When both parties reached an agreement to make a contract, local real estate agent will prepare all the contract documents (written in Japanese only) and send them to you so that you can review the contract conditions in advance. The agent will explain the terms and conditions of the contract in Japanese prior to the signing (This procedure is in accordance to limitation of Building Lots and Buildings Transaction Business Act).
Upon making the contract, you will need to pay an earnest money deposit which is usually around 10% of the purchase price. This deposit is a portion of the overall payment for the property, and will also act as a guarantee deposit for penalty that may be incurred. The payment should be made in Japanese YEN via cash at the time you sign contract OR via bank transfer by the morning of the contract-signing date.
- If you live overseas...
If you cannot make it to the contract conclusion yourself, you will need someone to be your attorney and he/she can receive the explanation of contract and important matter of the property and sign on them on your behalf. You may also hire a judicial scrivener or lawyer to be your attorney.