CONTRACT PROCESS

Let us tell you about the process for purchasing Japanese real estate. It might be possible to gather property information from outside Japan via the Internet, but it will be necessary to visit Japan at least three times in order to inspect prospective property, sign contracts, and conduct the property delivery.

1

Advance Preparation –budget and priority setting-

It is highly recommended for a buyer to set an order of priority for needs when he/she desires to purchase ideal property.
When purchasing a property, buyer must pay the fee charges such as agent commission for agency transaction(3% of sales price plus tax, for 4million yen real estate) and registration fee as well as the purchase price. Additionally, you must prepare for the expenses of moving house and others. The sum of such expenses is estimated to be 5-10% of the purchase price. We recommend to make a financial planning of the payment amount totalizing the purchase price and all the charges.
All of such elements are essential for purchase decision-making of property, which include its value, location, the distance from the nearest railway station, room area / layout, environment and convenience. We believe it very important for buyer to consider foremost requirements in advance and make clear of the order of priority of needs (requests), in order to find out ideal property under certain budget and time.

2

Property Visit / On-site tour

When buyer has fixed aim of the location, type and budget of real property, we will get started on finding a property for. We recommend making an on-site tour of the property, when buyer has found such a property that will meet requirements. Once you find listings you like, let us go to see them. We make appointment with the owner. This is very important point: without buyer’s visiting of property, seller may not sell property to you to avoid dispute after sales.
For investment property: Because tenant usually live and use investment property on sale, most likely a buyer cannot see condition of the room. Still, we highly recommend seeing property’s outlook and atmosphere with your own eyes to evaluate its value.

3

Purchase Application

When buyer has made a final decision of the property which he/she want to acquire, buyer must make a "Purchase Application" for the property. We will accommodate / confirm the terms and conditions. Once both buyer and seller have agreed to the transaction conditions and then enter into the agreement procedure. For investment property: At this point, it is better to begin discuss management scheme after purchase to maintain income and the value of estate. We have management department for both residential and commercial. Please let us help on that point, too.

4

Prior to Agreement: Explanation of Important Matters

Before concluding the agreement, buyer must receive the explanation of the important matters by our registered real estate transaction manager, in verbal and in written format. This is usually proceeding just before signing of the agreement. The Important Matters mean the items which are required to be provided for explanation by real estate company for the benefit of its buyer, including such items as the entries on the registry book of the target property, the regulations by the City Planning Law and the Building Standards Law, and regarding the termination of agreement.

5

Signing Agreement and down payment

Purchase agreement shall state clearly the price, area aggregate, delivery date and others of the purchasing property. "List of Fixings" and "Condition Report of the Real Property" are included in the documents which will be provided to the buyer for confirmation purpose at the time of conclusion. These documents are intended to seek the buyer's confirmation of fixings belonged to the purchasing property at the present condition.

Requirements for the conclusion of agreement;
  • Down payment ( indication range is from 5 % to 10% of the price).
  • Stamp Duty ( to be put on the agreement)
  • Seal or Signature
  • Half of agent commission(1.5% of sales price plus tax, for 4million yen real estate)
  • Identity verification documents (driver's license, passport, health insurance card and authorized proof of signature)

For more details about fees, see "Contract-related fees".

6

Loan Application

In case that the buyer needs to get a housing loan, he /she shall apply for the loan at a banking institution after the conclusion of agreement.
There are various loan products. Please consult with us whenever in need.

7

Settlement and delivery

Now, we have come to the stage of the payment of remaining balance and the delivery of the property. We will accommodate with the seller and fix the settlement date of the remaining balance. Buyer needs to pay the remaining balance to the seller and at the same time the seller delivers the property, keys and others to the buyer. Registration process of transfer of ownership is usually handled by judicial scriber as buyer's proxy.

Requirements for the settlement of remaining balance;
  • Seal or Signature
  • Legal Certificate of Residences ( of all the people living with the buyer )
  • Driver's license, etc ( for identification of the buyer)
  • Payment of the remaining balance( the execution of loan will be made on the same date)
  • Payment of remaining a half of agent commission(1.5% of sales price plus tax, for 4million yen real estate)
  • Settlement of fixed asset tax /city planning tax (tax burden shall be on the seller before and on the buyer after the delivery date).
  • Stamp Duties, Real Estate Acquisition tax
  • Settlement of Maintenance Fee and the Building Repair Fund (in case of condominium, the payment shall be on the seller before and on the buyer after the delivery date).
  • Registration Fee
  • Preparation of property insurance
  • All other extras
    *There may be cases requiring items other than the above-described. Please ask our staff whenever you need

For more details about fees, see "Fees related to settlement and handover".

8

Move-in / Move-out (for own use)

When relocating, buyer is required to notify the change of legal certificate of residence, address and others to the related authorities. Additionally, buyer needs to package load and dispose the garbage. For preparation for relocation, the following items are required to notify to the related authorities.

Representative examples;
  • Professional moving company
  • Municipalities
  • Electricity supply
  • Gas supply
  • Water supply
  • Telephone service
  • School
  • Automobile, bike
  • Various qualifications / licensees
  • Pets
  • Others

9

Notice to tenant and management (for investment property)

Once the real estate is delivered, you must notify current tenant the transfer of ownership and change in rent account. If you use us as the management company, such chore and monthly management is provided.

Next step for Tokyo realestate investment
Next step for Tokyo property purchase to live