Overall flow of sell/buy

Process for the Conclusion of a Purchase Agreement

In conjunction with the conclusion of a purchase agreement, we would like to explain each process that you will need to go through, namely, the implementation of a pre-check on loan eligibility, the explanation of important matters and the conclusion of a purchase agreement.

  1. Application
    (Request for negotiation)
    If you decide on a property that you wish to purchase, you are requested to fill out a Real Estate Purchase Application Form.
    You will complete the Real Estate Purchase Application Form by entering the price of the property that you wish to purchase, payment method, possibility of using a housing loan(s) and the desired delivery date, among other matters, and affixing your name and seal.
    ※All parties who execute a Real Estate Purchase Agreement need to have their identities verified prior to the conclusion thereof.
  2. Pre-check on loan eligibility
    Check housing loan eligibility in advance to facilitate the agreement process.
    If you intend to take out a housing loan, prior to the conclusion of the agreement, we recommend that you check with the financial institution whether a loan(s) is possible under the terms and conditions you wish to take.
  3. Explanation of important matters
    Thoroughly check the status of the property and agreed details based on the explanation of important matters.
    The explanation of important matters, as the name indicates, covers important matters related to properties before a purchase agreement is concluded between the parties. Its clauses include the relationship of rights described in the register, legal constraints for future reconstruction, the relationship between the site of a property and adjacent roads, and provisions in the event of the cancelation of the agreement.
    Our sales representative(s), a qualified real estate broker, will explain the details using the explanation of important matters.
    ※ Our sales representative(s) will explain the details of brokerage operations and provide an outline of the explanation of important matters in advance.
  4. Conclusion of a purchase agreement
    The buyer and the seller enter into an agreement with regard to the purchase and sale of a property, based on which a Real Estate Purchase Agreement will be concluded.
    When concluding an agreement, the parties will reconfirm the agreed-upon details for the final time based on a Real Estate Purchase Agreement that sets forth provisions including the details of transactions and the rights and obligations of the parties. By using a report on the status of the property, etc. and a list of facilities, the seller will explain the status of the property and facilities included therein. An agreement is deemed to be officially concluded subject to the seller and the buyer affixing their respective names and seals, and the buyer paying earnest money
    (10% of the price of a property).

Flow of procedures for a housing loan

  1. Conclusion of a purchase agreement
    To promptly apply for a loan after the conclusion of a sales agreement, fill out a loan application form as necessary and prepare other required documents to complete an application in advance.
  2. Application for a loan
    Submit the loan application form and required documents to the financial institution that you wish to use. The financial institution(s) examines the possibility of providing a loan(s) according to the terms and conditions described in the application form.
  3. Loan approval
    If the financial institution approves the terms and conditions described on the application form, it will send you a notice of loan approval. Make sure that you have received the notice prior to the loan approval date specified in the purchase agreement.
  4. Conclusion of a loan agreement
    You will conclude a loan agreement with the financial institution to receive the loan.
  5. Provision of a loan
    The loan will be provided to match the balance of the purchase price. The financial institution will set up a mortgage, etc. for the property that you have purchased.
※ Administrative fees for a loan

Fees to be paid to a financial institution and guarantee company when taking out a loan.
Fees vary depending on the financial institution (30,000 yen to 200,000 yen).

Required documents and other items to complete an application for a loan

  1. Application form for a loan
  2. Registered seal (seals of all buyers if a property is owned jointly)
  3. Purchase agreement (presentation of the original and submission of a copy)
  4. Certificate of the registered seal (issued less than three months prior to the current date)
  5. Certificate of residence (whole family to be listed) 
  6. Certificate of salary payment (with a withholding tax slip)
  7. Notice of a decision of residence tax imposition (or certificate of residence tax imposition)
  8. Other fees (such as expenses for revenue stamps to be affixed to a loan agreement, administrative fees for guarantee, and guarantee fees)
  9. Insurance certificate

※ Different documents and fees may be required depending the loan type to be used.

Type of housing loans

Public housing loan
  • Property accumulation savings-based housing loan
  • Municipality loan
Flat 35
  • Bank
  • Shinkin bank
  • Mortgage bank, etc.
Private housing loan
  • Bank
  • Insurance company
  • Shinkin bank
  • Consumer finance company, etc.

Fixed interest types and variable interest types

Fixed interest-type loans

A loan whose interest rate does not change until repayment is completed (rate remains fixed through the repayment period)

Variable interest-type loans

A loan whose interest rate changes depending on financial conditions during the repayment period. Basically, an interest rate is reviewed once every six months. Although the repayment amount remains unchanged for five years, any excess or shortage in interest rates arising from interest rate changes during the five years is adjusted for repayments to be made from the sixth year onward (which applies every five years).

Fixed rate optional

For this loan, a fixed rate is applied for a certain period of time after borrowing. After the repayment period is finished, a borrower has the option of taking out a fixed interest-type loan again or a variable interest-type loan. (Loan details vary depending on the financial intuition.)

Settlement of balances

  1. Request a registration application
    You will ask a judicial scrivener, who makes the registration on your behalf, to apply for registration by submitting the necessary documents for registration, which includes a transfer of ownership.
  2. Payment of balances
    The earnest money is appropriated as part of the purchase price.
    Therefore, you will pay the purchase price in its entirety, excluding the earnest money and deposit.
  3. Settlement of fixed assets tax
    You will settle the payment of the fixed assets tax, city planning tax, management fees, etc.
  4. Transfer of related documents
    You will receive management bylaws, prospectuses, warranties and owner’s manuals for incidental facilities and other documents to be transferred to you from the seller.
  5. Transfer of the key to the property
    You will receive the key to the property in which you will live and confirm the receipt of the key by affixing your name and seal to a confirmation of real estate delivery.
  6. Payment of expenses
    You will make payments for expenses, such as a balance of brokerage commission and registration expenses to a judiciary scrivener.

Expenses to be paid when settling balances

  • Revenue stamp duty (for a loan agreement)
  • Brokerage commission, including the consumption tax thereof
  • Loan administration fees
  • Loan guarantee (to be paid in advance or approximately 0.2% to be added to the interest)
  • Creditor group trust insurance
  • Fire insurance premium
  • Registration and license tax (mortgage and ownership of land and buildings)
  • Registration fees (remuneration for a scrivener)
  • Fixed assets tax for land and buildings
  • City planning tax for land and buildings