Making the Final Decision to Purchase
What to consider when applying for purchase
Once you have decided on the property you want to buy, before making an offer to purchase, double-check that the property meets your requirements and that there are no problems before making an offer to purchase.
Proceed with the transaction carefully, referring to the following points when making an offer to purchase.
Point 1: Decide on a property to purchase and make an offer to purchase.
Once you find a property you like, discuss terms and conditions in detail. Do not hesitate to ask the real estate company for information you would like to know about the property, and also thoroughly check the property and confirm any points of concern during the site visit. While consulting with the real estate company, make your desired purchase conditions specific. Once the basic conditions have been established, present the conditions to the seller and make an offer to purchase.
At this stage, basic conditions such as the desired purchase price and desired delivery date are often presented first. However, if there are other prerequisites for the purchase in addition to the basic conditions, they may be presented. In the case of a used property, you may also request for repairs to the property.
Point 2: What is the process from purchase application to negotiation?
The negotiation process after submitting an offer to purchase differs between new properties for sale and used properties.
For new properties for sale
Generally, applications to purchase a new property for sale are made at the local sales office. When offering to purchase a property, you are often required to pay what is known as an "application deposit" (approximately 50,000-100,000 yen).
The application deposit is paid to show that the intention to purchase is genuine (i.e., that it is not a "pretense"), and when the contract is executed, it is applied to the deposit and the purchase price of the property.
However, the legal nature of the application deposit is not always clear, and there are many troubles surrounding its return. Therefore, if you are asked to pay the application deposit, be sure to confirm the handling of the application deposit and receive a certificate of deposit, etc. that states the purpose of the money transfer (that the money was transferred as the application deposit), the amount, and the date of payment.
After paying the application deposit and submitting an application to purchase, you will proceed with the specific procedures up to the purchase, such as confirming property information and contract terms in more detail.
For used properties
In the case of used properties, the application for purchase (presentation of basic conditions) is often made in the form of a document called a "certificate of purchase" or similar document, which is given to the seller through the real estate agency.
A certificate of purchase is a document signed and sealed stating the basic terms of purchase, such as the desired purchase price, payment terms, and desired delivery date, and is a request for the start of preferential individual negotiation, based on the specific purchase desire, "I want to buy this property under these terms and conditions. Note that in the case of used properties, payment of an application deposit, etc., is generally not required.
Subsequently, if the seller, based on the conditions presented by the prospective purchaser, determines that a contract is viable, formal individual negotiations will begin. Since the seller narrows down the negotiating parties to some extent at this stage, it is important to proceed with subsequent negotiations in good faith. In individual negotiations, differences in terms and conditions between the two parties are adjusted, and more specific terms and conditions are determined.
Point 3: Is it possible to withdraw after application?
It is possible that after an application for purchase (presentation of basic terms and conditions), the buyer may wish to withdraw the application due to disagreement on various terms and conditions after specific negotiations have been conducted. In such a case, it is generally possible to withdraw the application as long as a purchase agreement has not been concluded. In addition, an application deposit, if paid, will be refunded.
However, you should keep in mind that the seller, especially of a pre-owned property, has begun individual negotiations based on a certain degree of likelihood that a contract will be concluded. Be very careful when withdrawing your application, because if you are found to be dishonest, you may have a problem with the seller.
Arrows International Realty Corp.