First of all, as of March 2024, there are no special restrictions on buying real estate in Japan just because you are a foreigner. Also, while some countries have rules that prevent foreigners from buying land, there are no such rules in Japan. The process is 4-8 weeks at the earliest.
1 Property search
First, find an agent you can trust. Decide on a budget and area and what kind of investment property you would like to purchase. Discuss with the agent what kind of investments you can make in condominiums, apartments, and houses. If you expect to receive rental income, you can narrow down the area by deciding what kind of renters you want to target. If you are expecting a price increase, it is a good idea to consult with an agent to see if there are properties that have such potential depending on the time of year and the area.
At the same time, we must also consider how to prepare the funds. Basically, for those who do not live in Japan, cash purchases are required. Some banks in Japan offer real estate investment loans to non-residents of certain nationalities, so please consult with your agent.
2 Make an offer
Once you have decided on the property you wish to purchase, submit an offer letter to the seller. The price and contract schedule will be discussed through the agent. If you are using a loan, add a financing covenant to the terms of the loan.
3 Sign the contract
On the contract date, you will sign the contract, important matters description, property condition confirmation form, and equipment list, and pay a deposit. The deposit is often about 10% of the price, but some properties require less than 5%. Prepare in advance the revenue stamps to be affixed to the contract.
Identification documents must also be submitted. For non-residents, a passport, signature certificate, and affidavit will be required, so be prepared. It is recommended that you consult with a judicial clerk to obtain the necessary documents at the time of settlement.
4 Preparation for settlement and registration
The agent will send you an invoice for the fees that need to be paid on the settlement date. The method of remittance should be discussed with the agent. In Japan, there are not many cases of escrow, so please make sure to check how to transfer the money safely. In addition, the judicial scrivener will provide you with the necessary documents for registration, so be sure to prepare them.
5 Settlement day
On the settlement date, the balance of the property and other expenses are paid. You will also prepare and bring the necessary documents for registration.
For other condominiums, notify the building management company of the change in ownership. The property management company will also be decided in advance, and in the case of a condominium or single building with a tenant, the tenant will also be notified of the change in ownership and the company that manages the rooms.
The purchase procedure is completed when the judicial scrivener completes the registration process. After the registration procedure is completed, the title to the property will be delivered later.
If you have any questions or/and if you would like to have more details, feel free to contact us by contact form.
