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Justine Anne Latoza edited this page Jan 11, 2019 · 3 revisions

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Capital: Tokyo
Official: Japanese

Table of Contents

Relevant Contact Info

" Office of the Prime Minister

Shinzō Abe
Prime Minister
Website: http://japan.kantei.go.jp/index.html
Address: 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8968
"

" Cabinet Secretariat

Telephone: +81-3-5253-2111
Website: http://www.cas.go.jp/
Address: 1-6-1 Nagata-cho, Chiyoda-ku, Tokyo 100-8968
"

" Ministry of Land, Infrastructure, Transport and Tourism

Telephone: +81-3-5253-8111
Website: http://www.mlit.go.jp/en/index.html
Address: 2-1-3 Kasumigaseki, Chiyoda-ku, Tokyo 100-8918
" Japan Copyright Office (JCO) Agency for Cultural Affairs Ministry of Education, Culture, Sports, Science and Technology (MEXT) 

 Mr. Toshiya Naito 
 Director General

 Mr. Yoshiaki Ishida
 Director, Office for International Copyrights, Copyright Division

 E-mail address: webmaster@mext.go.jp
 Telephone: (81 3) 6734 3141
 Web site address: http://www.bunka.go.jp/
 Address: 3-2-2, Kasumigaseki Chiyoda-Ward Tokyo 100-8959

Ministry of Internal Affairs and Communications 

 Email address: toukeisoudan@soumu.go.jp
 Telephone: +81-3-5273-2020 ''switchboard operator''
 Address: 19-1, Wakamatsu-cho, Shinjuku-ku, Tokyo 162-8668

Legal Process for Selling Land

STEP 1: Consultation for selling and valuation of the property

The biggest concern everyone has when selling a property is “how much is my home worth?”

An assessment of the property’s value is the first step in selling your property. We will suggest an appropriate market price for your property by taking into consideration the living environment, the neighborhood, similar properties in the area, market trends, and any other factors that may affect the price.

When you sell a property in Japan miscellaneous costs will arise, such as commissions and taxes. Your net profit is calculated by deducting the miscellaneous fees and taxes from the sales price. You can ask your real estate agent for the total amount of miscellaneous costs and fees, and check with your local tax office to find out about the taxes incurred.

Necessary costs and taxes to sell a property

Taxes Stamp Duty Document stamp tax required for the contract.
Income tax ・ Residential tax From the profit of the sales.
Agent commission 3% of the sales price + 60,000 yen + consumption tax in accordance with property transaction regulations.
Registration costs
(A/N)		 Disposition of mortgage fee Required if your mortgage has not been paid off.
Approximately 15,000 yen per mortgage.
Commission for the Legal Scrivener
Other Costs Surveyor’s commission (A/N) The fee for land surveying to determine the boundary points.
Moving Costs

STEP 2: List your property for sale and advertise

Once a selling price agreed upon and set, you will need to request that the property be put on sale and to make a binding mediation agreement with an agent(s) who will act as an intermediary to sell your property.

Types of mediation contracts

There are three types of mediation contracts: "non-exclusive agency listing", "exclusive agency listing", and "completely exclusive agency listing"

Listing agent / Effective period Selling to a buyer whom the seller finds on his own Registration of the property to *REINS Reporting client responses
Non-Exclusive Multiple agents /
3 months		 Acceptable Optional Not required
Exclusive 1 agent only /
3 months		 Acceptable Register within 7 days of signing the mediation contract At least once every 2 weeks
Completely Exclusive 1 agent only /
3 months		 Not acceptable Register within 5 days of signing the mediation contract More than once a week

* REINS: Real Estate Information Network System designated by MLIT (Ministry of Land, Infrastructure, Transport and Tourism).

