When purchasing a house from a real estate company or building a house, as a general rule, consumption tax is imposed on the price as the taxable base. Land is exempt from taxation, but buildings are taxable. As a general rule, buildings sold after October 1, 2019, will be subject to a 10% consumption tax on the transfer price. A brokerage fee to a real estate company is also subject to consumption tax with the amount of the fee as the taxable base. However, this excludes cases where the seller is an individual who is not a consumption taxable business operator or a tax-exempt business operator.

Tax amount = the price of the building x the tax rate of 10% (national tax 7.8% + local tax 2.2%)

It is common practice for the seller and the buyer to settle the property tax and city planning tax associated with the sale and purchase of the house. It should be noted that the settlement of taxes and public dues for the building is included in the consumption taxable amount.

The owner of the property as of January 1 shall be liable for the property tax and city planning tax. Even if the house is transferred to another party after January 1, the taxpayer will remain the same. Therefore, in the sale and purchase of real estate, including housing, it is customary to prorate the property tax and city planning tax on a daily basis based on the date of delivery and settle the taxes between the seller and the buyer.

However,  this is a "voluntary" settlement between the seller and the buyer in the purchase and sale of a house, and the tax and public dues settlement to be given and received is treated as part of the transfer price of the building. This amount is not considered taxes for tax purposes Therefore, when consumption tax is imposed on the building, the consumption tax is calculated by including the settlement of taxes and public dues paid by the buyer to the seller in the transfer consideration.

When buying a house, you will have to pay stamp tax, consumption tax, registration and license tax, real estate acquisition tax, and other taxes.

Stamp tax is a tax that is imposed on contracts when a purchase agreement for the sale of a house or a mortgage contract is signed. The  amount of tax is determined by the amount of money stated in the contract. In principle, the tax is paid by affixing revenue stamps to the contract and stamping a seal.

Stamp tax on sales contracts for the purchase of real estate such as houses and contracts for the construction of houses is reduced as follows from April 1, 2014 to March 31, 2024.

​Construction Contract Agreement

• 1,000,000 yen < The contract amount <= 2,000,000 yen -----200 yen
• 2,000,000 yen < The contract amount <= 3,000,000 yen -----500 yen
• 3,000,000 yen < The contract amount <= 5,000,000 yen ----- 1,000 yen
• 5,000,000 yen < The contract amount <= 10,000,000 yen ----- 5,000 yen
• 10,000,000 yen < The contract amount <= 50,000,000 yen ----- 10,000 yen
• 50,000,000 yen < The contract amount <= 100,000,000 yen ----- 30,000 yen
• 100,000,000 yen < The contract amount <= 500,000,000 yen ----- 60,000 yen
•  500,000,000 yen < The contract amount <= 1,000,000,000 yen ----- 160,000 yen
• 1,000,000,000 yen  < The contract amount <= 5,000,000,000 yen ----- 320,000 yen
• 5,000,000,000 yen < The contract amount ----- 480,000 yen

*​Only sales contracts for the purchase of real estate and contracts for the construction of housing are eligible for the reduction.

Point 1 Reasons for Selling a Home
There may be many reasons for selling a home, such as changes in lifestyle, family structure, circumstances or economic situations. First, list specific reasons for selling your home: e.g., wanting to move to a bigger house with kids' rooms or to move back to your hometown after retirement. Then, balance your preferences and budget (financial status), considering the timing for the move and available funds. 

This process helps you consider the sale price and timing as well as available options such as whether to buy or rent a new house and whether to rent your current home instead of selling it.

Reasons for sale

• to move into a larger house with kids' rooms 
  
• to move to a more convenient place near the city center as your children have moved out
• to move back to your hometown after retirement

Matters to be considered

• When is the best time to move?
• How much money you have on hand？
• Is there a possibility of moving back to your current home?

Point 2  The Sale Process
Once you have sorted out the reasons for selling your home, take a look at the sale process.

Step 1 Know the market price and estimate the sale price.
Once you have decided to sell you house, estimate how much you can expect to sell it for. Start by knowing the market price around the property.

Step 2: Select a real estate agent.
When selling your house, it is important to find a reliable real estate agent.

Step 3: Request an appraisal of the property value.
The relationship with the real estate company begins when you request an appraisal of the property price. Have the price of the residence to be sold assessed by an expert at the real estate company.

Step 4: Step 4 Ask the real estate company to mediate the sale　(A brokerage agreement is concluded.)
When formally requesting a real estate company to mediate the sale, a brokerage agreement is concluded. There are three main forms of brokerage agreements. Determine which agreement best serve you for your desired method of sale.
*Before putting your house on the market, a building inspection may be conducted to ascertain its condition of. You may need to sign up for the "Existing Home Sales Defects" insurance.

Step 5: Put your property on the market.
The initial selling price will greatly affect the subsequent sale activities. Decide on the price carefully based not only on your desired selling price, but also on the assessed value price of the real estate company, property sales in the surrounding area, and market trends.

Step 6 Negotiate with prospective buyers
Negotiate the terms of the sale with prospective buyers. While the price is the most important factor, proceed with the negotiation, clarifying what is and is not negotiable in terms of other conditions.

