- Phase 1 Provide an estimate on expenses and taxes related to property purchase, as well as a projected yield estimate in case of investment.
- Phase 2 Search for properties which meet your criteria utilizing Mitsui’s extensive network covering the whole nation.
- Phase 3 Arrange and accompany you in tours of properties you have chosen. Answer questions about conditions of properties both physical and legal as well as surrounding environment.
- Phase 4 Inspect the property of your choice, help you negotiate with the seller, and prepare transaction contracts including a purchase & sale agreement.
- Phase 5 Following the execution of the purchase & sale agreement, advise you on settlement of the remaining purchase costs and expenses, and prepare for closing including transfer of title.
- Phase 6 After closing, help you prepare for move-in including transfer of utility contacts such as power, city gas, water/sewer, and telephone.
Phase 1Financial plan
When you plan for purchasing a property, you will need to budget for "other expenses" such as taxes, brokerage commission and fees in addition to the actual property price. The total amount of these expenses equals roughly 6-8% of the property price.
(B)Breakdown of Other Expenses
You will be required to pay for the following expense as the purchase transaction progresses.
|Revenue stamps are required to be affixed to The agreement for purchase and sale of real estate as well as to the loan agreement.|
|Loan fees typically include a loan processing fee, a loan guarantee fee, and other fees.|
|Fire insurance premium, etc.|
|Property Registration Tax and Fees|
|The amount of annual property tax will be calculated based on the 1.4% of the standardized assessed value of a property. You will pay a pro-rated amount of the annual property tax for the first year in accordance with the number of the days of your ownership of the property.|
|City and Planning Tax|
|The City and Planning Tax is assessed at 0.3% of the standardized assessed value. The amount for the first year will be pro-rated in accordance with the number of days of your ownership of the property.|
|The amount of the Brokerage Commission is determined and stipulated in your contract with a realtor of Mitsui Fudosan Realty. The amount shall include both general and regional sales taxes.|
|Real Estate Acquisition Tax|
|For residential property, the amount of the Real Estate Acquisition Tax is 3% of the assessed-value of a property.|
|Expense of relocation; moving out and moving in, etc.|
※ Please contact us for details.
Phase 2Information gathering
(A) Property Search
When you buy any property, it is critical that you research and collect as much information as possible. An understanding of the location, price, floor plan, access to public transportation, etc., is necessary to identify your ideal property.
To gather such information, you may find advertisements in newspapers, magazines, flyers, inserts, and internet web sites as helpful tools. However, the most important thing in gathering property information is to find a reliable real estate broker who can provide updated and credible information about various properties that meet your criteria.
(B) Mitsui Fudosan Realty Information Service
Mitsui Fudosan Realty can serve your needs on demand as professional information data base that has been established through extensive experience and knowledge gathered through close networking with local communities. You will find the Mitsui Fudosan Realty's data base full of exhaustive and exclusive property information and helpful to satisfy your needs.
Phase 3On-Site visit
(A) Site Visit
After reviewing the property information and having found a property that you may consider buying, the next step is to visit and see the property in person. And our staff will accompany you and provide you with detailed on-site information. Viewing the property is the most effective way to survey the actual conditions and neighboring environment of the property that you may not necessarily find on the listing.
(B) Property Inspection Checklist
When viewing a property, compare closely what is shown and described in flyers and ads with what you actually see. Carefully check for stains and other physical aspects that may pose problems in such conditions as exposure to the sun, natural ventilation and so on that are not clear from the drawings, ads, floor plans, etc. In addition, it is important that you view the property from the standpoint of each member of your family.
(C) Area Observation Checklist
It is very important that you check out the surrounding environment. Make sure you check the distance to the closest station from 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.
Phase 4Transaction contract
Making an Offer to Sign a Contract
Once you find a property that you wish to purchase, your next step is to make a purchase proposal. You will fill out an "Application to Purchase a Property", and hand it to your broker for negotiation with the seller. The broker will negotiate 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. After both parties agree on all issues, the broker will explain any relevant law and other issues related to the transfer of title.
Explanation of “Important Matters regarding the Property and Transaction”
In accordance with the "Disclosure Statement of Important Matters regarding the Property and Transaction", a licensed and certified broker shall explain to 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 case of cancellation.
You should understand each clause of the Disclosure Statement and ask your broker for any clarification.
Signing the Purchase and Sale Agreement
The final step is for the seller and buyer to sign the Real Estate Purchase and Sale Agreement. 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. Once parties sign the Agreement and the buyer makes a down payment, the Agreement comes legally into effect. From that point on, the transaction will be conducted in accordance with the provisions set forth in the Agreement. Both parties are obligated to carry out the contractual obligations stipulated in the Agreement. If either party fails to fulfill their contractual obligations, a penalty may be imposed on the breaching party. Therefore, it is strongly recommended that both parties clearly understand each and every provision before signing the Agreement to avoid default and payment of any penalties.
What you will need when signing the Purchase and Sale Agreement
- Certificate of Signature or Registered personal seal (Dated within the past three months)
- Down payment (Advance confirmation of the payment method is recommended)
- Funds to cover the Stamp Duty fee (The fee depends on the purchase price of the property)
- 50% of the brokerage commission and, separately, general sales tax and regional sales tax.
* The documents you need will differ depending on your case. For details, please contact us.
Phase 5Closing and Handover of property
(A) Steps to Finalize the Transaction
- 1Verification of the contents of the registration forms
- 2Payment of the outstanding balance
- 3Payment of property tax and other fees
- 4Other Payments (e.g. outstanding balance on brokerage commission or other service fees)
- 5Receipt of documents (e.g. warranties, confirmation of property lines, bylaws of the homeowner’association)
- 6Delivery of keys
(B) Required Documents and Fees at the Final Payment
To close a purchase and sale transaction, you will need the following at the time of the final payment. Depending on the type of property that you have purchased, specific documents and fees are required. The following shows a list of fees and documents required for residential property purchases. For other types of property, information is available at Mitsui Fudosan Realty Center on demand.
- Outstanding balance due on the purchase price of the property
- Outstanding balance of the brokerage commission
- Registration fee (Property Registration & License Tax, handling service fee charged by a judicial scrivener)
- Property Tax, City and Planning Tax, Home owners' Association / Property Management fees and other charges.
*These amounts will be pro-rated based on the number of the days of ownership.
- Certificate of Signature or Registered personal seal (Dated within the past three months) which required only when a mortgage lien is recorded on the property title.
* The documents you need will differ depending on your case. For details, please contact us.
(C) 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.
(A) Checklist for Relocation
- Begin purging your home. Separate items into those you will keep, donate or discard.
- Notification to your municipal ward office of your move.
- Cancellation and new application of utilities- electricity, gas, telephone, etc.
- Notice of address change to banks, insurance companies, etc.
- Notification of your children's school transfer, and application to enroll in a new school district/schools.