
Not a salesperson, your agent

Q&A: Buying Real Estate in Japan
This page provides answers to frequently asked questions about buying real estate in Japan.
To make it easy to navigate:
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Categories are listed below. Clicking a category name will jump to that section.
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Within each category, you can click a question to jump directly to the answer.
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Each answer includes a link back to the top of the page.
Categories covered:
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Property Search & Brokers
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Market Structure & Practices
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Property Viewing & Inspections
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Contracts & Settlement
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Tax & Residency Matters
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Registration & Legal Procedures
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After Purchase
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Q7. Why would a broker say “this property cannot be introduced” even though it is listed for sale?
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Q9. Why are some properties not listed on REINS or portal sites?
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Q10. Why are old buildings often considered to have zero value in Japan?
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Q11. What is the difference between overseas real estate agents and Japanese brokers?
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Q14. Can I check disaster risk maps (such as for landslides or floods)?
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Q15. Is it always possible to view a property? Why might a viewing be refused?
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Q18. How long does a property viewing usually take in Japan?
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Q19. Can disaster risks or termite damage be checked during a viewing?
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Q20. Is a home inspection (building condition survey) mandatory in Japan?
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Q21. Can an inspection be refused? And when is the usual timing?
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Q25. What documents or information are required when submitting a purchase application?
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Q26. Can overseas residents take out a housing loan in Japan?
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Q27. Why is it difficult to get a loan for kominka or older houses?
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Q28. Are loans available if I want to use the property for business (such as minpaku or a café)?
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Q29. Can contracts or the Explanation of Important Matters be provided in English?
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Q30. Can contracts be signed electronically or handled remotely?
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Q34. Do I need a personal seal (hanko) to buy property in Japan?
Property Search & Brokers
Q1. How can I find properties in Japan?
The most common way is to use real estate portal sites such as SUUMO, athome, or Yahoo! Real Estate, or municipal “Akiya Banks” (vacant house listings).
Since buyer’s agents are not widely established in Japan, buyers usually search portals themselves and directly contact the listing broker.
Be cautious: recently, some overseas real estate websites have started showing Japanese properties without the seller’s or listing broker’s consent. This is not technically illegal, but it is considered bad practice in the industry and may lead to trouble. Because sellers do not provide regular updates to those sites, properties may remain listed even after being sold or put under negotiation.
Japanese domestic portals require brokers to register and update listing status regularly, making them more reliable. For safety, it is best to begin with Japan-based official portal sites.
For more on Japan’s real estate market structure, see How the Japanese Real Estate Market Works.
Q2. If I ask a broker to search for properties, will they do it?
In Japan, most individual buyers start by finding properties on portal sites and then contacting the listing broker directly.
It is possible to ask a broker to search on your behalf, but this is an optional service and not all brokers will do it proactively.
Factors that may limit a broker’s willingness to search include:
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Lower price range
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Uncertainty about whether the buyer will actually purchase
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Buyers who are not ready to buy soon
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First-time clients with no prior relationship
It is also common for buyers to contact multiple brokers simultaneously.
If a broker feels there is little chance of closing a deal, they may avoid spending effort on property searches.
On the other hand, long-term clients such as investors or repeat buyers sometimes work with a specific broker for property searches.
However, unlike in some other countries, buyer’s agents are not common in Japan.
There is usually no contractual relationship obligating brokers to search for properties on behalf of buyers.
Because the market is seller-centric, the relationship between a new buyer and a broker tends to be limited at the start of the property search.
Q3. Are there buyer’s agents in Japan?
In Japan, brokers who sign an exclusive agreement with the buyer and provide full buyer-side support are extremely rare.
Typically, buyers search portals on their own and then contact the listing broker.
Japan’s real estate brokerage system is a seller-centric model. Unlike in the U.S. or Australia, buyer’s agents are not institutionally established.
When you hire a broker in Japan, you must sign a Brokerage Agreement under the Real Estate Brokerage Act, but this is not a buyer’s agent contract.
For details about Japanese brokers and the listing/client structure, see What I Offer.
Q4. Can I make inquiries in English?
English-speaking brokers are limited in Japan. Some brokers cannot respond in English at all, while others may rely on automatic translation tools.
Because Japan’s real estate process is complex, it is often confusing for international buyers. To reduce stress, it is better to work with a broker who can communicate in English.
However, note that even with English-speaking brokers, contracts, settlements, and ownership registration are all conducted in Japanese. The degree of English explanation varies depending on the broker, so confirm in advance.
Q5. How can I hire an agent?
Japan has very few brokers who work as exclusive buyer’s agents from start to finish.
In most cases, buyers find properties themselves on portals, then contact the listing broker. That broker then prepares the contract process.
If you want an agent, you can search for English-speaking brokers online. But exclusive agreements like mine are still rare.
When hiring, it is important to clarify the scope of work and which parts may incur extra fees. If possible, sign a written agreement that specifies services and fees to prevent future disputes.
For more about brokerage in Japan, see What I Offer.
Q6. I contacted the broker who listed a property online, but then realized they were not the seller’s broker. Is this common in Japan?
Yes, this is common in Japan.
In Japan, property information is not centralized, and this can be confusing for international buyers. It is common for brokers to publish property listings on portal sites with the permission of the seller’s listing broker.
When a transaction proceeds, however, these brokers act as the buyer’s broker, not the seller’s broker. In other words, although they appear to be the listing broker because they post the property online, in practice they represent the buyer’s side.