Step 7: Disclose property information.
Before closing the sale, provide as much accurate information about the property to the prospective buyer as possible. In particular, in order to prevent problems after the conclusion of a contract, it is important to faithfully inform the prospective purchaser of any defects or deficiencies in the property (referred to as "defects" in the contract). Please note that when a real estate company acts as an intermediary, it will provide a detailed explanation of the property based on the system called "explanation of important matters," so cooperate with your real estate agent in surveying the property.

Step 8: Sign a Sales Contract
Once the terms of sale are agreed upon, a sales contract is signed with the buyer. At this time, you will generally receive a deposit (contract money) of 10-20% of the property price.
Please make sure that you have read the contract carefully before signing the sales contract.

Step 9: Delivery of the real estate
In the handover procedure, apply to register the property (cancel the mortgage, transfer the ownership of the property, etc.) at the same time as receiving the purchase price.
The handling of detailed equipment and fixtures, etc., should also be thoroughly confirmed after on-site inspection with the buyer. Be careful not to omit any procedures such as tax reporting after the property has been handed over.

This Agreement is an open listing agreement from among the following three agreement types. The client is obligated to clearly indicate any licensed real estate agencies to which the client also entrusts the above transaction. If the client does not indicate any agencies to which the client concurrently entrusts the above  transaction in the Agreement, the special provisions shall be set forth herein.

• Exclusive Right-to-Sell Listing Agreement

The client may not entrust listing or agency functions for sale and purchase or exchange of the subject premises to any agencies other than the Licensed Real Estate Agency. The client may not execute an agreement for sale and purchase or exchange of the premises with any counterparty that is found by the client himself or herself. The Licensed Real Estate Agency will register the subject premises at the designated distribution system specified by the Ministry of Land, Infrastructure, Transport and Tourism.

• Exclusive Agency Listing Agreement

The client may not entrust listing or agency functions for sale and purchase or exchange of the subject premises to any agencies other than the Licensed Real Estate Agency. The client may execute an agreement for sale and purchase or exchange of the premises with any counterparty that is found by the client himself or herself. The Licensed Real Estate Agency will register the subject premises at the designated distribution system specified by the Ministry of Land,
Infrastructure, Transport and Tourism.

• Open Listing Agreement

The client may entrust listing or agency functions for sale and purchase or exchange of the subject premises to any agencies other than the Licensed Real Estate Agency. The client may execute an agreement for sale and purchase or exchange of the premises with any counterparty that is found by the client himself

The Client entrusts listing for sale and purchase (exchange) of the premises described in Schedule (Subject Premises), and the Licensed Real Estate Agency undertakes the entrustment, under the Agreement and the open listing contract clauses.
     (mm)     (dd),      (yyyy)

Client
Address: ____________________
Name: _________________     (Seal)

Licensed Real Estate Agency
Main Office
License Number:  ____________________
Address: ____________________
Name: _________________
Representative Director: _________________
Office in charge of the Agreement
Address: ____________________
Name: _________________
Responsible Person: _________________

1. Agencies other than the Licensed Real Estate Agency to which the Client entrusts the transaction above
Trade name or name of licensed real estate agencies / Address of their main offices

2. Client’s obligation to issue notice
(1) The Client shall notify the Licensed Real Estate Agency to which the Client concurrently entrusts listing or agency functions for sale and purchase or exchange of the Subject Premises other than the agency described in the paragraph 1 above during the effective term of this Open Listing Agreement.
(2) The Client shall immediately notify the Licensed Real Estate Agency of the fact that an agreement for sales and purchase or exchange of the Subject Premises is executed with a counterparty that is found by the Client himself or herself or through listing or brokerage by any agencies other than the Licensed Real Estate Agency during the effective term of this Open Listing Agreement.
(3) Upon failure to issue the notice indicated in items (1) and (2) hereof, the Licensed Real Estate Agency may demand reimbursement of expenses from the Client under the open listing contract clauses.
3. Licensed Real Estate Agency’s duties related to execution of the agreement
(1) The licensed Real Estate Agency shall coordinate the terms and conditions of an agreement with the counterparty, among other actions, and endeavor to realize execution of the agreement.
(2) The licensed Real Estate Agency shall immediately notify the Client of the fact that an agreement for sales and purchase or exchange of the Subject Premises is offered.
4. Licensed Real Estate Agency’s duties related to listing
The Licensed Real Estate Agency shall execute the actions stated Article 3 as well as perform the following duties:
(1) The Licensed Real Estate Agency shall express opinions about the price to be traded or assessed value for the Subject Premises, if any, to the Client by clearly indicating the reasons;
(2) Upon entrustment of purchase or acquisition of the Subject Premises by the Client to the Licensed Real Estate Agency, the Licensed Real Estate Agency shall ensure that the real estate transaction specialist shall issue to the Client a written statement of the material facts as provided in Article 35 of the Building Lots and Buildings Transaction Business Act to which the specialist attaches his or her signature and seal before the execution of an agreement for sale and purchase or exchange of the Subject Premises;
(3) Upon execution of an agreement for sales and purchase or exchange of the Subject Premises, the Licensed Real Estate Agency shall immediately prepare written statements as provided in Article 37 of the Building Lots and Buildings Transaction Business Act and issue them to the Client and
the counterparty of the agreement after the real estate transaction specialist attaches his or her signature and seal thereto;
(4) The Licensed Real Estate Agency shall assist the Client in implementation/management of registration, payment and other procedures related to delivery of the Subject Premises; and
(5) Other provisions:

