Japan property-buying checklist
A stage-by-stage checklist from budget to closing, covering financing, diligence, contracts, inspection, and post-purchase tasks.
Work through five stages — budget and credit, preapproval and search, offer and important-matters review, contract and final approval, inspection and closing — then complete the post-purchase tax and insurance tasks.
Key points
- Do not make an offer before preapproval and a clear financing-condition clause.
- Read the explanation of important matters early, not minutes before signing.
- For a used home, commission an independent inspection where practical.
- After closing, file the first-year mortgage-deduction return and note defect deadlines.
Stages 1–2: budget, credit, preapproval, search
Budget: set a maximum purchase price, a maximum monthly housing outflow (mortgage plus tax, management, reserve, insurance, parking, utilities, and repairs), and a minimum post-closing cash reserve. Credit: check your CIC and JICC records, avoid new debt and repeated applications, and gather withholding slips and tax certificates. Preapproval: obtain preliminary screening (事前審査) so you know your realistic budget. Search: use multiple portals and agents, treat listings as discovery only, and evaluate area — commute, schools, medical care, noise, redevelopment, zoning, slope, and flood/landslide/tsunami/liquefaction exposure using MLIT’s Real Estate Information Library.
Stages 3–4: offer, important matters, contract, final approval
Offer: submit a purchase application (買付証明書) clarifying price, deposit, financing condition, closing date, included fixtures, and inspection/renovation access. Important matters: obtain the 重要事項説明 documents early and review title, road access, zoning, hazards, utilities, leasehold, management, deposits, and cancellation. Contract: sign the purchase agreement and pay earnest money (手付金, commonly 5–10% but not universal), understanding the financing-condition clause and cancellation rights. Final approval: submit the contract, important-matters explanation, tax and income documents, identity and residence records, property documents, and insurance/health declarations for full underwriting.
Stage 5 and after: inspection, closing, post-purchase
Inspection: for a used home, commission an independent qualified inspector; remember a lender appraisal is not a structural inspection and no inspection guarantees no hidden defects. Closing: pay the balance, receive lender disbursement, take keys and possession, and let the judicial scrivener file ownership and mortgage registrations — confirm vacant possession, utilities, prorated taxes and fees, and no unexpected encumbrances. After: file tax claims including the first-year mortgage-deduction return, change your address, retain the contract and cost evidence, note defect-notification deadlines, establish a repair reserve, and review insurance annually.
Who this is for
- Buyers who want a concrete step list
- First-time buyers coordinating agents and lenders
What this is not
- A substitute for professional legal review
- A checklist reduces mistakes but does not replace a licensed broker, judicial scrivener, and — where needed — an inspector and tax accountant.
Frequently asked questions
What is a financing-condition clause?
A contract term governing cancellation and deposit return if specified financing fails.
How large is earnest money?
Negotiated; 5–10% is common market practice but not universal.
Does inspection guarantee no hidden defects?
No. It reports on what is visible and measurable at the time.