Market Structure & Practices
Q7. Why would a broker say “this property cannot be introduced” even though it is listed for sale?
Even if a property appears to be for sale, brokers in Japan may say it “cannot be introduced.”
The reasons fall into two categories: practical circumstances and structural or cultural factors in the Japanese market.
1. Practical circumstances
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Already under negotiation or sold
Sometimes the portal listing has not been updated, and the property is already in negotiation or close to contract. -
Restrictions set by the seller
Some sellers explicitly set conditions such as “locals only” or “no foreigners.”
These become part of the transaction terms, and brokers must comply. -
Mismatch with buyer’s intended use
If the buyer intends to use the property for minpaku (short-term rental) or business in an area zoned for residential use, brokers may refuse introduction.
Similarly, if the property is needed for a visa or company registration, the seller may reject it if the purpose does not align.
2. Structural and cultural factors
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Information hoarding (kakoikomi)
Some listing brokers prefer to keep the deal in-house to collect commission from both sides (“dual agency”).
They may delay cooperation or refuse to share the property with outside brokers. -
Community-oriented sales practices
Especially in rural areas, sellers may prefer to sell only within their community or to familiar buyers.
This preference is not always written into the contract, but it influences how listing brokers handle introductions. -
Intended use restrictions by seller
Even if legally possible, some sellers say “residential is fine, but not for minpaku or business use” due to community concerns. -
Broker’s inexperience with foreign buyers
Many brokers simply cannot communicate in English, or feel anxious about handling foreign buyers because they do not know what documents are required.
While this can be resolved if the buyer has an experienced broker supporting them, in practice some brokers still refuse because they expect “extra trouble.” -
Outdated seller’s market mentality
Even though Japan’s real estate market has largely shifted from a seller’s market to a buyer’s market, many listing brokers—especially in rural areas—still act as if sellers hold all the power.
They often take the stance of “choosing their buyers,” a practice sometimes called tonosama shobai (“lordly business”) in Japanese.Even when they do not explicitly refuse to introduce a property, their arrogant or uncooperative attitude, combined with reluctance to disclose information, often discourages buyer-side brokers from proceeding.
As a result, some buyers ultimately turn to other brokers after encountering such old-fashioned practices.
How to deal with this
If refusal is due to seller’s absolute conditions (locals only, no foreigners) or deliberate information hoarding, there may be no way forward.
But if it stems from lack of experience or uncertainty, a skilled buyer’s broker can sometimes resolve the issue. Examples include:
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Providing affidavits at contract signing to ease identity concerns
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Offering terms that benefit the seller
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Showing clearly how the buyer’s side will handle communication and preparation
Even in cases of hoarding, sometimes the issue can be resolved if your broker takes the role of “assistant” (not performing brokerage) while the listing broker retains formal brokerage duties.
This only works if the property is attractive enough and the seller side is flexible—and in such cases, the buyer’s broker should also be compensated fairly for their role.
Summary
Being told “this property cannot be introduced” does not always mean a dead end.
Sometimes it reflects practical circumstances, and sometimes deeper structural issues.
With the right strategy and negotiation by your broker, it may still be possible to move forward.
It is also important to recognize that cultural attitudes and local values themselves can sometimes act as barriers in the Japanese real estate market.
Q8. What are “off-market” properties?
In many countries, “off-market” often suggests exclusive listings shown only to select clients or private sales of luxury homes.
In Japan, however, the situation is quite different: off-market properties are not rare—they are commonplace.
While there are no official statistics, brokers encounter them frequently in day-to-day work, so they are not “premium” by default but rather a routine market practice.
In other words, in Japan off-market properties usually do not exist because they’re especially valuable or owned by celebrities. More often, they arise for the following reasons:
Main reasons off-market listings arise
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Broker-driven (information hoarding / members-only marketing)
Some brokers avoid public disclosure to maximize commission through handling both seller and buyer in-house (“dual agency”), a practice often called kakoikomi in Japanese.
In recent years this tactic is also used for lead generation, e.g., “members-only access” or “we have off-market listings,” which is the opposite of an open market. -
Seller preference (individual owners)
Owners may avoid public listing because they “want to sell to locals,” “don’t want the neighborhood to know,” or “don’t want to sell to outsiders.”
These attitudes are remnants of the former seller’s market and are somewhat out of place in today’s buyer’s market. -
Seller preference (corporates / business sellers)
For income buildings or development sites, sellers often keep sales off-market to prevent business or financing plans from leaking.
This is a more rational reason, and such deals are commonly handled quietly through broker networks.
At the same time, it also reflects a longstanding business custom in Japan, where industry players traditionally prioritize closed, trust-based transactions over full public disclosure.Note: In these broker-to-broker transactions, it is common for multiple brokers to line up between the listing broker and the end buyer’s broker.
This chain of intermediaries often creates a “whisper-down-the-lane” effect, where information becomes less transparent, less accurate, and slower to reach the buyer.
Summary
In Japan, “off-market” does not carry the same “exclusive” connotation it often has overseas.
It is more a reflection of market closedness, layered broker practices, and longstanding business customs, and it does not necessarily indicate a premium property.
Q9. Why are some properties not listed on REINS or portal sites?
Compared with other developed countries, Japan’s real estate market is relatively closed.
