Schedule Guide for Real Estate Purchase and Moving in Japan, Suitable for Foreign Nationals

Navigating the process of buying real estate and moving in Japan can be full of uncertainties, especially for first-timers.

There are numerous tasks to handle, from moving to your new home to setting up your new life, leading to a busy period until everything settles down.

For those with families, coordinating with school or daycare schedules is crucial, necessitating thorough planning and preparation.

This guide aims to provide an overview of the schedule from purchasing real estate to moving, especially helpful for those new to this experience.

Although this is just one example, it can give you a sense of what needs to be done and by when, such as making arrangements in time for the new academic year starting in April.

Currently, I am in the process of buying a second-hand property myself, so I aim to provide helpful insights for those considering a purchase. Please check out my review on buying second-hand properties too.

Step 1: Start Looking for Properties: 1 Month

– Organizing Desired Criteria
– Selecting Properties

Let’s begin the search for properties.

The first step is to organize your desired criteria. There are various factors to consider, such as location, size, and budget.

For example, even just considering location involves proximity to the station, surrounding environment, and if you have children, school districts.

It’s often challenging to find a property that perfectly matches all your criteria, so it’s advisable to prioritize your essential needs and broaden your perspective in selecting properties.

When it comes to budget or the age of the building, set a maximum limit that you’re comfortable with, and consider properties that slightly deviate from your ideal to get a clearer image of your new home.

If you have a rough timeline for moving, it’s important to plan accordingly and allocate at least one month for the property search process.

Step 2: From Viewing to Reservation of Purchase: About 2 Weeks

– Property Viewing (Inspection)
– Checking Details and Specifications of the Property

As you search for properties, promptly apply for a viewing when you find one that meets your criteria.

Keep in mind that scheduling might need to accommodate the schedules of the real estate agent and, in some cases, the current owner, so allow about a week for flexibility.

If the property is far away, coordinate with the agent to arrange viewing multiple properties in one trip.

On the day of the viewing, it’s a good idea to arrive with some spare time to not only inspect the property but also check the surrounding area, walk to the nearest station and facilities, and envision your new life after moving.

For those who are interested, ask the agent about the finer details and specifications of the property, as well as the management rules. If necessary, arrange for a second viewing to reconfirm any points of concern.

Step 3: Application for Purchase to Contract Creation: About 2 Weeks

– Applying for Purchase
– Adjusting Contract Details
– Preliminary Loan Screening

Once you have decided on a property, you’ll apply for its purchase.

This application, also known as a purchase reservation or buying application, is a preliminary reservation based on the intention to buy.

After applying, negotiations with the seller or the real estate agency commence to agree on the purchase price, handover date of the property, and other terms. If there is a significant price gap, negotiations may take some time, so plan for at least two weeks.

If you are using a housing loan, this is typically when you would undergo a preliminary loan screening.

If you plan to include renovation costs in the loan, you should have an estimate of these costs at this stage.

If you are uncertain about the loan approval, you can apply for preliminary screenings at multiple financial institutions.

Preliminary loan screenings usually take 2-3 days, or at most a week, to process.

Note that the real estate contract cannot proceed without passing this screening in some cases.

Prepare by deciding on a financial institution and checking the required documents in advance.

Other costs to consider at this stage include the contract deposit, brokerage fees, the settlement amount for management fees and property taxes, and registration fees.

Once the purchase application is made and negotiations with the seller are successful, the creation of the contract begins.

Thoroughly review the contract document, including the terms and special provisions.

To avoid any misunderstandings or issues, inquire and confirm any uncertainties with your agent.

Step 4: Conclusion of Contract to Final Loan Review: About 1 Month

– Finalizing the Sale Contract
– Applying for Final Loan Review
– Comparing and Deciding on Fire Insurance
– Selecting a Moving Company

Finalizing the Sale Contract
Once the contract document is ready, it’s time to finalize the property sale contract. On the day of signing, you will primarily receive an explanation of the key points related to the contract.

A licensed real estate agent will explain the details about the building and contract both in writing and verbally.

While you should have thoroughly checked the contract beforehand, this is your last opportunity to confirm the contract details, so make sure to review everything carefully.

Given that many people are only available on weekends due to work commitments, it’s advisable to allow for over a month from the application to contract signing.

Regarding the handover of the property, for second-hand properties, the date is usually set in consultation with the seller and is typically about one month after signing the contract, unless there are special circumstances.

During this period, the seller will carry out repairs and cleaning of the unit as per the contract agreement.

Applying for Final Loan Review

After successfully finalizing the sale contract, the next step is to apply for the final review of the housing loan.