5. Mediation of property inspector (Applicable / Not Applicable)
6. Registration with the designated distribution system (Applicable / Not Applicable)
Designated distribution system with which registration is made:
* Real Estate Information Network System (REINS)
7. Effective term
for _____ months after execution of the Open Listing Agreement (until [mm] [dd], [yyyy])
8. Agreed-upon commission fee:
total amount of                     yen (amount excluding consumption tax and local consumption tax) and Consumption Tax yen (total amount of consumption tax and local consumption tax)
9. Time for payment/receipt of the agreed-upon commission fee:
It shall be           consultation                                                                 
10. Special provisions: 
____________________​____________________​__________

Schedule
Owner
Address: ____________________
Name: _______________

Registered right holder
Address: ____________________
Name: _______________

Address: ____________________
Description of the Subject Premises
Land

• Actually measured area: _____ ㎡
• Officially registered area: _____ ㎡ 

• Land category: housing land / rice field / cultivated land / mountains and forest / land for other purposes / other (                )
• Contents of rights: ownership / land leasehold right

Building

• Building area: _____ ㎡
• Total area: _____ ㎡
• Type: __________
• Structure: _____ structured/framed _____ -roofed with __ stories
• Floor plan: __________

Condominium

• Name:__________ floor, room number: _____
• Type:__________ LDK / DK Exclusive area: _____ ㎡
• Structure: _____ structured/framed __-story building
• Co-ownership interest: (e.g., one-third)

Premise price: __________ yen
Total amount of consumption tax and local consumption tax: __________ yen
Listing price: Total __________ yen
Notes:

(However, for the listing agreement for entrustment of purchase, the following schedule may be used.)​

Suggested terms and conditions
Items 

• Type of premises: Description / Permissible degree of compromise
• Price: Description / Permissible degree of compromise
• Area, floor plan, etc.: Description / Permissible degree of compromise
• Address of premises: Description / Permissible degree of compromise
• Other terms and conditions (Describe how much the Client can compromise on the terms and conditions above.):  ______________________________

​Note: Indicate “Non-permissible,” “Permissible to a limited extent,” “Permissible depending on terms and conditions,” etc. in the column “Permissible degree of compromise.”

Article 1. Purpose
The purpose of these Clauses is to clarify the matters that should be provided upon execution of the open listing agreement for sale and purchase or exchange of a housing land or building and the matters that shall be observed mutually by both parties thereto in performance of the agreement.
Article 2. Description of the parties hereto and definition of the terms
1. For the purposes of these Clauses, among the parties to the Open Listing Agreement, the client shall be described as the “Client” and the real estate agency to which the Client entrusts the transaction shall be described as the “Licensed Real Estate Agency.”
2. For the purposes of these Clauses, the “Open Listing Agreement” shall mean the listing agreement under which the Client may concurrently entrust listing or agency functions for sale and purchase or exchange of the housing land or building that is the subject matter of the Client’s entrustment (the “Subject Premises”) to any agencies other than the Licensed Real Estate Agency.
Article 3. Description, etc. of the Subject Premises
The description necessary for identifying the Subject Premises and the price to be traded for, or assessed value for exchange of, the Subject Premises (the “Listing Price”) shall be set forth in the Schedule to the Open Listing Agreement.

Article 4. Indication of real estate agencies to which the Client concurrently entrusts the transaction
1. When the Client concurrently entrusts listing or agency functions for sale and purchase or exchange of the Subject Premises to any agencies other than the Licensed Real Estate Agency, the Client shall clearly describe the agencies to the Licensed Real Estate Agency.
2. The trade names or names of, and addresses of the main offices of, any real estate agencies to which the Client has already entrusted the transaction at the time of execution of the Open Listing Agreement shall be set forth in the Open Listing Agreement. When the Client entrusts the transaction to additional agencies other than the Licensed Real Estate Agency after execution of the Open Listing Agreement, the Client shall notify the Licensed Real Estate Agency of them.
Article 5. Duties of the Licensed Real Estate Agency
The Licensed Real Estate Agency shall coordinate the terms and conditions of an agreement with the counterparty, among other actions, and endeavor to realize execution of the agreement as well as perform the following duties:
(1) The Licensed Real Estate Agency shall express opinions about the Listing Price, if any, to the Client by clearly indicating the reasons in determination of the Listing Price;
(2) Upon entrustment of purchase or acquisition of the Subject Premises by the Client to the Licensed Real Estate Agency, the Licensed Real Estate Agency shall ensure that the real estate transaction specialist shall issue to the Client a written statement of the material facts as provided in Article 35 of the Building Lots and Buildings Transaction Business Act to which the specialist attaches his or her signature and seal before the execution of an agreement for sale and purchase or exchange of the Subject Premises;
(3) Upon execution of an agreement for sales and purchase or exchange of the Subject Premises, the Licensed Real Estate Agency shall immediately prepare written statements as provided in Article 37 of the Building Lots and Buildings Transaction Business Act and issue them to the Client and the counterparty of the agreement after the real estate transaction specialist attaches his or her signature and seal thereto;
(4) The Licensed Real Estate Agency shall assist the Client in implementation/management of registration, payment and other procedures related to delivery of the Subject Premises; and
(5) The Licensed Real Estate Agency shall perform any other duties set forth in the Open Listing Agreement.

