flow chart of real estate transaction in japan

In this page, I will show you flow chart that defines real estate transaction in Japan.

Among website of real estate company, there are some advertisements of Japanese real estate.

If fortunately you have found a interesting property to purchase, please notify me the real estate.

After I read the ads, I will confirm necessary aspects to realtor.

I will explain about the property to you.

You go to the property to see it on the spot.

Maybe, the realtor cannot understand english, I will explain about property to you.

If you have decided to buy it, you and seller arrange the date to sign the purchase contract.

Buyer and seller and realtor meet at office of realtor.

On this day, seller and realtor explain about legal matters, condition of house, land etc and put it into writing.

So, if the actual condition is defferent from this paper, buyer can claim toward seller and realtor.

After explanation of these matters, if buyers agrees to buy the real estate, buyer and seller sign purchase contract and buyer makes a down payment to seller.

If the purchase amount is 10,000,000 JPY, down payment will be 1 million JPY.
This percentage differs depending on the cases.

Buyer and seller and realtor fix the date of title transfer.
(It is possible that buyer and seller fix the date of signing the contract and title transfer at the same day )

At the date of title transfer, buyer and seller and realtor and judicial scrivener meet at office of realtor or bank etc.

On this day, judicial scrivener (shiho shoshi lawyer)confirm if all necessary documents are completed to title transfer.
And judicial scrivener receives all necessary documents from seller.

If there is mortgage on this property, judicial scrivener receives all necessary documents to remove the mortgage.

And when judicial scrivener has received all necessary documents, buyer pays balance money to seller.

In the case that buyer pays money through bank account, when judicial scrivener has received all necessary documents, buyer makes remittance to seller’s bank account.

It will take 1 hour to complete remittance.

When seller confirm the arrival of remittance, the deal is completed.

Judicial scrivener will apply registration of ownership transfer and settlement of mortgage.

After 2 weeks, title deed is issued from Japanese government. And Judicial scrivener receives it and send it to buyer.

In the case of real estate transaction, the title is transferd at the moment of payment of balance money.
So, buyer  does not need to pay balance money before ownership transfer.
Payment of balance money and ownership transfer are conducted at the same time.

And if buyer has bank account in Japan,  buyer doesn’t need to carry cash. You can send it through bank account.

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