There are several reasons why some properties are not listed on REINS (the brokers-only database) or public portal sites:
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Dual agency practices
Many brokers prefer to act for both seller and buyer to collect fees from both sides, so they avoid disclosing information publicly. -
Lack of centralized information
Unlike the MLS system in the U.S., Japan has no nationwide structure that guarantees transparency.
Information is fragmented by brokerage firm, making it difficult for buyers to see the whole market. -
Type of brokerage contract
If the seller chooses a “general brokerage contract,” the broker has no obligation to register the listing in REINS.
Some brokers even encourage sellers to choose this type so they can monopolize the introduction. -
Seller’s own preference
Some sellers prefer to keep the property off-market.
This is especially common for income properties, business-use land, rural community properties, and traditional homes like kominka. -
Emphasis on personal networks
Rather than advertising openly, some brokers and sellers prefer to find buyers through industry or community connections. -
Leftover mindset from past seller’s markets
In times of high demand, properties sold easily without being listed. That habit still remains in some areas today.
As a result, in Japan it is not unusual for properties to be traded entirely within closed networks without ever appearing on public listing sites.
Q10. Why are old buildings often considered to have zero value in Japan?
There are several reasons why older buildings in Japan are often valued at zero, both in accounting terms and in the real estate market.
1. Legal useful life and tax rules
Japanese tax law assigns each building a “statutory useful life,” defined as the number of years the government deems it usable under normal maintenance.
Examples:
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Wooden houses: 22 years
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Reinforced concrete structures: 47 years
Once a building exceeds this period, its book value is written down to zero.
This directly affects bank collateral evaluations and appraisal values by real estate companies.
2. Market practice: land-centered valuation
In Japan, land is generally valued more highly than buildings.
Older houses are often assumed to be demolished, and their value is rarely reflected in appraisals.
3. Cultural preference for new homes
For decades, Japanese culture has strongly favored new construction, with “new equals best” as a common mindset.
The secondhand housing market only began developing recently, and systems for fair evaluation of older properties are still immature.
4. Disaster risk and revisions to the Building Standards Act
Japan frequently suffers natural disasters such as earthquakes and typhoons, and building safety standards have been repeatedly strengthened.
Since the Building Standards Act was enacted in 1950, revisions have continually adapted domestic and foreign construction methods to Japan’s seismic risks.
As a result, houses built under older codes are often seen as less safe and are devalued by lenders and the market.
In particular, properties built before the 1981 revision (when seismic standards were tightened) are subject to stricter collateral evaluations.
Exception: traditional kominka
Traditional wooden houses (kominka), built with pre-modern techniques, are structurally different from standard postwar wooden homes.
They often incorporate seismic-resilient design features that have been validated over centuries.
Recently, their durability has begun to be recognized.
However, market awareness is still limited, and in practice many kominka continue to be priced very cheaply, far below their real value.
Practical pricing
Old houses usually require repairs or renovations before use.
As a result, “low building price = high repair cost” is common, and the combined cost of purchase and renovation can be similar to that of a new house.
Importantly, the total cost varies greatly depending on location.
In urban areas, even old houses needing extensive work may sell for high prices, while in rural areas, even new homes may be cheaper than used homes in cities.
Summary
Due to a combination of tax law, market practices, cultural attitudes, and disaster risks, old buildings in Japan are often given “zero value.”
However, this is not universal: traditional kominka, for example, may have genuine structural and cultural value but are still underappreciated in the market.
For more detail on how property appraisals work, see this page.
Q11. What is the difference between overseas real estate agents and Japanese brokers?
In Japan, real estate intermediation is defined by law as takuchi tatemono torihiki-gyo (Real Estate Brokerage Business).
The role and way of working of Japanese brokers are very different from “real estate agents (Realtors)” in countries like the U.S.
In recent years, some Japanese firms have started using the title “real estate agent,” but in reality their work is usually very different from what “agents” do in the U.S.
Japanese brokers (仲介業者)
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Operate under the Real Estate Brokerage Act, acting on behalf of a seller or buyer with the goal of concluding a sales contract.
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The buyer–broker relationship is usually limited to contract intermediation, with the broker’s duties centered on preparing and executing the contract.
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In practice, their role is closer to that of a salesperson selling properties than a fiduciary protecting the client’s best interests.
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Many brokers work as employees focused on company profit, chasing sales quotas and performance targets. Once the contract is done, the relationship typically ends—transactions are one-off.
U.S. real estate agents (Realtors)
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Licensed by each state and regulated by the National Association of Realtors (NAR).
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They sign an exclusive agreement with their client (seller or buyer) and are responsible for protecting that client’s interests.
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The structure is clear: the client’s benefit = the agent’s benefit.
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Transactions are based on MLS (Multiple Listing Service), which ensures open information sharing.
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Realtors work as independent business owners, building long-term relationships of trust. Prioritizing the client’s interests is directly tied to growing their own business.
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Following the recent NAR lawsuits, there is an even stronger trend for buyer’s agents to sign formal contracts with buyers.
Summary
Japan’s system is property- and contract-centered, where brokerage work tends to resemble sales and client relationships are often one-off.
In contrast, the U.S. is client-centered, where agents build their business on trust and long-term relationships with clients.
While it is not accurate to generalize “overseas agents,” comparing with the U.S.—a leading market for agency systems—makes the differences in Japan clearer.
