Not a salesperson, your agent
Basic Flow of Real Estate Transactions in Japan
In Japan, there are no legal restrictions on the purchase or ownership of real estate by foreigners or non-residents.
However, non-residents are required to prepare specific documents and complete additional procedures, so understanding the process in advance is essential.
This guide outlines the basic steps and requirements to help you understand the overall process.
Related:
Explore the cultural and architectural value of Japan’s traditional homes—and what makes them so unique.
Akiya and Old Homes: Tips and Insights
Understand the appeal, risks, and realities of vacant and aged homes in Japan’s countryside.
Buying a Home in Japan: Tips and Insights
A practical starting point covering the key steps, costs, and post-purchase responsibilities in Japan.
Initial Inquiry
In Japan, the real estate purchase process typically begins when the buyer contacts a listing agent through a property portal such as SUUMO or athome.
Japanese real estate agents are generally categorized into two types: “listing agents” who represent the seller, and “advertising agents” who work with the listing agent to promote the property. Both types primarily act on the seller’s side.
It is very rare to find a buyer’s agent in Japan who works exclusively for the buyer. As a result, buyers usually contact different agents for each property they are interested in. After attending viewings and deciding on a property, they move on to the next step in the process.
*For more details on the distinction between listing and advertising agents and the unique structure of brokerage in Japan, please refer to this page.
Property Selection and Viewing
After narrowing down their options, buyers schedule property viewings.
Depending on the agent, there may be an additional fee for property viewings, especially in remote areas. Some agents may not accompany the buyer, and in certain cases, viewing the property in person may be a condition for proceeding with the purchase.
It is important to confirm the viewing process and conditions in advance.
Purchase Offer and Contract
When a buyer decides on a property, the next step is to submit a purchase offer.
While verbal offers are legally valid, most agents require a written application. In many cases, price negotiations also begin from the terms specified in the offer, so it is essential to confirm procedures with the agent.
Japan follows a strong first-come, first-served culture. Once a purchase offer is submitted, the property is usually marked as “off the market,” and additional offers are no longer accepted.
For this reason, prompt decision-making and early submission of the offer are important.
After the terms are agreed upon, the process moves to the contract stage.
Before signing, a licensed real estate agent provides a mandatory “Explanation of Important Matters,” and the buyer pays a deposit to complete the sales contract.
The explanation and contract are conducted entirely in Japanese. English support and document translation are not included in standard brokerage services and must be arranged separately by the buyer.
Items typically required at the time of contract
-
A valid form of identification (passport, driver’s license, etc.)
-
Deposit (usually around 10 percent of the purchase price, with confirmation of receipt by the seller required)
-
Stamp duty (revenue stamp fee required on the contract, amount varies by property price)
-
A personal seal is not required. A signature is acceptable. If you have a seal, you may use it.
Settlement and Transfer
Following contract signing, the process proceeds to the final settlement and registration of ownership. These are usually completed simultaneously, with a judicial scrivener present.
The buyer transfers the remaining funds, receives the keys, and the judicial scrivener files the ownership registration.
For buyers who are non-residents (without a registered address in Japan), it is necessary to appoint a tax representative and designate a local contact address.
When sending money from overseas, be sure to confirm timing and exchange rates with your bank. Preparations should begin as early as possible once the contract is confirmed.
If the buyer cannot be present for the settlement and handover, the process can be handled by an authorized representative. However, the required documents and procedures vary by case, so early preparation is recommended.
A professional known as a “judicial scrivener” handles all aspects of property registration.
Tax representative registration may be done by the judicial scrivener at the time of ownership transfer, but not all provide this service, so advance confirmation is essential.
In addition, registration of the tax representative must be submitted to both the tax office and the local municipal government.
These procedures are not part of regular brokerage services, so it is advisable to decide in advance how to arrange them.
Items typically required at the time of settlement and registration
-
Remaining balance of the property purchase price
-
Settlement of property tax
-
Settlement of maintenance and reserve fees (for condominiums)
-
Judicial scrivener’s fee
-
Personal seal and seal certificate (*1)
-
Valid identification (passport, driver’s license, etc.)
-
Proof of current address (utility bill, etc.) (*2)
-
If a representative is acting on your behalf, a power of attorney and their ID are required
(*1)(*2) can be replaced with alternative documents if the buyer is a non-resident
Additional documents required for non-residents
-
Affidavit for proof of address and signature (used instead of *1 and *2)
-
A Japanese contact address (to be recorded in the official registry). While “no address” can be submitted, it is recommended to provide one.
-
Documents required for tax representative registration (ID, personal seal, seal certificate, etc.)
To ensure a smooth transaction, it is recommended that you confirm the specific procedures and required documents with your agent in advance