Followings are an expected common procedure when you find your agent for finding property in Japan. Please follow an advice from your agent in case different procedure is required.
When you choose an agent
In Japan, real estate companies need a license permitted by government, and very strict procedures required to be licensed as real estate agents. Chief traders of real estate (Takuchi Tatemono Torihiki Shuninsha) is a national qualification. Only qualified person is allowed not only to sign on discloser documents and sales agreement, but also give an explanation of both documents to a client. When you choose an agent in Japan, we strongly recommend you to make sure if the agents field you are going to contact is licensed and if the person you are going to talk is fully qualified chief trader of real estates or not. Qualified chief trader has a certification of chief trader with photo. In case either of the above negative, you’d better step away from the transaction no matter how attractive the property. It may cause you high risks on the transaction as nobody will take the consequences in such a case.Purchasing procedure
Phase 1 "Enquire property"
If you find something good at website, we strongly recommend to have actual viewing by yourself before making a decision of buy or not buy. Actual viewing of property is very important for knowledge about an environments, atmospheres and “feelings” of property.
Japanese real estate agent works for both seller and purchaser to meet their demands. Brokerage fee are strictly specified by Real Estate Business Law and will be charged to both seller and purchaser. Legal Brokerage Fee 5% of 1 to 2,000,000 yen, 4% of 2,000,000 to 4,000,000 yen 3% of more than 4,000,000 yen Total of the above + consumption tax = Brokerage Fee
In case of property price is more than 4,000,000 yen, following easy calculation can be applied. (Sale price x 3% + 60,000 yen) + consumption tax = Brokerage Fee
Sale price 10,000,000 yen 5% of 1 to 2,000,000 yen = 100,000 yen 4% of 2,000,000 to 4,000,000 yen = 80,000 yen 3% of more than 4,000,000 yen = 180,000 yen Total; 100,000 + 80,000 + 180,000 + consumption tax (5%) = 378,000 yen Easy calculation (10,000,000 x 3% + 60,000) + consumption tax (5%) =378,000 yen
Phase 2 "Purchase decision"
Once you decide to buy a property, the agent will ask you to fill up a document called “Notification of intended purchase) to make an offer to a seller. This is NOT sales agreement but it’s on the premise that you shall purchase if your offer is accepted.
Once both parties agree the terms and the conditions, the agent will provide you with an explanation of important matters related to the property (Discloser document). The explanation should be professionally made with the professional knowledge and careful research. Explanation of draft sales agreement will be provided at the same time. These above explanations have to be provided face to face by the qualified chief trader with showing his/her certification of chief trader at the agents’ office usually or anyplace specified by the purchaser.
Phase 3 "Signing on sales agreement and payment of deposit (earnest money)"
When you sign on sales agreement and make payment of Deposit (earnest money). At the same time of signing on sales agreement, payment of deposit (earnest money) to a seller will be carried out. Usually 10% of the sale price will be paid to a seller directly in Japan.
Phase 4 "Final payment (Settlement) and delivery"
Before the date of settlement, judicial scrivener shall research and confirm the latest public registry to make sure if there are any additional rights or seizures to be known after signing on sales agreement.
Once judicial scrivener confirms that all documents necessary for title transaction are ready, proceed the payment of remaining sale amount and adjusted amount of annual property tax to seller. The settlement is usually held at the bank where purchaser deals with but you can make payment the amount by bank transfer.
Property and Keys will be delivered to purchaser once all payment are completed, then Judicial Scrivener will start title transfer from seller to purchaser. The purchaser will have title deed in a week or so.
Remarkable point when the payment is made by bank transfer, there is time lag for the transfer from overseas. It usually takes 3 to 10 days to be received, and extra cost may occur on overseas money transferring. Please follow an advice from the agent for each case.
Documents required for purchasing
At the time of settlement, overseas purchasers are required to provide with “affidavit letter (or statutory declarations)” to verify your residential address in your country, and photocopy of your passport. The affidavit must be witnessed by those who are authorized to sign on official documents for overseas. In Australia, Notary Public and J&P are authorized to be witness but not solicitor either lawyer.
Phase 5 "After the delivery"
Please be noted that you can set up automatic payment for annual property tax and village tax only at the local banks where the property exist. Please see below about the local bank in Hakuba.
- Available banks for tax payment
- Hachijyuni Bank Ltd.
- Nagano Bank Ltd.
- Matsumoto Shinkin (credit association)
- JA bank
- Japan Post
Let use a local property management company for easier life in Hakuba.