The process begins by a free consultation where we will inquire the client’s needs including size, area, budget, and other criteria.
Buy property in Japan with confidence backed by our team of real estate and legal experts
We will help you search for properties that meet your criteria.
Newly-built Condominiums, Resale condominiums, Single-family homes (newly built and resale), Investment Properties (vacant or with tenants), Buildings for sale, Land
Once we have found property(s) that you would like to visit, we will arrange to set up a walkthrough. If the property is vacant, we can arrange a visit almost immediately. If the property is still occupied by the owner, we can usually arrange a walkthrough with 2-3 working days lead time. However, if there is a tenant in the property, in some cases a walkthrough is not possible.
When you have found a property where you would like to make an offer, we will help you prepare a “purchase application” document that will be submitted to the owner. This document is to show that you are a valid potential buyer, and will contain information including your offer price, proposed payment method (cash or mortgage), the proposed contract date, desired closing date, and any other conditions.
Once an agreement has been reached between you and the Seller, a sales contract can be prepared.
The vast majority of real estate contracts use a set format established by the All Japan Real Estate Transaction Association. Additionally, Japanese law requires that each contract come with an “Explanation of Important Matters”, which must be explained verbally to all parties and co-signed by a licensed Real Estate Transaction Broker.
A contract for the “Sale of Real Estate” contains the details of the transaction, the price of the property, and the rights and obligations of the contracting parties.
Items required from the Buyer at the contract signing include: revenue stamp (the amount is based on sales price), registered seal, cash deposit (negotiable, but usually 10% – 20%), and photo ID (Driver’s license, Passport, Resident Card, etc.).
If the purchase is to be financed, the contract will include a mortgage contingency clause. This protects the buyer if the bank does not issue a final mortgage approval and usually allows for the deposit to be returned.
Once the contract has been signed, you can apply for a mortgage at a financial institution. Each financial institution will ask you to submit a loan application form along with documents that verify your income, assets, and other relevant information in order to consider the application.
STK Properties can give you advice on choosing the right financial institution based on the area of the property and your residence status. While the majority of Japanese banks require that foreign nationals have permanent residence in order to be eligible for their home mortgage products, an increasing number of banks have begun accepting individuals who have a spouse or work visa.
At closing, which usually occurs at the bank, the buyer, seller, and bank officer will be joined by a licensed judicial scrivener. The judicial scrivener will check that all necessary documents have been assembled. Once everything has been reviewed, they will ask for all parties to execute documents to make the necessary registrations to transfer ownership to the buyer.
Also at closing, the Buyer (in case of a mortgage the bank) will pay the remaining balance of the sales price to the Seller. Once the transfer has been confirmed by the bank, a receipt issued by the Seller will be given to the Buyer.