Recently, more people in Japan are trying to establish themselves as independent, client-first agents. However, exclusive buyer–agent contracts remain rare, and the overall market structure is still firmly seller-centric.
Q12. What is the scope of brokerage services in Japan?
Brokerage services (chukai gyomu) mean acting as an intermediary to conclude a contract between parties.
Specifically, the broker stands between the seller and buyer (or landlord and tenant) to facilitate the transaction.
The broker’s role includes confirming contract terms, preparing documents, and managing the exchange of funds.
However:
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Property search, arranging viewings, and other related tasks are not legally required.
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These are discretionary services, and the scope varies by company and by transaction.
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For lower-priced properties, service is often limited to the bare minimum.
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For higher-priced properties, brokers may provide more extensive support.
Q13. Is a buyer’s agent agreement necessary?
Legal requirement
Under Japan’s Real Estate Brokerage Act, there is no requirement for a buyer’s agent agreement.
The legally defined agreement is the brokerage agreement (baikai keiyaku) between the buyer and a licensed broker, which is signed at the time of contract.
This is fundamentally different from an exclusive buyer’s agent agreement, where an agent is hired to represent only the buyer’s interests.
Practical necessity
In reality, buyer’s agents are very rare in Japan, and even fewer work under an exclusive agreement with the buyer.
However, given the lack of transparency and the seller-centric structure of the Japanese market, a buyer’s agent plays an important role in protecting the buyer.
Signing a buyer’s agent agreement helps clarify responsibilities, define the scope of services, and build trust.
For overseas residents or foreign buyers, such an agreement can be a powerful tool to ensure the transaction proceeds safely and with confidence.
Summary
A buyer’s agent agreement is not legally required in Japan.
But considering the realities of the market, it can be highly beneficial for protecting the buyer’s position.
Property Viewing & Inspections
Q14. Can I check disaster risk maps (such as for landslides or floods)?
Yes. Hazard maps showing disaster risks (such as floods, landslides, and earthquakes) are officially published by each municipality and are open to the public.
Most are available online through municipal websites, where you can view risks mapped by area.
However:
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In smaller municipalities or regions with less digital infrastructure, hazard maps may only be available as printed materials at the local office.
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Some large cities, such as Tokyo’s 23 wards, provide multilingual versions, but in many rural areas the maps are available only in Japanese.
Q15. Is it always possible to view a property? Why might a viewing be refused?
Normally in Japan, buyers are allowed to view a property before signing a contract, even if the seller is still living there. However, there are exceptions:
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Occupied investment properties: If tenants are in place, viewings are usually not allowed.
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New construction or renovation: Access may be restricted due to safety during construction.
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Screening serious buyers: Some brokers allow viewings only for buyers who show strong intent, to avoid “window shopping.”
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Identity verification: Brokers may require ID (e.g., passport) before allowing a viewing.
While viewings are standard practice, restrictions exist depending on the property and seller’s situation.
Q16. Can I bring a home inspector to a property viewing?
In Japan, bringing an inspector at the viewing stage is not common.
Whether an inspection is possible depends heavily on the seller and the listing broker.
Unlike in other countries where inspection is a standard pre-contract step, in Japan it is still poorly understood and often seen as something done after signing the contract. Some brokers even discourage inspections, fearing they may cause the deal to collapse.
That said, some progressive brokers are becoming more open to inspections. If you want one, it is best to raise the request early with your broker and have them negotiate with the seller. In some cases, the inspection condition can even be written into the contract—but only with the seller’s consent.
Q17. Why was I pressured to make a quick decision?
The main reasons are:
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First-come-first-served practice: Properties are generally sold to the first buyer who commits.
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Broker’s sales targets: Some buyer-side brokers may rush buyers due to company quotas.
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Seller’s needs: The seller may want a quick sale, or the listing broker may want to close the deal quickly.
Also, if a buyer delays too long, brokers may stop cooperating, or the property may simply sell to someone else.
If you feel rushed, it is best to ask directly why the broker is pressing for speed.
Q18. How long does a property viewing usually take in Japan?
It depends on the property and the buyer’s needs.
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Condominiums: Typically 30 minutes to 1 hour, including both the unit and common areas.
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Detached houses: Also 30 minutes to 1 hour, longer if the house or land is large.
If you want to check storage, utilities, or take photos/videos (with permission), it may take more time. If checking the neighborhood, allow extra time as well.
If the seller is still living in the house, it is courteous not to stay too long. Online viewings usually require more time, as they are less clear than being there in person.
Q19. Can disaster risks or termite damage be checked during a viewing?
Disaster risks
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Use municipal hazard maps (flood, landslide, earthquake).
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Ask the seller about past disaster damage. However, sellers may not know all details.
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Best practice is to cross-check official data with seller’s statements.
Termites
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It is difficult to detect without professional inspection.
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In vacant houses, you might check for termite tunnels under floor hatches, but this is not done in normal viewings.
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Long-vacant homes may show visible damage. If floors feel soft, damage may be severe.
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In Japan, old vacant houses are generally assumed to have termite risk. Even homes around 20 years old often show signs.
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Always ask whether anti-termite treatment has been done in the past.
Summary
Use hazard maps plus seller information for disasters, and assume termite risk unless proven otherwise.
Q20. Is a home inspection (building condition survey) mandatory in Japan?
No. In Japan, home inspections are not mandatory in real estate transactions.
In 2018, the Real Estate Brokerage Act was amended to require brokers to ask whether their client wishe to be referred to an inspection provider.
