Licensed realtor and “Minpaku” manager.
Yoshihiro was brought up in an international school and speaks Japanese, English, German and Brazilian Portuguese. After selling over 200 investment properties in the domestic market, he then served foreign buyers with housing and investment purposes. He established JIN’S・HOMES in 2023 to support foreigners to invest, set-up(renovate, furnish and license), and manage properties for short term rental (Airbnb).
Step 4: Purchase
Make an offer. Clarify your requirements (price, deposit, finance, signing date, etc.) and your agent will provide a letter of intent to sign. Many agents these days offer electronic signatures, and the signing can be as easy as a click. Once the seller agrees on the terms and provides all necessary documents on the property, get your agent to revise the details and ideally get an English translation of the contract draft. Keep in mind that you will need to pay the deposit (usually 5-10% of the purchase price) at signing, and the remaining balance and acquisition costs (approx. 6% of purchase price, including brokerage fees, registration tax, insurance, etc.) at settlement.
※Good to know: Both the seller and buyer each hire their own broker and pay brokerage fees
Unlike western transactions, both the seller and buyer hire their own broker and each pay 3% brokerage fee. This system enhances the seller agent to list their properties (as they won’t need to share fees) and the buyer’s agent to have access to them. In Japan, only licensed realtors can handle a real estate transaction. In other words, people are hiring a licensed realtor instead of a lawyer to secure a transparent deal.
※Major Consideration: Overseas remittance
Depending on your residence, you may have restrictions on overseas remittance (either limit, and/or necessary days to transfer). Double check in advance, which bank you are remitting the deposit from, the limit of remittance, and necessary days for the recipient to receive the money. You shall arrange an escrow and transfer the funds prior to the contract so your deposit can be transferred right after the signing.
Step 5: Deliver
Your agent will arrange a judicial scrivener, responsible of confirming the seller’s ownership, double check of fraud, and of safe deliver of the title. Make sure your funds are in Japan by the settlement, so you do not breach the contract. At the settlement, the buyer will transfer the remaining balance and acquisition costs, then the seller will pass on the keys and the one and only non-reissuable title deed. It takes 2-4 weeks for the title deed to reflect the new ownership, but the buyer is capable of moving in any time after the settlement.
Purchasing property in Japan as an overseas foreigner requires research, planning, and
being respectful with the Japanese real estate custom. By working with an experienced professional capable of navigating each step, most of the burden can be taken off of the buyer and can be a smooth and comforting process.
