Futureliving.jp - Information for Buying & Selling

Useful Information > Buying & Selling House Viewing Renting CheckSheet Lease Timeline Daily Information  Buying & Selling Offices & Shops International Schools Clinics & Hospitals Embassies Emergency Numbers Glossary of Terms Procedures for Buying & Selling Real Estate in Japan 1. Deciding on a budget, a funding plan, and the required conditions To calculate how much you can afford to spend on property, consider the amount of capital you have and the money that you can borrow. About 25% of your annual income is considered the standard repayment amount for repaying loans per year, which shouldn't put too much of a burden on your finances. It is considered ideal if you can put down 20-30 % of the property price at the time of purchase. However, even if you can't put down that much, try to prepare at least some down payment (include it in the property price) and other expenses (Do not include "other expenses" in the property price). Please note that "other expenses" might be higher than you expected so please make sure to budget for this in your plan. Other expenses include agent commission, real estate acquisition tax, registration and license tax, stamp fee, etc.? Decide on your requirements such as the location, environment, area, and layout etc. 2. Property Search Collect property information, and narrow down your list of properties, which seem to be suitable for your requirements. It is also important to find a good agent. Future Living agent members can assist you with this. 3. Visiting the properties and selecting your favorite Visit the properties that you like to check them out. Make a list of the items on the floor plan that you don't understand. We recommend that you do as much research on the properties as possible. We also suggest that you visit the properties several times because you may discover different things about the place that you don't like depending on the weather or day of the week. You may want to use the check sheet to fill out when visiting properties - see checksheet 4. Purchase Application When you've decided on the property that you want to buy, you must submit a purchase order (purchase application form or buying application form, etc.) to the seller. In the application, state your price requirements, and the desired closing date of the property etc. Please leave the negotiations of the terms and conditions to your agent. The agent will negotiate the property price and decide on the terms and conditions of payment and when it will close. Moreover, you will need to apply for your housing loan for pre-approval to the banking facility before making any contracts. (At present it is still very difficult to get a loan from a Japanese bank if you are not a Japanese citizen.) 5. Explanation of Important Matters. (Juyojiko no Setsumei) A real estate transaction manager will need to explain to you the important matters of the property with an "Important Matters Manual" (Juyojiko Setsumeishyo). The "Important Matters Manual" (Juyojiko Setsumeishyo) describes the rights in the registration statement of the property and details, the way of the payment, the conditions of release of the contract etc. Please make sure that you ask the manager to explain anything that you don't understand. 6. The Conclusion of the Sales Contract Once you have reached the agreement on all aspects of the contract, you will exchange the contract with the seller. Please confirm the contractual coverage. The contract is approved when the seller and the buyer have signed and stamped the contract, and the buyer has paid the down payment. After making the contract, to avoid any penalties, we recommend a confirmation of contractual coverage. You need the following items on the contract: - stamp (registered seal or signature) - down payment (Bank Deposit check or cash) - stamp fee (Differs depending on the price of property being purchased) Check Sheet before Making Contract 1. Financing Application and Contract You apply for the housing loan with the original contract attached. It takes anywhere from one to more than three weeks to receive financing approval or disproval from the bank. When you receive approval, your loan contract is made. 2. Payment of the Remainder of the Price and Delivery of the Property If you have the finances, you pay the remainder of property price to the seller. The seller will deliver the property and the procedures for registering the transfer of the property right. The contract is now complete. 3. At the time of the transfer of the property rights the following is required: registration cost fire insurance property tax resident's card registered seal certificate of seal impression bank book etc. Agent fee Use the above check sheet before hand over