Buying Process

The buying process explained below is based on the assumption that you are investing at individual level. If you wish to invest in Japan real estate at corporate level, click here to learn more about the typical investment vehicles used for Japan real estate investment.

Japan is very possible for foreigners of any nationality and from any country even if they do not hold "permanent resident" status. In fact it is relatively easy for foreigners to purchase property in Japan, provided that they can procure their own financing, since buying property is a large investment and people generally require a loan or mortgage to finance the purchase. Consult your private banker about financing.

To determine how much you can reasonably afford for a property in Japan you need to consider the amount you intend to fund using your existing assets and the amount you intend to fund using a loan/mortgage.

When considering how much you can afford, please keep in mind that in addition to the price of the property itself you will need to take into account acquisition costs such as realtor brokerage fee, taxes and registration costs. (Click here to learn more about related cost involved in purchasing a property).

List up your requirements and priorities for type of property, purpose of investment, budget, preferred area, age of property, and other criteria such as distance to public trans port, etc.

We offer a great portfolio of properties on our website as well as off market properties not listed here. Please contact us to discuss your requirements and we will get back to you with a selection of properties that suit your needs.

Once you find the properties that interest you, contact us to organize a property tour for you. Our destination coordinator will be available to schedule appointment to show you the properties. The more properties you see the better you will understand the market and the easier it will be to make the decision to buy the right property.

When you find the right property submit a “purchase application”. This is a non-binding written expression of your interest to purchase the property. The application includes information such as offering price, payment method, contract date, delivery date, and buyer’s information. An application shows the seller you are serious and your agent will help you to start the negotiation process.

Once you and the seller have agreed to all the major conditions, a sale's contract can be prepared. The agent is required to investigate the details of the property and provide you with an “Explanation of Important Matters”. Japanese law requires that a registered real-estate agent review the content of the document that defines all the important terms of the contract. You should fully understand this document before executing the contract.

After the required explanations the buyer and seller will acknowledge their agreement and will sign and seal the contract. Upon signing the agreement, the Buyer shall make a partial deposit, typically 10%. The seller shall issue a receipt for the buyer. At the closing, the buyer must pay the remaining amount. The total sales price minus the amount paid as deposit.

A judicial scrivener usually handles the ownership transfer and all necessary related registration. The buyer will transfer the remaining balance to the sellers account and pay all other expenses including legal fee to the legal scrivener, brokerage fee to the agent, registration fee, and other settlement money for management fee, tax, etc. that is pro-rated between buyer & seller. Then the title of the property will be transferred to the buyer. On completion the seller delivers all the keys to the property and the transfer of ownership is complete. It normally takes between 2 to 3 weeks after applying for the ownership transfer for a new title certificate to be issued.

Approximately 3 to 6 month after purchasing a property, the tax office responsible for the purchased property will send the buyer all necessary documents related to the real estate acquisition tax, it is advisable to settle the payment within the specified time frame without delay.

Click here to learn more about the tax requirements on real estate investment in Japan.