The mediation
contract is intended to prevent trouble in regard to intermediate duties by
making specifications (the kind of service you receive) or the brokerage fee of
the duties that the purchase applicant asks the real estate company which will be included in contract. In the real estate company
in response to a request of the intermediation, the conclusion of contracting
is required to legal (2 of residential land building business method Article
34)．
There
are 3 type of Brokerage Service Agreements as follows;
1) 専属専任媒介契約型式 Privileged
and Exclusive Brokerage Service Agreement
The
client cannot ask any other real estate agent for intermediation and/or
substitution in the buying and selling of the targeted properties
or the exchange of any properties at the same time as
dealing with us. The client cannot make a contract to buy, sell or exchange
with a partner whom the client discovered by oneself. We will register the
targeted property with Real Estate Information Network System (REINS) designated
by Ministry of Land, Infrastructure, Transport and Tourism.
2) 専任媒介契約型式 Exclusive
Brokerage Service Agreement
The client
cannot ask any other real estate companies for intermediation and/or
substitution in the buying and selling of the targeted properties or the exchange
of any properties at the same time as dealing with us.
The client can make a contract to buy, sell or exchange properties with a
partner whom yon discovered by yourself. * (Please see below.) We
will register the targeted property with Real Estate Information Network System
(REINS) designated by Ministry of Land, Infrastructure, Transport and
Tourism.
3) 一般媒介契約型式 Brokerage Service Agreement
The client can ask any real estate companies for
intermediation and/or substitution of the buying and selling of the targeted
properties or the exchange properties at the same time as dealing with us. The client can make a
contract to buy, sell or exchange properties which you have found by yourself.
* (Please see below.)
It is necessary for you to make a plan of the purchase expenses
not only for the actual property, but also other expenditure, such as taxes, insurance premiums,
commission fee, moving cost and renovation fee, if any. Necessary expense should be incorporated in the
bank loan when you plan to propose it.
1. （Property）Registration and License Tax 登録免許税
Administrative
Body＝Legal Affairs Bureau/Tax office
l When construction is
completed or land and budling are bought, Property Registration and License Tax
is levied on ownership preservation and transfer registration.
l You file for the transfer of the
property title with the Legal Affairs Bureau and Tax office.
l You are required to pay a
Property Registration & License Tax. Registration of land ownership is 1.5% of the assessed value of the property (2% after April 1, 2021), and registration of building ownership is 2%.
2.
Real Estate Acquisition Tax 不動産取得税 Adm.Body＝Local Tax Bureau
l
Rea Estate Acquisition Tax is levied by prefectures on acquisition,
new construction and addition of property. This tax shall be paid to the relevant local
tax bureau only once after purchasing the property.
⇒ Land and residential properties
= 3 % (Up till March 31, 2021)
⇒ Other properties = 4 % of
assessed value of fixed asset
l There are reduction measures in
the case of used properties. Please ask
us for further information.
3.
Fixed Asset Tax ＆ City & Planning Tax固定資産・都市計画税 Adm.Body＝Municipal office
l A person owning the property
as January 1 has a duty to pay.
l Therefore, you should pay back
to the landowner the amount in accordance with the number of days of your
ownership of the property for the first year.
l The following year, a municipal office will
send you a payment statement.
⇒ Fixed
Asset Tax =Tax base x 1.4 % (standardized assessed value of a property) ⇒ City
& Planning Tax =Tax Base x 0.3 % (Maximum tax rate)
[1] Assessed value of fixed asset shall be less than
80 % of actual purchasing costs. It is
matter to confirm.
1.
Registration Service fee
When you file for the transfer of the property title with the
Legal Affairs Bureau and Tax Office, you must ask a judicial scrivener (司法書士,
shihoushoushi) for a representation act. A handling service fee shall be paid
to a judicial scrivener office on settlement day. Please ask us for further details of the
amount.
2.
Brokerage Commission
Generally, a brokerage
commission shall be paid to the real estate agent on settlement day as on the
contract concluded between you and the agent.
⇒ Brokerage Commission = actual amount of the
property x 3 % +
(consumption tax I0 % )
3.
1. Stamp Duty
Stamp Duty is levied on taxable documents. In real estate related transactions, sales and purchase agreement, construction contract and loan agreement fall under taxable document and are taxed based on the contract amount.
⇒ Tax amount = JPY 0 - JPY 480,000
2. Insurance Premiums
Fire insurance is required. Obtaining fire insurance is mandatory at the time when you apply for a banking loan. Participation is not obligated you will not request a bank loan. Fire insurance premium is paid on a yearly basis. The insurance period is one year.
3. Moving expenses
Generally, people ask a professional moving company to help with moving out and moving in. It is recommended to get a quotation from a number of moving companies before agreeing.
1.
Loan Fees
Finally, you will come to know all expenses (sum of A~C) that
you have to pay. You will need to make a
plan and choose a financing bank.
Please include a rough estimate to reform expenses, if you have
a plan to reform.
Searching for properties utilizing
network and database.
1. Property Search
Once you have signed the Brokerage Service Agreement, we start searching for properties for you. We try to our best to provide updated and credible information on various properties that meet your criteria.
2. ECOya'ｓ Services
Arranging property viewings with us.