However, this obligation does not mean the broker must explain the purpose or importance of inspections, nor that an inspection will definitely be conducted.
In practice, brokers only ask: “If you need it, I can introduce a provider—do you want one?” There is no system that ensures an inspection will be carried out.
In reality, many brokers view inspections as a risk to the contract.
They worry that if problems are found, the deal may collapse. For this reason, inspections are often discouraged or not accepted.
Although some sellers voluntarily conduct inspections to provide transparency and make their property more attractive, this is still very rare.
In most cases, inspections in Japan are optional and carried out only if the buyer requests them.
If you want one, consult your broker early, so they can confirm with the seller or negotiate to include it in the contract conditions.
Q21. Can an inspection be refused? And when is the usual timing?
Yes. In Japan, it is quite common for sellers or their brokers to refuse inspections.
The main reason is fear that the contract will fall through if defects are found.
Another factor is that many sellers and brokers simply do not fully understand the importance of inspections.
As for timing:
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In other countries, inspections are normally done before signing the contract.
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In Japan, however, there is a strong custom of treating inspections as something done only after signing, or as a condition of contract execution.
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Asking for an inspection at the viewing stage may even be seen as “unreasonable” or “unconventional.”
In practice, the most realistic approach is to wait until you have chosen your preferred property, clearly show your intent to buy, and then request the inspection.
In some cases, you can negotiate to include “inspection to be conducted” as a contract condition—but even then, the seller’s agreement is required.
Summary
Inspections are optional in Japan and often refused.
If you want one, it is essential to raise the request early with your broker and have them negotiate with the seller.
Q22. When and how can I get repair cost estimates?
In Japan, it is generally difficult to obtain repair or renovation estimates from contractors before signing the contract.
In most cases, buyers are told: “Please request estimates after the contract, or after settlement.”
However, depending on how the buyer’s broker asks, it is sometimes possible to get partial information in advance:
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If you ask directly, “How much will repairs cost?”, the seller or listing broker often cannot answer, and the conversation ends with “we don’t know.”
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But if you ask, “Can you tell me which parts need repair?”, you may be told, for example, “the kitchen and bathroom are old and need replacement.”
Based on such information, the buyer’s broker can make a rough cost estimate.
Limitations of actual contractor estimates:
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Costs vary by contractor, so getting multiple bids (“competitive estimates”) is almost impossible before the contract.
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For a single contractor, access is usually allowed after the contract is signed.
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If the property is vacant, post-contract access is relatively easy, but if it is occupied, access is rarely permitted.
In short, it is nearly impossible to know exact repair costs before the contract.
At best, you can learn “which parts need repair.”
Since this heavily affects the buyer’s decision, it is important to be aware that in Japan, sellers and brokers often control how much information is disclosed before the contract.
Contracts & Settlement
Q23. Can I cancel after submitting a purchase application?
Legally
A purchase application (buying offer form) is not a contract, so it is not legally binding. You can cancel after submitting it.
In practice
In Japan, buyers usually confirm the property’s condition and terms with the seller before submitting the application. Multiple simultaneous offers are not common—applications are typically submitted for only one property that the buyer has already decided to purchase.
Because of this, canceling after submission is often seen as “bad manners.” It may harm the trust relationship with the seller and negatively affect relationships between brokers. Your own broker may also lose trust, making it harder to receive support afterward.
In summary, while cancellation is legally possible, it is rarely done in practice and should be avoided unless there is a compelling reason.
Q24. How much room is there for price negotiation?
In Japan, the scope for negotiation varies greatly depending on the property and the seller’s situation.
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Some asking prices are fixed, with almost no room for negotiation.
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In other cases, discounts of several hundred thousand yen may be possible.
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Large reductions are rare, especially in popular areas or for properties in good condition.
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If the seller still has an outstanding mortgage, the loan must be repaid in full to clear the lien. In such cases, there is almost no room for price negotiation.
Unlike in some countries, buyers do not submit multiple low offers or “test offers.” Negotiation in Japan happens only once you are serious about purchasing, and it is more about adjusting specific terms than “bargaining.”
Q25. What documents or information are required when submitting a purchase application?
The purchase application form itself is prepared and submitted by the buyer.
Additional documents or information are requested by the seller’s broker. Commonly required items include:
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Copy of passport or ID (for international buyers)
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Full legal name, address, and contact information
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Occupation
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Payment method (cash or loan, and breakdown if loan is partial)
Notes:
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Legally, an oral application is possible, but in practice a written form is required.
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Proof of income or bank balance is not mandatory, but some brokers may request proof of funds.
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It is advisable to confirm early what documents will be required.
In short: you prepare the application, and other requirements depend on the seller’s broker.
Q26. Can overseas residents take out a housing loan in Japan?
To use a housing loan in Japan, you must be a resident with a registered address and residence card.
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With permanent residency, many banks will accept you.
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Without permanent residency but with a residence card, some banks may still consider you.
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If you live entirely overseas without residency in Japan, you cannot take out a housing loan.
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Some buyers use a bank from their home country that has a branch in Japan.
Note: Contracts are in Japanese, and some banks require direct communication in Japanese. If you cannot communicate in Japanese at all, loan approval may be difficult.
In summary, most overseas residents cannot use Japanese housing loans. Cash payment is the standard.
Q27. Why is it difficult to get a loan for kominka or older houses?