 Article 6. Advice, etc. on change in the Listing Price
1. When the Listing Price is considered inappropriate due to change in land value or other prices or circumstances, the Licensed Real Estate Agency shall give advice on change in the Listing Price by clearly indicating the reasons.
2. When the Client changes the Listing Price, the Client shall notify the Licensed Real Estate Agency of this. In this case, any increase in the Listing Price (or reduction in the Listing Price where the Client entrusts purchase or acquisition of the Subject Premises to the Licensed Real Estate Agency) shall be subject to approval of the Licensed Real Estate Agency.
3. When the Licensed Real Estate Agency withdraws the approval as described in the preceding paragraph hereof, the Licensed Real Estate Agency shall indicate the reasons therefor.
Article 7. Mediation of property inspector
When the Listing Agreement provides the mediation of property inspector, the Licensed Real Estate Agency shall introduce the inspector to the Client.
Article 8. Effective term
The effective term of the Open Listing Agreement shall be determined upon negotiation between the parties hereto to the extent not exceeding three (3) months.
Article 9. Registration with the designated distribution system
When the Open Listing Agreement provides that the Subject Premises shall be registered with the designated distribution system, the Licensed Real Estate Agency shall register the Subject Premises with the designated distribution system set forth in the Open Listing Agreement.

Article 10. Demand for remuneration
1. Upon execution of an agreement for sale and purchase or exchange of the Subject Premises through the listing by the Licensed Real Estate Agency, the Licensed Real Estate Agency shall be entitled to demand from the Client payment of remuneration; provided, however, that when such an agreement for sale and purchase or exchange of the Subject Premises is executed as an agreement with conditions precedent, the Licensed Real Estate Agency shall be entitled to demand remuneration only upon satisfaction of the conditions.
2. The amount of remuneration described in the preceding paragraph hereof shall be determined upon negotiation between the parties hereto to the maximum limit of the amount provided in the Notification of the Ministry of Land, Infrastructure, Transport and Tourism.
Article 11. Time for payment/receipt of remuneration
1. The Licensed Real Estate Agency may not receive remuneration described in paragraph 1 of the preceding article hereof (the “Agreed-upon Remuneration”) unless the Licensed Real Estate Agency prepares a written statement as provided in Article 37 of the Building Lots and Buildings Transaction Business Act and delivers it to the parties to the agreement executed.
2. When an agreement for sale and purchase or exchange of the Subject Premises is executed with the condition subsequent that if a loan is not obtained to appropriate it for the trading price or the difference from exchange of premises, the agreement is terminated and the loan is not ultimately obtained, the Licensed Real Estate Agency shall immediately refund to the Client any Agreed-upon Remuneration that it received; provided, however, that no interest accrues with respect to the refund. Additionally, when an
agreement for sale and purchase or exchange of the Subject Premises is executed with the condition that if a loan is not obtained the Client may terminate the agreement and the loan is ultimately not obtained and the Client terminates the agreement for it, the same shall apply.

Article 12. Expenses for special demands
Any costs and expenses for advertising or business trips to remote places made upon special demand from the Client on the Licensed Real Estate Agency shall be borne by the Client, which shall pay the actual costs and expenses incurred by the Licensed Real Estate Agency upon demand.
Article 13. Direct dealing
When the Client executes an agreement for sale and purchase or exchange of the Subject Premises with a counterparty that the Client gets to know through the introduction of the Licensed Real Estate Agency during the effective term of the Open Listing Agreement or within two (2) years of expiration of the effective term of the Open Listing Agreement to the exclusion of the Licensed Real Estate Agency, the Licensed Real Estate Agency shall be entitled to demand from the Client pro-rated payment of reasonable remuneration
in accordance with the contribution to execution of the agreement made by the Licensed Real Estate Agency.
Article 14. Demand for reimbursement of expenses
1. When the Client entrusts listing or agency functions for sale and purchase or exchange of the Subject Premises to any real estate agencies that are not made known to the Licensed Real Estate Agency by the Client during the effective term of the Open Listing Agreement, and an agreement for sale and purchase or exchange of the Subject Premises is then executed through listing, etc. by such agencies, the Licensed Real Estate Agency may demand from the Client reimbursement of any costs and expenses incurred for performance of the Open Listing Agreement.
2. The amount of costs and expenses as described in the preceding paragraph hereof shall not exceed the amount of the Agreed-upon Remuneration.