1. Property Viewing
Viewing the property is the most
effective way to survey the actual conditions and neighboring environment of
the property. You may not necessarily find this information on the listing. We will accompany you and provide you with
detailed on-site information.
2. Property Inspection
When viewing a property, closely
compare what is shown and described in flyers and ads with what you actually
see.
3. Area Observation
It is very important that you check
out the surrounding environment. Please make sure you check the distance from
the closest station to the property. Also,
confirm availability of public facilities such as schools, parks, hospitals and
shopping streets. Pay attention to the traffic conditions of the area. In many
areas, congestion and noise level of traffic show a different pattern on
weekdays from weekends.
Submit an offer and negotiate the terms and conditions with the
seller. Once both parties agree, we will prepare the transaction contracts
including the Purchase & Sale Agreement.
1. Step 1: Submitting a Written
Offer
Once you find a property that you wish to purchase, your next
step is to submit a Letter of Intent (kaitsuke
shomei =,買付証明) i.e. your offer. We will begin
negotiation with the seller on your behalf regarding the purchase price,
payment method and timing, delivery date, and equipment and fixtures that shall
remain with the property, as well as other terms and conditions. Sometime, a deposit might be required with
the offer. This is done on a
case-by-case basis.
After you submit a written offer, you will be
reviewed in terms of your immigration status and financial capacity. Usually, the real estate agent will cooperate
with this action.
3. Step 3: Disclosure Statement
If you clear Step 2 above, a real estate agent will
prepare a “Statement of Important Matters (SIM)”in accordance
with Japanese
Law. (It is an illegal act to neglect
this process.) A Real Estate company must appoint adult, exclusive
transaction specialists (persons to whom a Real Estate Transaction Specialist
identification card as provided for in Article 22-2, paragraph (1), has been
issued; the same applies hereinafter) of the amount as specified by an Ordinance
of the Ministry of Land, Infrastructure, Transport and Tourism in consideration
of the size of each business office, the contents of operations, and other
factors to each business office thereof and any other location as specified by
an Ordinance of the Ministry of Land, Infrastructure, Transport and Tourism
(referred to hereinafter in this article and Article 50, paragraph (1), as a
"Business Office, etc."). The
specialist is obligated by law to explain to the client
(especially the buyer) details about the property such as title registration,
the type of property ownership and right, legal description of the property,
payment methods, and the applicable provisions in the case of cancellation.
l The final step is concluding a
Contract (Agreement) between a seller and a buyer. Qualified persons both real estate agents of
seller and buyer are obligated by law to explain details of contents of the
Contract (Agreement) before signing. The
purpose of this agreement is to stipulate the conditions of the transaction and
the rights and obligations of both the seller and buyer to ensure a safe and
legally binding transaction.
l Duplicate (or triplicate)
original Contracts (Agreements) shall be prepared by relevant real estate agent(s)
and you are requested to sign each original.
What you will need when signing the Purchase and Sale
Contract (Agreement)
·
Passport /Alien registration card /Right of permanent residence
certificate
·
Affidavit, if necessary
·
Certificate of Signature or Registered personal seal (Dated
within the past three
months)
·
Certificate of seal-impression (印鑑証明)
·
Funds to cover the Stamp Duty fee (The fee depends on the
purchase price of the
property)
·
Down payment*3
* The documents & payment you need will differ depending on
your case. For more details,
please ask us.
5. Step 5: Proposing an official
contract for a bank loan
When you conclude the Purchase and Sale Agreement,
you need to apply official contract for a home loan. It is necessary for financing to be approved
by a guarantee company as well as the financial institution which with examine
your proposal. For your information,
please see the attached written product outline for Suruga bank home loan (applicable
as of September 9, 2020). For your
reference, we also introduce the following:
Housing loan simulation |
SMBC Trust Bank (smbctb.co.jp)
suruga_homeloan_en_gaiyou.pdf
(surugabank.co.jp)
PowerSmart Home Mortgage |
Shinseibank.com
[1] Down payment (Advance confirmation of the payment
method) will be matter of discussed among clients and real estate agent. All payment on settlement day (finalizing
day) can be applicable.
Settle all payments in exchange
for the keys, and finalize the purchase including transfer of title.
1.
Steps to Finalize the Transaction
2.
Documents and Fees Required upon closing
Depending on the type of
property that you have purchased, the documents and fees required upon closing
will differ. However, please refer to the following shows for your reference.
*These amounts will be pro-rated
based on the number of the days of ownership.
3.
Ownership Title Registration Procedures
The property title must be
registered to hold a public record of the property ownership. Due to the
complexities of the process, it is typical for judicial scriveners to handle
this matter for you. The judicial scriveners will complete the necessary
registration application documents to be filed with the Legal Affairs Bureau.
Upon receiving filed and recorded property title registration documents
(Property Title Deed) from your judicial scrivener, you should keep them in a
secure place to ensure they are not lost or damaged.
Begin preparation to move in to your new property,
using the checklist.
Checklist for Relocation
l Begin preparation to move out.
Separate items into those you will keep, donate or discard.
l Choose the moving company. *Please
ask us if you need move information.
l Notify your municipal ward
office of your move.
l Cancel and submit new
application for utilities- electricity, gas, telephone, Internet, etc.
l Notify address change to banks,
insurance companies, credit card companies, etc.
l Notify your children's school of
the transfer, and enroll in a new school.
