Japan » The Purchase Process

Buying a property in Japan requires these steps:

• Once determining a property to purchase, a purchasing application is usually required to start negotiation with a seller.
• Legal background of the property and payment method is explained to a purchasing person by a licensee (usually of a meditating realtor).
• When the contract is concluded with necessary signature and impressions and an agreed advance is paid to a selling owner, the contract is officially closed and takes effect.
• A Bank will require the submission of copy of the contract and property certificate to precede a loan approval. Fees of the right column will be required when approved.
• Necessary registration, such as ownership transfer, ownership retention, mortgage setup should be completed through a legal scrivener.
• Tax notice of ‘Real Property Acquisition Tax’ will be sent to a purchasing owner directly by Tokyo Metropolitan Government (or prefectural government in local regions).
• Tax notices of ‘Fixed Property Tax’ and ‘City Planning Tax’ will be sent to a selling owner. A purchasing owner usually pays the taxes of his part to the selling owner as of purchasing, and the selling owner pays the sum to the authority in the end of the year.