Article 15. Client’s obligation to give notice
1. When an agreement for sale and purchase or exchange of the Subject Premises is executed by and between the Client and a counterparty that is found by the Client himself or herself or through listing by or agency functions of any agencies other than the Licensed Real Estate Agency during the effective term of the Open Listing Agreement, the Client shall immediately notify the Licensed Real Estate Agency of this.
2. Upon the Client’s failure to give notice as provided in the preceding paragraph hereof, the Licensed Real Estate Agency may demand from the Client reimbursement of any costs and expenses incurred and disbursed by the Licensed Real Estate Agency for administrative work for the Open Listing Agreement on behalf of the Client after the execution of the agreement for sale and purchase or exchange of the Subject Premises as described in the preceding paragraph hereof without knowledge of the fact that the agreement was executed.
Article 16. Renewal
1. The effective term of the Open Listing Agreement may be renewed under agreement between both parties hereto.
2. When the effective term of the Open Listing Agreement is renewed, the Client shall express the intent to renew it in writing to the Licensed Real Estate Agency upon expiration of the effective term.
3. When no other agreement is made regarding the terms and conditions of the Open Listing Agreement by and between the parties hereto at the time of renewal of the effective term pursuant to the provisions of the preceding two paragraphs hereof, an agreement with the same terms and conditions as those of the existing Agreement shall be deemed to be executed.
Article 17. Termination of the Agreement
When either party fails to perform any of the obligations provided in the Open Listing Agreement for and according to the purposes of the Agreement, the other party may give notice demanding performance of it within a reasonable period specified by the other party and, if the defaulting party fails to perform it for the specified period, may terminate the Open Listing Agreement.
Article 18.
When any of the following cases apply to the Licensed Real Estate Agency, the Client may terminate the Open Listing Agreement:
(1) The Licensed Real Estate Agency violates the obligation to perform the duties with respect to the Open Listing Agreement sincerely and in good faith;
(2) The Licensed Real Estate Agency does not inform the Client of any material facts related to the Open Listing Agreement intentionally or through gross negligence or informs the Client of any untrue or false facts; or 
(3) The Licensed Real Estate Agency engages in wrongful or significantly unjustifiable acts with respect to the business pertaining to building lots and buildings transaction business.

Article 19. Elimination of Antisocial Forces
The real estate agency and the client hereby give assurance to the other party regarding the following matters.
(1)It is not an organized crime group, its member or quasi-member as stipulated in the Act on Prevention of Unjust Acts by Organized Crime Group Member.
(2) It is not a subversive organization, its executives, staff or members as stipulated in the Subversive Activities Prevention Act.
(3) Not allowing its name to be used by an organized crime group for concluding the Listing Agreement on the subject real estate properties.
(4) Not engaging in the following acts with respect to the Listing Agreement on the subject real estate properties by itself or via a third party, before delivery of the subject real estate properties.
a. Acts that utilize threatening languages and/or acts, and/or violent acts directed toward the other party
b. Obstructing business activities or damaging the credit of the other party by fraudulent means or force
2. If any of the following items applies to either the Seller or the purchaser, the counter party may cancel the Sales and Purchase Agreement for the subject real estate properties without an advance notice.
a. It is found that a declaration that breaches the assurance of (1) of the preceding paragraph took place
b. It is found that an agreement that breaches the assurance of (2) of the preceding paragraph was concluded
c. It is found that an act that breaches the assurance of (3) of the preceding paragraph took place
3. The Purchaser hereby provides assurance to the Seller that neither it nor any third party will allow the subject real estate properties to be used as an office or a base of activities for organized crime groups.
4. In the event the Purchaser breaches the stipulation of the preceding paragraph, the Seller may cancel the Sales and Purchase Agreement for the subject real estate properties without an advance notice.
5. In the event the Sales and Purchase Agreement for the subject real estate properties is canceled pursuant to the provisions of paragraph 2 or 4, the canceled party as a penalty shall pay to the other party an amount equivalent to 20% of the sale price. In the event damages exceed the penalty amount, the canceled party shall also compensate the other party the said amount in excess.
6. In the event the Sales and Purchase Agreement for the subject real estate properties is canceled pursuant to the provisions of paragraph 2 or 4, the canceled party shall make no claim to the other party concerning damages arising out of the cancelation.
7. In the event the Purchaser breaches the provisions of paragraph 3 and the subject real estate property is recognized as having been used as an office or a base of activities of an organized crime group, and accordingly the Seller cancels the Sales and Purchase Agreement for the subject real estate properties, the Purchaser shall pay to the Seller an amount equivalent to 80% of the sale price as a fine, in addition to the penalty indicated in paragraph 5.
Article 20. Special provisions
1. Any matters not provided in these Clauses may be separately provided upon negotiation between the parties hereto.
2. Any special provisions contrary to the provisions of the respective articles of these Clauses that are disadvantageous to the Client shall be null and void.