Generally, the review period takes about two weeks, but it can be longer depending on the loan amount.

To ensure everything is ready by the property handover date, prepare the necessary documents in advance and plan a schedule with enough leeway.

Once the final loan review is completed and the schedule for the contract date is arranged, you will finalize the loan agreement.

Then, you will prepare for moving and other tasks for your new life until the handover date.

Comparing and Considering Fire Insurance

Additionally, between concluding the contract and the property handover, you will need to arrange fire insurance and plan your move.

For fire insurance, it’s a good idea to get quotes from several companies and compare them.

If this is your first time, start preparing early, as there might be many unfamiliar aspects to consider.

Applying for Final Loan Review

After successfully finalizing the sale contract, the next step is to apply for the final review of the housing loan.

Generally, the review period takes about two weeks, but it can be longer depending on the loan amount.

To ensure everything is ready by the property handover date, prepare the necessary documents in advance and plan a schedule with enough leeway.

Once the final loan review is completed and the schedule for the contract date is arranged, you will finalize the loan agreement.

Then, you will prepare for moving and other tasks for your new life until the handover date.

Comparing and Considering Fire Insurance

Additionally, between concluding the contract and the property handover, you will need to arrange fire insurance and plan your move. For fire insurance, it’s a good idea to get quotes from several companies and compare them.

If this is your first time, start preparing early, as there might be many unfamiliar aspects to consider.

Selecting a Moving Company

When it comes to choosing a moving company, it’s important to note that busy periods, such as the start of the new school term from March to April and the long holiday in May, often result in higher rates and difficulty in securing your desired moving date.

Therefore, it is advisable to start selecting a moving company immediately after finalizing the real estate contract.

Step 5: Loan Agreement to Moving Preparation: About 2 Weeks

・Loan Agreement
・Moving Preparations

At this stage, what remains is the transfer of the property and the preparations for moving.

For moving preparations, it involves planning where to place items in the new home and packing accordingly, as well as preparing to purchase new furniture and appliances.

Particularly, items like lighting fixtures, curtains, and potentially air conditioners, which are immediately necessary, should be pre-selected. Additionally, for large appliances such as refrigerators and washing machines, or large furniture like sofas and beds, it’s crucial to ensure that delivery paths are clear and that the size is suitable for installation.

After the real estate contract, visit the site to measure installation spaces to facilitate smooth placement.

If renovation work is planned, check with the condominium management association in advance about when work can commence.

Depending on the management rules, you may need to submit plans or a work schedule to the association for approval before starting renovations, and this process can take several weeks.

To minimize the time between property handover, renovation, and moving, consult your agent or visit the management office to verify required timeframes and necessary documents.

Step 6: Handover to Moving: About 2 Weeks

・Settlement of the Remaining Amount (Loan Execution)Property ・Handover
・Real Estate Registration
・Contracts for Electricity, Gas, Water, and Internet
・Moving

Next comes the property handover. If a mortgage is involved, this is when the remaining amount (minus any deposits or down payments) is financed, often in the presence of a legal professional who will start the registration process.

Once the mortgage is executed, you’ll receive the keys, along with manuals for any equipment or appliances, officially making the property yours.

A legal professional then proceeds with the registration process. During busy periods like the end of the fiscal year, the legal offices may be crowded, and the completion of registration and receipt of documents like the registered deed can take several weeks.

After the key handover at the financial institution, visit the property to ensure everything aligns with the contract terms.

In the case of second-hand properties, check if repairs or refurbishments outlined in special conditions have been appropriately made, especially for appliances and fixtures.

If any damage or wear exceeds what was disclosed and is not consistent with natural aging, contact the real estate agent immediately to discuss further actions.

Discovering these issues after moving or renovating can lead to unnecessary and complex disputes.

Additionally, don’t forget to set up utility services like electricity, gas, and water before moving.

Gas contracts, in particular, require a technician’s presence for activation, and securing an appointment during busy times like year-end can be challenging, so it’s advisable to arrange this early.

Summary

In conclusion, this has been a quick overview of the process from searching for a property to moving in.

It’s clear that it takes at least four months for all the procedures to be completed.

For example, if you want to move in before the new fiscal year in March, you should start the process by November of the previous year at the latest, considering the long New Year holidays.

It’s important to note that the time frames mentioned are based on a smooth process without major complications, so it’s advisable to plan with even more leeway.

I’ve written an article about purchasing property in Japan. Currently, I am in the process of buying a second-hand property myself, so I aim to provide helpful insights for those considering a purchase. Please check out my review on buying second-hand properties too.

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