How do foreigners purchase real estate in Japan? Introduction of Procedures and Points to Note

In recent years, more and more foreigners are purchasing Japanese real estate. The background to this is,

Low country risk

Easy to purchase

Cheaper than in other countries

These are some of the reasons.

For these reasons, many foreigners want to purchase real estate in Japan, but some may not understand the procedures.

Currently in Japan, there is a movement to regulate real estate transactions by foreigners. In particular, there are moves to tighten regulations near Japanese defense facilities and near borders, so it is necessary to be careful.

In this article, we will introduce the process and precautions when purchasing real estate.

Procedures for foreigners to purchase real estate

The following is an overview of the process for foreigners purchasing real estate in Japan.

1. Viewing the property

In Japan, a real estate company acts as an intermediary in real estate transactions. Since real estate transactions between individuals are very rare, you should go to a real estate agency and ask to see the actual property.

It is best to actually see and purchase a property, so we recommend that foreigners come to Japan once to properly see the actual property. Purchase a property that you are satisfied with after actually seeing the property.

2. Submit a Certificate of Purchase

By submitting this certificate of purchase, you will tell the seller or real estate company whether or not you are willing to purchase the property. Write down your desired price, deposit, and other conditions and submit it.

3. Preparation of funds

This is one point to note, but real estate loans are only available to those who have permanent residency in Japan and a Japanese bank account. Therefore, foreigners will need cash to purchase real estate in Japan, so be sure to have cash ready.

For payment by foreigners who do not have a Japanese bank account, a settlement agent is required, so ask a judicial scrivener. Since it is common for the payment to be made through a judicial scrivener, the amount to be paid to the judicial scrivener will be added to the amount of the payment. This is one of the points to keep in mind.

4. Payment of deposit and commission

Once a settlement agent has been appointed, you pay a portion of the actual real estate purchase price first. By paying the deposit, you are saying “I will buy this property.

The deposit includes a brokerage fee and a stamp fee. The stamp fee also differs depending on the real estate agent, so it is advisable to check it.

5. Registration and Settlement

Once a real estate sales contract is concluded, the actual purchase of the property begins. You will proceed to the remaining settlement and registration of registration, where the ownership of the real estate will be changed to your name. Without registration of registration, the property will not be in your name. Therefore, registration of registration must be done.

As required for registration of registration,

Residence card

Residence card

Certificate of seal impression

Seal

etc. are required. Foreigners need to be careful about registration because the registration is for “international registration”. It is recommended that you choose a judicial scrivener who can handle foreign nationals and ask for their support.

6. After acquiring real estate, you must go to the Ministry of Finance within 20 days.

Japan has a “Foreign Exchange Law”. Based on this law, you must report to the Ministry of Foreign Affairs. There are exceptions, so if you request support from a judicial scrivener there as well, it is a good idea to discuss this matter with them as well.

Conclusion

As we have shown in this article, foreigners can purchase real estate in Japan under the same conditions as Japanese nationals. There are some caveats, such as the need for a “settlement agent” for payment and the hassle of “liaison registration,” but since there are fewer restrictions on real estate purchases than in other countries, those considering purchasing real estate in Japan should consider doing so as well.

If you are interested in purchasing real estate in Japan, please refer to this article.