There are a number of laws and regulations concerning real estate.
While it may not be necessary to thoroughly understand all the laws and regulations, it is very important to have basic knowledge of them so that we can deal with them safely and without any trouble. Major laws and regulations related to real estate are listed below.

1. Laws regulating real estate companies

• Real Estate Brokerage Act
• Act on the Promotion of Proper Management of Condominiums
• Act on the Proper Management of Rental Housing

2. Advertising laws and regulations

• Real Estate Brokerage Act
• Fair Competition Code Concerning the Description of Real Estate

3. Laws and regulations concerning contracts for sale, purchase, lease, etc.

• Civil Code
• Real Estate Brokerage Act
• Act on Land and Building Leases
• Consumer Contract Act

4. Laws related to rights

• Civil Code
• Building Unit Ownership Law (for condominiums)
• Land and Building Lease Law (for lease)
• Law Concerning the Reconstruction and Facilitation of Operation of Condominiums (for condominiums)

5. Laws related to land use

• City Planning Act
• National Land Use Planning Act

6. Laws concerning the construction of buildings

• Building Standard Law (for new construction and renovation)
• Act on Promotion of Long-Term Quality Housing
• Law Concerning the Promotion of Low Carbon Cities

7. Laws concerning real estate registration

• Real Estate Registration Law

8. Laws related to condominium management

• Building Unit Ownership Law
  
• Act on the Promotion of Proper Management of Condominiums

9. Laws concerning non-conformity (e.g., defects) in housing contracts

• Civil Code
• Real Estate Brokerage Act
• Act on Promotion of Housing Quality Assurance
• Act on Securing the Execution of Liability for Specified Housing Defects

10. Laws concerning vacant houses

• Act on Special Measures concerning the Promotion of Measures for Vacant Houses

The National Tax Agency on July 1 announced the roadside land prices for FY2022, which are used as the basis for calculating inheritance tax and other taxes. 

The national average of the standard residential land assessment value rose 0.5% from a year earlier, which was the first upward shift in two years. The previous year (2021) recorded a 0.5% decline. The average in Kyoto Prefecture, which had dropped due to the COVID-19, also turned upward for the first time in two years, reflecting expectations for a recovery in tourism and other factors.

While no prefecture recorded an increase of 5% or more in 2022 (as in 2021: 0 prefecture), the number of prefectures with an increase of less than 5% was up to 20 (7  in 2021). The number of those with a rate of decline of less than 5% was down to 27  (39 in 2021).

​The National Tax Agency calculates the value per square meter of land facing a major road as of January 1 of each year, and this value is the basis for calculating inheritance and gift taxes.

The highest roadside land price in prefectural capitals was Ginza 5-chome, Chuo-ku, Tokyo, on Ginza Chuo Street at 42.24 million yen per square meter (down 1.1% from the previous year), which topped the land price list for the 37th consecutive year. In second place was Kakuda-cho, Kita-ku, Osaka City, on Midosuji Street at 18.96 million yen (down 4.0%), and in third place was the land  facing the street in front of the Yokohama Station West Exit Bus Terminal (Minami-Saiwai 1-chome, Nishi-ku, Yokohama City) at 16.56 million yen (up 3.0%) . The ranking of the top three remained unchanged, and of the top 10 cities, the land price increased in 6.

In Kyoto Prefecture, the average of 7,856 locations rose 0.2% compared to last year. Last year marked the first decline in seven years due to the COVID-19, but this year the market has picked up. ​This is believed to be due to anticipation of a recovery in tourism after the spread of COVID subsides and the growing demand for condominiums.

Under the jurisdiction of the 13 taxation offices in the prefecture, the highest roadside land prices, which are the highest in terms of assessed value, rose in five locations, remained unchanged in six locations, and fell in two locations.

The largest increase was on Shijjo Street in Otabi-cho, Shimogyo-ku, at 6.73 million yen, up 3.1% from last year. This was the highest assessed value for the 31st year in a row. The next highest were 6.48 million yen on Kawaramachi Street in Yoneya-cho, Nakagyo-ku, up 3% from last year, and 740,000 yen on Shijo Street in Saiin Takayamaji-cho, Ukyo-ku, up 2.8%. On Shijo Street, Takayamadera-cho, Saiin, Ukyo-ku, the land price rose 2.8% to 740,000 yen.

References:
https://www.re-port.net/article/news/0000069562/
https://www3.nhk.or.jp/lnews/kyoto/20220701/2010014734.html

路線価図
https://www.rosenka.nta.go.jp/index.htm

A person who pays incomes subject to withholding tax in Japan to a non-resident or foreign corporation (hereinafter referred to as a "non-resident") must, in principle, withhold income tax and special income tax for reconstruction from the payment.

When a person who has a domicile, residence, or office in Japan makes domestic-source-income payment outside Japan to a non-resident, the payment shall be deemed to be made within Japan, and withholding tax shall be imposed.

​Withholding tax is calculated by multiplying the amount of domestic source income paid by the tax rate. In some cases, such as public pensions, the amount of tax is calculated by multiplying the amount of payment by the tax rate after deducting a predetermined amount.

