Owning a home in Japan is a dream for many, whether you’re captivated by its serene landscapes, vibrant cities, or rich cultural heritage. The process of purchasing property in Japan as a foreigner may seem daunting, but with the right guidance, it’s easier than you think. This step-by-step guide will help you navigate the process confidently.
1. Partner with a Trusted Real Estate Broker
Your first step is to find a reliable real estate broker (buyer’s side broker) to guide you through the process. A buyer’s broker acts as your advocate, helping you identify properties that meet your needs and liaising with the seller’s broker.
Pro Tip: Choose a broker with experience working with foreign buyers and an understanding of your specific requirements.
2. Share Your Property Criteria
Once you’ve partnered with a broker, provide them with your wishlist—location, budget, property type, size, and any must-have features. With this information, your broker will compile a list of suitable properties for you to review.
3. View the Properties
You can view potential properties online through virtual tours or visit them in person if you’re in Japan. This step is crucial to ensure the property aligns with your expectations.
4. Submit a Bid
When you’ve found the perfect property, your broker will help you submit a bid to the seller’s side. This is your chance to negotiate the price and terms. The seller will then either accept or reject your offer.
5. Finalize the Agreement
If your bid is accepted, the broker will prepare the purchase agreement. This includes the terms of the sale, payment schedules, and other essential details.
6. Sign the Contract and Pay the Deposit
Before signing the contract, your broker will thoroughly explain its terms in person or via a Zoom meeting. Once signed, you’ll need to pay a 10% deposit to the seller and cover the broker’s fee, calculated as:
Purchasing Price x 3% + ¥60,000 + Tax
7. Prepare Necessary Documents
To finalize the transaction, you’ll need to gather specific documents:
- A copy of your passport with your signature
- Notary Public Certificate Affidavit
- Power of Attorney (POA)
Additional documents may be required depending on individual circumstances. Your broker will guide you through this process.
8. Complete the Final Transaction
On the transaction day:
The seller receives the remaining balance of the purchasing price. You pay the following fees:
- Fixed Asset & City Planning Tax Liquidation Fee: This fee covers the tax for the year of purchase and is shared between you and the seller.
- Judicial Scrivener Fees & Registration License Tax: This fee is given to the Judicial Scrivener.
Additionally, Japanese law requires that a person living in Japan acts as your main contact for the property registration process. Here at Shiki, we can act as your registered contact in Japan, ensuring a seamless and hassle-free transaction.
Why Choose Shiki?
At Shiki, we specialize in working with foreign buyers, offering end-to-end support for purchasing traditional machiyas and modern homes in Kyoto and the Kansai region. Whether you’re looking for a traditional Kyoto machiya or a modern investment property, we’re here to make your dream a reality.
Contact Shiki Real Estate today and let us help you start your journey toward owning a piece of Japan!