Advantages and disadvantages of each mediation contract

Advantages Disadvantages
Non-Exclusive
  • Property is widely advertised allowing the seller to request multiple agents to sell the property.
  • Since it is not required to register with REINS, the seller can put the property up for sale without advertising.
    (The neighbors will not be aware.)
  • The seller can sell the property to a buyer that he/she finds on their own.
  • The reporting of the inquires to the owner about the property is not required.
  • Agents tend not to actively advertise since the chance of closing a contract is lower in comparison to an exclusive property.
Exclusive
  • The requested agent actively advertises the property.
  • The seller can sell the property to a buyer whom he/she finds on their own.
  • The reporting of the inquires to the owner about the property is less frequent than a completely exclusive contract.
  • Higher dependency on the agent
Completely Exclusive
  • The requested agent actively advertises the property.
  • The seller cannot sell the property to a prospective buyer whom he/she finds on their own.
  • Higher dependency on the agent

STEP 3: Real estate sales contract

When a buyer is found, you’ll receive an “offer to purchase” or “application form” from your real estate agent. This form will state the buyer’s desired price, schedule for signing the contract, payment method, desired hand-over schedule, and other conditions.

Once the seller and the buyer reach an agreement, a sales contract will be drafted stating the agreed upon sell price, payment method and other agreements.

The seller needs to disclose the condition of the property when preparing the real estate sales contract. It is essential that the present condition of the property is clearly and properly explained to the buyer to avoid any trouble during the selling process. It is required that the property is handed over to the buyer in the condition that was disclosed to the buyer in the contract.

  • Any leakage or damage caused by termites or the surrounding environment will be disclosed in “the Confirmation Note of Inspection of the Premise”.
  • Any defects or malfunctions of equipment included in the property such as the kitchen, bathroom, air conditioning, water heaters, etc. will be disclosed in the “List of Facilities”.
When both the seller and the buyer sign and seal the real estate sales contract and the buyer remits the down payment to the seller, the contract will be legally binding. Once legally binding, violations to the contract may incur penalties.

Please check with and ask for clarification from the real estate agent if you have any questions.

Items needed for signing the sales contract

  • Registration certificate
  • Jitsuin Officially registered seal(If a foreigner doesn't have one, one can substitute with registered signature.)
  • Original copy of seal registration certificate (issued within 3 months)
  • Stamp Duty
  • Photocopy of ID such as you passport and driver's license
  • List of facilities
  • Confirmation Note of Inspection of the Premise

Step 4: Move-out, balance settlement, and delivery of the property

The property will be delivered once the remaining balance is settled. The seller needs to make sure that the property will be ready to be handed over to the buyer by the balance settlement day.

Please make sure to confirm the borders between surrounding properties, to move out, to clear any unnecessary items from the premise, and to settle any utilities fees by then.

The procedure from the balance settlement to delivery of the property:

1. A final check of the property will be conducted on the premises in the presence of both the seller and the buyer.

2. A judicial scrivener checks all the necessary documents to apply for the “registration of ownership transfer”.

If there is an existing mortgage such as a housing loan, it is necessary to arrange to pay off the mortgage in a lump sum prior to the balance settlement day.
3. The buyer pays the remaining balance to the seller. Once the payment is complete, applications for ownership transfer and disposition of the mortgage will be conducted. (Generally this responsibility is delegated to a judicial scrivener.

4. Settling fixed asset taxes and any property management fees (in case the property is an apartment).
The seller is responsible for payments up to the day of delivery. Starting on the delivery day, the buyer will be responsible for paying the prorated amount for the remainder of the month.
5. As soon as the remaining balance is settled, the property (and the keys) are delivered. All the keys such as the main entrance, kitchen door, garage remote, etc. must be delivered to the buyer.
Both parties must sign “the delivery confirmation” note and exchange copies, confirming that the process of the closing of the sales contract is complete. At this time, the management regulations of the apartment, a brochure from the developer at the initial sales, instruction manuals for equipment included such as air conditioning, water heater, kitchen stove, etc. will be handed over to the buyer.
6. The seller pays the real estate agent and the judicial scrivener a commission fee; thus completing the selling process of a property.

Required items when settling the remaining balance

  • Registration certificate
  • Jitsuin Officially registered seal(If a foreigner doesn't have one, one can substitute with registered signature.)
  • Original copy of seal registration certificate (issued within 3 months)
  • Tax certificate
  • Agent commission
  • Registration fee (Registration of change of residence, registration of mortgage disposition if needed)
  • Keys for the property
  • Other documents (Management regulations, manuals for the equipment, etc.)

Constitution

NATIONAL LAND USE PLANNING ACT

Notes

Communication history

Source: https://www.edutrips.com/japan/

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