The Flow of Real Estate transaction, costs/ Sumitomo Real Estate Sales/ Real Estates in Japan (Tokyo)/ purchase, investment

Flow of Real Estate Transactions and Fees in Japan

Outline of real estate transactions in Japan

Real estate transactions in Japan involve a brokerage firm, such as Sumitomo Real Estate Sales, which searches for buyers on behalf of the owner selling the property. When the negotiation is settled, a sales contract will be signed(*1), and both the buyer and the seller pay a brokerage fee (*2) for a successful transaction.

*1: When signing a sales contract, documents are prepared and arranged by the brokerage firm.
*2: We do not bill for any fees other than brokerage fees.

We also offer the after-purchase support such as finding tenants and operating lease management.

Click here for details on lease management

Flow of real estate transactions

  Buyer Seller
Inquiry from seller When making an inquiry, please provide details such as a summary of the property and your desired sales price.
Property valuation We will calculate a realistic sales price based on the state of the property and other factors such as local market trends.
Sale request Once the terms of sale and other conditions have been agreed, we will accept the sale request. We will then sign a brokerage contract.
Marketing property We will post property details online and advertise the property using leaflets and other such media, in order to find prospective buyers.
Inquiries from buyers Please provide details such as your budget and desired property. We will then refer you to properties that meet your needs.
Property viewing/ purchasing application You may go to view potential properties, and submit a purchase application for negotiating and arranging a sales contract.
Sales contract We will then sign a sales contract, and the buyer will pay the deposit. We will provide the buyer with all important details relating to the property before the signing the contract.
*For details of documents and fees required when signing a contract, please see the section below.
Handover of property The buyer pays the outstanding balance on the property. The seller will then hand over the keys to the buyer, completing the transaction.
*For details of documents and fees required when handing over a property, please see the section on "Required items for real estate transactions" below.

We also offer the after-purchase support such as finding tenants and operating lease management.

Click here for details on lease management

Required items for real estate transactions

Please refer to the following section for details of documents required when entering into a real estate transaction,
and the various fees that are payable in addition to the sale price.

Required fees and items when signing a contract

Buyer

  • Deposit (about 10% of sales price)
  • 50% of brokerage fee
  • Stamp duty
  • Registered personal seal or signature
  • Identification document (drivers license, passport)
  • Certificate of residence (affidavit / declaration)
  • Seal or signature certificate

Seller

  • Title deeds
  • 50% of brokerage fee
  • Stamp duty
  • Registered personal seal or signature
  • Identification document (drivers license, passport)
  • Notice of verification of building construction /
    certificate of completion
  • Notice of payment of fixed assets tax
  • Seal or signature certificate

Required items when handing over a property

Buyer

  • Outstanding balance
  • 50% of brokerage fee
  • Registration fee
  • Balancing payments on property tax, city planning tax, etc.
  • Settlement of maintenance fee and building repair fund (For apartment)

Seller

  • Title deeds
  • 50% of brokerage fee
  • Registration fee
    (if carrying out procedure for settlement of a mortgage, etc.)
  • Registered personal seal
  • Certificate of seal registration
  • Full set of keys to the property
  • Notice of verification of building construction /
    certificate of completion

* We might request different items, depending on your nationality/residence.

Brokerage fee Payment made to the brokerage firm on completion of the contract (3% of sale price + ¥60,000 + consumption tax)
50% is usually payable when signing the contract, and the outstanding 50% at handover.
Stamp Duty Tax payable when exchanging sales contracts, loan agreements, etc.
The total amount varies depending on the value of the contract.
Deposit Down payment of the sales price which is paid by the buyer to the seller when signing sales contracts.
Title deed Document certifying the owner of the real estate.
Registered personal seal Seal that has been registered to the municipality.
Certificate of seal registration Official document certified by a public or government office,
confirming that the seal is the same as the seal previously registered by the holder.
Certificate of completion Document issued within seven days by the building official, or equivalent, once notification of completion has been submitted by the owner and a final inspection has been carried out to confirm that construction complies with the Building Standards Act The owner is not permitted to use the building, or allow others to use the building, until a certificate of completion has been issued, as a rule.
Fixed assets tax Tax payable by land and building owners
Outstanding balance The sale price, minus the deposit paid to the seller when signing the contract
Registration fee Tax payable on registration of ownership, or registration of transfer, when building on or
selling land or buildings, plus payment to the judicial scrivener carrying out the registration procedure

Taxes payable on real estate ownership

  • Fixed assets tax
  • City planning tax
Feel free to ask us anything about buying or investing in real estate in Japan.
  • TEL.+81-3-5488-8061 (English)
  • TEL.+81-3-5488-8062 (Chinese)

Inquiry Form

Inquiries

Inquiry Form

Japanese real estate advisory service for international customers
Sumitomo Real Estate Sales
Azabu Consulting

TEL.+81-3-5488-8061 (English) TEL.+81-3-5488-8062 (Chinese)

FAX. +81-3-3446-7766

<Inquiries within Japan>
Toll free: 0120-99-6681
Tel: 03-5488-8061 Fax: 03-3446-7766

Address
Hiroo Plaza 2F, 5-6-6, Hiroo, Shibuya-ku,
Tokyo 150-0012, Japan
Nearest station
Hiroo Station, Tokyo Metro Hibiya Line