Process of Real Estate Purchase

Process of Real Estate Purchase

Step 1
Buyer’s Property Criteria
The buyer’s criteria (e.g., location, budget) for property search
* renovated or non-renovated, house, condo, use of property
Step 2
Potential Properties
A list of properties that satisfy the buyer’s criteria
* list of properties including use of property such as vacation home, investment, guesthouse etc.
Step 3
Property Viewing
Property visit with a real estate broker
* make an appointment for meeting, meet at hotel, property, station or any other convenient place.
Step 4
Written Offer
Written offer in most cases. A deposit might be required with the offer.
* including negotiation, schedules of contract sign, closing, may able to join or use attorney.
Step 5
Negotiation of Offer
Review of the negotiation, finance, schedules of procedures and other related works.
* concluding conditions and arrange schedules.
Step 6
Disclosure Statement
Preparation of disclosure statement in accordance with law
* details of property such as title, building, land and related regulations.
Step 7
Closing of the contract. Closing costs include the stamp duty and agent fees.
*pay 10% as deposit, stamp duty and 1/2 of agency fee at contract, pay remaining at closing.
Step 8
Possession and title registration after the payment of the amount owed to the seller.
* receive deed and keys, pay all required money for transaction and ownership registration.
Step 9
Arrangement of a property management if necessary.

During the contract closing and possession stages, the following actions are required:
‣ preparation of registration documents in lieu of resident proof and name stamp certification;
‣ selection of tax agent; and
‣ fund transfer for the sale to be reported to the Ministry of Finance in pursuant to the Foreign Exchange Act.

Cost of Property Purchase in Japan

In case of purchasing old existing house in Kyoto.

Land size     50 sqm / 538.196 sqft
Building size 80 sqm / 861.113 sqft

* 2-stories, detached house, 8 minutes walk to subway station, in Category 2 residential district.

Sales Price 30,000,000 JPY / 280,373 USD
Fixed asset tax roughly 100,000 JPY / 934 USD
Ownership registration tax roughly 150,000 JPY / 1,401 USD * It will paid to Government through judicial scrivener.
Ownership registration fee roughly 150,000 JPY / 1,401 USD * to judicial scrivener
Stamp duty 10,000 JPY / 93 USD
Agency fee 1,056,800 JPY / 9,828 USD * (3% of property value + 60,000 yen) + 10% VAT
Real estate acquisition tax roughly 300,000 JPY / 2,803 USD * It will be asked to pay after 5-6 months.
Total cost 31,746,800 JPY / 296,838 USD (* calculated by 1 USD = 107.00 JPY)

In case of renovating building

building size 80 sqm / 861.113 sqft
tsubo size unit 24.24 tsubo size
* 1 tsubo = 3.3 sqm = 35.52 sqft
renovation cost per tsubo 700,000 JPY / 6,615 USD
cost calculation 700 K × 24.24 tsubo = 16,968,000 JPY / 158,579 USD

Cost per tsubo is roughly amount for renovation work. It will be changed by condition of building, materials, quality of finish and use of building.

Total cost

include payment of transaction and renovation work.
Total 48,714,800 JPY / 455,417 USD (* calculated by 1 USD = 107.00 JPY)