Step 3 Visiting Properties
When you find a property you are interested in we will take you to see it. Here at PLAZA HOMES we have experienced bilingual agents who will take you to by car to view the property. We can pick you up–at a meeting place convenient for you–and drive you around to different properties while explaining about the area and up-to-date market prices.
Usually if a property is vacant, we can arrange a visit almost immediately. However, if the property is still occupied, we will generally need 2-3 working days to contact the seller and arrange a viewing appointment.
Of course, visiting properties with us is free.
Step 4 Application
Once you decide upon a property to purchase, you will need to submit a “purchase application form”. The “purchase application form” is completed by filling in your offer price, the payment method, the contract date, the date of delivery, and any other conditions. When completed, the “purchase application form” is submitted to the Seller.
Once you and the Seller have agreed to all major conditions, a sales contract can be prepared.
Step 5 Signing a Contract
Explanation of Important Matters
Before you sign a contract, one of PLAZA HOMES’ registered real estate agents will review all important contractual matters with you.
Japanese law requires that each contract come with an “Explanation of Important Matters” document signed and sealed by a Real Estate Notary (f/k/a Real Estate Transaction Specialist) with a National License.
Included in the “Explanation of Important Matters” is: an overview of the property as of the contract date, relationship of rights, various legal limits, infrastructure arrangements for the property, management of the building /limitation of its use, the agreed upon payment method, compensation for contract violations, and the owner’s rights.
Signing the Sale Contract
A contract for the “Sale of Real Estate” contains the details of the transaction, the price of the property, and the rights and obligations of the contracting parties (e.g. Seller’s obligation to transfer the property’s rights and the delivery thereof and the buyer’s obligation of the payment of the sale price).
Items required from the Buyer at the contract signing
Revenue stamp fee (Depending on the sales value)
Deposit (5-10% of the sales price)
Personal Identification Document (Driver's license, Passport)
Step 6 Housing Loan Application
If you intend to use a loan for the purchase of a property, you will need to apply to an appropriate financial institution soon after signing the sales contract. Each financial institution that you apply to will require you to complete, sign, seal, and submit a loan application form.
Financial institutions normally take between 2 to 3 weeks to process a loan application. Once approved, you will need to sign a loan agreement in order to finalize the conditions.
In case of a sales contract with a special clause in respect to the loan/mortgage
It is very common for potential buyers to sign a sales contract BEFORE obtaining official approval for a loan from a financial institution. Due to this being very common, a special clause is put into sales contracts. This clause allows for the “canceling of the contract in the event that the buyer fails to obtain a housing loan”.
If a potential buyer does have to cancel the contract due to their inability to obtain a housing loan, they will need to notify their agent who will in turn notify the seller. If this were to happen, the sales contract stipulates that the entire deposit paid to the seller and half of the commission paid to the agent will be reimbursed to the buyer.
(Note) The special clause mentioned above is generally only applicable when the financial institution the mortgage is issued from is within Japan. In the case of using a financial institution outside of Japan, further negotiations may be necessary with the seller's side.
Payment of Interim Deposit
In the event that an “interim deposit” payment is requested by the Seller in the sales contract, the Buyer will pay the interim deposit to the Seller by the due date specified on the contract.
* The Seller shall issue a receipt to the Buyer. The amount paid as an interim deposit is applied to the total sales price.