You found a house. It’s cheap. It’s in Otaru. The photos show tatami floors, a small garden, and what might be water damage in the ceiling of the second bedroom. You want to buy it. Now what?
The Japanese property purchase process is more formal than the American one in some ways and simpler in others. There’s less paperwork than a US mortgage closing because there’s usually no mortgage. There’s more ceremony because Japan takes seals and stamps seriously. The whole thing, from offer to keys in hand, typically takes 60 to 90 days.
Here’s what each step looks like.
Step 1: Find a Property
You’ve probably done some version of this already if you’re reading article five of a series about buying cheap property in Otaru. But the formal process starts when you identify a specific property through one of three channels: an akiya bank (municipal databases of abandoned houses), a licensed real estate agent, or an online listing platform.
For cheap properties, the agent relationship matters more than the listing. Many akiya don’t show up on the major portals. An agent who works the Otaru market will know about properties before they’re listed, or properties that were listed years ago and quietly taken down because nobody was interested. Your agent is also your translator, your negotiator, and your guide through every step that follows.
Step 2: View the Property in Person
Strongly recommended. I’ll be honest — my own property viewing was minimal. I flew to Otaru in winter, walked through the house with snow on the ground and limited visibility of the foundation, the roof, and the exterior walls. I saw the interior. I liked the bones. I moved forward.
In retrospect, a more thorough viewing would have been smart. Here’s what a proper viewing includes:
Check the foundation for cracks. Look at the roof from outside — missing tiles, sagging, moss growth. Run the water. Flush the toilets. Turn on the heater if there is one. Open every closet. Look for water stains on the ceilings and walls. Check the fusuma (sliding doors) for warping. Step on every floor and feel for soft spots. If the house has a crawl space, look under it.
You can hire a home inspector (住宅診断士, jutaku shindanshi) for a professional assessment. Expect to pay 50,000 to 100,000 yen. For a house you’re buying for 3 million yen, that’s a significant percentage of the purchase price. Whether it’s worth it depends on how much renovation risk you’re willing to absorb.
Step 3: Make an Offer
Your agent submits a written offer (買付証明書, kaitsuke shoumeisho) to the seller’s agent. This document states your offered price and any conditions. For cheap akiya, there’s often not much negotiation. The seller is sometimes happy that anyone wants the property at all. In other cases, especially with properties listed through municipal akiya banks, the price is fixed.
The offer is not legally binding. Either party can walk away before the purchase agreement is signed. But in practice, once you submit a written offer and the seller accepts, both sides are committed.
Step 4: Sign the Purchase Agreement
This is the first legally binding step. The purchase agreement (売買契約書, baibai keiyakusho) is signed by both buyer and seller, usually at the real estate agent’s office.
Before signing, the agent is required by law to give you an Important Matters Explanation (重要事項説明, juuyou jikkou setsumei). This is a detailed document covering the property’s legal status, zoning, building restrictions, utility connections, known defects, and any encumbrances on the title. The agent reads through this document — in its entirety — before you sign. For a Japanese buyer, this can take 30 to 60 minutes. For a foreign buyer working through a translator, expect it to take longer.
At this point, you pay the deposit. Typically 5 to 10 percent of the purchase price. For a 3-million-yen property, that’s 150,000 to 300,000 yen. The deposit is part of the purchase price, not an additional cost. If you back out after signing, you forfeit the deposit. If the seller backs out, they pay you double the deposit as penalty.
Step 5: Due Diligence Period
Between signing the purchase agreement and the final settlement, you have time to complete your due diligence. This includes:
Title search. Your judicial scrivener (more on this person in a minute) checks the property’s registration at the Legal Affairs Bureau to confirm the seller actually owns what they’re selling and there are no liens, mortgages, or other claims against the property. For old akiya, inheritance complications sometimes surface here — the registered owner may have died decades ago, and the current seller may need to complete inheritance registration first.
Property survey. If the boundaries are unclear — and for old properties, they often are — you can commission a land surveyor. This costs 200,000 to 500,000 yen depending on the complexity. For cheap properties with clear lot lines, it’s usually skippable.
Inspection. If you didn’t hire an inspector before making the offer, this is your last chance.
Step 6: Final Settlement
Settlement day is when the money changes hands and the property changes names. Everyone meets in person — buyer, seller, both agents, and the judicial scrivener. In practice, this usually happens at a bank, because the buyer needs to hand over the remaining balance and the seller wants to see it land in their account before signing the transfer documents.
