"How Do I Purchase Japanese Real Estate?" - Real Estate Purchase Flow
- Japanese real estate expertise
There is a frequently asked question in conversations with overseas customers who are considering purchasing real estate in Japan.
"Do I have to go to Japan to view an apartment, and then go back Japan for signing the Sales and Purchase Agreement?”
Many foreigners want to know the process of purchasing real estate in Japan.
This time, I would like to explain the flow of real estate purchase.
Generally, the flow is as showed above. It may be slightly different depending on the customer's purchase method and purpose of holding.
① Designate an apartment, then visit Tokyo for viewing
CLEARTH LIFE holds seminars in Taiwan, Hong Kong, etc. on an irregular basis. At the seminar, our sales staffs will talk with the customers about the detailed real estate description and purchase plan (using a mortgage). We will arrange the apartment viewing in accordance with the site confirmation and the wish to be viewed by interested customers.
Some people are refraining from going out from home or postponing their visit to Japan due to the novel coronavirus (COVID-19). We also offer online seminar (webinar) and online apartment viewing, so we can respond flexibly upon request.
② Book a unit and pay the Down payment
Customer who have viewed the actual unit and decided to purchase... After booking a unit, the customer will be asked to pay the Down payment (5 to 10% of the selling price) by bank transfer or overseas remittance within the period specified by CLEARTH LIFE.
By doing so, the customer can officially hold the unit he/she wishes to purchase.
Once CLEARTH LIFE confirms payment arrival of the Down payment, we will proceed to the preparation of the agreement and subsequent procedures.
③ Explanation of the Property Disclosure of Important Matters
When concluding a real estate sales agreement in Japan, the Seller must explain the “Property Disclosure of Important Matters (重要事項説明書)" before signing the Sales and Purchase Agreement.
The Property Disclosure of Important Matters contains information about the apartment to be sold, as well as related laws and regulations. After listening the details from the Seller, the Buyer can sign the agreement with peace of mind. By the way, it is said that those who explain Property Disclosure of Important Matters must be license holders of the Japanese national qualification "Real Estate Notary (宅地建物取引士)".
④ Sales Agreement Procedures
Once the Buyer listens the explanation of Property Disclosure of Important Matters from the Seller side and do not have any problems, the Buyer fills-in and signs the sales agreement as a purchasing procedure. The sales agreement includes not only real estate information and selling price, but also the scheduled handover date.
Since CLEARTH LIFE has overseas affiliated agents and local subsidiaries (group companies), it is possible to carry out purchase procedures in customer's country without visiting Japan. (Please contact us for details on the countries covered.)
⑤ Preparation of Required Documents
If the customer become a real estate owner in Japan, he/she needs to register their ownership. Therefore, the customer needs to prepare documents such as notarization document (affidavit) of the address in his / her country. In addition, the customer using the mortgage must prepare the documents specified by the financial institution. Also the customer will apply for non-life insurance such as fire and earthquake insurance during this period, so please follow the instruction of the sales staff.
⑥ Payment of Balance and Handover of Real estate
When the planned handover date approaches, the balance of the selling price and miscellaneous expenses (various taxes, non-tax expenses) need to be bank transferred or remitted from overseas to the CLEARTH LIFE account by the customer.
Once all payment is confirmed by the handover date, the ownership will be registered accordingly.
As the actual registration procedure is performed by a Japanese lawyer (Judicial Scrivener) on behalf of the customer, he/she does not have to come to Japan for the handover. Those who purchase an apartment for self-use will adjust the schedule separately to handover the keys, etc.
The above is the flow of real estate purchase in Japan.
Except for the apartment viewing, the customers can purchase real estate without worrying about coming to Japan. There are many customers who purchased our apartments without actually visiting Japan.
As I mentioned earlier, CLEARTH LIFE also offers online seminar (webinar) and online apartment viewing. If you have any questions, please feel free to contact us!
I would like to introduce the project that was launched in April 2020.
"CONCIERIA MONZEN-NAKACHO CROSSIA"
*View from balcony (14th floor)
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