When payment is made in a foreign currency to a non-resident, tax withholding shall be made after converting the payment into yen. In general, the exchange rate is based on the telegraphic transfer rate on the due date, but unless there is a significant delay in payment, the telegraphic transfer rate on the date of actual payment may be applied.
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Domestic source income subject to withholding tax and the tax rates are as follows:
(1) Transfer of land, etc.: 10.21 percent
(However, tax withholding is not required if the consideration for the transfer of land, etc. is 100 million yen or less and is paid by an individual who acquires the land, etc. for his/her own use or for the use of his/her relatives as a residence.)
(2) Rent of real estate, etc.: 20.42 percent
(However, tax withholding is not required for the rent of real estate, etc., paid by an individual who rents such real estate, etc. for his/her own use or that of his/her relatives.)

Please note that when a tax treaty has been concluded between Japan and the country in which the non-resident resides, the aforementioned tax rate may be exempted or reduced in accordance with the provisions of the tax treaty.

In order for such exemption or reduction to be applied, a "Notification Concerning Tax Treaty" and other relevant forms must be submitted via the payer of the domestic source income to the district director of the tax office that has jurisdiction over the payer's place of tax payment  at least one day before the date of payment.

Please also note that special income tax for reconstruction does not need to be withheld if the tax rate stipulated in the applicable tax treaty is less than or equal to the aforementioned rate.​

The income tax and special income tax for reconstruction collected at the source shall be paid, in principle, by the 10th day of the month following the month of collection, at the nearest financial institution, at the local tax office, or via e-Tax. The payer is to attach a "statement of income tax collection from non-residents and foreign corporations (payment form)" and for redemption gains of discount bonds (margin profit amounts) and  income from the transfer of listed shares, etc. in custody in a special account and dividends in an elective withholding account, a statement of income tax collection from such gains and profits (payment form).

In cases where payment of domestic source income is made outside Japan and tax withholding is deemed to be made in Japan because the payer has a domicile or residence in Japan or has an office, place of business, or other equivalent in Japan, the due date for payment of income tax and special income tax for reconstruction is the last day of the following month, not the 10th of the following month, in consideration of administrative procedures.

Under Japan's Income Tax Law, a "resident" is defined as an individual who has a "domicile" in Japan or has continuously had a "residence" in Japan for at least one year, and an individual other than a "resident" is defined as a "non-resident."

​A "domicile" refers to "an individual's base of life," which is determined by objective facts. Therefore, a "domicile" is determined by where a person's activities are centered around.

In certain cases, a "presumption of domicile" will be made based on a person's occupation and other factors. Therefore, a "place of residence," which is defined as "a place where a person actually resides,  may differ from the person's "base of life."

As for a corporation, the location of its head office or main office determines whether it is a domestic or a foreign corporation, and such determination is based on its registration and the articles of incorporation (generally referred to as the "head office domicile principle").

Table 2: Other Facilities and Equipment
Table 2 shows the availability of those other than the main facilities and equipment listed in Table 1 along with the details of any known malfunctions and defects thereof.

​Lighting
Indoor lighting fixtures: Yes/No (Total number: __)
Outdoor lighting fixtures: Yes/No
Storage
Storage cabinet: (built-in cupboard / electric lift cupboard / hanging cupboard) Yes/No
Storage space: (underfloor storage / ceiling storage /_____) Yes/No
Shoe rack: Yes/No
Fittings and fixtures
Screen door: Yes/No
Storm shutter: Yes/No
"Tatami" mat/"fusuma" sliding door: Yes/No
Door: Yes/No
"Shoji" sliding door: Yes/No
Television equipment
Terrestrial TV antenna: Yes/No
Satellite antenna: Yes/No

Facilities and Equipment marked with "Yes"（有）in Note 2 was designated as a specific maintenance product (9 items) as of April 1, 2009, based on the Consumer Product Safety Law and its enforcement ordinance, as it is highly likely to cause a serious accident due to deterioration over time.  However, due to the revision of the enforcement ordinance, as of August 1, 2021, the specified maintenance products are now two items: oil-fired water heater  and oil-fired bath boiler.
(1) For specific maintenance products (oil-fired water heaters and oil-fired bath boiler), the Seller should inform the Buyer of the following.
① The owner's information (registration or change) is required for the inspection of specific maintenance products by the manufacturer.
② The applicable product must be inspected during the inspection period set by the manufacturer.
③ ​The contact information for the manufacturer is shown on the product.
(2) For the seven items excluded from the specific maintenance products -- indoor (city/LP) gas instant water heaters, indoor (city/LP) gas bath boiler, FF oil-fired hot-air heater, built-in electric dishwasher/dryer, electric bathroom ventilator/dryer -- for which the inspection period began before July 27, 2022 (excluding those inspected before August 1, 2021 and those whose inspection period has passed),  the Seller should inform the Buyer of  the above: (1) ①②③.

