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Flow of Real Estate
Transactions and Fees

Outline of Real Estate Transactions 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 charge any fees other than brokerage fees.

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

some

Flow of real estate
transactions

  • Inquiry from seller

    BUYER

    ----

    SELLER

    When making an inquiry, please provide details like a summary of the property and suggested price.

  • Property valuation

    BUYER

    ----

    SELLER

    We will propose a realistic sales price based on the state of the property and other factors including the past contracted record.

  • Sale request

    BUYER

    ----

    SELLER

    Once the terms of brokerage have been agreed, we will accept the sale request and ask seller to sign on brokerage agreement.

  • Marketing property

    BUYER

    ----

    SELLER

    We will post property details online and advertise the property using leaflets and other such media, to find prospective buyers.

  • Inquiries from buyers

    BUYER

    Please provide us your property searching criteria and we will meet and refer to you the standard property details that fit your needs.

    SELLER

    ----

  • Property viewing / purchasing application

    BUYER

    View potential properties and submit a purchase application.

    SELLER

    ----

  • Sales contract

    Buyer and seller will sign a sales contract. Buyer will pay the deposit. We will explan the imporant matters of the subject property prior to siging.
    *For details of documents and fees required when signing a contract, please see the section below.

  • Settlement/Handover of property

    Buyer will pay the remaining balance and the seller will 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 and fees for real estate transactions" below.

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

some

Required items and fees 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 purchase price.

  • Required items and fees upon signing

    BUYER
    • Deposit (about 10% of sales price)
    • 50% of brokerage fee
    • Stamp duty
    • Identification document (driver's license, passport)
    • Certificate of residence (affidavit/declaration)
    SELLER
    • Title deeds
    • 50% of brokerage fee
    • Stamp duty
    • Registered personal seal or signature
    • Identification document (driver's license, passport)
    • Notice of payment of fixed assets tax
    • Seal or signature certificate
    • Certificate of residence (affidavit/declaration)
  • Required items and fees upon settlement

    BUYER
    • Remaining 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)
    • Certificate of residence (affidavit/declaration)
    SELLER
    • Title deeds
    • 50% of brokerage fee
    • Morgage removing fee (if any)
    • 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 ( including the consumption tax )
50% is usually payable when signing the contract, and remaining 50% at handover.
Stamp duty Tax payable when exchanging sales contracts, loan agreements, etc.
The total amount varies depending on the purchase price.
Deposit Down payment of the purchase 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.
Remaining amount The remaining amount of purchase price deducting from the deposit paid to sell upon settlement.
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.
  • Fixed asses and City planning tax
    Fixed assets and City planning tax
  • Income tax (for leased property)
    Income tax (for leased property)

Taxes payable on
real estate ownership

Contact Us

Real estate in Japan makes stable and highly attractive investment.
If you're interested in buying or investing in real estate as assets, please come and talk to us.

Contact Us

Japanese real estate consulting service for international customers

Sumitomo Real Estate Sales
Tokyo Consulting

Inquiries within Japan
Toll free :0120-965-154
Toll free :0120-965-154

TEL:03-3548-8167
FAX:03-3274-9145

Address

Sumitomo Fudosan Yaesu building 9F, 4-1, Yaesu 2 chome, Chuo-ku, Tokyo.
104-0028 Japan

Nearest station

Tokyo Station, JR Yamanote Line
Kyobashi Station, Tokyo Metro Ginza Line

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