In Japan, loan approval is based heavily on collateral value.
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The tax system defines statutory useful life: for wooden houses, 22 years; for reinforced concrete, 47 years.
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Once that period passes, the book value of the building becomes zero.
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Older houses often do not meet current earthquake resistance standards, making banks cautious.
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Traditional kominka are built with methods that do not fit modern Building Code evaluation, making collateral assessment even harder.
As a result, loans for old houses or kominka are often rejected, or the loan amount is very limited.
Q28. Are loans available if I want to use the property for business (such as minpaku or a café)?
Yes, foreigners can in principle apply for a business loan under the same conditions as Japanese borrowers.
However:
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You must have a valid residence status and actually reside in Japan.
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Incorporation, a business plan, and sufficient personal capital are usually required.
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For those living overseas without residency, business loans are not available.
In summary, business loans are only realistic if you live in Japan with the appropriate visa.
Q29. Can contracts or the Explanation of Important Matters be provided in English?
No. Under Japanese law, both the Explanation of Important Matters and the sales contract must be prepared and executed in Japanese.
Court precedents also confirm that brokers are not obligated to provide English. If you require translation or interpretation, you must arrange it yourself.
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The official contract and Explanation of Important Matters are in Japanese.
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English translations may sometimes be provided, but they are only reference materials and have no legal effect.
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Some brokers may give oral or written explanations in English, but the extent varies.
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Some brokers or sellers may even require you to bring your own interpreter as a condition of contract.
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“English-speaking broker” does not mean the contract itself will be prepared in English.
In short, English support is voluntary. To ensure full understanding, you should arrange your own translation or interpreter.
Q30. Can contracts be signed electronically or handled remotely?
Since a 2022 legal reform, Japan formally allows electronic contracts and online Explanation of Important Matters (IT-jusetsu) in real estate transactions. In theory, you can complete a contract without visiting Japan.
However, in practice, fully remote contracts are still rare due to:
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Persistent paper culture: Physical documents with seals are still prioritized, and few brokers use cloud-based e-contract systems.
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Current contract practices: Even for non-face-to-face contracts, postal mail is still the main method. Online explanations are also limited in use.
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Seller’s preference: Even if the law allows e-contracts, sellers and their brokers often prefer face-to-face signing—especially in rural areas.
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Financial institutions and judicial scriveners: While banks are digitizing, in real estate transactions they usually expect in-person settlement, with judicial scriveners involved.
Summary
Electronic and remote contracting is legally possible, but in practice most transactions are still paper-based and face-to-face. If you hope to complete everything digitally or remotely, you must confirm in advance with the broker, judicial scrivener, and financial institutions.
Q31. Is a guarantor required for property purchase?
No. In a standard real estate sales contract, a guarantor is not required.
The contract is concluded directly between the buyer and the seller, and a third-party guarantee is not a condition.
However, if the buyer is a non-resident without a registered address in Japan, they must provide a domestic contact person (or tax representative) for registration and tax purposes.
This is different from a guarantor; it is only an administrative role to receive communication from authorities.
Summary
A guarantor is not required for property purchase. Non-residents must instead arrange a domestic contact person (or tax representative).
Q32. Can a contract be signed by a representative (proxy)?
Yes. Legally, a buyer may appoint a proxy to sign the contract and complete settlement without visiting Japan. With a valid Power of Attorney and proper identification, the judicial scrivener can carry out the registration without issue.
In practice, however, there are some challenges:
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Seller’s acceptance: While it is not unusual for elderly or ill sellers to use proxies, buyer-side proxy contracts are still rare. Some sellers or brokers may insist on meeting the buyer in person.
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Challenges specific to foreign buyers: Many local brokers are unfamiliar with the validity of foreign documents such as affidavits, and may resist proxy contracts involving foreigners. In rural areas, some refuse unless the buyer is physically present.
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Strict view of “identity verification”: In Japan, identity verification is often assumed to mean “meeting in person.” Documents or online checks may be considered insufficient. Even if legally valid, such customs can make proxy or non-face-to-face contracts difficult.
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Advance preparation is essential: If you want to use a proxy, confirm with the seller early and be prepared to negotiate. You may need to offer reassurances, such as providing an affidavit, even though it is not legally required. Preparing the Power of Attorney, affidavit or apostille, and coordinating with the judicial scrivener also take time.
Summary
Proxy contracts are legally valid, but some sellers or brokers may refuse. Especially in rural areas, in-person signing is often strongly preferred, so early confirmation and negotiation are crucial.
Q33. Is same-day contract and settlement possible?
Yes, it is possible if certain conditions are met:
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The buyer pays in cash (no loan)
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The seller agrees
Practical considerations:
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Judicial scrivener coordination: Contact them immediately after the purchase offer and prepare all documents in advance.
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Seller’s broker’s stance: Some listing brokers dislike or refuse same-day transactions.
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Property type restrictions:
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Not possible for new builds, as inspections must be completed before handover.
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Not possible for brokerage resale-renovated properties (where a company has purchased, renovated, and is reselling the house), since additional inspections are required before transfer.
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Mortgaged properties: If the seller still has a loan, the bank must process repayment and release of the mortgage, requiring coordination with the financial institution.
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Scheduling (weekdays preferred): Ownership registration must be filed promptly, so contract and settlement are usually done on weekdays. In some cases, if both parties agree, signing may be done on a Sunday and the judicial scrivener files the registration the next business day—but some brokers may resist this.