Here’s what happens:
The judicial scrivener confirms all documents are in order. You sign the transfer documents. The seller signs the transfer documents. You pay the remaining balance (purchase price minus the deposit you already paid). The judicial scrivener collects fees. Everyone bows.
For foreign buyers, you’ll need your passport and either a registered seal (inkan) or a signature certificate. More on seals below.
Step 7: Registration
The judicial scrivener takes the signed transfer documents to the Legal Affairs Bureau (法務局, houmukyoku) and files for the ownership transfer. This usually happens the same day as settlement or the next business day. Once the registration is processed, you are the legal owner. The registration is the official record — the contract is evidence of the agreement, but registration is what makes it real in the eyes of the law.
You’ll receive a registration identification (登記識別情報, touki shikibetsu jouhou) — a document with a unique code that proves you’re the registered owner. Keep this somewhere very safe. It’s the closest thing Japan has to a property deed.
Step 8: Get the Keys
Sometimes this happens at settlement. Sometimes the agent arranges a separate handover at the property. Either way, the house is yours.
The Judicial Scrivener
The judicial scrivener (司法書士, shihou shoshi) is the most important professional in the transaction after your agent. This is Japan’s equivalent of a closing attorney or conveyancer. They handle the legal paperwork, conduct the title search, prepare the registration documents, and file everything with the Legal Affairs Bureau.
You don’t choose your own scrivener — the agent or the seller’s side typically provides one. Their fee ranges from 50,000 to 150,000 yen depending on the complexity of the transaction. For a straightforward purchase with clean title, expect the lower end.
The scrivener works for the transaction, not for either party. They’re a licensed legal professional with a fiduciary duty to ensure the registration is done correctly. In my experience, they’re thorough and competent. This is one of the parts of the Japanese system that works better than its American equivalent.
The Seal Question
Japanese citizens use personal seals — hanko or inkan — for legal documents. Your registered seal (実印, jitsuin) is the one filed at city hall that you use for major transactions like property purchases.
Foreigners have two options:
Get a hanko made. Any seal shop (はんこ屋, hankoya) can carve one for you in katakana or romaji. Costs 3,000 to 10,000 yen. You can then register it at city hall if you have a residence card. A custom hanko in a nice case makes a surprisingly good souvenir regardless.
Use your signature. Foreigners without a Japanese residence card can use a signature instead of a seal. You’ll need a signature certificate — essentially a notarized document from your home country’s embassy or consulate confirming that the signature is yours. Your agent or scrivener will tell you exactly what’s needed.
Most foreign buyers purchasing on a tourist visa waiver use the signature route. If you’re living in Japan on a residence visa, getting a hanko registered is simpler and more convenient for future transactions.
Language
The purchase agreement, the Important Matters Explanation, and all registration documents are in Japanese. There is no official English version. The contract is legally binding in Japanese regardless of what language you speak.
Options for managing this:
Hire a translator to sit with you during the signing and explain each clause. Your bilingual agent may do this as part of their service. Some agents who specialize in foreign clients provide translated summaries of key documents.
Do not sign a contract you haven’t had explained to you in a language you understand. This sounds obvious. But the pressure of ceremony — sitting in a real estate office with everyone waiting, seals on the table, the scrivener ready — can push people to nod along. Don’t.
Remote Closing
Can you complete a purchase without being in Japan? Technically, yes. You can grant power of attorney (委任状, ininjou) to someone in Japan — your agent, a lawyer, a trusted friend — to sign documents on your behalf. The power of attorney needs to be notarized, and for foreign-issued documents, an apostille may be required.
In practice, most agents strongly prefer in-person closing for a first purchase. The Important Matters Explanation is supposed to be delivered face-to-face. The settlement process involves identity verification. And from the agent’s perspective, dealing with a buyer they’ve never met in person adds risk and complexity to a transaction where their commission is already small.
If this is your first property in Japan, plan to be there for the signing. You can often compress the viewing, agreement, and settlement into a single trip if you coordinate with your agent in advance.
The Timeline
A rough schedule from first contact to keys:
- Weeks 1-2: Initial property search and agent engagement
- Week 3-4: Property viewing, possibly inspection
- Week 4-5: Offer submitted and accepted
- Week 5-6: Purchase agreement signed, deposit paid
- Weeks 6-10: Due diligence, document preparation
- Week 10-12: Final settlement, registration, keys
Some purchases close faster. Motivated sellers with clean title and a cash buyer who’s already in Japan can wrap up in 30 days. Complicated inheritance situations can stretch to six months.
For a straightforward akiya purchase with a cooperative seller and a competent agent, plan on about two months from offer to ownership.