I think the previous discussions fully covered bank loan for property investment in Japan, but my approach might have reversed the order. From this article onward, my focus is being put on very basics of property transaction in Japan.
Regardless of cash lump-sum or bank loan payment, any property transaction follows the typical flow indicated below.
Typically, our clients contacted us on a specific property we posted on LIFE Design Corporation’s website (http://lfd.co.jp/) or the Real Estate Japan site (https://www.realestate.co.jp/en/forsale/listing?agent_id=2430). If the suggested property is still on the market and perfectly meets the client’s requirements and most importantly, cash is readily available for the payment, the transaction will be very smooth.
Even though the transaction is smooth, we cannot skip any single step above.
Let’s assume a very simple and easy transaction of around 30 million between BUYER (of course, cash buyer) and SELLER. BUYER found a nice property after some property search activities (Step 1) No matter how much BUYER likes the property, BUYER must personally see the property (Step 2), and official communication between the two parties (Step 3) will not start until SELLER receives an application for purchase from BUYER.
The next step is to confirm their transaction agreement. In light of transaction size, Steps 4 and 5 can be combined and all the process should be completed on a single day. Both parties sign the agreement document; the property is handed over to BUYER as soon as the payment is confirmed by SELLER.
Since the ownership transfer must be registered immediately, the application for registration is submitted to the Legal Bureau by a judicial scrivener on behalf of BUYER (Step 6). Once the new ownership is registered, the acquisition of the property by BUYER is all done.
In the next series of articles, each step is more detailed.