Summary
Same-day contract and settlement is possible if the buyer pays cash and the seller agrees, but it requires close coordination with the judicial scrivener, the seller’s broker, and—if applicable—the seller’s bank.
Q34. Do I need a personal seal (hanko) to buy property in Japan?
Legally, a seal is not required. A signature is fully valid.
However, Japan has a strong seal culture, and brokers or sellers may still ask for one. In such cases:
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You can create a seal (hanko) quickly and cheaply in Japan (from a few hundred to a few thousand yen).
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You can provide a notarized affidavit instead.
Note: in domestic real estate practice, affidavits are not widely used, and some brokers may not even know what they are. They may refuse to accept them.
Always confirm early whether the seller and their broker will accept a signature alone. If not, prepare an affidavit or create a seal in advance.
Q35. Is escrow used in real estate transactions in Japan?
Escrow is not widely used in Japan as it is in the U.S., due to gaps in legal framework, industry practices, and limited market awareness. Providers are very few, so for most customers it is not yet an easily accessible option.
That said, for international transactions or high-value properties, using escrow may be worth considering to enhance transaction safety.
Tax & Residency Matters
Q36. What should non-residents be careful about when purchasing property?
For non-residents (people without a registered address in Japan), purchasing real estate requires more documents and procedures for registration than for residents, so early preparation is essential. Differences in business practices and culture can also be confusing.
Key points to note
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Additional documents for registration
While a sales contract can generally be signed with just your passport and signature, registration requires documents specific to non-residents.-
Affidavit (certifying address, name, date of birth, and signature).
Prepare this in your home country, have it notarized (and Apostilled if needed), and then use it in Japan. Because this may take time, start early.
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Extra requests from the seller’s broker
Although required documents are largely common, some brokers may ask for additional items at their own discretion. You may face unexpected requests, so confirm in advance. -
Domestic contact person / appointment of a tax representative
For fixed asset tax and real estate acquisition tax, non-residents must, at the time of registration, declare a domestic contact person who has an address in Japan. If no one is available, appoint a tax representative. -
Funds transfer and payment method
Many brokers are unfamiliar with international wire transfers, and some even avoid them. For both safety and scheduling, it is often best to remit funds first to your buyer-side broker’s account, then pay domestically from there. If you are concerned, consider escrow—but since escrow is not standard in Japan, always confirm availability and fees in advance. -
Timing of travel to Japan and scheduling
Contracts and settlement require coordination with multiple parties, including the seller and the judicial scrivener. If you plan to visit Japan, set a schedule early and begin preparations. In many cases, you will email PDF copies of documents to your agent in advance and bring the originals on the day. If you forget originals or anything is missing, registration cannot be completed. Manage progress closely with your agent.
Summary
For non-residents, the biggest issues are additional registration documents (the affidavit), methods of sending funds, and coordinating travel schedules. Confirm required documents and the payment flow early, and proceed in close cooperation with a reliable broker and a judicial scrivener.
Q37. Can I be treated as a non-resident even if I am staying in Japan?
Residency is determined by whether you are registered with a resident record (juminhyo) in Japan.
Regardless of how long you stay, if you are not registered, you are treated as a non-resident.
The key point is whether you can obtain a resident record.
For example:
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Even if you have a residence card, if you are not registered with a resident record, you are considered a non-resident.
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With a short-term stay visa (such as for tourism), you cannot obtain a resident record, so you are always treated as a non-resident.
For non-residents, additional documents (such as an affidavit), as well as a domestic contact person or a tax representative, are required for registration and tax procedures when purchasing property.
Note: A resident record (juminhyo) is issued only if you are registered as a resident in Japan.
To register, foreign nationals must have a valid Residence Card.
However, even if you have a Residence Card, without completing resident registration you cannot obtain a resident record.
Summary
Even if you are staying in Japan, without resident registration you are treated as a non-resident.
Contracts are still possible, but note that non-residents must complete extra procedures for registration and taxation.
Q38. If a non-resident purchases property in Japan, is a domestic contact or a tax representative required?
If the property owner is a non-resident, a domestic contact person in Japan is required.
This is not a strict legal obligation, but in practice it is almost essential—without someone to receive notices and tax bills (such as for real estate acquisition tax or fixed asset tax), delays or even foreclosure may occur.
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Domestic contact person
A person in Japan who can receive notices on behalf of the owner.
They may receive tax bills, but whether they actually handle payment depends on their arrangement with the owner. Sometimes they simply hold the bills until the owner comes to Japan to pay. -
Tax representative
A formal proxy who handles tax matters on behalf of the owner, including filing tax returns and making tax payments.
This role is usually filled by a tax accountant or a professional tax agent.
Practical points:
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Even if you set a domestic contact, some municipalities may still mistakenly send documents to the owner’s overseas address.
→ To avoid this, it is best to inform the municipality in advance that documents should be sent to the domestic contact. -
Without a domestic contact, notices may be sent by international mail (with delays or risk of loss), or left in the property’s mailbox unnoticed—leading to overdue taxes.
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To avoid penalties or foreclosure, always appoint either a domestic contact person or a tax representative.
Registration & Legal Procedures
Q39. Who handles the ownership transfer registration?
Ownership transfer registration is usually carried out by a judicial scrivener, a legal professional, acting as the buyer’s representative.
