Japan Property Buying Checklist: Verify Everything Before Signing

Before you start: the timeline of a purchase in Japan

In Japan, signing happens in two stages: the sale contract (baibai keiyaku, baibai keiyaku), then handover of the keys at final payment and transfer of ownership. Between them sits an essential legal document: the jūyō jikō setsumei (jūyō jikō setsumei, explanation of important matters), delivered and read out by the licensed agent before any signature.

Here are the main stages, to validate one by one:

Stage	What you check	Key document / actor
1. Search & selection	Location, price, intended use	Listings, agent
2. Viewing (naiken, naiken)	Real condition, surroundings, nuisances	On-site visit
3. Legal explanation	Rights, zoning, risks, restrictions	jūyō jikō setsumei (jūyō jikō setsumei)
4. Sale contract	Terms, deposit, clauses	baibai keiyaku (baibai keiyaku)
5. Final payment & registration	Payment, transfer of ownership	tōki (tōki) via shihō shoshi (shihō shoshi)

The full journey is in our guide to buying property in Japan. Below, the checklist pillar by pillar.

1. Property due diligence: what to inspect

Never rely on the listing alone. At the viewing (naiken, naiken, property visit) and before offering, check:

• Actual floor area and consistency with the listing (壁芯 vs 内法, two ways to measure).
• Year of construction and structural condition (crucial for seismic, see pillar 4).
• Orientation, light, humidity, signs of leaks or mould.
• Immediate surroundings: noise, neighbours, shops, distance to the station, future construction.
• For a condo (mansion (copropriété)): management fees (kanri-hi) and repair reserve fund (shūzen tsumitatekin), building condition, assembly minutes.
• For an old house (kominka / akiya): roof, framing, termites, utilities. See our feature on buying an akiya in Japan.

Common mistake

Buying remotely with no viewing or trusted local mandate. Always have the property physically viewed — that is also the core of our buying support.

2. Legal checks: title, zoning, restrictions

This is where the nasty surprises hide. The jūyō jikō setsumei (jūyō jikō setsumei) must clarify all these points — read it line by line (our dedicated article on the jūyō jikō setsumei explains each section):

• Title and land register (tōki, tōki): who owns it, any mortgages or easements?
• Zoning (yōto chiiki): permitted use, building ratios, height limits.
• Non-rebuildable (saikenchiku fuka, saikenchiku fuka): does the plot front a compliant road (setsudō gimu, road-access obligation)? A non-rebuildable property resells poorly.
• Easements, party walls, rights of way.
• Nature of the right: freehold or land lease (shakuchiken, shakuchiken)? The latter changes everything — see the shakuchiken.

Reminder: in Japan, a foreigner can buy freehold with no residence — but buying grants no visa. Details in buying without a visa.

3. Financing: budget, costs and payment

Cost the TOTAL, not just the headline price:

• Purchase costs ≤ 6% of the price: agency commission, registration duties, real-estate acquisition tax (fudōsan shutoku-zei), stamp duty, shihō shoshi (shihō shoshi, judicial scrivener) fees. Breakdown in purchase costs.
• Financing: Japanese mortgages are reserved for people both resident AND salaried in Japan. A non-resident buys cash. See mortgages for foreigners.
• Cash reserve for works, furniture and contingencies.
• EUR/JPY exchange: anticipate the rate (~150 ¥/€) and international transfer fees.

Worked example

For a property at ¥20M (≈ €133,000), budget up to ~¥1.2M (≈ €8,000) in closing costs (≤ 6%), plus the works reserve. Run your numbers in our simulator.

4. Technical & seismic inspection + 5. Tax

4. Technical and seismic

• Seismic standard: does the property meet the 1981 standard (shin-taishin, shin-taishin)? An earlier building may need reinforcement (taishin hokyō). See the 1981 seismic standard.
• Natural hazards: consult the official hazard map (hazard map) — flood, landslide, liquefaction, tsunami. Details in natural hazards.
• Building survey: structure, roof, insulation, utilities (water, gas, electricity), termites for timber.

5. Tax

• Annual property tax (kotei shisan-zei) + city-planning tax (toshi keikaku-zei): about 1.4% + 0.3% of the assessed value. See property tax.
• Rental income: taxed in Japan, even for a non-resident. See tax on rental income.
• Capital gain on resale: higher rate if held < 5 years. See capital gains tax.
• Inheritance: plan the transfer (see inheritance tax).

In short: your print-ready checklist

A tick-box recap before signing:

• ☐ Property physically viewed (naiken, naiken), area and condition verified.
• ☐ jūyō jikō setsumei (jūyō jikō setsumei) read line by line, zoning and saikenchiku fuka checked.
• ☐ Title and land register (tōki) checked by the shihō shoshi (shihō shoshi).
• ☐ Purchase costs ≤ 6% and financing (cash for a non-resident) budgeted.
• ☐ 1981 seismic standard and hazard map checked.
• ☐ Tax (property, rent, capital gain, inheritance) anticipated.

Every box ticked is one risk less. To run this checklist with a professional, from picking the property to receiving the keys, discover our personalised support and browse our hand-picked properties.

Frequently asked questions

Which documents should I check before buying in Japan?

The three key documents are the jūyō jikō setsumei (jūyō jikō setsumei, legal explanation before contract), the sale contract (baibai keiyaku) and the land register (tōki, tōki). The first summarises rights, zoning, risks and restrictions; read it line by line before any signature.

Do I need a technical survey before buying in Japan?

Yes, strongly recommended, especially for an old property: check the structure, roof, utilities and compliance with the 1981 seismic standard (shin-taishin). Also consult the official hazard map for natural risks (flood, landslide, liquefaction).

Can a non-resident get a mortgage to buy in Japan?

In practice, no: Japanese mortgages are reserved for people both resident AND salaried in Japan. A non-resident investor therefore buys in cash, budgeting the price plus closing costs capped at 6%.

How long does a property purchase take in Japan?

Usually from a few weeks to a few months depending on the property and financing: search, viewing, legal explanation, sale contract, then final payment and registration (tōki). A well-prepared cash purchase can be quick; due diligence should never be rushed.

What costs should I plan on top of the price?

Total purchase costs stay ≤ 6% of the price: agency commission, registration duties, real-estate acquisition tax (fudōsan shutoku-zei), stamp duty and shihō shoshi (shihō shoshi) fees. Add the annual property tax and, for a condo, management fees and the repair reserve fund.