The Seller has notified the Buyer that the facilities and equipment of the property are as described above.
Seller's name: _____ (personal/company seal)
The Buyer has been notified by the Seller as described above .
Buyer's name: _____ (personal/company seal)

Facilities and Equipment List (for Land and Buildings) (Property Name: _____)
Any facilities and equipment marked "Yes"（有）in the "availability of facilities and equipment" column will be delivered by the Seller to the Buyer in their present conditions. Please be aware that the facilities and equipment to be delivered may have the malfunctions and defects listed below in the "details of known malfunctions and defects" column, as well as deterioration in performance, scratches, dirt, etc., resulting from age and use.
"No"（無）in the "availability of facilities and equipment" column indicates that there is no such facilities/equipment or that they will be removed by the Seller prior to the time of delivery.

Table 1: Main Equipment and Facilities
Table 1 shows the availability of main facilities and equipment along with the details of any known malfunctions and defects thereof. 

​Hot water supply equipment 
Water heater  

• ​Electric/gas/oil/solar: Yes/No

Hot water supply available in: kitchen/bathroom/washroom
⇒ Labeled as a specific maintenance product (Note 2): Yes/No 

• Indoor gas water heater (independent): Yes/No

⇒ Labeled as a specific maintenance product (Note 2): Yes/No 

Water-related facilities
Kitchen facilities

• Sink: Yes/No
• Mixer tap: Yes/No
• Ventilation fan: Yes/No
• Stove (electric/gas): Yes/No
• Grill (electric/gas): Yes/No
• Built-in oven (electric/gas): Yes/No
• Built-in dishwasher and dryer (electric/gas): Yes/No

​​⇒ Labeled as a specific maintenance product (Note 2): Yes/No 

• Water purifier: Yes/No
• Garbage disposer: Yes/No

​ Bathroom facilities

• Shower: Yes/No
• Mixer tap: Yes/No
• Bathtub (reheating / adding hot water / keeping the water warm / filling the bathtub)
• Bathroom  sink (with/without a mirror): Yes/No
• Indoor bath boiler (balanced-flue-system bath boiler): Yes/No

⇒ Labeled as a specific maintenance product (Note 2): Yes/No 

• Bathroom dryer: Yes/No

​⇒ Labeled as a specific maintenance product (Note 2): Yes/No 
Washroom facilities

• First floor (sink/lighting/shower/outlet/mirror/ anti-fog coating): Yes/No
• Second floor (sink/lighting/shower/outlet/mirror/ anti-fog coating): Yes/No

Toilet facilities

• First floor (toilet bowl/warm-water bidet/heated seat/air dryer/low tank/hand-wash basin/_____): Yes/No
• Second floor  (toilet bowl/warm-water bidet/heated seat/air dryer/low tank/hand-wash basin/_____): Yes/No

Laundry facilities

• Waterproof pan: Yes/No
• Laundry faucet: Yes/No

Air conditioning-related equipment
Heating and cooling equipment (electric/gas/oil): Yes/No
Installation location: _____ Total: _ unit(s)
Cooler: Yes/No
Installation location: _____ Total: _ unit(s)
Heater: Yes/No
Installation location: _____ Total: _ unit(s)
⇒ Labeled as a specific maintenance product (Note 2): Yes/No 
Floor heater: Yes/No
Installation location:  _____ Total: _ unit(s)
Ventilation fan: Yes/No
Installation location: bathroom/washroom/toilet/_____ 
24-hour ventilation system: Yes/No
Others
Intercom (with/without a monitor): Yes/No

Remarks: 

Property Condition Confirmation Form 
(Notice for Land  & Building  / Land) (Property Name: __________)
⑭ About retaining walls
Yes/No
Direction: (Direction) side / □ Owner:  Seller □ Neighboring landowner □ Shared □ Unknown
Direction: (Direction) side / □ Owner:  Seller □ Neighboring landowner □ Shared □ Unknown
Written agreement: Yes/No
Disputes: Yes/No
Details:_____
Cracks or other defects: Found / Not found
Condition:
⑮ Ground subsidence/softening
 Found / Not found
Condition: _____
⑯ Soil contamination
History of non-residential use of the site (stores, factories, etc.)
Yes/No/Unknown
(Month/Year Used as:_____)
Other information on soil contamination: Yes/No/Unknown
⑰ Underground deposits
□ Not found 
□ Found / □Previous building foundations □ Construction waste □ Septic tank □ Well □ Other: _____
Location / Details: _____
⑱ Noise, vibration, odor, etc.
Yes/No/Unknown
Details: _____
⑲ Electromagnetic interference
Yes/No/Unknown
Condition: _____
⑳ Flooding and other damage
​Yes/No/Unknown
Condition: _____

㉑ Neighborhood building plans
Yes/No/Unknown
​Details: _____
㉒ Surrounding facilities that may affect the property for sale
​Yes/No/Unknown
​Details: _____
㉔ Neighborhood agreements
Yes/No/Unknown
​Details: _____
㉕ Other matters to be passed on from the Seller to the Buyer: _____
​Remarks:

Month/Date/Year

The Seller has notified the Buyer that the condition of the Property is as described above.
The name of the Seller: _____ (personal/company seal)
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The Buyer has been notified by the Seller as described above.
The name of the Buyer: _____ (personal/company seal)