Supplement
Technically, the buyer (as the new owner) is responsible for filing ownership registration.
However, since it is complicated and requires specialized knowledge, a judicial scrivener applies as the buyer’s proxy.
The broker’s role ends at contract conclusion; registration is outside their scope.
Once the contract is signed and settlement is complete, the judicial scrivener takes over and proceeds with registration.
Q40. What does a judicial scrivener do?
A judicial scrivener is a licensed professional specializing in legal paperwork such as real estate registration and corporate registration.
Unlike lawyers, they do not engage in trials or legal negotiations.
They are best understood as “experts in preparing and filing legal documents on behalf of clients.”
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In real estate transactions
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Handle ownership transfer registration and mortgage cancellation after the sales contract
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Attend settlement, collect necessary documents from both seller and buyer, and apply for registration at the Legal Affairs Bureau
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Difference from lawyers
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Judicial scriveners cannot handle lawsuits or negotiations (except for limited representation at summary courts).
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They are specialists in legal paperwork, not in litigation.
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Summary
A judicial scrivener is an essential “registration expert” in real estate transactions, and also handles a wide range of other legal filings such as corporate setup and inheritance registrations.
Q41. How do buyers communicate with judicial scriveners?
Legally, a judicial scrivener acts as the buyer’s agent for registration, so direct communication with the buyer is the correct procedure.
In practice, however, communication is often handled via the broker.
Quotes, instructions, and required documents are typically conveyed by the broker, which can create a lack of transparency for the buyer.
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Typical practice
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Many brokers arrange for their “regular” judicial scrivener
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Buyers may rarely contact the scrivener directly and may meet them for the first time on settlement day
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Many judicial scriveners do not provide English support, so brokers often assist or rely on machine translation
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Tips and precautions
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Confirm in advance whether you can communicate directly with the judicial scrivener
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It is safer to check whether the scrivener has experience with international transactions
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Ideally, establish a system where you can ask the scrivener questions directly, without going through the broker
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Summary
A judicial scrivener is the buyer’s representative, and ideally communication should be direct.
In reality, however, communication is often routed through brokers, and sometimes even basic explanations are skipped.
Direct communication is best, but if not possible, always make sure to clarify any unclear points before proceeding.
Q42. I was told the property is “unregistered.” What should I do?
An “unregistered property” means that a building exists but has not been officially registered at the Legal Affairs Bureau.
This is especially common for older houses that were used for many years without ever being registered at the time of construction.
In Japan, property registration functions as proof of ownership against third parties.
Without registration, even if you own the building in practice, you cannot legally prove it. This creates major risks for future resale, financing, or inheritance.
To register an unregistered building:
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A land and house surveyor must first file the “initial registration of building description” .
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Then, a judicial scrivener files the “ownership preservation registration.”
In principle, the seller should complete this before transfer. However, in reality, many sellers—especially elderly ones—may avoid it due to the cost or lack of knowledge.
Practical realities:
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Some professionals still say, “If the land is registered, it is fine even if the house is not.”
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But recently, the standard view is that the building must be registered before ownership is transferred.
Since Japan’s registration laws have become stricter, registration should always be done as legal proof of ownership.
If you are buying an unregistered property, confirm who will register it, by when, and who will pay the cost before signing the contract.
Ideally, include these terms in the contract and have your broker negotiate with the seller in advance.
After Purchase
Q43. What procedures are required immediately after purchase?
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Registration
The ownership transfer registration is handled by the judicial scrivener, so the buyer does not need to take action individually. -
Taxes
For national taxes, no special filing is needed as long as a domestic contact is recorded in the registration.
However, some municipalities may still mistakenly send fixed asset tax notices directly to the owner overseas. To avoid this, it is advisable to notify the municipality in advance that notices should be sent to your domestic contact. -
Utilities
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Electricity & gas: Apply to start service and set up payment methods.
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Water: File a change of ownership and user registration form with the local water bureau.
At settlement, the seller usually fills in their portion and the buyer completes and submits it.
For non-residents with limited Japanese ability, it is smoother to have the broker or domestic contact assist.
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Management company or local community contact
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For condominiums: Submit a change-of-ownership form to the management company and decide how management fees and reserve fund contributions will be paid.
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For detached houses: You may need to join or notify the local neighborhood association.
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Home insurance
It is essential to take out insurance (fire, earthquake, etc.) to cover risks such as natural disasters.
Q44. When are fixed asset tax and real estate acquisition tax paid?
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Fixed asset tax (municipal tax)
Levied on whoever owns the property as of January 1 each year.
The tax notice is usually sent around April–June.
Payment is either in one lump sum or in installments (often 4 times a year).
For the year of purchase, the amount is usually prorated between seller and buyer at settlement. -
Real estate acquisition tax (prefectural tax)
Levied once when the property is acquired.
The tax notice usually arrives 2–4 months after settlement (a couple to few months).
Payment is generally made in a single installment.
Q45. How should I manage and maintain the property after purchase?
If you do not move into the property and only use it occasionally, it is recommended to hire a management company.
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Basic services
Monthly inspection, ventilation, and simple checks. -
Optional services
Cleaning, lawn mowing, or increasing the frequency of inspections depending on the property and usage. -
Typical costs
Around 5,000–10,000 JPY per month, depending on the region and service details.
Using a management company is especially advisable if the property will remain vacant for long periods, to keep it safe and in good condition.
Last Update: September 8,2025