How to buy a house in Japan! Check out the points you need to know beforehand.

last updated：May 28, 2024

You probably don't know where to start even if you want to buy a house in Japan.If you want to buy a condominium, you will need to complete various procedures such as viewing the condominium and signing a sales contract.

In this article, we will introduce you to the process of buying a condominium and the important points you need to know to avoid making a loss.
Please check out how to buy a condominium in Japan.

※こちらの記事は、マンション購入の流れとは？事前に知っておきたいポイントをチェック！の英訳版となります。

Editor of this article

住まいサーフィン編集部（Sumai Surfing Editorial Department）

Established in 1998, it is operated by "Sumai Surfing" a price information site for determining the appropriate price and asset value of condominiums.

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１．The process of buying a condominium

First of all,   we will briefly explain the process from considering a condominium to moving in.

Process of purchasing a new condominium

Process of purchasing a used condominium

The basic process is the same for both new and used condominiums.However, depending on the property, there may not be enough time in the schedule.
Therefore, please be sure to understand the process from consideration to purchase, as well as the important points and precautions for each option.

２．Think about the conditions you want for your home

Let's take a closer look at each step in the process of purchasing a condominium.

The first thing to do before looking for a condominium is to think about the conditions you are looking for in a home.Please identify the desired conditions that each family member is looking for in a condominium to achieve the ideal life for you and your family.

３．Think about your estimated purchase price

Next, think about what your purchase price range should be, before considering purchasing a condominium.

If you don't want to buy it all in cash, you can take out a mortgage. And please do a pre-screening for a mortgage as soon as possible, If you want to take advantage of this.
By the way, in Japan, there are two screenings for a mortgage: the first is a simple screening, and the second is a strict screening to see if you can qualify for a mortgage.

Foreigners can also take out a mortgage.
But  when you want to take advantage of it, many financial institutions require you to have permanent resident status.

The screening conditions are so strict, if you do not have permanent resident status.
It is unlikely that you will be able to borrow money from a bank, especially if you cannot read or speak Japanese. This is because a mortgage is a complex contract.
First, consult your financial institution.

４．Find a condominium fitting your needs

Once you know your desired conditions and estimated purchase price, it's time to start looking for a property.

Please prioritize the things you cannot change, if you are having trouble choosing between conditions while searching for a property.You can change the house later by renovating it, but please note that you cannot change the living environment.

５．Visit the model room and  viewing

Next, Let's go to a viewing!

In the case of a newly built condominium, you will check the model room, and in the case of a used condominium, you will actually see the inside of the condominium.

In the case of a newly built condominium, check out the facilities and design by visiting a model room

Newly built condominiums are generally sold before the building is completed. Therefore, it is necessary to go to the model room and check the equipment specifications of a condominium.

There are multiple plans for condominiums, so the floor plan you are thinking of purchasing may be different from the floor plan of the model room. Please look at the floor plan and imagine it carefully.

In the case of used condominiums, check out the condition of the property by viewing the property

In the case of used apartments, you can actually check out the property. You may be able to view the room while the seller is still living there, or the seller may have already moved and the room is vacant.

Please be sure to compile your questions before you go to a viewing. For example, about noise, neighboring residents, sunlight, and renovations, etc.
There are many things you can't understand just by viewing.

When viewing, you will be concerned about the condition of the interior and the floor plan, but you should also check the management status and the condition of common areas, such as whether the apartment is well-maintained and whether there are any cracks in the exterior walls or floors.

６．Apply to purchase

Fill out the purchase application form, when you find the property you want to purchase. A purchase application is a document that indicates your intention to purchase. 
And if you are taking out a mortgage instead of paying it all in cash, it is common for the first a simple screening to be completed at this stage.

In the case of newly built condominiums, there are two types of sales methods: "lottery registration" and "first come first served"

Lottery registration is a method of registering housing units that you wish to purchase within a certain period of time. And a lottery will be held, if there are multiple registrations for one housing unit.
Only those who win the lottery (or if there is no lottery) will apply for purchase.

To put it simply, "first come, first served" means that those who apply first can purchase.

In the case of a used condominium, submit a purchase application as soon as possible

Used condominiums that are in excellent condition will sell quickly. If you decide to purchase, you must immediately submit a purchase application because price negotiations are conducted in the order in which purchase applications are submitted in the case of used condominiums.

The purchase application form includes not only the buyer's information but also desired conditions such as price and delivery time. Based on this information, they negotiate with the seller to purchase the item.

You may not be able to accept the purchase, if you enter conditions that are too disadvantageous to the seller. So please fill them in carefully.

７．Make a sales contract

Next, you will sign a sales contract for the condominium. In most cases, a sales contract will be signed one week to 10 days after submitting a purchase application.

At the time of the purchase agreement you are required to pay a deposit. A deposit is money paid by the buyer to the seller to prove the sales contract or in case the contract is broken. That amount ranges from 5% to 10% of the purchase price. Generally, if there are no problems with the property purchase, the money will be applied to part of the purchase price at the time of handover.
And there is something important about a deposit. If a buyer cancels after a sales contract has been signed, the law states that a deposit must be forfeited. If the seller cancels the sale of the property after the sales contract has been signed, the deposit will be returned to you and the sale will be canceled by paying the same amount as the deposit.

８．Final mortgage assessment and mortgage agreement

If you are not buying a condominium in cash, you will receive a final mortgage screening after the sales contract is completed.This final screening will be more detailed than the first screening.
And this final screening generally takes about two weeks. For some people, it may take up to a month.

Once this is passed, the mortgage contract is signed.

９．Moving-in information session and private viewing

In the case of newly built condominiums, there will be a move-in information session and private viewing before handing over the property. Generally, moving-in information session is held two to three months prior to move-in.

Once the condominium is completed you will go to a private viewing. This takes place one to two months prior to the handover.
During a private viewing, you will check to make sure that the condominium you are purchasing is built according to the drawings and that there are no scratches or defects. And If you find some problem, you will be asked to fix it immediately if it can be fixed on the spot, and if it is difficult to fix immediately, you will be check again at a later date to see if it has been fixed.

１０．Draw-down and handover

This is the last step.

The condominium is handed over to you. For cash purchases, you must complete the payment by the specified time. The time is often set at 1 week to 10 days prior to the handover.

Once the condominium is handed over and the owner changes, the property must be registered. Applications for property registration are generally made by judicial scriveners.

１１．Summary

This article described the process of purchasing a new or used condominium. Please start by discussing with the whole family what kind of home they would like to live in.

In addition, condominium prices are currently skyrocketing. In preparation for future changes in market conditions, selecting properties with an emphasis on “Asset value” will help ensure future peace of mind.

This website, “Sumai Surfing” provides services for those considering buying or selling a condominium or purchasing a detached house for sale.

On each property detail page of Sumai Surfing, we provide a free “Oki Style Condominium 10 Year Forecast” that allows you to determine at a glance the future asset value of the condominium you want.

The video below explains in more detail how to use the “Oki Style Condominium 10-Year Forecast.

In addition, each property detail page on Sumai Surfing provides a room-by-room price assessment.

This allows you to accurately determine the “fair value” of the used condominium you are considering purchasing. The video below explains in more detail how to make convenient use of the Property Details page.

The “Oki Style Condominium 10-Year Forecast” and “Undervalued Judgment” are available free of charge to all members.

You can check all the information and get started risk-free just by registering as a free member.
You can also easily cancel your membership, so feel free to register and make your condominium purchase a success!