owners. Please realize that a property may have been sold upon your arrival and that we can not accept any liability in that event.

House Viewing

If you inform us of where the real estate agent can meet you we can arrange the viewings, timing, etc. accordingly. Please always make sure to be on time for appointments because it is very important in Japan not to keep anybody waiting. We understand that it might be difficult for you to visit Japan several times in a short period of time. In that case we may find solutions to combine viewings, signing of documents, etc.

Letter of Intent
In order to show the seller you interest in the property you have to submit a document (also called Letter of Intent) including your bid, suggested dates for contract signing, the handover and other conditions. It is important to realize that only cash payments or bank remitttance are accepted in Japan as method of payment.For foreigners it is very difficult to get a bank loan or mortgage if you are not living or working in Japan. Make sure to visit the property at least once before signing any document. Carefulle check the property for damages, shortcomings, etc. Also ask for additional information if required. Only submit de Letter of Intend if you agree with the present condition of the property. The Letter of Intend will be sent to the seller who has the right to accept or decline.

Contract signing

When both parties agree about de conditions of the contract (purchase agreement) signing will take place. This has to be done in Japan. A real estate expert will inform you of the exact contents of the contract that is written in Japanese only. You may ask a professional interpreter or another Japanese speaker to be present to translate for you. Although the Japanese real estate agent will speak English often they do not want to interpret during the signing of the contract in order to avoid a conflict of interest. Therefore is it recommended to ask an indepent interpreter/translator for this. Expenses for an interpreter are for the account of the buyer.
In addition a downpayment of 10 percent of the buying price has to be paid to the seller during the contract signing as an insurance and to be used as a fine in case of default or non-compliance with the agreement. In case the buyer for whatever reason decides not to proceed with the purchase the downpayment will not be refunded. In case the selller fails to comply with the agreement the downpayment will be refunded to the buyer and on top of that the seller has to pay the same amount to the buyer to compensate the buyer.
If it is not possible to be present at the contract signing in person it is possible to be replaced by a legal representative. In that case addiitional documents will be needed.

Property Handover

Make sure any outstanding amounts are transferred through the bank a few days or can be paid in cash to avoid panelties if this has not been done in advance. In the worst case the property handover will be cancelled. Please note banks need time to transfer money. Charges for bank remittance are for the account of the buyer.
Usually de property handover will take place two to three weeks after contract signing providing the property is not occupied. During this period a Japanese scrivener will prepair the handover.
Outstanding payments, signing of the insurance documents, registration documents, etc. will take place during the property handover. After all payments are settled and confirmed and all documents have been signed the keys of the property will be handed over to the buyer. In case the buyer can not be present during the property handover he/she may be represented by a legal representative (lawyer). Anyway the buyer has to visit the scrivener in Japan at least once in order to establish his/her identity or identities in case more persons involved. Additional documents will be needed in these cases.
The property handover will take place in the morning of a working day. After the property handover the scrivener will go to T the Legal Affairs Bureau for the official registration. The right of ownership takes effect on the day of the transfer.

After the property handover

The scrivener will inform the buyer regarding property taxes within about 3 to 6 months after de property handover. If a fire insurance (earthquake) has been applied for the insurance company will contact the buyer within a few week after handover.
The Japanese real estate agent will assist in arranging utilities like gas, electricity and water. Bills can be paid by Creditcard on a monthly basis. So if the buyer does not live in Japan permanently it is advised to arrange Creditcard payments.

Fixed charges after the purchase:

  • Real Estate charge (Annual)
  • Neighbourhood association fee (monthly).
  • Management and Repair fund (Monthly, in case of apartments).
  • Others (depending the house/aparment).