FAQ for Buying a Real Estate in Japan
General Questions
The general steps to purchase real estate in Japan through a real estate agent are as follows:
- Define Your Requirements & Budget: Define your preferred location, property type, size, layout, and move-in date. Research the market, evaluate your savings, and check mortgage limits to set a realistic budget.
- Find a Real Estate Company: Choose a reliable agency to assist in your search.
- Search for Property: Look for properties through the agency, online, or advertisements.
- Visit Properties (内覧 nairan): Inspect potential properties and review their conditions and surroundings.
- Hire the Agent (Mediation Contract) (媒介契約 baikai keiyaku): Sign a mediation contract with the real estate agency you want to proceed with.
- Plan Your Finances: Finalize your financial plan, considering all costs including mortgage and additional fees. Apply for pre-approval from the financial institutions of your choice.
- Submit a Purchase Offer (購入申込み konyu moshikomi): Make an offer for the property through the agency.
- Review the Disclosure Statement (重要事項説明 jyuyo jiko setsumei): Review the disclosure statement (important details) explained by a licensed real estate agent.
- Sign the Purchase Agreement (売買契約 baibai keiyaku): Conclude the purchase and sale contract after confirming all conditions are met, usually involving a deposit (10-20% of the purchase price).
- Finalize Mortgage: Formalize the mortgage agreement after passing financial institution checks.
- Handover (決済 kessai / 引き渡し hikiwatashi): Pay the remaining balance and receive the property title and keys, as the ownership of the property is officially transferred and registered.
The process may differ depending on the agency, your financing options, and the property.
No, you do not need to be a resident of Japan to purchase property. It’s possible to complete the entire purchasing process without ever coming to Japan (if you are comfortable not touring the properties in person). However, you will need to appoint someone to handle your taxes. For details, please see “What are the roles of a tax agent and why do I need one?”
If you are a non-resident:
- Affidavit of identity 宣誓供述 (doubles as notarization of signature/signature certificate)
- Copy of passport
If you are a resident:
- 住民票 (jyuminhyo; certificate of residence)
- 印鑑証明書 (inkan shomeisho; certificate of registered seal)
- 在留カード (zairyu card; residence card)
Some other documents may be required depending on your situation.
There are no additional taxes specifically for foreign buyers in Japan, but make sure to check your country’s regulations. While these are not additional fees per se, the following costs may arise:
- Translation/interpretation
- Notarization/affidavit
- Document shipping
Bank fees (exchange/wire transfer)
Some of the common associated costs, fees, and taxes include:
- Stamp duty
- Mortgage fees
- Fire insurance
- Registration fees (registration tax, judicial scrivener fees)
- Agency brokerage fee
- Real estate acquisition tax
Generally, these costs amount to around 5-10% of the purchase price for second-hand (existing) houses.
Finding a bilingual agent can be tricky, especially outside major cities. Many agencies and agents who list their properties on EAVES JAPAN LISTINGS are bilingual or multilingual and can provide services in English and/or Chinese. If a property is listed by a Japanese-only agency, EAVES JAPAN can provide professional real estate translation services to assist your property journey both online and in person. Feel free to reach out to us to find out how we can help you.
If you are a permanent resident in Japan and have a steady income, gerenrally you should have no problem finding a mortgage. While it can be harder for foreigners without permanent status to find a mortgage, some banks explicitly welcome foreigners without permanent residency. More details and a list of such banks can be found on our blog.
If you do not speak fluent Japanese, it’s highly recommended to hire a translator/interpreter. A translator will help you understand documents and communications in Japanese, ensuring clear communication and comprehension of terms. However, things will be much easier if you hire a bilingual real estate agent as your buyer’s agent. Not only can they provide language assistance, but they can also review contracts to protect your interests and help you navigate Japanese real estate laws and regulations as industry professionals, supporting you in making an informed and secure property purchase. You can hire us as a buyer’s agent or a translator, depending on your needs. Contact us to find out how we can help you.
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